Responsibility

A road port is a cargo transportation node which is formed depending on road transportation. It is also a logistic gathering area. Transfar road port logistics is positioned as a “logistic platform integrating operator”. It gathers numerous third-party logistic companies and provide them a comprehensive operating platform including “basic logistic infrastructure”, “information trade service” and “business support service”.

The platform is made up of the basic infrastructure platform and the E-business platform. Trnasfar acts as a platform organizer, administrator and service provider but does not involve in third-party logistic business directly.

1. Integrating logistic service resources

Take the example of Zhejiang Transfar Logistic Base. More than 420 logistic companies have entered the base, which allows these companies to form complete logistic service functions based on cooperation.

2. Integrating logistic carrier resources

Take the example of Transfar Logistic Base. It has more than 300,000 independent vehicles and near 100,000m2 warehousing facilities built by the base.

Other auxiliary information equipment, loading and unloading equipment and conveyance equipment are easy to access in Transfar Logistic Base.

3. Integrating logistic demand resources

Integrate scattered logistic demands on the same platform so as to realize effective allocation and distribution of goods in certain area. Take the example of Transfar Logistic Base. It works for 20000 plus businesses in Xiaoshan and its surrounding areas. The integration of cargo resources of different logistic companies on the same route and the integration of goods of different companies in the same warehouse become very easy. It greatly promotes the complementation and integration of various resources.

4. Integrating management service resources

In Transfar Logistic Base, business administration, tax administration and transportation administration provide on-the-spot coordinated services; banks, insurance companies, business service, communication and network services are available. Meanwhile, restaurants, shops, accommodation, entertainment, communication, support service and property management service also generate profit by big-scale operation.

A platform drives the entire logistic industrial chain. A node links up various economic entities in society. The existence of Transfar road port logistics makes third-party logistic companies, independent vehicles and businesses benefit from it and then effectively promotes the development of the logistic industry in the region.

1. Developing third-party logistic companies

A. Six Effects

• Infrastructure facilities sharing effect: Sharing infrastructure facilities is important for businesses to allocate resources, improve resource utilization and save land.
• Knowledge surplus and learning effect: Logistic companies make use of the industrial cluster of the platform to promote fast and effective communication. It is positive for the spreading of logistic management and service knowledge.
• Competitive and model effect: under the standardized management of the platform, a positive competitive environment is formed within the logistic company group. The “racing effect” is formed naturally in the development of the logistic company group.
• Professional and work division effect: By exerting the coordination effect among companies on the platform, the companies improve the integrated service ability while improving the professionalism of the logistic service.
• Industrial chain and extension effect: By integrating the resources on the platform, gradually form services of value chain operation such as vehicle member service.
• Joint operation effect: Communicate with government departments, industrial association, advertising companies and media via the logistic platform to lower the cost of the logistic companies.

B. Cases

Hangzhou Zhongnen Logistic Co., Ltd. has developed from a simple cargo transportation service provider to a comprehensive service provider including express road transportation, main-line transportation and cargo warehousing since it entered Zhejiang Transfar Logistic Base in 2005. It also provides complete third-party logistic solutions and logistic plan design service for businesses. Its annual business revenue has increased by a number of times.

The business scale of Hangzhou Yongliang Logistic Co., Ltd. has increased remarkably in recent years since it entered Zhejiang Transfar Logistic Base on November 28, 2002. Its registered capital has increased from 100,000 yuan to 500,000 yuan. Its management team and national transportation network are expanding and the number of vehicles owned by the company increasing.

Hangzhou Jihua Logistic Co., Ltd. entered Zhejiang Transfar Logistic Base when it was founded in 2003. In five years, its registered capital has increased from 100,000 yuan to 500,000 yuan. The vehicles it owns have increased from 2-3 vehicles to over 30 vehicles. It has 41 drivers. The company has become a third-party logistic company integrating cargo transportation, freight agent, information service and cross-province distribution. Its customers are from textile, steel, construction materials, chemical, food , pharmaceutical and hi-tech product industries.

2. Promoting the development of independent transportation service providers

In Transfar Logistic Base, the consignment trade chain of independent transportation service providers is shortened and trade processes reduced. It can save over 50% marketing cost. The time of assigning cargo to empty vehicles has shortened from 72 hours averagely to 6 hours averagely at present. Because of the shortening of trade time and lowering of trade cost, the efficiency of the vehicles is quadrupled. Transfar Logistic Base attracts over 3000 independent vehicles everyday.

• Sufficient supply and convenient cargo distribution: The logistic base gets freight information nationwide. Over 2000 independent vehicles provide freight information everyday when they return to the base. After the driver becomes a vehicle member, his registered information will be input into the information database of Transfar Logistic Base and available from the website of Transfar Logistics. When the driver swipes his card and enters the base, the consignor is able to find his vehicle information from the system and find the driver according to his day-to-day routes and mobile phone number and trade with him. It shortens consignment trade time. The consignor can place the order even the driver is out of the city.
• Convenient parking and thoughtful service: Take the example of Transfar Logistic Base. It has 87,000 square meters of parking space, being able to park 1200 vehicles at the same time. The number of vehicles in and out of the base is over 3000 everyday.
• Complete auxiliary services:
  Business administration, tax administration and transportation administration provide on-the-spot coordinated services.
  Banks, insurance companies, business service, communication, network services and car parts and repair service are available.
  Provide catering, supermarket, accommodation, entertainment, communication, support service and property management service.
• Regulating management and doing business honestly: Under the honest trade mode of the base, drivers acquire vehicle membership, which can improve personal reputation and provide reliable business environment for logistic customers. Business operators becoming customer members can help drivers avoid empty vehicle or freight be in arrears. Drivers will be free of worries.
• Transfar network, providing standardized services: Transfar Logistics spares no efforts to create a national logistic platform network. The vehicle members of the base are not only able to enjoy various preferential and value-added services provided by the base and its partners, but also be consigned cargo via the net. No matter which base the driver is in, he is able to get the freight information of the other base in time and quickly. It shortens the time of assigning cargo and reduces empty vehicle rate and stop running rate.

3. Lowering logistic cost for businesses

Through dominant brand name and normative management, Transfar Logistic Base developed a large group of modern logistic companies and helped them enter an effective and orderly operation status. The formation of such status resolved the problems of traditional logistic market as small, scattered, orderless and inferior. Depending on the standard and orderly operation in the base and the effective and convenient information platform, businesses are able to arrange their logistic needs fast and properly so as to lower logistic cost.

Take the example of Zhejiang Transfar Logistic Base. By integrating logistic resources, it can lower near 40% logistic cost for over 20000 businesses in the surrounding area. According to statistics, the cost saved in 2006 was 1.5 billion yuan in total. The figure reached 2.1 billion yuan in 2007. Under such circumstance, only number of consignors in Xiaoshan District who accepted the logistic service provided by Zhejiang Transfar Logistic Base increased from 6000 in 2002 to more than 20000 in 2007.