Shanghai Kirin Logistics Co., Ltd.
Shanghai, China Site Visit
April 25, 2012
Mr. Sun Fenghe, Deputy General Manager
Mr. David Zhang, Manager
Founded in 2004, Shanghai Kirin Logistics Co., Ltd. is a China domestic third-party logistics provider (3PL) with an apparel focus. It has its own offices in Beijing, Chengdu, Chongqing, Guangzhou, Hangzhou, Hefei, Kunming, Kunshan, Nanjing, Qingdao, Shanghai, Shenzhen, Suzhou, and Wuxi. With a staff of 350, it generates around $15 million in gross revenue annually.
Its main business is transportation including less-than-truckload and truckload. It also provides distribution to customers using 110 of its own trucks and 300 subcontracted trucks. All of the trucks are GPS equipped. Most shipments handled are between Shanghai, Beijing and Guangzhou. Transit time is within three days from pickup to delivery. Kirin Logistics does not handle international air or ocean business.
In Shanghai, Kirin Logistics also has its own 8,000 square meter warehouse and is an expert in handling sporting goods and apparel. Nike, Adidas and Puma are top customers along with most other sporting goods and apparel brands. For Nike, Kirin picks up the goods from the Nike factories in Shanghai and Guangzhou and delivers them to the Nike stores throughout China.
Besides apparel, Kirin Logistics also has experience in auto parts and project logistics. For example, Kirin Logistics has experience in supporting China Class A football matches as a 3PL.
Kirin Logistics pays a lot of attention to its sales team to ensure strong growth. Mr. David Zhang is in charge of the sales team which has been performing well. Once the sales team secures business from a new customer, it has a good customer team to follow the shipments.
Direct customers are 80% of the business and the rest comes from the other 3PLs. Cargo from other 3PLs is not Kirin Logistics’ focus; however, it helps balance cargo space and cut down on costs.
We find Kirin Logistics to be a key domestic player for sporting goods and apparel. If it continues to develop business in other industries and its sales team remains aggressive, Kirin Logistics should have good growth in the coming years.
Sources: A&A Primary Research, http://www.98933.net/