Chengdu Ant Logistics Co., Ltd.

Chengdu, China Site Visit

February, 2014

By

Eric Xiang

Key Personnel:

Mr. Tu Dong, Marketing Director

Chengdu Ant Logistics Co., Ltd. is a Chengdu-based company that started in the house moving business in 1996. Today, Ant Logistics is a key logistics provider in West China with 20 branch offices. It has a total of 3,000 employees. A third of them are based in Chengdu. Ant Logistics is still a well-known brand for house moving in China’s domestic market.

Ant Logistics runs a 30,000 square meter warehouse and has 200 owned trucks. Its primary market includes the main cities along side of the Yangtze River such as Shanghai, Chongqing, Wuhan, etc.

Ant Logistics is skillful in communicating with its customers to learn about their furniture before moving in order to select the best packaging material and protect the furniture. Ant Logistics has provided services to film and TV stars which has helped in marketing its services. Currently, Ant Logistics handles 500 shipments daily.

Distribution is also provided by Ant Logistics. It has strong facilities in Chengdu and Chongqing. IKEA is one of its customers in Chengdu. Ant Logistics arranges the deliveries from IKEA’s warehouse to the consumers’ door.

In addition, Ant Logistics provides temperature controlled services, especially for vegetables. It transports vegetables from farm to the supermarket using temperature control. For example, it transports purple potatoes from Chengdu to Beijing.

In China, e-commerce is very popular and logistics is a major bottleneck for the sellers, especially in West China. Ant Logistics is involved in e-commerce logistics. Its customers include GOME, Suning, and Yixun.

Ant Logistics invested in its IT systems to provide a better experience to its customers such as two dimension codes/QR codes. It is very easy for customers to track shipments.

Ant Logistics has a good sales team focused on providing value-added services instead of being the cheapest cost, so its profit margin is remarkable. Its weakness is that the company does not have strong owned network in South China which it needs to focus on to develop more business and get stronger.

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