Vonder (Beijing) International Logistics Co., Ltd.
Beijing, China Site Visit
October 16, 2012
Mr. Zhang Ming, General Manager
Vonder (Beijing) International Logistics Co., Ltd. was founded in 2003 when General Manager, Mr. Zhang Ming, found the opportunity to handle air freight imports. Nearly 70% of Vonder’s cargo volume comes from its import business. With a staff of 60, its annual gross revenue is around $20 million. Half of its gross revenue is from air freight shipments and the other half is from its ocean business. Its annual volume is 5,000 TEUs (20′ Container/Trailer Equivalent Units) of ocean freight and 4,000 tons of air freight. About 700 to 800 shipments are handled monthly (around 8,000 shipments annually).
Vonder has a sales team of 15 that focus on imports. Around 120 customers have a long-term cooperation with Vonder. CNPC (China National Petroleum Corporation), CSR Corporation, and Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd are some of its customers.
Most of the business is secured by Vonder under Free On Board (FOB) terms as it has strong sales efforts for imports. Agents are used overseas. Vonder is more interested in the agent’s service quality and local operation facilities, than if the agent can bring on new business or not.
Vonder has a good relationship with customs in Beijing, in addition to being a qualified partner for customs clearance. If a problem arises in customs, Vonder can work with customs to solve the problem and provide a smooth customs clearance. Vonder is experienced in handling chemicals, instruments, auto parts and apparel.
General Manager, Mr. Zhang Ming, is very young. He had two years of experience in building his own branch office in Shanghai. But the office was closed after the economic crisis. He does not plan to open branch offices in other cities.
Although the company is small and export handling is not strong, Vonder achieves $20 million in gross revenue annually. If Mr. Ming can establish relationships for cooperation in other cities like Shanghai and Guangzhou, it should have good growth.
Sources: A&A Primary Research, http://www.vonder.com.cn/