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Jiuye’s founder on building logistics across China

"The potential of inland China for fresh produce is huge"

"China has a wide variety of fresh produce, but the market is constrained by a cold chain logistics system that is not advanced. First-tier cities are well connected, however, second or third tier cities are often not. If these cities can be unlocked, the potential of the Chinese market for the fresh produce industry is huge. This is what drives our company,"� says manager at Jiuye Supply Chain, Mr Sun.

"Online sales of fresh produce are booming, but growth has been skewed to the major cities on the East coast. There are so many logistics companies in China and we were wondering, why is it taking such a long time to unlock these inland cities and more remote areas?" Mr Sun launched the company in 2014 when he invested in the construction of a warehouse in Shanghai. In January 2015, the company launched its operations officially. At the start of the Yantai Cherry season, in just over one month, the company handled over 150,000 orders.

"China's cold chain logistics market is very rich in resources, specially for frozen products. Experience in the fresh produce industry is less.We have integrated these resources, and we focus on the fresh produce market. Being able to let your transport vehicles drive flexible schemes, efficiently complete orders, fully integrate operations, all these factors are important. We are supporting traditional logistics services, buyers, sellers. We are the company behind the company."�



Wide geographic spread

"Demand has grown rapidly, and we now have 11 cold storage warehouses. Four of these are located in different, second and third tier, cities across China, including Haikou, Nanning, Urumqi and Kunming. In addition, we have seven warehouse branches in large cities such as Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Xi'an and Shenyang. This geographic spread helps us to reach different corners of China within an acceptable time frame. All cold storage facilities can deliver adjustable temperatures from below 0ºC degrees to 8ºC degrees."

"At the same time, we have invested in the development of four specialised Warehouses, Transportation, Orders and Delivery Data Management Systems. With these, our facilities have become like a Cloud Warehousing system. Next to cold chain logistics services, we can also deliver grading of processed products, including fresh and frozen fruit and vegetables and other frozen foods such as meat and seafood."

"To help our customers reduce losses, we work closely together with our clients from before the start of the season. With our level of organisation, we can bring losses back by 30% to 40%. We can do the grading, packing and a number of other services for our customers too. This helps our clients to focus on sales more."


JiuYe's hubs across China

Opening up remote markets

"In some remote areas of China, such as Yunnan, Hainan and Xinjiang, agriculture production is great. However, due to poor logistics, the grower faces many difficulties to reach the consumer. For example, in Xinjiang province, we found these beautiful, white, seedless grapes, with a crystal clear appearance. Because Xinjiang is far away from large cities, the grapes were only sold locally. We will now launch cooperation with local farmers to promote these grapes in other parts of China. In the future, we will expand our cold storage and keep improving local storage conditions to help small growers."


Mr Sun, Manager at Jiuye Supply Chain


Mr Sun
Jiuye Supply Chain
http://www.jiuyescm.com
Contact number: +86 185 0513 2158 & +86 (0) 21-64303835
Email: syf@jiuyescm.com