Guangzhou KCL Logistics Co., Ltd.

Guangzhou, China Site Visit

September 19, 2015

By

Eric Xiang

Key Personnel:

Mr. Kevin Zhang, Chairman

Guangzhou KCL Logistics is a contract logistics specialist. It provides warehousing and distribution of fast-moving consumer goods (FMCG) to retailers, shopping malls, restaurant chains and e-commerce buyers. Chairman, Mr. Kevin Zhang, founded the company in 2005. It has early 50 employees. Its market area is within Guangdong province (primarily the cities of Foshan, Guangzhou, Shantou, Shenzhen and Zhanjiang).

KCL Logistics operates a 15,000 square meter warehouse and an 8,000 square meter warehouse in Guangzhou and a 2,000 square meter warehouse in Shenzhen. Most shipments are distributed via less-than-truckload (LTL). The main retailers served are Wal-Mart, Carrefour, CR Vanguard, and RT-Mart. KCL Logistics provides driver training to ensure quality delivery services are provided.

KCL Logistics’ customers include global brands such as Heinz, Heineken, and Nestle as well as Chinese brands Huiyuan Juice, Tiandi No.1, and Evergrande Spring. Haidilao, a well-known Chinese food chain, uses KCL’s services. Since Haidilao has a good reputation in China, we can trust that KCL puts a lot of focus on providing superior service.

E-commerce has strong growth in China and e-logistics is very popular. KCL can provide the services required for handing e-commerce business. For example, Toshiba’s after-sales department is selling parts for appliances. All the buyers (after-sales service agents) purchase the parts via the internet through Toshiba’s webstore. The buyers are located in more than 400 destinations. KCL arranges the warehousing and delivery to the buyers according to Toshiba’s instructions. The operation includes pick/pack, booking with couriers, tracking the shipment and providing status updates to the customer.

For its e-commerce business with Heinz, KCL handles thousands of shipments every month. The warehousing is provided by KCL, and the deliveries are handled by courier/express companies in which KCL has had good experience.

In order to provide quality services for warehousing and e-commerce business, KCL has invested heavily in its systems including a warehouse management system and transportation management system.

Although the company is not very big, Kevin Zhang has strong ambitions for future development. He puts a lot of attention on human resources and the company provides great training to its staff.

KCL does plan on expanding to other cities outside of Guangdong province. Investment banks are approaching KCL for a possible IPO in the future, so KCL welcomes any investors who have interest in logistics.

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