Shanghai Heyi Logistics Co., Ltd.
Shanghai, China Site Visit
July 31, 2015
By
Eric Xiang

Key Personnel:
Mr. Larry Li, CEO
Ms. Change Chen, Market Director
Ms. Lynn Lin, BD Manager

Shanghai Heyi Logistics Co., Ltd. is a logistics provider focusing on e-commerce logistics with strengths in warehousing and information technology. Founded in 2006, it is headquartered in Shanghai with branch offices in Wujiang, Huzhou, Guangzhou, Chengdu and Tianjin and has a staff of 700. The company does business under the brand name FineEx (the Chinese name of FineEx is FaWang).

FineEx’s founder and CEO, Larry Li, has over 14 years of IT experience providing information systems to logistics companies. As information technology is important in e-commerce logistics and e-commerce has been a fast growing market in China for the past eight years or so, FineEx has found the right opportunity.

FineEx operates 120,000 square meters of warehouse space in six regional distribution centers (RDCs) located in cities of Shanghai, Guangzhou, Tianjin, Huzhou, Chengdu and Wujiang. The FineEx Operation Centers are located in Shanghai and Guangzhou, and the FineEx Research Centers are located in Shanghai and Chengdu. At peak performance, FineEx can handle 300,000 shipments per day.

FineEx has its own warehouse management system and transportation management system. In the warehouse, FineEx provides value-added services such as pick/pack, sorting, packaging, etc.

For shipments from the warehouse to the consumers, FineEx uses courier/express companies such as FedEx, SF Express and STO Express covering 2,866 destination cities in the distribution network. More than 200 customers are using FineEx, so it is easy to negotiate with the carriers because there’s substantial cargo volume. FineEx has good experience in coordinating with the carriers and key performance indicator (KPI) management skills.

For example, during its peak week, which starts November 11 (Double Eleven is like Black Friday for holiday shopping in US and Boxing Day in UK), most of the e-commerce shipments are normally delayed two to seven days or more. But FineEx has created a solution for managing Double Eleven. FineEx adds additional part-time warehouse staff. Training starts a month in advance and the inventory and packaging materials are planned a week in advance. All the packages going from RDC to RDC are transported via truckload making final distribution from the destination RDC to end consumer less than 24 hours. During the week of Double Eleven in 2014, FineEx handled 1.8 million shipments without delay.

To encourage its customers (e-commerce sellers) to promote its services, FineEx provides special services for on-time returns and/or exchanges and timely reimbursement for lost and damaged goods. This encourages consumers to use the sellers’ service. Its customer list includes: Fairwhale, Esprit, Jockey, Unilever, Fisher Price, Dove and Nestle.

Cross-border business is a hot market in China and FineEx has facilities in the China (Shanghai) Pilot Free-Trade Zone so it is prepared to handle cross-border business including customs clearance. FineEx received a second round of venture capital in 2013, and the investor, TCI, has good connections with some of the global retailers. As more and more sellers from overseas will do e-commerce business in China, FineEx is a fine e-commerce logistics provider for them to work with.

 

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

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