China Post Logistics Industry Development Strategy Research

With the flourishing development of Chinese Economics and trade, the world and China witness the new scene in the logistics sector. On one hand, the number of merchandise to and from China is increasing greatly,on the other hand, the traditional transportation system is less and less able to cater to the varied market demand.Upon finding the opportunity, the traditional transportation entity, the domestic new comer and the international express giant swarmed into the seemingly creamy market. How to survive the hot competition and to grow to be a winner among the ambitious rivals remain a big issue both at theoretic level and practical level.China Post, the downgraded mail delivery giant, entered the logistics field with the advantage of over 100-year name brand and nationwide-spread network, which is believed to expand its business scope for the new profit source The author summarizes the historian and current status reports on the logistics sector in China, features the fundamental points and gives the list of the biggest issues.On the above-mention basis, the author furthers the analyses on the operational form of the postal logistics in the developed country. How they set up a team or entity to run the logistics beyond the traditional postal service. With the deep understanding of the theory and practice, the author makes the valuable recommendations for China Post Logistics, which has the strongest road transportation capacity in China with transportation network covering the whole country. And its delivery network is the largest "last-mile" delivery infrastructure in China.Recommendations consist of providing integrated logistics solution for the target customer ,taking advantage of China Post's brand name and networks , making full use of its potential ,reducing the negative factors, focusing on the core business , prudently implementing the alliance strategy and developing a profitable business model .The author takes AVON which is Cosmetics Industry Expert the as the case study to illustrate the target customer and right model for achieving its expectation of the leading 3PL service providers nationwide and worldwide. In this case, CNPL optimizes Avon's products distribution network followed by integrating the IT systems of two parties, and providing online payment collection for Avon through China Postal Financial System and Certificate Authentication (CA) System. This is a successful case of CNPL to provide supply chain management solution with integration of goods flow, information flow and cash flow.