Guangzhou Rongchang Logistics Co., Ltd.
Guangzhou, China Site Visit
November, 2015
By
Eric Xiang

Key Personnel:
Mr. Xie Nanping, Managing Director
Mr. Wei Junyan, Manager

Guangzhou Rongchang Logistics Co., Ltd. (Rongchang Logistics) was founded in Guangzhou in 1997. It has more than 600 employees working in Guangzhou, Shenzhen, Dongguan, Beijing, Tianjin and Shijiazhuang. Rongchang Logistics’ representative offices cover 80 cities in China.

Rongchang Logistics handles both full truckload (FTL) and less-than-truckload (LTL) shipments through eight transit centers in Guangzhou, Beijing, Tianjin, Shanghai, Nanjing, Chengdu, Chongqing and Xi’an. For LTL shipments, Rongchang Logistics is a key player in the lanes between the Guangdong Pearl Delta Area and North China (Beijing, Tianjin and Hebei province). The company owns 25 trucks and also has access to more than 200 dedicated, subcontracted trucks for long-haul transportation. Guangzhou is the operation center and the main destinations are Beijing, Tianjin, Nanjing, Shanghai, Chengdu and Chong. For LTL shipments, Rongchang Logistics operates special flight routes through its trucking service. The routes run between Guangzhou and Beijing, Tianjin, and Shanghai and between Dongguan and Beijing and Tianjin. The transit time of the route between Guangzhou and Shanghai is 28 hours, and the transit time of other routes is 36 hours. Rongchang Logistics provides competitive rates and transit times so it can get expand its cargo volume in LTL consolidation.

For all of the LTL shipments, Rongchang Logistics arranges pickup from the door to avoid additional cost and control the transit time.  All shipments are insured for loss and damage claims.  Real-time tracking and tracing and booking via the internet is available for all shipments.

When the shipment is delivered, the customer will receive an arrival notice via Rongchang’s transportation management system (TMS) with an SMS/text message. Rongchang Logistics will also provide a proof of delivery (POD) to the customer, if needed.

Rongchang Logistics provides cash on delivery (COD) service, which helps its customers collect payment from the consignee. Most of its LTL shipments have COD terms. COD is popular in e-commerce in China as most of the consumers do not want to pay until the goods are received. This provides Rongchang Logistics with a good opportunity to develop eCommerce logistics.

General Manager, Mr. Xie Nanping, has over 20 years of experience in logistics and a strong reputation in the market. Well-known Chinese companies such as Gree, Midea, and Digital China as well as multinational companies like Procter & Gamble and Hitachi are customers of Rongchang Logistics. If Rongchang Logistics can focus more attention on e-commerce logistics and expand its network in China, it will be a competitive logistics service provider of both LTL and TL inland transportation.

Sources: A&A Primary Research, http://www.gzrc56.com/