Suzhou Zhonghui International Logistics Co., Ltd.
Suzhou, China Site Visit
December 27, 2012
By
Eric Xiang

Key Personnel:
Mr. Li Xianzhong, General Manager

Suzhou Zhonghui International Logistics Co., Ltd. is a fairly new company established in Suzhou in 2010. Its parent company, Shanghai Mingxun Logistics Co., Ltd., started providing transportation services in 1995 and was registered in 2003. There are 580 employees in the Mingxun group. Its gross revenue is around $60 million with Suzhou Zhonghui International Logistics generating about 10% of the business.

Mingxun Logistics provides both truckload (TL) and less-than-truckload (LTL) transportation and can provide door-to-door delivery for all shipments. Its largest cargo volume is between Shanghai and Guangdong. In Shanghai, Mingxun Logistics operates a 2,000 square meter warehouse and has 30 of its own trucks for transportation.

Mingxun Logistics has branch offices in Changzhou, Chengdu, Chongqing, Fuzhou, Guangzhou, Guiyang, Shenzhen, Suzhou, Wuhan, Xiamen, etc., but uses a different company name (brand). Mr. Li Xianzhong, in charge of the Suzhou branch, said the reason a different company name (brand) is used is due to financial issues. This helps save on costs and tax expenses.

In Suzhou, Zhonghui International Logistics already has strong growth as it generated about $6 million in gross revenue in its first fiscal year. Mr. Xianzhong has a deep understanding of the market and built good relationships with local customers. For example, he secured key account Jiahe Foods. Zhonghui International Logistics has excellent service in the Suzhou market. If customers need logistics services in other cities, the branches communicate to coordinate the service. The Mingxun group pays a lot of attention to customer service. According to Mr. Xianzhong, BASF Shanghai and Shanghai Baoling Chemical are also on its key account list. The Mingxun group has maintained long-term relationships with them because it continues to meet their requirements.

In the future, the Mingxun group will develop further in Chengdu, Chongqing, Guizhou and Yunnan as more and more customers have business in western China.

Mingxun Logistics is different than other local TL and LTL providers because of its qualified service, attention to customer demands, and sales skills in the market due to the strong backgrounds and experience of its team. All of its long-term customers are continuous and more and more new customers are being added. We believe Mingxun Logistics will continue to grow as well as the Suzhou branch led by Mr. Xianzhong.

Sources: A&A Primary Research, http://www.szzhonghui.net/