Ze Han Logistics Co., Ltd.
Qingdao, China Site Visit
December 15, 2011
Mr. Zhou Yilong, Chief Operations Officer
Ze Han Logistics Co., Ltd. (Ze Han) was founded in 1991 as a trucking company. Today, its focus is on warehousing and local distribution. It’s headquartered in Qingdao and has branch offices in Beijing, Guangzhou, Jinan and Weifang. With over 130 employees, it generated gross revenues of $30 million in 2010.
Since its founding, Ze Han started working in Guangzhou with the Haier Group, a multinational consumer electronics and home appliances company. Today, the main lanes it handles for the Haier Group are Qingdao to Beijing and Guangzhou with most shipments being less-than-truckload (LTL). Over the years, Ze Han has developed relationships many local customers including Huaren Pharmaceutical, Laoshan Mineral Water and Hisense, which are well-known manufacturers in Qingdao.
Ze Han operates 30 of its own trucks mainly from Qingdao to Beijing and Guangzhou. During peak seasons, Ze Han can subcontract an additional 200 trucks if needed. In an effort to be a leader in local distribution in Qingdao, Ze Han plans to expand its fleet to 70 trucks in the near future.
Ze Han operates the Danshan Transportation Centre in northern Qingdao. Most LTL and truckload shipments are loaded there. It has a 30,000 square meter warehouse beside the Danshan Transportation Centre. Ze Han leases the warehouse to its customers who manage the warehouse themselves because it does not have a warehouse management system (WMS) nor the manpower to meet its customers’ requirements. Ze Han plans to run a 300,000 square meter distribution center which will focus on manufacturers and small and mid-sized logistics companies. Its target customers are from the electronics, garments, and chemicals industries.
Chief Operations Officer, Mr. Zhou Yilong, is a young man with over 10 years of logistics experience and good management skills. He’s involved in operations, sales, and customer service. He is very devoted to Ze Han Logistics and understands its business strategy. We expect that his role in the company will expand in the near future.
Ze Han Logistics is a solid provider of LTL transportation and local distribution in Qingdao, but it needs to expand its network in China. It also needs to invest in a WMS and warehouse staff in order to provide qualified warehouse services to its customers. It has a long way to go in becoming a key player for LTL transportation plus warehousing and distribution in the market.
Sources: A&A Primary Research, http://www.zehan.com.cn/