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Richard Shen, chairman

Strategic merger forms total cross-strait logistics powerhouse

Discovery Reports

Two of Asia's logistics and freight-forwarding powerhouses - Kerry Logistics and T. Join Transportation - are poised to dramatically transform the landscape of Taiwan-mainland trade. Joining forces to create Kerry TJ Logistics, the merged company aims to be a total cross-strait logistics provider of comprehensive services to the mainland.

Hong-Kong based Kerry Logistics envisioned itself as an integrated logistics service provider between the mainland and Taiwan, but needed the support of another seasoned company to efficiently serve both markets. Kerry Logistics expanded its network to Taiwan in 2008 and teamed up with 58-year-old T. Join Transportation. The synergies between the two companies raise the quality standards in the industry.

Kerry TJ Logistics' two core businesses are less-than-truckload transport and logistics services. Following the merger, Kerry TJ Logistics is restructuring its business to streamline operations.

"We are restructuring the organisation but maintaining the local experience, integrity and honesty to contribute to the businesses working with us. Our QPQ strategy - quality, price and quantity - will not change," says chairman Richard Shen.

To provide high-quality services to clients, Kerry TJ Logistics invests in human resources development. Through continuing training, the company equips its staff with relevant skills to help them meet evolving market demands.

"Our staff is instrumental in sustaining our business. This is a people business. If you do not care about people, then you do not care about the business," Shen says.

Striving to create the best value proposition for clients, Kerry TJ Logistics forges partnerships with other industry players to transport cargo in a more cost-effective manner.

Given the number of small towns and villages in Taiwan, it is more efficient for companies to co-load cargo to and from the same area as opposed to trucks from different transport companies going to the same area.

This results in lower operating expenses, which translate to cost savings for clients. It is also a more environment-friendly solution.

Kerry TJ Logistics sees growth in pharmaceutical distribution logistics and express delivery services across Asia. It is developing a sustainable business model for these segments in Taiwan, and plans to replicate these strategies on the mainland. The company seeks to build partnerships with companies that can help it realise its vision.
 

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