How Deppon Logistics Accelerates Diversification Layout

Recently, Deppon Logistics announced its entry into the warehousing supply chain, adhering to the customer-centered expansion of the warehousing network layout to provide customers with nationwide coverage and the most effective warehousing network. This is another major strategic move following Deppon Logistics' entry into the express business in 2013, marking another key step in Deppon Logistics' development into a comprehensive logistics provider.

Starting out in LTL logistics

Deppon Logistics first aimed at the LTL logistics sector, which has a market size of more than trillions of dollars, to build China's largest LTL logistics operator with the strategy of constructing a perfect logistics and distribution service network.

LTL is a logistics model between contract logistics and express delivery. The LTL logistics enterprise will be different shippers of goods transportation, zero collection of the whole hair, the operation is more difficult, lucrative, Deppon Logistics first bucket of gold is from this.

As of the end of September, Deppon Logistics has opened more than 5,600 standardized stores and service networks across the country, with more than 9,600 of its own vehicles, a total area of more than 1,210,000 square meters of transit centers across the country, a daily throughput of more than 60,000 tons of cargo, and a network of business outlets that covers 32 provincial-level administrative districts in China.

Cui Weixing, founder of Deppon Logistics, has always adhered to the strategy of "building its own network, purchasing its own trucks, and training its own staff", and has steadily developed to accurately grasp customer demand, maintaining a compound annual growth rate of 60% for many years.

High growth in express delivery business

Since the implementation of the new Postal Law on October 1, 2009, the express delivery industry has entered a period of rapid expansion. Industry insiders said that last year, the country's entire express delivery industry, the total turnover exceeded 204 billion yuan, the volume of business is to reach 14 billion pieces, is expected to be more than 20 billion pieces by the end of this year.

Deppon Logistics, keenly aware of this huge business opportunity, began to enter the Chinese express business in 2013. At present, Deppon Express has launched three main products, this year's operating income is expected to reach 1.8 billion yuan, the end of the year will gradually open Hong Kong and Macao's express delivery business, when the business can realize the national coverage.

Deppon Express was founded, has always adhered to the "customer-centric" service concept, in the product promotion, network coverage, cooperation mode and other aspects of continuous development and innovation. August, the opening of the sea and air double line to Taiwan, creating a new direction for the development of land and Taiwan courier; August 18th start The company's "Business Partner" program provides a favorable platform for partners to realize their "blue dreams".

To be a supply chain leader

Relevant information shows that China's supply chain solutions market is large, fast-growing, and attractive, and is expected to exceed 1 trillion yuan next year, with an average annual growth rate of nearly 9.6% over the next five years, and may reach the level of 1.5 trillion yuan by 2020. However, the current traditional warehousing supply chain market concentration is very low, the international giants occupy the high-end market, China has not yet emerged as a clear market leader, and mainly to provide a single industry for a small number of customers, a single warehousing services.

With the trend of e-commerce, channel flattening and other trends driving changes in the business model of the downstream industry, customers have a strong demand for diversified layout, specialized operations, and business intelligence. Deppon Logistics has responded to the development of the industry by optimizing the overall supply chain management for customers through professional warehousing and supply chain services, providing supply chain solutions including diversified warehouses, specialized warehouse management, efficient system support, and diversified value-added services.

It is understood that Deppon Warehouse Manager is the first product launched by Deppon Logistics warehousing supply chain business, which can help customers to realize better cost, better time, peak worry-free, the whole process of visual warehouse management.

Deppon Logistics into the field of warehousing means that the new emergence of a full network type, specialized, scale warehousing providers, with the gradual strengthening of this camp, the overall supply chain service providers will occupy a more prominent position in the future.

Funding problems to be solved

Due to the rapid development and diversification of the expansion of Deppon Logistics, the pressure of funds soared. early July, the China Securities Regulatory Commission disclosed on the website of the Deppon Logistics, "Initial Public Offering of A-share Prospectus". The total number of shares issued in the public offering is not more than 150 million shares, the total share capital after the issuance is not more than 1 billion shares, and it is proposed to raise funds of 2.988 billion yuan. Among them, for the construction of direct outlets 371 million yuan; LTL transportation vehicle purchase 1.713 billion yuan; express vehicles and equipment purchase 592 million yuan; information integration platform construction 312 million yuan. However, with the market IPO suspension, Deppon Logistics listing program is also shelved.

Deppon Logistics how to quench the current thirst for funds? The market will wait and see.