Sichuan Jingnan Logistics Co., Ltd.
Chengdu, China Site Visit
July 21, 2016
Ms. Ren Huijuan, General Manager
Mr. Pu Yongming, Vice General Manager
Sichuan Jingnan Logistics Co., Ltd. is a fairly new company established in 2011. It started by transporting tobacco in and out of Sichuan province for its first customer Sichuan Tobacco. The trading and transport of tobacco in China is government controlled, and therefore, requires a special license and experience.
Jingnan Logistics operates 60,000 square meters of warehouse space in Liangshan of Sichuan province. This is the distribution center for Sichuan Tobacco. All shipments from Liangshan to consignees located in Sichuan can be delivered within two days. Jingnan Logistics handles both full truckload (FTL) and less-than-truckload (LTL) shipments as required by each order. Jingnan Logistics has last-mile delivery experience in Sichuan.
Sichuan Tobacco also has regular shipments from Sichuan to the main cities in China located on each province. Jingnan Logistics can provide FTL transportation from Chengdu to each destination. Most of the FTL shipments are handled by its own trucks. However, during peak season, Jingnan Logistics uses subcontractors.
For last-mile delivery in Chengdu, Jingnan Logistics is developing its distribution service and trying to approach e-commerce customers. In Longquan district, Jingnan Logistics works with JD.com handling the delivery to end consumers. This is a nice start for Jingnan Logistics in e-commerce and will help it build its distribution network.
Jingnan Logistics also pays attention to developing customers in industries other than tobacco and e-commerce. Currently, Jingnan Logistics is a logistics provider for TingTong Logistics, a subsidiary of Master Kong, a well-known food company in China.
According to Mr. Pu, Jingnan Logistics plans to develop business from eastern to western China and is interested in cooperating with any party that has business from eastern to western China.
With its experience with JD.com and Master Kong, Jingnan Logistics should build a good reputation in the market.
Sources: A&A Primary Research