Suzhou City Rijin Logistics Co., Ltd.
Suzhou, China Site Visit
February 15, 2012
By
Eric Xiang

Key Personnel:
Mr. Zeng Dexiang, General Manager

Mr. Zeng Dexiang started in the logistics business in 1993 under the name of Suzhou Wanli Logistics Co., Ltd. Suzhou City Rijin Logistics Co., Ltd. (Rijin) is his new company that was established for doing business with a Japanese company.

Rijin has 100 employees and generates about $15 million in gross revenue. It has three offices in Suzhou and two representative offices – one in Tianjin and one in Ningbo. It provides both less-than-truckload (LTL) and truckload (TL) transportation from Suzhou to more than 60 destinations using 30 of its own trucks and 400 subcontracted trucks. All of the trucks are GPS equipped making tracking easy.

For all TL shipments, Rijin provides pickup and delivery to the consignee directly using its own trucks. For LTL shipments, it has an LTL terminal in the Suzhou Chuanhua Logistics Centre where all LTL shipments are handled by subcontractors. Managing LTL shipments has been very positive for Rijin because the subcontractors are very easy to work with.

In addition to transportation management, Rijin also manages three warehouses in Suzhou that total 5,000 square meters. According to Mr. Dexiang, tailored service is provided if the customer needs additional warehouse space and/or other facilities to meet its requirements.

Rijin has a good customer base in Suzhou which includes Samsung Suzhou and Logitech Suzhou. Most of its customers are multinational companies (MNCs) with factories in Suzhou.

Suzhou Wanli Logistics is registered specifically for doing business with Samsung Suzhou and has a long-term relationship with the Samsung Suzhou factories. Suzhou City Rijin Logistics is registered specifically for doing business with Japanese-owned Suzhou Nissin Plastic Co., Ltd. Its Chinese name is Rijin. According to Mr. Dexiang, having the same brand name as the customers strengthens the relationship and helps to avoid competition.

As a Suzhou-based logistics services provider, Rijin does not plan on building a nationwide network. Instead it plans to keep its focus on the Suzhou area, MNCs and public Chinese companies to ensure healthy financial results.

Sources: A&A Primary Research, http://www.rijin56.com/