Extraordinary Genius

Chapter 1965: Big Issues of Labor Costs

“President Wang, I think you may have overlooked an important issue, which is labor costs. Your smooth logistics development is low basic wage, high piecework remuneration, making you smooth logistics, a large number of RMB 10,000 income dispatchers emerged. ”

“But Huaxia is still very different from the US. Huaxia's basic social security is enough. The three types of insurance are pension, medical care and unemployment, and they are paid on the basis of basic wages. The contribution amount is very low. ”

“Unlike the US side, they will surely demand to pay according to their overall income, and the proportion paid is much higher than our side. How do you protect the profitability of your business? ”

Li Shiqiang's problem was acute because he had considered the US branch office, but after some analysis and investigation with Wu Zhigang, it was found that Huaxia's model could not be moved to the US, and the situation was very different between the two countries.

He now wondered how Wang Wei would solve the problem.

The problem of Li Shiqiang is also the most important concern of Feng Yu and Kirilenko. The salaries of dispatched employees in the US can be solved, but the high welfare treatment may not make them any money at all.

Unless you have a good logistics channel, you can effectively reduce costs. And these, exactly, are what they lack.

Wang Wei seemed to have a long time to think about this and responded directly and quickly: “This is a good solution, we will charge higher fees because our service will be better. ”

UPS is the world's number one package delivery provider, with high fees and excellent service quality, as well as the most complete logistics channels, including cross-border and cross-state logistics.

“I did some research, and a lot of people in the US don't like express packages because they usually work when the courier delivers the packages, and they don't have anyone at home. ”

“Then there are several options for couriers, the first being to leave the package in the yard so that the package is not signed at all, and the courier must compensate for any damage or loss of the package. ”

“The second option is to wait until there are people at home, so the couriers have to work overtime, few people like to work overtime at night, especially the couriers, who may choose to deliver the packages on the weekends, leaving many people a few days late. ”

“And we, for our part, can offer a third option, which is to set up a similar post office in a community, notify customers to come here and pick up their own delivery, similarly unpack and accept signatures in person, and also allow customers to get their packages first thing. ”

As soon as Feng Yu's eyes lit up, a noun popped up in his head - the rookie station!

Isn't that what Ma Yun later made of the station? I didn't think Wang Wei would think of it now. If that were the case, then many problems could indeed be solved, and even this station could collect packages from other courier companies, perhaps more profitable than just logistics.

Only then will they have to invest a lot more money, each station can't be too small, there are a few more staff, and staff have to work more hours than normal, because many people have to wait to get their packages.

There are also advantages and disadvantages in employing more people.

The downside is that both costs and expenses have to increase considerably. One of the advantages is that we can renegotiate with the US political axe. We have increased employment opportunities for you and the US people. Then you should enjoy preferential policies, such as tax breaks and so on.

Li Shiqiang, Wu Zhigang and others showed interest and admired Wang Wei. They've seen the post office, and even Li Shiqiang used to work at the post office. How could they not think of that?

“With this institution, our income will increase considerably. Because our service is of better quality, we can charge higher fees. So while the cost is high on the US side, it's not a problem for us. ”

Feng Yu thought about it and asked: "Do we pay insurance benefits etc. in line with UPS etc. etc? And one more thing I want to make clear to you is that we are going to employ the rice people, with the harbour dock workers as a priority. ”

Port dock workers?

Wang Wei's eyebrows are wrinkled. Those people are very powerful guys. They are perfect for giving large pieces, but if they give small pieces, they have no advantage.

And these powerful people, many of them have a bad habit of throwing things at couriers, and an inadvertent thing in the package could be damaged.

If what is in the package is damaged when it reaches the customer's hand, then the courier company will have to compensate according to the agreement, and many will have to double the compensation, causing considerable damage to the company's brand reputation.

Looks like he's going to be working with an insurance company. He remembers that Feng Yu invested in banking in the US, and there are insurance companies down there. And every dispatcher has to pay accident insurance, otherwise the dispatcher will have to compensate their company for any accidents at work.

Calculated in this way, the insurance expenditure per sendee is not small and would be more costly if combined with nominal subsidies such as rainy weather subsidies, windy weather subsidies, snow weather subsidies, high temperature subsidies, cold subsidies, etc.

Wang Wei consulted relevant enterprises on the US side, knew that trade unions existed on this side, and that this side would increase workers' income or welfare treatment in various names. Even many workers engaged in manual work in the US earned more than those engaged in intellectual work.

“Benefits such as insurance that we pay are certainly no worse than those of other logistics companies, even if they are the best in the world. At the same time, we also want to highlight our features, which are that we deliver faster, have better service attitudes, and even have strict requirements for the outfit of the dispatcher. ”

Same uniform, same vehicle, smile service, clear prices, etc.

“It is also important that Amazon, Yipe and a lot of logistics are free, that is, the company is responsible. Would they agree that you are asking us to charge a high logistics fee and have a good quality of service, which would increase Amazon and Easy Digital's costs and risk losing them? ”

How Amazon initially expanded was free of logistics and affordable for many customers. They use free shipping as a promotional tool and it works very well.

“I will discuss this with Amazon and Easy to find a mutually acceptable internal price. And we need to get on horseback with the latest sorting packaging equipment to ensure the highest efficiency and lowest cost. ”

“Okay, just think about it, but according to our budget, each of us is not investing a small amount of money this time, you two. Is there a problem?” Feng Yu looked at Li Shiqiang and Wang Wei.