Shanghai Instant Technology Logistics Limited
Beijing, China Site Visit
January 29, 2016
Mr. Tiger Woo, Sales Director
Shanghai Instant Technology Logistics Limited is a third-party logistics provider focused on IT (Information Technology) products distribution in China. Its brand is IT (Instant Technology) Logistics. It’s a subsidiary of Digital China, a brother company of Lenovo. Although the company is registered in Shanghai, its administration headquarters is located in Beijing. IT Logistics was founded in 2003 providing sales distribution of IT products controlled by Digital China. Today, IT Logistics is a warehousing and distribution provider focused on IT products and automotive parts in China. Nearly 4,500 employees work in the company, including its branch offices in Hong Kong, managing 150 warehouses totaling 450,000 square meters.
From 2003 to 2009, IT Logistics only handled IT products. Its scale and cargo volume was small and everything handled was business-to-business (B2B). During that time, IT Logistics built strong relationships with Vsens (a joint-venture company of China Unicom), China Mobile and China Telecom distributing their mobile phones from factory to store. The mobile phone brands included ZTE, Coolpad and Meizu. IT Logistics continues its long-term cooperation with these customers and currently has six regional distribution centers (RDCs) for China Telecom.
After 2009, IT Logistics started handling business-to-consumer (B2C) business. Its B2C business includes logistics for e-commerce and repair shipments. In order to grow its B2C e-commerce business, IT Logistics set up a sales platform for its customers enabling it to deliver the goods to end consumer together with the invoice. It is easy for the online sellers to manage orders and the end consumer to receive instant service.
Other than the IT industry, IT Logistics handles automotive parts and precision instruments. For automotive parts, IT Logistics provides logistics services to Volkswagen, Geely and other well-known automotive manufacturers, helping them to deliver the auto-parts from the factory to 4S (Sale, Spare-part, Service, Survey) centers for after-sales service. IT Logistics has a good understanding of automotive parts from its experience with multinational companies. IT Logistics also has experience in the distribution of ATM machines.
As a non-asset based logistics provider, IT Logistics doesn’t own trucks but provides distribution through the management of subcontractors. For its B2C business, all of the parcels are delivered by domestic express companies. For example, Huawei orders sold on Tmall.com are delivered by SF Express.
With its good background in IT products, experience in the telecom industry, and a strong warehouse and distribution network in China, it will have a good growth. Especially after developing its B2C e-commerce and automotive parts businesses, as these have great opportunities in the China market.