Saiyu International Logistics (Shanghai) Co., Ltd.
Shanghai, China Site Visit
January 29, 2016
Mr. Li Suping, Deputy General Manager
Saiyu International Logistics (Shanghai) Co., Ltd. (Saiyu Logistics) is a long-haul transportation provider founded in 2007 and headquartered in Shanghai with solid facilities in Western China. More than 280 employees work in the company. As a key transportation provider between Eastern China and Western China, Saiyu Logistics has seven branch offices located in Chengdu, Chongqing, Kuning, Wulumuqi, Lanzhou, Yinchuan and Guiyang. Its Shanghai head office covers the Eastern China market including Shanghai, Jiangsu and Zhejiang.
Saiyu Logistics has over 100 owned trucks for its long-haul trucking service. In peak season or when additional capacity is needed, Saiyu Logistics uses trucks from subcontractors. For warehousing, Saiyu Logistics has 7,000 square meters of space for loading and unloading in Shanghai, 3,000 square meters in Chengdu and Chongqing, and 1,000 square meters at each station in other cities.
Saiyu Logistics handles both less than container load (LCL) and full container load (FCL) shipments between Eastern China and Western China and all are city to city direct service. Saiyu Logistics doesn’t have a regional distribution center for break bulk. This makes sure the transit time is under control and makes the run time longer so each truck can generate more revenue. In order to provide door to door service, Saiyu Logistics arranges small sized trucks to pick up from shippers’ door or deliver to consignees’ door. All of the stations can cover distribution within 2-400 kilometers, including using local agents’ distribution networks. Saiyu Logistics has good experience in distribution network management.
With seven owned offices in Western China, Saiyu Logistics will develop the business among these seven cities in Western China during the next three years. The target is to be a strong transportation provider in Western China. At the same time, Saiyu Logistics is developing business in Northern China with a start from Shanghai to Beijing and Tianjin. Also, Shanghai to Guangdong has begun as Southern China is a big market for transportation. Currently, Saiyu Logistics doesn’t plan to develop the network in Northern and Southern China as it needs time to make sure the current development is under control.
As a transportation company, Saiyu Logistics services both direct customers and other third-party logistics providers. Nearly 70% of its business comes from 3PLs and the rest comes from direct customers. Sinotrans and China Post Logistics are using Saiyu Logistics between Shanghai and Western China. Saiyu Logistics supports 3PLs in providing service to Bayer, HP, Acer, Asus, Nike, Samsung and other famous brands. In addition, SEMIR is using its service as well as Foxconn. Saiyu Logistics has a big opportunity to provide transportation service to Foxconn in China.
Saiyu Logistics’ weakness is that it doesn’t have a strong system in order to match customers’ requirements. Saiyu Logistics keeps its customers up-to-date by sending cargo status updates twice daily via email.
Saiyu Logistics has a good start between Eastern China and Western China. It will have good development in Western China as Saiyu Logistics is a professional transporter in Western China. If it could build a strong network in Northern China and Southern China, it will be perfect.
Saiyu Logistics does plan to do an initial public offering in the coming years. Any investor with experience in logistics is welcomed.
Sources: A&A Primary Research, http://saiyu.56hui.com/