DHL to the Midwest logistics distribution

With China's domestic express industry confusion out of global logistics giant DHL, are quickly out of the shadows. DHL in September 20 announced that its specialized in the land, sea and air freight transportation under multimodal transport professional departments of the global freight in China recently DHL new five branches, it's the early July this year announced its China express DHL transfer assets of a big action after again.

 

The big action, it is the DHL into China direct embodiment of the Midwest strategy. However, DHL freight why choose in global at this time set up as many as five every branch? The exit China's domestic express industry after the strategic thinking??? What???

 

DHL conform to cancel the double taxation conditions

 

September 20,, in Shanghai, for DHL announced with the Chinese manufacturing industry pattern change to meet the requirements of the market, which specialized in the land, sea and air freight transportation under the DHL multimodal transport professional departments of the global freight group, is DHL China expand its logistics service network.

 

DHL freight group announced that its global recently in HuaXinShe five branches in mainland China, including between the two most important transportation hub of zhengzhou city, henan province, Shanxi Province-and taiyuan.

 

The implementation of the action so much DHL, three months ago, in early July because of low price war, and can't get stranded in the bottom line of the business without the express profession behavior, chose a strong man DuanWan, will its 3 domestic express all equity transfer to shenzhen YouHeDaoTong industrial Co., LTD, out of the cultivation of the seven years China's domestic express industry. What is the reason, lets just encounter business DHL, clobbering in such a short time, in its business, another very-logistics service areas, promote the western logistics service of large-scale strategy?

 

For this, DHL global freight, China CEO HuangGuoZhe choose silence. In fact, if attention to China's official in the logistics industry in the subtle changes in attitude, then it is not difficult to find it implied logical vein.

 

June 8, Chinese premier wen jiabao hosted a standing committee of state council, for the first time made clear, to earnestly alleviate the logistics enterprise tax burden. Tax is the development of logistics industry is one of the important factors. According to netease financial current logistics each link tax rates are not uniform. Transportation, loading and unloading, handling, carrying the business tax execution rate is 3%, warehousing, distribution, the agency business tax rate shall be 5%.

 

Although unified tax rate of the logistics industry actively promote significance than self-evident, but each logistics link tax rate of unity and the more serious constraint is: double taxation. Due to the need of the logistics network laid, logistics companies chose to set up a lot in all parts of the country their subsidiaries and affiliates, and many times from our clients received a single goods through several subsidiary, to finish, but every many turnover a turnover, much a double taxation.

 

To this, the personage inside the industry think solution is to enter logistics enterprise business tax difference tax pilot enterprise range. In early June the standing of the state council, said the conference to "improve logistic enterprise business tax tax measures for trial balance, expand the scope of comprehensive promotion as soon as possible".

 

According to netease financial know, begin from 2005, the state administration of taxation on joint development and reform commission the business tax difference tax pilot. At present has had 593 companies get pilot qualification. According to DeLiDe logistics company director Yun cotton explanation, the threshold of the pilot to have three basic requirements, one is the business tax year 1 million; tax 2 it is not a bad tax records; Third, must be logistics enterprise.

 

DHL freight with the above three global conditions, it can be avoid duplication of tax, and if each logistics link get unified, the tax rate in global freight cost DHL, can be much lower. According to a large domestic logistics top understand, it is the recent move DHL basic reasons.

 

Many outlets to cooperate with China development economy

 

In addition to the tax adjustment can bring operation cost of DHL, it down, administrative expenses and the amount of distribution network, directly related to whether it can keep up with the pace of the high speed development of emerging economies, and DHL hope oneself can realize the synchronous development with emerging economies.

 

In China the central and western regions, it is the core DHL the direct embodiment of the national strategy. DHL global customer solutions chief executive officer Rob jehiel, goldstein (Rob Siegers) had last year said logistics supply chain, is to ensure that the emerging countries get short term and long term growth, the logistics enterprises in the key to move into these economies, the three great challenges must be overcome, namely tariff administrative cost is high, the market liberalization process is slow, distribution network less.

