Shenzhen Oriental Logistics Co., Ltd.
Shenzhen, China Site Visit
October 18, 2012
Mr. Zhu Baoyuan, General Manager
Founded in 2001, Shenzhen-headquartered Shenzhen Oriental Logistics has over 250 employees working in eight branch offices located in Chaozhou, Dongguan, Guangzhou, Putian, Quanzhou, Shantou, Shanwei and Xiamen. It is a cold chain specialist, especially for less-than-truckload (LTL) shipments.
Shenzhen Oriental Logistics’ main business is between the provinces of Guangdong and Fujian, where it provides daily, direct trucking services. It has its own fleet of 80 GPS-equipped trucks and a 5,000 square meter warehouse. It’s a temperature-controlled warehouse that can meet requirements of -24ºC. In order to expand LTL shipments and reduce costs, some of the trucks were partitioned in order to handle three different temperature levels. One section is for shipments under -24ºC, another section is for shipments under -18ºC and the third section is for shipments under -10ºC. This enables efficient cargo handling, reduces costs and makes Shenzhen Oriental Logistics more competitive in the market.
Hotels, supermarkets, food manufactures and other companies requiring cold chain services are primary customers of Shenzhen Oriental Logistics. A-Best Supermarket, Chenguang Dairy, and Renrenle (a supermarket brand in Guangdong) are some of its customers. It is also focused on business-to-business (B2B) commerce customers.
According to Mr. Zhu Baoyuan, Shenzhen Oriental Logistics will build its own distribution network at 100 stations before 2015. At that time, it will have ability to handle business-to-consumer (B2C) business.
At the same time, Shenzhen Orient Logistics has plans to open its own offices in Chengdu, Chongqing, Guiyang, Kunming, Shanghai and Wuhan. It’s interested in building a strong cold chain network in China mainly for LTL shipments requiring temperature control. With gross domestic product growth up, more and more consumers need fresh, quality food, and more and more people like the B2C business model. Surely, LTL cold chains will have potential in the near future.
Shenzhen Orient Logistics is a good player in the cold chain field but requires more investment to help it develop a strong network quickly. It is open to investment opportunities.
Sources: A&A Primary Research, http://www.szdfjy.com/