Chengdu Rush Logistics Co., Ltd.
Chengdu, China Site Visit
March 30, 2016
Mr. Luo Peng, General Manager
Mr. Duan Zhihui, Business Development
Chengdu Rush Logistics Co., Ltd. (Rush Logistics) is a state-owned company headquartered in Chengdu. It was founded in 1998 providing paper distribution. In 2008, it expanded its distribution business to include other products. Its core business is distribution in Sichuan province. Today, Rush Logistics has 3,000 employees covering 129 stations.
Rush Logistics has a central distribution center (CDC) in Longquan of Chengdu. The CDC is 4,000 square meters. All shipments picked up from the customers’ warehouse are sorted and distributed from the CDC. Rush Logistics has over 100 trucks for pickup and delivery. Rush Logistics also operates 12 regional distribution centers (RDCs) in the main cities of Sichuan province. Trucks are arranged daily to run between the Longquan CDC and the 12 RDCs. Each station arranges the trucks to pick up the shipments from the RDC.
If the end customer is located in the Chengdu city area, Rush Logistics can arrange same-day delivery. If the end customer is located within 200 kilometers from the CDC, Rush Logistics can do same-day delivery if pickup is completed by 9:00 A.M. If delivery is over 400 kilometers from the CDC, transit time will be 48 hours or two-day delivery.
Since all of the stations are owned offices and all 3,000 employees are full-time, Rush Logistics can provide COD (Cash on Delivery) service. This helps its customers develop more business.
As Rush Logistics is a key player with an efficient distribution network in Sichuan, it has a good customer base. The well-known O2O (Online to Offline) platforms Vip.com and Tmall.com are using Rush Logistics in Sichuan. Rush Logistics has a special team to serve Meituan.com. Huiji Foods also uses Rush Logistics as its key logistics provider.
Rush Logistics has a good TMS (transportation management system) to make sure all shipments are under control. All the trucks are GPS equipped to make sure the shipments can be picked up and delivered on time.
Rush Logistics plans to build a distribution network in Guangzhou and Chongqing as it wants a strong distribution network in Western China. The population in Western China is large providing good potential for e-commerce business. Rush Logistics also plans to run an O2O platform, which will be a good option for small and medium sized e-commerce retailers.
As a state-owned company, Rush Logistics has a good background for capital and further development. At the same time, it is hard for Rush Logistics to develop joint ventures. All the stations and branches will be owned offices.
Sources: A&A Primary Research, http://www.cdljs.com/