Express services run best when they focus on their network strengths
Xiong Xingming delivery executive
The key to successful network expansion is specialisation, believes Xiong Xingming, vice-president of Zhaijisong Express.
A delivery company should not only be able to identify and exploit its connections and competitive advantages, but also locate and co-operate with other companies' special advantages.
'Trying to do everything well is impossible and inefficient,' said Mr Xiong. 'The goal of delivery company management is to handle an efficient network. The network structure is crucial to efficient operation. The size of the structure, and when and how to expand it, are key factors affecting network operation.'
He said delivery companies in China tended to adopt one of two managerial modes ... a loose alliance of regional management boards or 'pagoda management'.
Mr Xiong explained that the pagoda method meant subordinate branches and hubs could respond quickly to headquarters' policies while providing a standardised service, working process and management style and thus eliminating misunderstandings and complaints from clients.
Under the system, the company's central control must pay attention to detail and specialise its services to meet unique regional demands.
'Building an efficient transport system can connect these single separate hubs into a systematic network,' he said.
An efficient network would compile all individual requests into a comprehensive database, allowing the company to interpret trends and movements in the market.
'Advanced information technology helps to pass information to clients and delivery companies and get client feedback, building a database of bills and receipts,' Mr Xiong said. 'We continuously research and improve this system.'
Mr Xiong hopes the government will offer more practical and transparent policy guidance to domestic delivery companies to simplify their long-term planning, but agreed that it was hard for the government to implement concrete plans even if they were in place.
With hubs in more than 200 cities and supply companies in more than 2,000, Zhaijisong Express plans to list either in Hong Kong or the mainland next year.
