Xiamen Hongxin International Logistics Co., Ltd.
Xiamen, China Site Visit
January 29, 2016
By
Eric Xiang

Key Personnel:
Mr. Dai Gang, CEO
Mr. Lin Wenliang, General Manager – Warehousing and Distribution

Xiamen Hongxin International Logistics is a third-party logistics provider focused on transportation, warehousing and distribution in China. Headquartered in Xiamen, Hongxin Logistics has nearly 50 branch offices and more than 300 employees. It is a key player in the FMCG (fast moving consumer goods) industry in China.

In the FMCG industry, transportation time is important. Hongxin Logistics has a lot of experience in managing subcontracted trucks and has access to more than 3,000 of them.

In addition, Hongxin Logistics runs a large warehousing network in China to meet the distribution requirements of its customers. It manages 500,000 square meters of warehousing space. In order to provide efficient distribution, Hongxin Logistics set up eight RDCs (regional distribution centers) in China: Guangzhou and Nanning in Southern China, Shanghai in Eastern China, Beijing and Shenyang in Northern China, Chengdu in Western China, and Wuhan and Zhengzhou in Central China.

All shipments among the RDCs are full truckload shipments. Shipments from the RDCs to end stores or consignees, are both full truckload and less-than-truckload.

Because of its many years of logistics experience in the FMCG industry, it has a solid customer list which includes: Anheuser-Busch InBev, Coca-Cola, Nongfu Spring, Kraft Foods, Danone and Wanglaoji Health.

To improve business between buyers and sellers, Hongxin Logistics has an O2O (online to offline) platform to link the buyers and sellers. For instance, Shangtangwang.com is for the sugar industry and Hxgreenlink.com is for green foods. These platforms are B2B (business-to-business). Hongxin Logistics helps customers find the right partner and save on purchase cost. In turn, these platforms increase business for its logistics operations. The right partners, professional experience, and lower cost is a win-win-win for all parties involved.

As eCommerce business gets more popular in China, most of the FMCG brands need to set up online sales centers for their consumers. Hongxin Logistics provides Cloud Warehouse and Distribution service to its customers which can also help its customers in providing efficient service to their consumers. Its regional warehousing network is a benefit to these customers.

According to Mr. Lin Wenliang, Hongxin Logistics is interested in investors to help it develop in FMCG and eCommerce logistics as it needs capital to strengthen its warehousing and distribution network in China.

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