Sichuan Harvest Logistics Co., Ltd.
Chengdu, China Site Visit
July 21, 2016
Mr. Mao Xun, General Manager
Ms. Susan Wu, General Manager
Sichuan Harvest Logistics Co., Ltd. was founded in 2006 and is headquartered Chengdu, Sichuan in western China. Its founding business was transportation. Today, Harvest Logistics is a logistics services provider of transportation in western China, warehousing in Chengdu and distribution in Sichuan. It has more than 140 employees.
Harvest Logistics operates its own trucks between Shanghai (covering eastern China) to Chengdu (covering western China). It has around 20 owned trucks and contracts with subcontractors to control space and peak season demands. Its main business comes from customers in Shanghai that need logistics services in western China.
Harvest Logistics operates a 10,000 square meter warehouse in Chengdu, which it rents from GLP. Harvest Logistics has good information systems experience to manage its operations. The warehouse operations help its customers reduce costs and expedite the inventory management level. Harvest Logistics provides inspection, pick/pack and other value-added warehousing services.
For distribution, Harvest Logistics distributes shipments mainly in Sichuan and Chongqing, but can also cover destinations in Yunnan and Guizhou in western China. For distribution from Chengdu to the big cities in Sichuan, Harvest Logistics ensures delivery within 24 hours. The distribution to medium-sized cities and downtown is handled twice a week. Harvest Logistics should offer consolidation to lower costs. Distribution and delivery is usually done by Harvest Logistics. Small packages are transferred to express couriers like S.F. Express or China Post.
Harvest Logistics has experience with multinational companies such as Philips, LG, and COFCO but a lot of its business comes from global logistics providers. If Harvest Logistics cooperates with one 3PL, it hard for it to cooperate with the 3PL’s competitors, and nearly 50% of its business comes from global 3PLs. Harvest Logistics understands that it is important to build up its sales team to develop more business from direct small to medium-sized customers. Currently, Harvest Logistics has 10 employees on its sales team.
In order to be a specialist in western China, Harvest Logistics started business and tried to build a network in northern China in the cities of Xi’an and Lanzhou. The company’s target is to be a professional logistics services provider in western China for transportation, warehousing and distribution.
Harvest Logistics has good performance results and the potential for future growth. The management team is sensitive to venture capital investors. Investors with solid backgrounds in logistics are welcomed.
Sources: A&A Primary Research, http://www.hw56.com.cn/