Shanghai Benchmark Logistics Management Co., Ltd.
Kunshan, China Site Visit
January 7, 2015
Ms. April Yu, Account Manager
Mr. Fang Jun, Supervisor
Shanghai Benchmark Logistics Management Co., Ltd. (BML), established in 2011, is a young third-party logistics provider (3PL) focused on e-commerce logistics. From the company name, we can see that BML wants to be the benchmark of e-commerce logistics in China. Based in Kunshan, near Shanghai, the company has more than 100 employees.
The Kunshan Logistics Center has two warehouses – one is 22,000 square meters and the other one is 10,000 square meters. For e-commerce logistics, its key business is warehousing and distribution including last mile. For business-to-consumer (B2C) business, most of the distribution is handled by express companies and couriers like SF Express; therefore, BML manages the warehouse operation including inbound trucking to the warehouse.
On average, BML handles about 8,000 shipments per day with a peak of 2,000 shipments per hour. During the week of November 11 (similar to Black Friday in the U.S.), BML handled over 400,000 shipments. (In peak season, BML adds around 400 part-time employees to support the operation.)
It is not an easy task to handle 400,000 shipments during the week of November 11, and it’s a big challenge system-wise. For its warehouse management system (WMS), BML uses FLUX WMS, which is a good system in China and makes BML competitive in securing more business. In order to provide real-time tracking and tracing, BML’s WMS can be integrated with internet platforms for e-commerce such as JD.com, VIP.com and Tmall.com.
Besides its regular warehouse, BML operates a 600 square meter warehouse for goods that need to maintain temperatures of under 20 degrees Celsius.
Other than B2C shipments, BML can arrange business-to-business (B2B) distribution to the end stores. BML has dedicated trucks for inbound and outbound transportation to and from the warehouse.
Since the distribution for B2C shipments is done by express providers, in order to shorten the transit time and promote performance, BML asked some of its express providers to nominate in-house staff to its warehouse. This has made it very easy for BML to communicate with the express provider and keep the operation running smoothly.
Although pretty new in e-commerce logistics, BML’s customers include well-known luggage brands, Samsonite and Delsey, as well as multinational companies such as Stanley.
BML is a joint venture company with investment from Yamato Transport and is open to capital investments and merger/acquisition opportunities.