Shenzhen Winon Logistics Company
Shenzhen Winon Logistic is a Chinese company located in Shenzhen. The firm provides diverse services to its customers in the field of transport. Some of these services include ocean services, parcel express services, rail and air services, and inland truck services. Over the years, the firm has managed to develop a strong management team with the capacity to offer expert logistic services. As a result of integrating customer responsibility, the company has been able to retain a large customer base.
In order to improve convenience in its operation, the firm has incorporated the concept of cross- docking. According to Palmer (2005, p. 21), cross- docking is defined as the process of procuring finished products from the manufacturer and delivering them to the final consumer with minimal handling in the process.
As a result of handling a large volume of cargoes for its customers each month, the firm’s management team considered it necessary to incorporate the concept of cross docking in an effort to reduce handling cost.
Through cross- docking, the firm is able to supply merchandise directly to its customers thus minimizing warehousing cost. The resultant effect is that the firm is able to operate cost effectively. In addition, the firm is able to meet customers’ demand with regard to speed and agility (Creative Vision Foundation, 2008, para. 1-3).
Zhangzhou Excellent Import and Export Company Limited
This firm was established in 2008 and it operates within the Chinese food industry. The company has a human resource base of 100 employees. The company deals with the production and export of a variety of canned foods in China. In addition, the firm also produces and supplies frozen food products.
Some of these products include pineapples, baby corn, frozen vegetables, sweet corn, lychee, and canned mushroom. The firm operates on an international scale but its key markets are in such diverse regions as the Middle East, Africa, Russia, Middle Asia and Europe. Considering the competitive nature of the food industry, the firm’s management team realized the importance ensuring that the customers attain value in the process of consuming its products.
In an effort to achieve this, the firm’s management team recognized the importance of ensuring value not only in the product itself, but also in other aspects of the product. One of these strategies with the management team considered paramount relates to product distribution. As a result, the firm integrated the concept of cross docking in an effort to ensure that it saves on the customer’s time and money in their consumption process.
According to Blanchard (2008), cross docking enables a firm to close the timeline between the time when the products are ordered and when the customer finally receives the merchandise. Its intention to expand its market share was also a contributing factor which made the firm’s management team to incorporate this concept. This arises from the fact that cross docking enables the firm’s clients to have a large number of customers who are dispersed within a wide geographical area.
General (Xiamen Tongan) Food Industry Company Limited
Similar to Zhangzhou Excellent Company, General (Xiamen Tongan) Food Industry Company limited is a firm which operates within the Chinese food industry. The firm specializes in the manufacture of a variety of seafood for exportation purpose (Tradekey, 2010, para. 7). Considering the perishable nature of sea food products, the firm’s management team has incorporated the concept of cross docking. This has enabled the firm to attain convenience in its distribution process.
In addition, an increment in the demand for seafood products in the domestic market together with increasing carrying cost is one of the reasons why the firm’s management tam has considered incorporating this concept. In order to achieve this, the firm has established a number of distribution centers in a number of provinces in China. This has resulted into creation of ease in the process of moving goods to the final consumer via the various retail outlets.
Despite the increased benefits of cross docking in the distribution of merchandise, there are a number of companies which have not incorporated this concept. Most of these companies operate within the Chinese automobile industry.
Honeywell China
The firm deals with the manufacture of aerospace products. Over the years, the firm has managed to be the leading manufacture and distributor of aerospace products. Considering the fact that the firm deals with products which are not fast moving in nature, the firm has not incorporated the concept of cross docking.
This arises from the fact that intensive procedures are involved in the process of procuring aerospace products. According to Langevin and Riopel (2005, p.73), cross docking entails a very complex planning process. The complexity is further intensified by the nature of goods within the aerospace industry.
Cherry Automobile and Geely Autos
Cherry Automobile is a government owned corporation which was established in 1997. The firm is located in Wuhu in Anhui province. Currently, the company is considered to be amongst the automobile companies growing at a fast rate. In its operation, the firm has been able to venture into the international market via exportation.
For example, in 2006, the company exported 50,000 cars of the total 305,000 it had produced. On the other hand Geely Autos is a Holding company which was established in 1986 with its headquarters located at Hangzhou. The firm deals with a variety of automobiles, transmission products and engines (Bloomberg, 2007, para. 1-5).
Hua Lian Fa Logistic
Hua Lian Fa Logistic Company is a firm which deals with freight forwarding. The firm operates on an international scale with its headquarters located at Shenzhen in China and Los Angeles. In its operation, the company mainly offers shipping services via air and sea.
However, the company does not have its own vessels. To operate as a carrier, the firm issues bill s of lading thus taking the responsibility for the shipment. The company’s shipment main shipping routes are those located between North America and China. Over the years it has been in operation, the firm has managed to develop a relatively high competitive advantage. One of the major sources of this strength originates from its good relationship with its business associates (Sea and Air Freight Forwarding Services, 2010).
In its distribution strategy, the firm has not incorporated the concept of cross docking. The main reason for this is that the company operates as a Non-Vessel Operating Common Carrier (NVOCC). In an effort to ensure that the company attains effective and efficient distribution of the cargoes on an international scale, the firm’s management team has incorporated the use of agents.
The company has overseas agents who enable the company to deliver value to its customers via provision of reliable shipping services. In addition, the firm operates a warehousing service which enables it to keep the customers goods prior to shipping them to the customers. Other service the company provides with regard to the customers shipping needs includes custom clearance.
Reference List
Blanchard, D. (2008). Cross docking: by the numbers. The top ten benefits of adopting a cross docking strategy in your warehouse. Web.
Bloomberg. (2007). China’s emerging car industry. Web.
Creative Vision Foundation. (2008). 2008 cross docking trend report. New York: Penton Media Incorporation.
Langevin, A. & Riopel, D. (2005). Logistics systems: design and optimization. New Jersey: Butterworth-Heinneman.
Palmer, J.M. (2005). Level loading and cross docking in a global logistic network. Brigham Young University.
Sea and Air Freight Forwarding Services .(2010). Hua Lian Fa Logistic Company Limited: Aimpacific services incorporation. Web.
Tradekey. (2010). General (Xiamen Tongan) Food Industry Company Limited. Web.