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December, 2004
e-commerce Logistics Group

Hong Kong-based e-commerce Logistics Group (ecL) is a leading third-party e-logistics service provider covering Greater China. They provide supply-chain management consultancy, information systems and physical logistics services.

"We differentiate ourselves by our customer-centric approach combined with innovative e-logistics solutions," said Mr. Simon Hsu, Chairman & CEO. The company's key product is the Warehouse Management System (WMS), a web-based solution that enhances operational efficiency and management visibility. WMS incorporates database management, barcode systems, Palm™ technology and an open web platform. Developed on a module basis, it offers users flexibility, real-time operation and interaction. "We keep on improving it based on our practical experience and users' opinion," he said.

IDC, an internationally reputed market intelligence company that focuses on research studies, gave ecL the overall highest rating in its 2001 report "The eLogistics Market in Great China: Trends and Analysis" and the Warehouse Management System for Logistics Industry developed by ecL won the first place Application Gold Award in the IT Excellence Awards 2002 and a certificate of merit in the category "Best of Industrial Applications" of the "Asia Pacific Information and Communication Technology Awards (APICTA Awards) 2003" in Bangkok, Thailand.

"Our strengths include our business agility and the ability to integrate this with e-commerce," said Mr. Hsu. "We have experience in general logistics services and IT integration projects with overseas companies. We are in the logistics business, but it’s not just about warehousing or transportation. Our target is to set up a supply chain solution for our clients in the e-way, hence our use of the term e-commerce logistics".

ecL's customer base is centred in the Chinese mainland, and customers include global and regional brands, retailers, distribution and logistics companies. Among its customers is The Continuity Company, a provider of marketing solutions and programmes to major organisations across 50 countries; Pacifique Agencies, a cosmetics wholesaler that uses ecL's Hong Kong hub to fulfil its Asian requirements; and Jabil Circuit (Guangzhou) Limited, an US EMS firm with manufacturing plant in mainland that needs JIT (just-in-time) 24-hour cross-border supply service. "For the latter customer, we do all the air cargo receiving here in Hong Kong, along with collection, cross-docking, and cargo receipt information update," explains Mr. Hsu. "The customer's buyer sends out all the pick notes before 6pm, fulfilment is completed the following morning with cross-border delivery and a daily turnover of more than 1,000 cartons."

In another example, ecL collaborated with the Huaxin Group, a trading company involved in FMCG wholesale market, to develop an e-platform to support its logistics services to 30,000 clients in the Pearl River Delta in 2003. "The project involved a total investment of RMB50 million and will take three years to complete," said Mr. Hsu. "It was one of 12 key projects announced by the municipal government of Guangzhou."

The company has since been expanding its distribution network in Greater China with self-managed logistics and fulfilment centres already established in Hong Kong, Taiwan, Shanghai, Guangzhou, Beijing, Wuhan, Shenyang and Chengdu. Customers can store goods in ecL's warehouses in Hong Kong and request to fulfil orders in the Chinese mainland.

Mr. Hsu gives credence to Hong Kong as the ideal logistics hub in Asia for all global companies. "It has an excellent understanding of business, IT technology, and an efficient government."