Hangzhou Furi Logistics Co., Ltd.

Hangzhou, China Site Visit

December 3, 2012

By

Eric Xiang

Key Personnel:

Mr. Zhang Bin, Deputy Manager

Hangzhou Furi Logistics Co., Ltd. is a key logistics provider focused on transportation and warehousing in the province of Zhejiang. It has a total of 450 employees at its Hangzhou headquarters and branch offices in Guangzhou and Yangzhou. Founded in 2001, Furi Logistics has over 10 years of transportation and warehousing experience in Hangzhou and the Zhejiang market.

Furi Logistics has 300,000 square meters of warehouse space including 10,000 square meters of cold storage space that can reach -23°C. Most of its customers use its warehouse as a regional distribution center (RDC) in Zhejiang. Warehousing constitutes nearly half of its annual gross revenue.

Furi Logistics has good customer base. Asia Pulp & Paper, Bright Dairy and Panasonic are a few of Furi Logistics’ customers, as well as electrical appliance retailers GOME and Suning. According to Deputy Manager, Mr. Zhang Bin, its monthly cargo volume is around 1,000 tons.

For transportation, Furi Logistics has 200 of its own trucks. Some are used for distribution in Zhejiang and others are used for transportation to cities outside of the province. All trucks are controlled by GPS (global positioning systems) and the transit time is under control as well. Furi Logistics has a Cargo Information Tracking team to monitor all the trucks and shipments. Most of the shipments handled are LTL (less-than-truckload) within the Hangzhou city area and FTL (full truckload) for other areas including Zhejiang and areas outside of the province.

Since investing in trucks is such a large investment, Furi Logistics has an internal truck investment policy that is open to employees. If an employee is interested, it can purchase a truck and Furi Logistics will rent the truck from the employee. The employee can get back the payment within three years. Of course, the company can continue to rent the truck from the employee after three years, and the employee will get the net profit from that time. This is win-win between the company and its employees.

In order to improve its profit margin, Furi Logistics has its own offices in Guangzhou and Yangzhou which secure more return cargo going back to Hangzhou.

According to Mr. Zhang Bin, Furi Logistics has a small team for international freight forwarding and can handle some import and export air and ocean shipments, if needed.

We know Furi Logistics is a key logistics service provider in Hangzhou; however, there is a long way to go to be a key player in the China market. In order to be more competitive, Furi Logistics needs to build a strong network. This can help in securing more customers and becoming more profitable.

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