China Merchants Logistics：Creating professional logistics platform for disaster emergency --“Disaster Emergency Delivery”,

Company profile
 

China Merchants Logistics Holding Co., Ltd.(China Merchants Logistics for short) is a national A class central State-owned enterprise, and also a core enterprise for the development of modern logistics industry under China Merchants Group, one of the top four China-invested enterprises in Hong Kong. It was established officially in 2000, with its headquarters located in Shenzhen and a registered capital of RMB 1.25 billion. In the fifteen years, China Merchants Logistics focused on the pan fast moving consumer goods contract logistics market. It has realized the high speed development of compound annual growth rate of over 30%. In 2015, China Merchants Logistics acquisition of road express service providers Heng logistics with national influence, formed a new dimensional development pattern with the contract logistics, road transportation, cold chain logistics three platform coordinated development.
 

Challenges
 

Due to the complex geographical conditions of China, more crustal movement has happened in recent years, and natural disasters in China has increased significantly. The public welfare awareness of the public and enterprises public awareness are raising accordingly. When disaster occurs, they actively participate in donation activities, so the demand of disaster relief materials storage and emergency transportation and other social services increased. Domestic logistics is limited by time and space in the process of material storage, transportation and distribution, and it is difficult to meet the needs of emergency rescue timely. How to use their own advantages to establish a set of efficient emergency response mechanism, so as to enhance the competitiveness of corporate social responsibility and brand image, has become a major issue of China Merchants Logistics Sustainable Development strategy.
 

Solutions
 

Set up the “Disaster Emergency Delivery” operation platform. In 2014, to take full advantage of the national network logistics service capability of China Merchants Logistics, and timely response to emergency logistics demand of relief supplies, China Charity Foundation, China Merchants Logistics, and One Foundation jointly launched disaster relief emergency logistics brand, “Disaster Emergency Delivery” operation platform.
 

 “Disaster Emergency Delivery” platform is open for the whole society and enterprises with disaster relief logistics needs, and determines the cooperation relationship with them through rapid contacts, simplified process, instant material docking launch and other ways. The platform provides a full range of logistics services from disaster relief supplies storage, sorting, packaging, loading and unloading, delivery, to distribution and delivery, to ensure the accurate and timely delivery of urgent goods for the needy people. In service duration, the disaster situation determines the open time of Disaster Emergency Delivery platform. If needed, it can operate 24 hours a day.
 

Train professional logistics volunteers team. Since 2010, China Merchants Logistics has set up a volunteer group for disaster emergency logistics, which is responsible for organizing professional logistics volunteer service in case of a sudden disaster. In recent years, China Merchants Logistics has further standardized volunteer team management, and guided the team to complete the training of Professional Volunteer Management Approaches and Disaster Emergency Plan, to get ready for any action at any time. Since the Wenchuan earthquake, China Merchants Logistics volunteers have been in charge of the storage and transportation of relief supplies in the previous earthquake relief, and have accumulated rich operational experience. Through providing the services of low temperature storage for relief drugs and other services for Ya'an earthquake, the team further enhanced its professional logistics handling capacity of relief supplies. China Merchants Logistics volunteers have to pass the pre-job training, job rotation, job evaluation and then can be a qualified one.
 

In order to ensure the team in the front line without worries, the necessary security measures have been taken for the volunteers and other workers to avoid the secondary injuries. In addition, vehicles of China Merchants Logistics have purchased compulsory insurance, commercial insurance, car damage insurance, third party liability insurance and life insurance for the volunteers and other basic insurance. At the same time, for temporary vehicles and drivers, they also provide  trainings for drivers, for example, safe driving habits, material protection requirements, notices during the transport process, the introduction to the disaster situation and communication channels, etc. when they wait  for the loading ,and carry out inspection of the vehicles to ensure the safety of the transportation.
 

Use standardized and informationized technology to enhance service efficiency. Since 2013, China Merchants Logistics has carried out the standardized work in operation process, operation safety, and resource allocation and cost efficiency in the logistics service system, and applied it to disaster relief logistics service process. Once the disaster occurred, no matter which network is selected to carry out disaster relief emergency operations, the standardized process operations will realize the stable service result of relief supplies accurately.
 

