The Leader Logistics Co., Ltd.

Beijing, China Site Visit
August 8, 2012
By
Eric Xiang

Key Personnel:
Mr. Yun Mian, Operation Director

The Leader Logistics Co., Ltd. is a courier, warehouse operator and distribution manager in China. It is headquartered in Beijing with group companies in Tianjin, Shanghai and Guangzhou and a total of 800 employees.

There are 84 independent logistics companies operating under The Leader Logistics brand. These companies are not The Leader Logistics’ own companies, but this network brings value to The Leader Logistics.

Identifying its top management team is complex. There are dozens of shareholders. Mr. Yun Mian is one of the shareholders and the operation director in Beijing.

The Leader Logistics was founded as a courier in 2001. In 2002, it started providing logistics services and in 2005, became more deeply involved in the supply chain. In 2007, it started dangerous goods handling in Tianjin.

The Leader Logistics manages 40,000 square meters of warehouse space in Beijing and handles 1 million shipments per month. It has 100 GPS equipped trucks. In peak season, it can coordinate 1,500 trucks in the market.

Henkel is one of its major chemicals customers. It provides logistics services in Beijing, Shanghai and Guangzhou for Henkel. For the electrics industry, Panasonic is a key customer. The Leader Logistics is a lead distribution manager for Panasonic in North China around Beijing. Mr. Yun Mian has experience in Japan and understands that service quality is essential to cooperate with Japanese companies. For fast moving consumer goods, Asahi Breweries and Li Ning are customers. In healthcare, Siemens and GE Medical are customers. Its solid customer base helps The Leader Logistics achieve good profit margins.

In Beijing, The Leader Logistics has a special warehouse for BSDJ Sports which is the distributor/retailer of Nike and Adidas. The logistics service covers 300 stores in Beijing and North China. All shipments are delivered to the stores within 24 hours. The Leader Logistics uses its proprietary warehouse management and transportation management systems to manage operations. Customers’ can access the systems with a username and password.

According to Mr. Yun Mian, The Leader Logistics also provided services for the 2008 Beijing Olympic Games where it delivered all of the fuel pumps for the torch.

With its good customer base and experience, it is easy for The Leader Logistics to secure small- and medium-sized enterprises. In addition, it has its own Customer Relationship Management system.

Its weaknesses are that there are too many shareholders and the 84 offices, other than Beijing, Tianjin, Shanghai and Guangzhou, are not its own offices. At some point, it may have to face problems that come from its management team and network. Hopefully, any problems can be resolved smoothly as The Leader Logistics grows.

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