Since the beginning of this year, Nanjing Postal Branch in Jiangsu province has succeeded in operating the project of P.G. Logistics Group Co., Ltd. (hereinafter referred to as P.G. Logistics) in its innovative operation mode that integrates warehousing and packets consolidation (consolidating mail items into dispatches) and realized overall management of order-based warehousing, which has eventually helped reduce collection costs significantly while improving operating efficiency and customer experience dramatically. As of March 31, the P.G. Logistics project has shipped a total of 4,473,400 mail items, saving outsourcing costs of 1,252,500 yuan.

The P.G. Logistics project is the first comprehensive project of Nanjing Postal Branch that combines warehousing and packets consolidation, providing customers with overall warehousing management services including inbound, stock keeping, sorting, document printing, labeling, return and packets consolidation. At present, the project has successfully introduced a department store into the warehouse, generating an average daily shipment of over 50,000 items and a monthly prepayment of approximately 3 million yuan. Centered on its customers, the project has improved the utilization and turnover rates of warehousing space, with the customers’ warehousing efficiency reaching 25 items per square meter presently. By lodging customers’ goods in the packets consolidation center, the project has effectively reduced the outsourcing costs in transportation and collection, saving collection costs of 0.2 yuan per item. The packets consolidation center is equipped with 10 packet feeders, with a processing capacity of 12,000 to 15,000 items per hour, and 256 stackers for sortation of packets to most cities across China. As a result, the intermediate mail centers in different provinces or cities don’t need to open the dispatches sent by the packets consolidation center, but rather directly sort and transfer them to destination cities. Currently, the project is able to consolidate over 96 percent of the packets into dispatches at the packets consolidation center.

In order to improve the performance of the project, the department of express parcel business in Nanjing Postal Branch systematically analyzes customers’ shipment, income, gross profit margin and mail routes on a weekly basis, and then dynamically adjusts prices and shipping methods according to their comprehensive contribution rate. Meanwhile, Nanjing Postal Branch provides a package service of "express parcels plus EMS items" for customers of the project, agrees with customers on the proportion of EMS shipment, and assists in developing logistics and financial business so as to improve the overall performance of the project. As of March 31, the project had shipped 689,100 EMS items, with the comprehensive profit margin reaching 11.6 percent.