Shanghai ANE Logistics Co., Ltd.
Shanghai, China Site Visit
Mr. Wang Yongjun, Managing Director
Shanghai ANE Logistics Co., Ltd. is a fairly new company that started in 2010. Its core business is handling less-than-truckload (LTL) shipments ranging from 30 kgs to 1,000 kgs. It’s based in Shanghai and has 750 branch offices throughout China with a total of 2,000 employees. The 750 branch offices are not owned offices, but use ANE’s brand only. The company manages the central distribution centers (CDCs), regional distribution centers (RDCs) and trucks only. Currently, there are 12 Class A CDCs and 13 Class B RDCs in China. Beijing, Chengdu, Chongqing, Guangzhou, Hangzhou, Shanghai, Shenzhen, Tianjin, Wuhan, Wuxi, etc. are the main gateways for transit shipments. The markets are focused in four economic centers:
- Guangzhou and Shenzhen in South China
- Shanghai and Suzhou in East China
- Beijing and Tianjin in North China
- Chengdu and Chongqing in West China
Daily, ANE Logistics has 400 trucks that transport cargo between the CDCs and RDCs. The transit time is 24 hours for delivery within 1,000 km, 48 hours for delivery within 2,000 km and 36 hours for delivery within 3,000 km. According to Mr. Wang Yongjun, the 400 trucks are running 100 routings linked to 200 cities. The company handles 2,000 tons of goods daily.
Most of the trucks are not ANE’s, but the trucks are controlled by the headquarters, which includes tracking via GPS, fuel management, loading plan, cargo dispatch, etc. ANE Logistics has long-term contracts with the drivers and trucking companies. ANE Logistics only pays a minimal charge if the cargo volume is not big enough. This ensures that ANE Logistics provides competitive services in the market and makes it easy for the 750 offices to secure more business. The 750 offices can be considered as sales agents for ANE Logistics and also as customers as they create revenue for ANE logistics.
ANE Logistics has and continues to build a strong network and manages the trucks and routing to provide qualified services. In the past three years, ANE Logistics has had major growth. It started with 20 offices in 2010 and ended 2013 with 750 offices. Its target is to build a network of 5,000 offices by 2017 to cover all of China with offices in each city.
Although LTL is its core business, e-business like the business-to-consumer (B2C) market needs ANE Logistics services. Sellers on JD.com and Alibaba.com are using ANE Logistics as their logistics service provider. Other 3PLs also use ANE Logistics’ services.
“ANE” stands for:
- A “Airline” – the team has experience in air freight forwarding
- N “Network” – the network is important in logistics and the company pays a lot of attention to IT
- E “Express” – time is money
Some venture capital joined ANE Logistics, maybe to be a public company in the stock market is its target. The management team is open to investors who have interest in China logistics and is also open to mergers and acquisitions. We will keep a watch on ANE Logistics and its quick growth.
Sources: A&A Primary Research, http://www.ane56.com/