Postal Logistics


The logistics system run by postal sectors took into an initial shape in 2002. By the end of 2002, the revenue generated by postal logistics services had reached 1.58 billion yuan, up 58% from the previous year. The traditional postal logistics with simple function was gradually transformed into the modern logistics with integrated solutions and high quality of services. The scope of the logistics services and products has been expended to high-end and renowned products from the traditional sporadic transportation. Up to now, China Post has introduced some high-valued services that combine the functions of physical distribution, information exchange and capital flow.

The year of 2002 witnessed a major breakthrough in cooperating with some key clients. Both the State Post Bureau and postal authorities at provincial or municipal level made great efforts to attract some famous manufacturers of medicine, food, tobacco, cosmetics, IT (including electronics and telecommunication) and spare parts of autos.

China Post provided the "one-stop" logistics services for DELL Corp., one of the top 500 enterprises in the world, in Fujian Province, Guangdong Province, Guangxi Province and Hainan Province. China Post was responsible for the entire process starting from accepting the products to making the home delivery. Since the successful seamless connection of the information systems between China Post and DELL Corp., the feedback rate reached 100% and 99.8% of the products were delivered on time. China Post was selected as the Grade A logistics provider.

In addition, China Post also established cooperative relation with the cosmetics manufacturer, AVON, one of the world top 500 enterprises. In eighteen provinces and cities, China Post provided a wide variety of services for AVON, ranging from warehousing, products distribution to information supply. With the advantageous network of "Green Card" and numerous outlets of postal savings, China Post developed a set of comprehensive solutions of payment collection, settlement and transfer of funds. Currently, China Post has distributed more than 1.29 million kilograms of products for AVON. And 96% of the products were delivered without delay and 100% of them were well kept.

It is forecast that the revenue coming from postal logistics service will amount to 8 billion yuan by the end of 2005, accounting for 10% plus of the total. With "China Postal Logistics" as the brand, the logistics services will be operated in a commercial way. China Post is expected to build a state-of-the-art national distribution network with modern infrastructure and quality services. Aiming to become the giant of high-level logistics services, China Post will take logistics as its pillar service and strengthen its capability of self-reliance.