Twenty years of cold chain

"I've come to visit today about Tongxing and the industry. I have a few thoughts to share. Of course, Mr. Hu is a master in the industry, and I've admired him for many years. If even one out of ten of his ideas is taken to heart, I would be honored."

"Mr. Yang, you're too modest. Please feel free to speak your mind."

Next, Yang Chenghai's tone not only became firm, but he also made a startling statement, which immediately captivated Hu Shutong's attention. His approach to conversation was too direct and his words were extremely broad, almost immediately touching on the company's strategic issues, making it all the more likely that Hu Shutong would be asked to leave.

"Mr. Hu, in my opinion, Tongxing should completely separate its third-party logistics into a subsidiary and sub-brand, instead of keeping storage and transportation together as they are now."

Just as Hu Shutong was about to speak, Yang Chenghai, having already grasped his meaning, continued, "I know that Tongxing has a clearly defined third-party logistics center, but its level and qualifications are not yet sufficient. Once the third-party logistics is completely separated, it means that it can be used for separate financing, and it will become a cooperative relationship with Tongxing Phase I and Phase II. This way, Tongxing can support another large project."

These words weren't new to Hu Shutong, but what surprised him was the extraordinary effort this man had put into Tongxing for this occasion. Hu Shutong could see the potential of independent third-party logistics operations, but for him, the pace and time constraints didn't allow it. Looking back over the past two years, Tongxing's second phase had been launched, Yuncheng's second phase had started, and in between were numerous major projects at the R&D center and the regular organization of industry forums—all requiring a significant and dedicated amount of energy.

In Yang Chenghai's eyes, beneath the calm surface, Hu Shutong was engaged in deep thought, causing Yang Chenghai to clench his fist and his spirits to rise. This was not only a discussion of matters but also an observation of people's situations. Yang Chenghai did not proceed with any gradual or detailed explanations but rather had his own logic at play.

If you were talking to a mid-level manager in a business park, you'd naturally lay the groundwork and pique their curiosity to have a chance of discussing the bigger picture. But with the head of this company, keeping them in suspense is hardly a good strategy, especially since this person's talent and experience surpass those of 90% of the industry. Talking to someone like this isn't about the company itself, but about the person who wields it.

"With independent operation of third-party logistics, Mr. Yang must be putting a lot of effort into fresh food e-commerce."

These words, though blunt, resonated with Hu Shutong, who nodded in agreement. For example, the food delivery platforms that emerged in 08 are now embroiled in fierce competition, with many vying for dominance and no clear winner. Why is everyone so aggressively competing? It stems from genuine human needs. The ability to order food with just a few taps on a phone is a revolution in people's eating habits and the entire catering industry—a phenomenon that goes beyond the mere concept of a "blue ocean."

"Mr. Hu, now is the time for fierce competition to capture the huge market of e-commerce delivery. Many people are building fresh food brands, such as Tiantian Fresh Fruit, Daily Fresh Vegetables, and Wanjia Orchard, and so on... There are countless such brands, but they all have the same need: delivery! Powerful cold chain logistics companies are not only their third hand, but also a powerful tool for expanding their territory!"

It's clear that Yang Chenghai, this "veteran third-party" provider, is keeping up with the times, and his statements are becoming increasingly clear: he aims to create a dedicated "Tongxing Delivery" service. Yang Chenghai doesn't offer a one-size-fits-all approach; rather, he has done extensive research on various companies, hoping they will listen attentively to his perspective.

Behind Tongxing is a group of elite figures who have been steadily building its business over the years. The entire cold chain system here is mature, and any advice offered by some companies would seem like mere amateurish attempts. Reaching this crossroads, meeting the demands of refined specialization, he sees it as Tongxing's new battleground!

Although Hu Shutong didn't say much, he had already considered the matter quite thoroughly. "So, what are Boss Yang's thoughts on the specifics of implementation?"

"Many years ago, Mr. Hu started to build a front-end warehouse, which was used for pre-cooling and storage very close to the fields. It eventually became the front-end position of the entire Tongxing purchasing and sales system, which not only expanded the storage capacity but also improved the quality. Given such practical experience, it is a logical progression to build micro-warehouses in the city."

"Micro-warehouse?"

"That's right. Tongxing itself is a huge urban sorting center. Then, based on carefully calculated routes and network points, community distribution centers are established in the city—this is the micro-warehouse. The cost of a dozen micro-warehouses is less than that of a single front-end warehouse. Once the micro-warehouse system is built, Tongxing's established third-party logistics delivery service can open its doors to customers. In our eyes, there is no difference between fresh food brands; we handle orders on a case-by-case basis, essentially putting a batch of e-commerce eggs in one basket!"

It must be said that Yang Chenghai's rhetoric was audacious, and his demeanor was as if he were planning his own entrepreneurial path, pouring all his emotions into it.

At this point, the underlying message becomes clearer: the goal is to prevent third-party logistics from being confined to the framework of the Tongxing Industrial Park, but rather to allow it to explore its own vast potential. It's not about making it merely a support system for Tongxing or its partners, but rather about treating Tongxing as a customer and developing a large, independent delivery brand!

Hu Shutong had only considered one direction regarding this matter, but the detailed explanation from the person before him was like a solid plan entering his mind. This also sparked many other ideas in Hu Shutong. Tongxing had strong supply channels and many promising prospects for the future, inspiring imagination from east to west. Moreover, Tongxing's second-phase semi-processing system was far superior to what it had been before.

Behind these reflections, what truly captivated Hu Shutong was the term "micro-warehouse," which, as Yang Chenghai had stated, operates on the same principle as a front-end library. Moreover, Hu Shutong possessed extensive experience with micro-libraries and assembly libraries, which stirred his interest, given their high degree of feasibility.

"Mr. Hu, from what I understand, current urban delivery still relies on foam boxes and ice packs, while some companies in the south have started using insulated boxes with cold-storage ice plates. These may seem more expensive, but the recycling rate is enough to offset the cost. Tongxing has its own R&D center, and we can carve out a path for more advanced and higher-quality insulated boxes."

Unexpectedly, technical issues also came to the forefront, and this Mr. Yang truly had a keen eye for detail and was thorough in every aspect.

In fact, at this point, Yang Chenghai was just one sentence away from saying the most crucial point of his speech—

Mr. Hu, you have the perfect combination of timing, location, and people!

……

I've loved cold chain logistics for twenty years.