Twenty years of cold chain

One day in mid-March, Hu Shutong sat in front of the television and listened to the entire "Outline of the Eleventh Five-Year Plan for National Economic and Social Development," which covered the period from 2006 to 2010. This plan, which was more than 50,000 words long, went deep into all aspects of the national economy.

The 11th Five-Year Plan included a special plan for the service industry, including producer services and consumer services. The plan for producer services specifically mentioned "vigorously developing modern logistics".

The cultivation of specialized logistics enterprises, the active development of third-party logistics, the establishment of a standardized logistics system, the construction of large-scale logistics hubs, and the development of regional logistics centers are all included in the 11th Five-Year Plan!

From the Opinions on Promoting the Development of Modern Logistics to the Eleventh Five-Year Plan, strong policy guidance has injected powerful confidence into the development of the logistics industry. With the ongoing analysis and interpretation of the Eleventh Five-Year Plan, it is foreseeable that specific policies targeting the food industry and logistics will soon be introduced!

Another statistic worth mentioning is that in the past five years, private enterprises accounted for 53% of sales revenue in the food industry, an increase of 17 percentage points compared to 2000, far exceeding state-owned enterprises and foreign-invested enterprises. The vitality of private enterprises is being further unleashed, and a vast future awaits continued progress from those in this era.

For Hu Shutong, besides the favorable policies, there's even more tangible good news: Li Shenglong's garlic has finally been sold. He didn't gamble on the autumn market, but instead sold off a large quantity this spring before the new garlic harvest. Having weathered last year's harsh market conditions, the garlic market is recovering along with spring, and he's dividing the garlic into several portions to sell off one by one.

First, he contacted customers in Panhu and Panzhu, using Tongxing's refrigerated trucks for outbound transportation, and about one-third of the goods were shipped out. Then, leveraging Tongxing's relationship with the three major markets, he supplied garlic to the three major markets on a regular and quantitative basis. As for the rest, he simply stored it in Tongxing's agricultural product trading hall, figuring that since garlic prices had risen, he could sell as much as needed.

After the incident, even the most thick-skinned person felt a little embarrassed. The goods were stored in Tongxing, and the goods were entirely dependent on Tongxing to get out. They occupied Tongxing's hall, relied on Tongxing's connections, relied on Tongxing's customers, and even hitched a ride with Tongxing. Just taking the garlic incident as an example, it wouldn't be an exaggeration to say that he was both the father and the mother of the goods. It turns out that for the past six months, Li Shenglong had only done the job of a warehouse manager, coming here to check on his goods from time to time.

Although Hu Shutong was eager to clear out the inventory, there were so many things to negotiate, yet he never mentioned them. Over time, Li Shenglong had become almost as familiar with Tongxing as he was with its own people, and he had witnessed everything that had happened.

Tongxing's acquisition of the national meat reserve is something any businessman can see clearly. Introducing production lines and increasing assembly warehouses—it's unclear when this business will break even. He didn't quite understand why this Boss Hu wanted to do this, but the fact that he did it was admirable.

Li Shenglong knew that even if he booked a grand hotel in the city, Hu Shutong wouldn't have time to attend his banquet. However, the garlic harvest was almost complete, and a ceremony to express his gratitude was still necessary. Tongxing had provided both the venue and the opportunity; without Tongxing, he didn't know how long he would have endured those days of "sorrow for garlic amidst tobacco and alcohol."

So, Li Shenglong bought some very expensive cigarettes and alcohol, and the most expensive seafood from the seafood market, and took them to Tongxing Kitchen, intending to have a good drink and chat with Hu Shutong.

"Brother Long, why make such a big fuss? The garlic's sale has relieved Tongxing's urgent need. Besides, without you, the vegetable business wouldn't have been able to get off the ground. Tongxing is grateful to you."

Hu Shutong spoke frankly, and Li Shenglong immediately smiled. He was also deeply grateful. Dealing with such a person was much less complicated. He hadn't experienced such a business environment in a long time.

"Brother Hu, I've been thinking about this a lot these past few days and I'm planning to invest some money in your Tongxing. Don't get me wrong, I don't want to become a shareholder or a small boss, and I won't invest too much. Just settle the payment with me based on the year-end profit."

"Welcome! How much are you planning to invest, Brother Long?"

Li Shenglong made a cross with his index finger, and Hu Shutong's eyelids immediately drooped. "Let's drink."

Li Shenglong laughed and said, "These days, who would invest in your kind of business that requires you to work yourself to death? It would be much better to buy a few houses in the city. To be honest, that's what I'm planning to do next."

"That's true, it's a good way to make money."

"I'm thinking of establishing a connection with you. Once I invest in Tongxing, nobody within a three-and-a-half-mile radius will dare mess with you, not even Sanhe!"

"You know about Sanhe?"

Li Shenglong, clearly ready to speak tough, raised his glass and toasted Hu Shutong first. "In our Li family, whoever is in charge is called Master Long. Having that title makes things easier. The Bao family started in Pingqiu County; that was my grandfather's generation. Let me put it this way: we're all in this together. The Bao family's success today owes a lot to the help of the Master Longs. There are many generations of connections involved. I'm investing some money in you; I want to see who in Sanhe dares to do anything to you!"

These words struck a chord with Hu Shutong. In fact, he had realized from the very beginning of his business that in these remote villages and towns, a high level of education was of little use; in fact, it might even attract some inexplicable resistance. Focusing solely on automation and informatization, thinking it was high-end and omnipotent, could lead to serious trouble if one ignored appearances and social norms. Old practices were deeply ingrained; without understanding these rules and common sense, one couldn't get anywhere on the front lines. This was precisely the hidden worry surrounding Sanhe.

Because of the recent phone calls from Bao Xiaoyang, all I could say was to wait and wait some more.

"That Bao Xiaoyang has no connections in the Bao family. His father was isolated by his uncles years ago, and Bao Xiaoyang has learned from that experience. You can do Sanhe, and so can he, but don't think that just because the two of you have connections, you can bring the business together. If you can't cooperate with Tongxing, those guys in the Bao family have plenty of underhanded ways to mess with people."

"Vegetables and meat are one family," that's true. Hu Shutong realized that some information has its own system, and the truth beneath the surface is not something ordinary people can understand. Li Shenglong is undoubtedly someone who occupies a high position in that system.

"If we don't take action, Bao Xiaoyang will only become more passive in Sanhe. We need to show Sanhe Tongxing's power. If we do something, not only will Sanhe think twice, but you'll also have more leverage with Bao Xiaoyang. Brother Hu, I'll handle some things. You have your big ideas, and I'll use my little tricks. In short, whatever you want to do in Tongxing, I'll take care of the trouble in Shibei!"

At this moment, Hu Shutong had never felt so at ease. For the first time, he felt a sense of being protected in this lonely park on the outskirts of the city. The man in front of him, drinking the strongest liquor and smoking the most intense cigarettes, the man he used to be at odds with, the man who thought he was weak and the man who thought he was reckless, was now saying, "Let's embark on this journey together!"

This story, which started with garlic, is actually quite spicy!

I've loved cold chain logistics for twenty years.