Twenty years of cold chain

As early as around 05, e-commerce began to emerge, and online shopping became the most fashionable term. "Department stores delivered to your door without leaving home" was an unprecedented shopping experience. Some platforms even touted the service tenet of "helping anyone, anywhere, to complete transactions," which completely changed people's consumption habits.

Moreover, the rise of e-commerce has made it easier for people to start a business by relying on a certain platform. Physical stores have disappeared, and people can even shop online. The customer problems that were once the most difficult to solve have been greatly reduced due to the changes in channels.

For large enterprises, e-commerce presents an even greater opportunity. Online specialty stores and flagship stores are becoming key areas of focus for these companies, and their significance far surpasses that of one or two physical stores. Online shopping has brought the world together.

The rise of e-commerce has not only opened up new channels for businesses and customers, but also brought unprecedented changes to the logistics industry. To some extent, logistics will replace people's physical shopping, bringing convenience to people from a broader perspective.

However, not all companies can keep up with the pace of the times. The more established and homegrown a company is, the less likely it is to accept certain changes. It often resists new things and may even do many outrageous things.

The colleague who picked Hu Shutong up from the airport was a local from Qingyan City. On the way, he briefly talked about Sanhe Meat Industry. This Sanhe Meat Industry has grown from a large-scale livestock farm in the county to a major brand in Qingyan City. They have adopted a lot of the business practices of meat vendors in the county and township, and they are very assertive in doing business, especially within the industry.

As for the person who has been causing trouble in Tongxing recently, his name is Bao Xiaoyang, one of the eleven grandsons of the chairman of Sanhe. He couldn't wait to make his mark in the family business right after graduating from university. Relying on Sanhe Meat Industry's position in the Qingyan market, he acted arrogantly wherever he went.

This made Hu Shutong realize that Sanhe had never intended to do business with Tongxing, and that they might just be using Tongxing to fool their grandson.

Upon entering the park, Tongxing was quiet. A luxury car was parked against the office area, its front end only a few centimeters from the steps. A closer look revealed an astonishingly grand entrance: two men in black suits stood on either side. A young man in his early twenties sat in a large chair, with a round face, large eyes, fair skin, and a huge buzz cut. Only such a sophisticated, worldly display could conceal his somewhat immature appearance.

Upon seeing Hu Shu, Bao Xiaoyang blew on his fingers, "It's not easy, Mr. Hu has finally shown up."

This landlord's attitude of coming to collect rent displeased Hu Shutong. "What brings you here?"

"Seeing such a great factory in such a prime location, I feel deeply sorry for Mr. Hu!"

"Speak your mind."

"In your line of work, what's most important? Being proactive! But Mr. Hu, you're hoarding perfectly good warehouses, even the national meat reserves. Mr. Hu, this isn't a few years ago. Making money by hoarding cold storage is no different from a fixed salary. But you're an entrepreneur, you need to be more flexible."

Hu Shutong sat down, looking at Bao Xiaoyang with amusement. "Tell me, what kind of workaround would you like?"

As Bao Xiaoyang crossed his legs, he leaned forward slightly. "Focus on being a delivery provider! These days, no matter how big the manufacturer is, they all need delivery personnel. Once Tongxing gets going, everyone will be envious! Take Sanhe for example, we outsource our delivery to you, and once the volume picks up, the money will follow!"

"I've also heard that Mr. Hu has been sending a large number of vehicles to the fields. That's putting the cart before the horse. How can you possibly manage all the vegetables in the fields? Mr. Hu has taken on all the least profitable things. If you ask me, you need to study business acumen more."

This scene was quite strange to the Tongxing people; someone had actually come to give their General Manager Hu a lesson, and he still seemed as confident as ever.

"Furthermore, if Mr. Hu is willing to take over Sanhe, the processing and packaging will all be handled here. As for the national reserve meat, it will be dumped in three months, leaving it for other companies to compete for. In this way, Sanhe will sign two contracts with you, one for delivery and one for processing. I can calculate the profits for you. That's the only way for Tongxing to prosper!"

Hu Shutong knew that no brand, big or small, would miss out on the lucrative e-commerce market. Sanhe's business was complex, including not only chilled meat but also meat products and sausages. It urgently needed a third party to help them with the distribution and processing of chilled meat, as this was the easiest area to produce and had the highest volume. Having an additional source of income was essential for Sanhe.

Moreover, having a professional and powerful third-party delivery service is a powerful tool for businesses to gain market share.

The idea of ​​becoming a true third-party logistics provider had long been lurking in Hu Shutong's mind. In his vision, once Tongxing overcame its initial survival challenges, it would inevitably enter this blue ocean market. However, circumstances forced them to act; this was a great era of development for the logistics industry, and strong demand was constantly pushing Tongxing forward.

Although Bao Xiaoyang was arrogant and bossy, he was not a complete novice when it came to logistics. He was a man with some ideas, but for Tongxing, it was a bit like forcing a duck onto a shelf.

"Mr. Bao, if your Sanhe order is shipped to Hainan, will Tongxing also deliver it to you?"

Bao Xiaoyang was suddenly stunned. Hu Shutong's words hit the bullseye!

He had considered this issue before. If they were only dealing with Qingning, Sanhe's current transportation capacity would be sufficient, and there was no need to contact Tongxing. However, even large meat processing companies these days rarely have the experience to expand beyond their local area and establish a nationwide presence. "Isn't this something that you, the distribution company, should be considering?"

Hu Shutong couldn't help but laugh. "You haven't even figured this out, yet you're here at Tongxing talking about business? Ultimately, this is a matter of corporate strategy. To succeed in e-commerce, you need your own network and supply chain. Delivery companies aren't omnipotent. Everyone wants to be a super-efficient operator, but in reality, it's all about mile by mile. Tongxing has no problem with initial processing, packaging, and transportation, but Tongxing can only act as one level, or rather, a regional provider."

Bao Xiaoyang seemed to recognize these words. He had heard them in meetings within the group. They sounded reasonable, but when it came to doing them, they were completely useless. The same meetings were held three or five times, and before anything was resolved, the next meeting was moved on.

Furthermore, Bao Xiaoyang had strong opinions about the internal appointments within the group. A group of uncles and their cronies held positions, and while they all seemed to have ideas for expanding breeding, their suggestions on market development were rambling and ineffective. When it came to things like information technology, they all found it vague and impractical, and implementing it encountered numerous obstacles.

Even the failure to acquire the Tongxing land was due to the fact that they only knew how to raise pigs but not how to sell them. Their planning was a mess, and they only cared about having an old brand name and thought it was all about prestige. They didn't look like a proper large enterprise at all.

So when Hu Shutong said those words, Bao Xiaoyang's heart skipped a beat, sensing there was more to it than met the eye. "Mr. Hu, could you be more specific?"

This question surprised Hu Shu, who asked, "What does Boss Bao mean...?"

"Please postpone the delivery for now, and tell me about the layout first."

"If I remember correctly, Mr. Bao is here to discuss business, right?"

In an instant, Bao Xiaoyang's cheeks flushed red. He realized he had spoken rashly, even revealing a bit too much. But somehow, this person's seemingly empty words had inexplicably drawn him in, making him want to get to the bottom of things.

Perhaps it was because he had heard other stories about the leader of Tongxing.

……

I've loved cold chain logistics for twenty years.