Wuhan Dadao Logistics Co., Ltd.
Wuhan, China Site Visit
March 6, 2012
Mr. He Wenhui, Office Manager
Wuhan Dadao Logistics Co., Ltd. was founded in 1999 as a provider of less-than-truckload (LTL) transportation. It has a total of 1,300 employees in 50 offices located in the provinces of Hubei, Hunan and Guangdong.
In Hubei, Dadao Logistics is an LTL specialist. It has 50 of its own trucks and 300 trucks under contract with subcontractors. It passed ISO 9001:2000 in 2006. In addition, it has a substantial network in Hubei where 45 of its 50 branch offices are located. All of its branch offices were purchased with its own capital, which has helped in creating standardized operations and gaining customers’ trust.
Dadao Logistics has a 20,000 square meter LTL hub in Wuhan. For all LTL shipments within Wuhan, Dadao Logistics provides one-day delivery. For LTL shipments within Hubei, two-day delivery is provided. Most of the freight originates at the hub for delivery throughout Hubei. The branch offices do not secure enough return freight.
Besides handling LTL shipments, Dadao Logistics also manages truckload shipments. Dadao Logistics arranges the transportation from shipper’s factory to the consignee direct.
Some of its customers require their funds be collected from the consignee in order to ensure a secure payment. Dadao Logistics has a special service from the bank for these customers. The customers appreciate this service as it is better than collecting cash.
Dadao Logistics’ IT team has been developing its proprietary systems for many years. Its customers can track their shipments via the internet.
Dadao Logistics has a good customer base which includes Dongfeng Motor, Gree, and Kingbull Pipes. Its customers like its network in Hubei and its good customer service. According to Mr. He Wenhui, Dadao Logistics plans on building strong networks in Hunan and Guangdong, similar to the one it has in Hubei.
Sources: A&A Primary Research, http://www.ddwl.com.cn/