Kerry Logistics is one of the biggest Logistics Company in the world. It is under Kerry Construction with Logistics network covering 33 countries. Kerry Logistics has hired more than 19000 staff over the world.
In Hong Kong, they owned 12 warehouses in total and operates with different functions. These warehouses can handle large variety of products, such as dangerous goods or frozen food or chemicals.
Their core business of Kerry Logistics included integrated logistics, international freight forwarding and supply chain solutions. These three business coordinated together and success Kerry.
Kerry Logistics offer customers with stable reliability and high flexibility in supporting continuing growth and expansion in China and South-east Asia. They offer many value-added and customized service or some solutions for their customers.
Besides from the above 3 core business, IT is also a essential focus of Kerry Logistics's operation. KerrierVision is one of the special value in Kerry. It is a IT platform that could meet each individual customer' need. It can provide a cost-effective and convenient solutions for customers and create a win-win situation for all stakeholders.
The service provided by Kerry Logistics mainly are in two aspects, Integrated Logistics and International Freight Forwarding. Integrated Logistics includes value added service, warehouse service and concentrate in local service. In our visit, we have seen three videos of Kerry providing different value-added service to customer related to various industry. For example, Kerry can provide GOH packing for LV apparel to reduce the unexpected damage and keep the products in good condition; or in the Canon example, Kerry can providing kitting and packing service, or some labeling to meet the Hong Kong market demand.
Kerry Logistics also did well in International Freight Forwarding. They offer different intermodel solutions, including the KART. By combining with the KerrierVision, Kerry Logistics can innovate new idea to meet the global changes and customers need.
Q&A Session 1. What are the competitive advantages of Kerry Logistic compare with FedEx, DHL and USP?
Kerry Logistics also did well in International Freight Forwarding. They offer different intermodel solutions, including the KART. By combining with the KerrierVision, Kerry Logistics can innovate new idea to meet the global changes and customers need.
Q&A Session 1. What are the competitive advantages of Kerry Logistic compare with FedEx, DHL and USP?
Basically, logistics company such as FedEx, DHL take different business strategy. These firms are having the leading positions in transportation and logistics firm but in different divisions. Kerry Logistics are mainly focused on the Asian market, especially that in Mainland China. Moreover, Kerry Logistics is differentiated
itself to be a B2B, while the others mentioned are usually B2C.Therefore they are not the direct competitors.
2. Beside RFID, what technology have you used for inventory tracking?
For Kerry logistic, it does not really use the RFID technology, as the cost is high and comparatively useless. Kerry Logistic has enough security approaches such as simple labelling and scanning for the staff to know where the product is located without RFID technology. What is more, being a third-party logistics company, actually it will be difficult to use the RFID alone, without the agreement from their clients. If they set up the RFID system within their warehouse only, the costs will be pretty high. Therefore, in order to be cost effective, technology like RFID may not be used generally unless the stakeholders in the whole supply chain get used to it.
3. Unlike your competitors, Kerry is an asset-based logistics company. Obviously, it reduces some uncertain market risk such as the raising rental cost. However, it will potentially reduce the future liquidity and flexibility in long term. Why do you have this plan or strategy?
For Kerry logistic, it does not really use the RFID technology, as the cost is high and comparatively useless. Kerry Logistic has enough security approaches such as simple labelling and scanning for the staff to know where the product is located without RFID technology. What is more, being a third-party logistics company, actually it will be difficult to use the RFID alone, without the agreement from their clients. If they set up the RFID system within their warehouse only, the costs will be pretty high. Therefore, in order to be cost effective, technology like RFID may not be used generally unless the stakeholders in the whole supply chain get used to it.
3. Unlike your competitors, Kerry is an asset-based logistics company. Obviously, it reduces some uncertain market risk such as the raising rental cost. However, it will potentially reduce the future liquidity and flexibility in long term. Why do you have this plan or strategy?
As a logistics company, having its own assets can is beneficial to their daily operation since hardware is an important elements in handling their clients' inventory. Moreover, some of the warehouse are their own assets already, so it will not be a great burden that affect the cost.
4. Recently, Kerry logistic proposes to reconstruct the warehouse to columbaria. Why does Kerry have this plan instead of expanding the business so that the warehouse capacity can be fully utilized? Is this action implied that Kerry do have confidence with your core business?
Kerry Logistics has applied with the Town Planning Board to redevelop its 15-storey warehouse in Chai Wan into a columbarium. The proposed Island Memorial Center seeks to provide 120,000 columbarium niches. This is a great opportunity for Kerry Logistic to expand their business in different ways. Besides, before the reconstruction, the warehouse in Chai Wan is mainly for storing file and paper. However, once the proposal is being approved, the documents will be moved to the more center areas where is more convenience to the customers.
5. How can Kerry Logistics use the information system to enhance its effectiveness and efficiency?
With the support of handheld devices, the Electronic Proof of Delivery (EPOD) solution provides real-time delivery status and details. Thus, the back-office staff are able to check the delivery status which means where is the truck now and how’s the process of the delivery, once the customers call the hot line to check the products, back-office staff are able to answer the questions. Besides, the handheld devices also provide other services included electronic signature, the customers are required to sign on the devices instead of the paper of the parcel. The staff can even use the device to take photos and send back to the data base of the back office immediately.
With the support of handheld devices, the Electronic Proof of Delivery (EPOD) solution provides real-time delivery status and details. Thus, the back-office staff are able to check the delivery status which means where is the truck now and how’s the process of the delivery, once the customers call the hot line to check the products, back-office staff are able to answer the questions. Besides, the handheld devices also provide other services included electronic signature, the customers are required to sign on the devices instead of the paper of the parcel. The staff can even use the device to take photos and send back to the data base of the back office immediately.
6. On your official website, you stated that you’ve provided exemplary cleaning and repair services for "your" ISO tanks. It's not clear here if the ISO tanks are provided by Kerry itself or the customer. Could you please elaborate?
It is one of the special services in Singapore and Indonesia. The ISO tanks are belong to the customer but not KerryLogistics, however, ISO tank could be provided if the customers request of it.
It is one of the special services in Singapore and Indonesia. The ISO tanks are belong to the customer but not KerryLogistics, however, ISO tank could be provided if the customers request of it.
7. What do you do to protect the goods from being damaged during transport?
It depends on which type of product is being transported. Generally, the staff will handle the products with care. For example, if it is a machine like a photocopier, they will wrap and put more patch to protect it. They will use different materials to protect the products included air bag or blankets.
8. How does Kerry Logistics compensate their customers for loss due to the damage of goods?
Kerry Logistics will sign a contract with the customers before they start their co-operation. In case if there is any lost or damage, Kerry Logistics will find out the responsibility. If the responsibility belongs to Kerry Logistic, they will compensate the customer with the maximum liability as stated on the contract. However, if the responsibility is not belong to Kerry Logistics which means it is happened due to the unexpected accidents, they will talk to the customer. Most of the customer will understand and therefore do not ask Kerry Logistics for
compensations.
9. How does KerrierVISION support your operation?
KerrierVISION is designed to meet the individual needs of each and every customer. This online IT platform provides inventory, freight, purchase order and delivery tracking for the customers. Visibility, accessibility and connectivity are the backbone of this IT system.
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