Beijing Wuhuan Shuntong Logistics Center
Beijing, China Site Visit
April 5, 2013
Mr. Wang Shan, Deputy General Manager
Beijing Wuhuan Shuntong Logistics Center is a state-owned company that started providing warehousing services in 2001. Today, with 100 employees, it is a warehouse manager and also provides cold chain distribution.
It has two warehouses near South Wuhuan Road, south of Beijing. One warehouse is 30,000 square meters and the other one is 10,000 square meters. Both warehouses are temperature controlled and 24-hour temperature records can be printed. They are a nice option for food storage. There are also CCTV (closed-circuit television) cameras in the warehouses for security.
Beijing Wuhuan Shuntong Logistics Center has 30 refrigerated trucks and distribution throughout the Beijing city area can be arranged very easily. The temperature in all of the trucks can go as low as -18°C for cold chain distribution. Most of the trucks have two separate spaces to handle different temperatures. The front space is at -18°C to handle food, and the back space is at 4°C to handle other goods such as packaging and other materials. This is a good option for customers since they can use the trucks to transport food and other materials at the same time and avoid the cost of using two trucks. Some of the trucks are divided into three separate spaces to handle three temperature levels (-18°C, -10°C and 4°C). All of the trucks have printers so 24-hour temperature records can be printed. They are also GPS (global position system) equipped.
One of Beijing Wuhuan Shuntong Logistics Center’s key customers is KFC. It started business with KFC in 2004. KFC bread is picked up from the factory and distributed to the final KFC stores. It has maintained this long-term cooperation with KFC because of good performance. It also provides logistics services for Starbucks as a distribution manager of chocolate. In addition, it is a distribution manager of French fries for Simplot, a supplier for McDonald’s.
Because Beijing Wuhuan Shuntong Logistics Center provides high quality services, it receives recognition from some Japanese companies as well. In 2011, it started as a warehouse and distribution manager in Beijing for Kewpie, a Japanese food manufacturer. According to Mr. Wang Shan, some Korean companies are also interested in cooperation.
Other than food, the 10,000 square meter warehouse is for wine storage. ASC Wines is a customer.
Beijing Wuhuan Shuntong Logistics Center provides transportation from Beijing to Shanghai and Yantai, but does not have its own distribution network in Shanghai or Yantai.
Although Beijing Wuhuan Shuntong Logistics Center is not a big company, it is high quality cold chain logistics services provider. Since top brands are using its services, we expect it has a good reputation in the market.
Sources: A&A Primary Research, http://www.whstwl.com/