Chengdu Rainbow Logistics Co., Ltd.
Chengdu, China Site Visit
November 6, 2015
By
Eric Xiang

Key Personnel:
Mr. Yang Zhixiang, General Manager
Ms. Huang Xuefeng, Financial Director

Chengdu Rainbow Logistics Co., Ltd. (RNB Logistics) was founded in 2009 and is headquartered Chengdu. Besides Chengdu, RNB Logistics has offices and warehouses in Chongqing and Longquan, Sichuan province with a total staff of 50 employees. Its initial business focus was handling freight forwarding imports. Today, RNB Logistics provides both freight forwarding and e-commerce logistics. According to General Manager, Yang Zhixiang, the business is 50% freight forwarding and 50% e-commerce logistics.

RNB Logistics manages a 15,000 square meter warehouse in the Xindu District of Chengdu, a 4,000 square meter warehouse in Chongqing, and a 6,000 square meter warehouse in Longquan.  It has five owned trucks and more than 50 dedicated trucks that are subcontracted.

RNB Logistics provides logistics services for ChemChina, CSIMC, Nippon Oil and other well-known companies in Chengdu. RNB Logistics has long relationships with these customers.

For e-commerce logistics, most of its customers sell their goods on Tmall.com, JD.com and VIP.com, which are three big e-commerce platforms in China. More than 50 brands use RNB Logistics’ services in Chengdu and Chongqing.

Information technology is very important for e-commerce logistics. Therefore, RNB Logistics has a good warehouse management system (WMS) to meet its customers’ requirements.

It uses the Made4net WMS and radio frequency identification (RFID) labels in its warehouses. It is very easy to manage more than 2,000 stock keeping units (SKUs). Mr. Yang Zhixiang believes that teamwork, benchmarking and IT are key for e-commerce logistics.

RNB Logistics has recently starting providing just-in-time (JIT) service for automotive parts. Since this is a new service, we’ll need time to observe if RNB Logistics can become successful at it.

From our visit, we can tell that RNB Logistics has solid warehouse management experience. All of the goods are sorted and packaged very well. Most of the e-commerce shipments are delivered by express companies SF Express and STO Express. RNB Logistics provides the tracking status to the customers.

Cross-border e-commerce will have great potential in China. RNB Logistics will put more focus on cross-border business.
RNB Logistics is small but different than your traditional logistics company. With its good warehousing experience and development in e-commerce logistics, we foresee RNB Logistics becoming a key player for e-commerce logistics in Chengdu and Chongqing.

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