For the application of information technology, China Merchants Logistics, as China's first logistics service provider that use SAP system, has the ability to develop independently and use customized logistics management information system and set up the information system platform. It implements the execution system with SAP as the core, TM transportation management system, WMS warehouse management system, GPS/GIS positioning system, OA system and advanced bar-code identification technology to meet the process management need of disaster relief supplies logistics. 
 

At the same time, China Merchants Group ERP, China Merchants TM and email APP on mobile phone and other real-time communication software are made up of the cloud system inside China Merchants Bureau. Take Merchants Charity Fund as the outreach subject and China Merchants Logistics disaster emergency response team as the execution subject, the company can mobilize the network which can receive the logistic, personnel, related equipment and facilities resources and support funds through the command channel of the information cloud system,, and concentrate to hand out the relief supplies to ensure that the affected people get timely assistance. 
 

In addition, China Merchants Logistics uses GPS monitoring system to conduct the whole process monitoring for the carrying vehicle, and uses CCTV real time monitoring system to monitor national warehouse to ensure that relief supplies are safe and controllable, and understand the real-time situation of vehicles, personnel and materials accurately and timely, improving the delivery efficiency of disaster supplies.
 

Achievement
 

Relief supplies are rapidly delivered to the stricken areas. During the Ludian earthquake, “Disaster Emergency Delivery” gave full play to its professional advantage, provided professional logistics services from free material storage, classification, to transfer and handling for more than 20 public institutions, including One Fund Foundation, China Foundation for Poverty Alleviation, China Red Cross Foundation, Save the Children Kunming office, China Social Entrepreneur Foundation, and Oxfam , and finished more than 4000 tons free delivery of relief supplies.it was a strong support for the front-line disaster relief and became the largest free logistics platform for disaster relief, thus receiving wide acclaim from all sectors of society and charitable counterparts.
 

Due to the successful operation of “Disaster Emergency Delivery”, on December 10, 2014, in the central SOE enterprises volunteering work promotion conference held by SASAC Central Committee of Civilization, “Disaster Emergency Delivery” project was named as the Outstanding Volunteer Service Project of Central SOE Enterprises, and employees of China Merchants Logistics Chengdu Company were granted the title of Outstanding Volunteers of Central SOE Enterprises. The operation and management of Disaster Emergency Delivery platform fully combines the enterprise's professional quality with the advantage of public network and communication of China Merchants Charitable Foundation, and further clarifies the paths in exploring the operating mode, integrating advantageous resources, and innovating its own brand in response to natural disasters.
 

Optimize its own logistics system. China Merchants Logistics enhanced the professional logistics processing capacity in rapid delivery of supplies for the victims by “Disaster Emergency Delivery” platform. At the same time, in response to a variety of emergency logistics requirements, it has improved the standardized service platform, improved the logistics management information system, communication information cloud system, information monitoring system and other information technology application ability and strengthened the process management of their logistics delivery system. Totally, it promoted the technological innovation and formed a transportation service system with more industrial competitiveness.
 

Enhance the company's brand reputation. China Merchants Logistics “Disaster Emergency Delivery” platform has given full play to its complementary advantages by cooperating with One Fund Foundation, China Foundation for Poverty Alleviation, Red Cross Society of China and other thirty-party public welfare organizations, and built the emergency rescue service system covering the whole process from materials distribution, transportation to delivery, which ensures to deliver the disaster relief supplies to the affected people timely. “Disaster Emergency Delivery” platform, with professional, efficient, orderly and accurate service, is highly recognized by the affected people, local governments, industry associations, and public institutions, and has created a friendly environment for the further development of China Merchants Logistics. It addresses the needs of the society and also wins the praise for their own.
 

Prospect
 

China Merchants Logistics “Disaster Emergency Delivery” platform has formed its social influence. In the future, based on the standardized operation mode, it will combine the network service advantage of China Merchants Logistics, and unify its LOGO to strengthen external publicity and further expand the social influence of “Disaster Emergency Delivery”.   
 

At the same time, it will also consider providing disaster storage and transportation services for more public organizations or enterprises. Once the disaster occurs, engine-start of “Disaster Emergency Delivery” emergency relief logistics services will be realized. In addition, it will further expand the volunteering team, provide training and unified management system for the volunteers. When disasters happen and the relief mode needs to start, volunteer team can be set up timely.