P.G. Logistics Group Co., Ltd.
Guangzhou, China Site Visit
December 19, 2014
Mr. Lu Lixin, Executive President
Ms. Tracy Liu, Vice Director – Marketing Management Department
P.G. Logistics Group Co., Ltd. (PGL Logistics) is a well-known logistics company in China. The company was founded in 1994 with headquarters in Guangzhou. The name P.G. Logistics comes from its first key account, Procter & Gamble (P&G). Its cooperation with P&G has contributed greatly to P.G. Logistics’ growth. Currently, it has 2,300 employees working in the company’s 86 branch offices in China.
PGL Logistics is a contract logistics provider. Its main customer targets are medium and large sized manufacturers. It’s focusing on customer development in seven areas:
1. Fast-Moving Consumer Goods (FMCG)
2. Food and Beverage
3. Appliances and Consumer Electronics
4. Garments and Clothing
5. Building Materials
6. Chemicals and Hazardous Goods
7. Automotive Parts
For FMCG, Unilever, Amway, Mary Kay and more than 20 other companies are customers. PGL Logistics provides transportation and warehousing for these customers. For Food and Beverage, famous brands like Red Bull are on its customer list. PGL Logistics has a good relationship with appliance and consumer electronics companies such as TCL, Midea and other large, Chinese manufacturers. In Chemicals and Hazardous Goods, PGL Logistics can handle hazardous goods classes 2, 4, 6 and 8. Sinopec, CNPC and Henkel are key customers.
Other than contract logistics, PGL Logistics is developing business in e-commerce. Its main targets are small and medium sized companies with Business-to-Business (B2B) or Business-to-Consumer (B2C) business and the aftermarket products of large companies.
According to Executive President, Mr. Lu Lixin, PGL Logistics plans to develop in supply chain management, LCL transportation, and city-to-city transportation in the coming years. For these three products, it is working on hiring the right team to develop the business. A merger or acquisition is a backup option all the way. Mr. Lu Lixin is the former General Manager of Annto Logistics and joined PGL Logistics at the beginning of this year.
PGL Logistics considers that management skills are important for a company’s further development. In March 2014, PGL Logistics started using IBM as a management consultant. It is cooperating with IBM to promote the level of company management.
Sources: A&A Primary Research, http://www.pgl-world.com/