Interview with Mr. Liu, CEO of Qingdao Honortrans International Logistics Co., Ltd

Qingdao Honortrans International Logistics Co., Ltd was founded in 2004, and now has already grown into a mature logistics company with a worldwide network. In the interview, Mr. Liu discusses the development and culture of his company, and shares with us his experience in the logistics industry.

Choosing the core of your business

As one of the most important cities in Shandong, which is the shipping center in northern China, Qingdao has its own unique characteristics. Its agriculture, seafood, chemical and textile products are famous throughout the country, and its trade with Japan and Korea is prospering. However, compared with other large cities in the south of China, such as Shanghai and Shenzhen, the operations and management of logistics companies in Qingdao are not as developed. Qingdao Honortrans started out as a branch of another logistics company, and after trading successfully for several years broke away from its parent company. This meant that it already had some human resources and capital when it was founded.

Mr. Liu decided the development direction of Honortrans according to these factors:

1. Develop a strong international network. Most of the exported cargo from China is nominated cargo, so by strengthening their international network Qingdao Honortrans will increase its chances of handling this cargo and improve its ability as an international supplier.

2. Launch special services. Its hazardous shipping service and second-hand container selling and leasing service are among the best in Qingdao. Their sale of containers and special container shipping services are now very reputable.

3. Select main shipping lines. When Qingdao Honortrans was founded, Mr. Liu chose the Middle East, Southeast Asia and Euro/Med shipping lines as its main routes, and devoted the company to developing them.

Honesty and quality come first

Mr. Liu always emphasizes one point to his staff: honesty. He thinks that honesty is even more important than the ability of the staff. In the culture of Qingdao Honortrans, the first is teamwork, the second is study, and the third is honesty. As a result, the company has gained an excellent reputation in Qingdao and throughout China.

Besides honesty, Mr. Liu also pays a lot of attentions to the quality of service. In order to keep long-term relationship with customers, he and his staff abide by three points:

1. Service is most important. Qingdao Honortrans asks its staff to optimize their services by improving their own ability and paying attention to detail in order to provide all-round services.

2. Build a strict service system. Every staff member has to offer standard services according to the company's system.

3. Customers come first. The staff of Qingdao Honortrans should treat their customers honestly, help them to avoid risks and help to solve any of their problems.

Staff are the most important treasure

The brain drain is one of the hottest topics in the logistics industry, and it is created by the characteristics of the Chinese market. The logistics industry in China developed later then those in some western countries, and as a result there are many deficiencies in its human resources, salary, management and other areas. The number of logistics companies in China is approaching a saturation point so many companies are uncertain about their future and therefore have no long-term plans. This makes it difficult for them to train and retain staff, In order to minimize the brain drain, Mr. Liu built an effective system for managing the company's human resources:

1. When choosing staff, Mr. Liu insists that honesty should come first.

2. Qingdao Honortrans provides a secure environment for its staff to study and grow.

3. Compared with other logistics companies, Qingdao Honortrans offers higher salaries, and the salary of every employee will increase by at least 200 RMB per month every year. There is a reasonable system in place that provides rewards and penalties. As a result, the company has many staff who have worked there for many years, which isn't the case for many other companies.

4. In order to retain the staff with high ability, the company gives them shares in the company to raise their income and show them that the company values them.

Suggestions to newly formed companies

Having worked in the logistics industry for many years, Mr. Liu offers some suggestions on how to establish new logistics companies.

1. Honesty is always the most important factor for a company no matter whether it is new or well developed.

2. Pay more attention to the promotion of the company's image. A long time is needed in order to establish a branch. As a result, any new company needs to build a long-term plan for their promotion. This will save much more time and money in the future.

3. Decide on the core of the company's business. Never try to offer every service possible in the logistics industry. Try to find the most important part for the company and develop it.

4. Work hard and grow fast. The logistics industry in China is not as developed as those in western countries. Only those who can grow fast will catch up with the development of the international logistics industry.