Choosing Volvo Trucks to Embrace E-Commerce Logistics in 2015

www.chinatrucks.com: The rise of China’s e-commerce logistics industry has been swift and fierce. Over the past few years, e-commerce platforms have become one of consumers’ key consumption channels. In the fierce competition for customer satisfaction, e-commerce platforms will be judged by key aspects such as their variety of goods, distribution range and speed of delivery. This creates a tougher environment for e-commerce logistics companies as their ability to compete in pricing has diminished. Therefore, efficiency and safety have become their core selling points. A vehicle’s uptime, productivity and fuel efficiency are now key factors that influence a company’s profits.
 

With the increasing popularity in online shopping, the demands for express delivery, dedicated transportation lines build, and cold train logistics are rapidly growing. This has caused e-commerce logistics companies to have rigorous demands to logistic companies regarding delivery time and delivery guarantees. Therefore, in recent years, Volvo Trucks, with their high uptime and stability, have become one of the most preferred vehicle for e-commerce logistics suppliers. High uptime is reliant on excellent performance capabilities as well as a strong and reliable after sales service network support, both aspects are indispensable. 
 

As of these competitive advantages, the new Volvo FH/FM range are increasingly favored by Chinese e-commerce logistics companies. In regards to product quality, Volvo Trucks engineers spent 5 million hours on the new range over a three-year period simulated by the actual situation of the car tested under various extreme harsh conditions to ensure product excellence in the past 15 years. In addition to quality, Volvo Trucks also has an outstanding after-sales service system. Volvo Trucks is currently in the ongoing process of expanding their service network base, paying increased attention to detailed network management and professional services. With more than 50 service stations and professional technician teams in China, Volvo Trucks strives to deliver customers timely, comprehensive and professional service. Volvo Trucks is equipped with a 24/7 "Volvo Emergency Service Center" and "full-motion experience center" and the Volvo Trucks spare parts warehouse in Shanghai is able to maintain a 95% delivery rate due to Volvo Trucks’ parts dealer network implementation prediction system LPA (logistic partner agreement). As a supplier of comprehensive transport solutions, Volvo Trucks also offers a variety of soft value-added services, including Blue and Gold service agreements, which play an important role in terms of helping logistics companies maximize vehicles’ uptime. These services have become essential for an increasing number of large transport companies. Recently, Volvo Trucks has released an after-sales service dealer commitment program, aimed at implementing a higher standard of service throughout its 14 authorized dealerships in China, ensuring vehicles to maintain high uptime and earn the most profits possible. An excellent product combines excellent service ensures an uptime rate of 98% or more to be achieved throughout the entire lifetime of a Volvo Trucks.

According to Volvo Trucks Customer Program Director Yang Guangxi’s analysis: "Transport companies undertaking e-commerce logistics will face greater competitive pressure in the future. Their greatest management challenge will be to figure out how to provide high-quality logistics services for e-commerce platforms, at the same time maintain the balance between logistics costs and profitability.” Yang Guangxi gave this analysis based on past experience of providing comprehensive transportation solutions for more than 200 companies using Volvo Trucks.

In the face of such intense market demand, the priority of many logistics companies, without a doubt, is to improve efficiency. Enhancing efficiency is the most effective way to reduce operating costs, in fact, a truck with a monthly mileage of 30,000 kilometers has an 8-15% lower monthly operating cost than a truck with a monthly mileage of 20,000 kilometers. A perfect example of this is when Volvo Trucks, through their comprehensive transportation solutions, successfully helped a client to lower transport costs per kilometer from 8 RMB to 6.8 RMB. Another method of improving a vehicle’s uptime is through safe driving methods and routine check and maintenance. One study showed that a major accident will cause more than 350 hours of unplanned downtime and a moderate accident over 60 hours of downtime, both of which will bring companies a huge profit losses. Finally, a significant way to reduce logistics costs is by improving drivers’ fuel efficiency skills through training. One Volvo experiment showed that through Volvo’s fuel management services driving team a vehicle’s average fuel consumption was reduced by 8-20% and its profit increased by 3%. Volvo Trucks lives up to all of their promises about these three methods, which is why in recent years Volvo Trucks has become Chinese logistics companies’ preferred drop-and-pull transport vehicle.

In 2014 Volvo Trucks officially launched the new truck range in China, which immediately received a warm response from the market. The new range has already received world-class awards such as the “Red Dot Product Design Award”, the “IF Product Design Awards”, and two consecutive years of “The Truck of The Year” for setting new benchmarks for the truck industry with its leading innovative technologies. Worth mentioning is the industry-leading patented technology Volvo Dynamic Steering system (VDS), which brings a comprehensive upgrade of driving experience, bringing exceptional handling stability and security. The VDS system automatically regulates the steering and compensates for irregularities that feed through to the steering wheel, caused for instance by side winds or bumps in the road surface. It can even help reduce the risk of vehicle rollover if a tire explodes. VDS makes the journey safer for drivers and allows transport operations to be completed more efficiently.

The new range and their accompanying after-sales services have brought six business values to logistics corporations including productivity, fuel-efficiency, uptime, safety, security and driver appeal. In the face of this rapid industry growth, companies must grow their transport fleets. While many companies are still weighing the pros and cons of their initial investment about transportation vehicles, several large logistics companies, such as Deppon, CNEX, ZTO Express and Arima World Group Company Limited have already begun purchasing large orders of Volvo Trucks, applying them to their dedicated express transport. In addition, there are also many logistic companies are working hard to increase their competitiveness and distribution scope, and are prepared to welcome the next wave of e-Commerce business in 2015.

It is well known that Volvo Trucks is abiding its core values of “quality, safety, and environmental care”, and consistently focus on the needs of customers and drivers for innovative technology research and development, which aims to provide high quality transport solutions. In 2014 Volvo Trucks officially launched a new truck range in China, which immediately received a warm response from the market. With many upgraded technology, such as the innovative patented VDS(Volvo Trucks Dynamic Steering) system, active and passive safety systems and driver assistance systems, the new vehicles provide improved trucks’ uptime, productivity, fuel efficiency, safety, security and driver appeal, all of which are very attractive aspects for both drivers and logistics companies and give Volvo Trucks vehicles higher commercial value.

Volvo Trucks knows that the service quality of the dealership is the guarantee for the vehicle always running under good condition, especially for those companies who are doing express cargo transport. Nowadays, vehicle’s uptime and efficient operation are crucial for the logistics companies to compete and meet the demand from e-commerce. The newly announced Volvo Commitment demonstrates the determination of Volvo Trucks in providing the clients the highest standard after services.

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