 

DHL global customer solutions (Asia Pacific) chief executive Richard Owen (Richard Owens) further analysis road in Asia, about 15% of the supply chain cost from administrative expenses, Europe in this cost only 3%.

 

As soon as possible in advance their distribution network perfect work, DHL spare no effort. According to netease financial understanding, DHL global freight has set up a file in the China has $30 million investment. So far this year, has been set up in China and the branches, 26 sales office, and plan to 2015 new five branches and 20 sales office, and cover 30% of city, the three lines of business outlets in China will increase from the current 65 to 90.

 

In advance of the western strategy, and has a long service customer together, also is in the Chinese market for DHL part of the distribution network. Global freight DHL, China CEO HuangGuoZhe says, "DHL freight commitment is global to follow our customer, follow these manufacturing company transfer to expand our network." The DHL in zhengzhou set up a branch, the HuangGuoZhe suggest that netease financial, its main is follow hon hai precision industry Co., LTD has moved in the footsteps of zhengzhou, so that came near to follow up services.

 

HuangGuoZhe says that China's logistics cost more than 18% of GDP, and the world developed country less than 10% or lower, such as Germany logistics cost is 7% 9%. "China's inland logistics costs relative to the east come higher, but the inland areas to port or main airport is further. The farther the distance means that the higher cost, time grows, can prolong the whole production cycle, so will cause the whole supply chain more inventory, and finally the backlog cause more high costs."

 

Solve the space between the high cost problems, bring in HuangGuoZhe opinion, in addition to rely on the land, sea and air multimodal transport way (this is committed to the Midwest in the current DHL expand key), must also have the central and local government, in addition also support policies depends on customer's plan, "we have a lot of big clients plan transferred to a Chinese urban Midwest set up their production base, like chengdu, chongqing, zhengzhou, and so on, we follow their synchronization migration."

 

Drain express industry lesson layout the Midwest

 

The Midwest strategy development planning DHL, and the focus of the implementation of the market action, and see what cannot be certain that the strategy of hidden risks. From the beginning of July to withdraw from China express industry market the internal cause look, DHL the transgressions and western China to layout, perhaps can avoid market repeat it.

 

The supply chain management association, an industry observers believe, DHL exit express industry of China and its domestic business of not enough attention, DHL domestic goods such as heavy business development and service apart seriously, China business investment exist such problems as inseparable.

 

The layout of the Midwest, obvious DHL China to avoid the again, such as in the investment aspects: global freight transport, DHL, chief executive LuoKangXu said, "we are being spent and will spend, including in north Asia market express service, Shanghai will become our express business of a hub, and in April 2012 or may build. And we will pay attention to the pearl river delta to achieve overnight to send to the European business ability, also is the next day will be able to put the goods sent to all parts of the European Union."

 

For China's domestic business DHL the attention of, also have different from previous: HuangGuoZhe says, 2011, DHL in China provides services including control management, international supply chain services, order management, supply chain management, inventory management, and a series of service, in addition to support China's customers via the route the goods to Ukraine, and other countries.

 

According to HuangGuoZhe introduction, DHL service and multimodal transport, including the empty-iron transport-and contains all the way through, container business can railway to carry goods to Europe.

 

The above observers think more, DHL in early July this year to withdraw from China's domestic express business, from the overall strategic layout on look, more like the optimization in the Chinese domestic business structure, and not of were forced out.

 

Public data shows, DHL in China than any investment an Asia Pacific countries or regions, both for 747-400 adapted the cargo plane in the investment of resources, routes, have more to invest $110 million expansion DHL ahead of central Asia-Hong Kong super hub transit center and in 2012 will be available is located in Shanghai pudong international airport, cost 175 million dollars to build north Asian hub.

 

HuangGuoZhe said that in the past few years, DHL freight to achieve global market leading position in China has successively invested $30 million. "In the future development process, DHL also will continue to increase investment in the China market, promote and expand our facilities. At the same time, we also will continue to expand our network, and the improvement of our information technology skills."