Losing Money to Be a Tycoon

Lu Mingliang paused and continued: "At present, we have four thousand upwind stations. You know, some domestic express companies only have more than two thousand outlets across the country, and we have surpassed them in number."

"Headwind Logistics has been losing money in this way and can only rely on blood transfusions from other industries. This is not a long-term solution. It must further reduce losses and increase profits in order to develop better."

"So, I think we should start preparing for the regular express delivery business across cities, and grab this profit from other express companies!"

For a long time, Upwind Logistics has actually done the dirty work that other express companies are least willing to do.

The "last mile" problem has always been a big problem that plagued the express industry.Because it is very convenient to transport from the transfer point to the express outlet, it is enough to directly pull in a truck, but to deliver the express one by one from the outlet to the door, the labor cost is high.

The same is for express delivery. Other express companies do the most trouble-free and profitable part, while Upwind Logistics does the most troublesome and least profitable part.

Upwind Logistics solves the last mile problem for other express companies. On average, they only charge 2 to 4 cents per item. Although the main collection is some small items, it still suffers a blood loss, and the pay is not proportional to the return.

The solution given by some platforms is to make express cabinets and let customers take them by themselves.

But the problem is that this express cabinet collected money from the express company and saved a lot of costs for the express company, but passed the last-mile errands to consumers.

Consumers are walking and moving things. The area occupied by the express cabinet is also provided by the community. In the end, it saves the courier company and allows the express cabinet to make money, but there is no benefit for themselves. They should enjoy the door-to-door service. Services are also discounted.

Some customers like to go to the express cabinet to pick up their packages because of the problem of commuting time, but this can only be used as one of the options. Those who don’t want to go out can’t be forced to pick up the packages themselves. The behavior actually violated the legitimate rights and interests of consumers.

Upwind Station allows the courier to deliver the goods to the door, and also allows customers to pick up the items by themselves. You can also get some points for picking up the items yourself. This is the solution to protect the rights and interests of consumers.

Of course, Lu Mingliang is very dissatisfied with the current situation where others eat meat and can only drink soup against the wind.

He will not force other companies to drink soup, but why can't I do meat eating?

Isn’t it just picking up the express, going to the distribution center for sorting, loading and transporting to the target city, sorting again, and then sending the express?

Why can't Headwind Logistics make this big head?

I didn't do it before, because there were too few stores and the coverage was not enough, so I had to layout first.

Now they have opened more than 4,000 stores. A big man still only eats soup but not meat, and he is so hungry. Is this appropriate?

Obviously very inappropriate.

Therefore, when he came this time, on the one hand, he reported to President Pei on the current situation of Headwind Logistics, and on the other hand, he wanted to test President Pei’s attitude on the matter, hoping to expand the business of Headwind Logistics as soon as possible.

Not to mention turning losses into profits soon, at least start the cross-city express business first and reduce some losses.

Otherwise, it will continue to suffer like this, and it seems that the person in charge has been eating vegetarian meals at the corpse, and even the person in charge can't look up at the party.

Pei Qian's expression instantly became serious.

broken!

Obviously, Lu Mingliang has worked conscientiously in Upwind Logistics for more than a year, and he will never be satisfied with repeatedly opening stores like this.

This is why Lu Mingliang has been able to endure it for so long. If he changes to an individual person in charge, it is estimated that he will have to come to protest six months in advance and ask for business expansion.

Pei Qian thought for a while, but it was not so good and refused directly.

Lu Mingliang is a down-to-earth person, works steadily, completes tasks very seriously, and has strong execution ability.He took the initiative to put forward this opinion, which is enough to show that he has gone through deep thinking and repeated thinking, and he can't hold it back.

There are already more than 4,000 stores, and the most difficult "last mile" problem has been solved. Cross-city express delivery is nothing more than a handy thing, why not do it?

Except for the unspeakable reason for deliberately losing money, Pei Qian really couldn't think of other reasons to reject Lu Mingliang's proposal.

but……

Just agree to Lu Mingliang's proposal?

That certainly won't work!

If the logistics is done well, it will make a lot of money. Upwind Logistics has lost a lot. If it turns into a profit again, Pei Qian will have to vomit blood on the spot.

Therefore, it is necessary to make certain adjustments to the business of Upwind Logistics to appease Lu Mingliang, and it is necessary to ensure that such business adjustments will make Upwind Logistics continue to lose money.

Pei Qian quickly thought of a good way.

"Well, what you said is right, it is indeed time for some business adjustments to be made on the headwind logistics side."

"But it should be noted that although the number of stores of Upwind Logistics has reached 4,000, they are all distributed in four areas. With the four core cities of Jingzhou, Imperial Capital, Magic Capital, and Yangcheng as the center, they diverge to the surrounding areas. But in vast areas other than these four areas, such as general provincial capitals and second-tier cities, there are no stores at all, let alone small counties."

"If we want to develop cross-city express delivery services, this city cannot deliver it, nor can that city deliver it. How competitive is it compared with other express companies?"

"Other express companies, although some have only 2,000 stores, are spread across all cities across the country, and even some small counties have coverage. This is an essential difference."

"Their stores cover a very large area. Although there are a lot of express delivery, slow delivery, and often lost items, they can guarantee coverage in most cities across the country. We can't."

Lu Mingliang couldn't calm down a bit: "Then President Pei, what do you mean is that we can only do regular express delivery services when our stores are all over the country? Then when and how long did we get it..."

Pei Qian smiled slightly: "I mean, it can be done, but we have to form a differentiated competition with other express companies."

"If you just rent a warehouse and buy some equipment as a sorting center, and then rent some large trucks to transport the goods, what is the difference between Headwind Logistics and other express companies?"

"My idea is to use the current advantages of Upwind Logistics to be faster than all express delivery!"

"But if it is faster than other express delivery, we can no longer use the traditional land transportation method. We do air transportation!"

"Talk to airlines about cooperating and leasing aircraft to transport goods. With the four cities of Jingzhou, Imperial Capital, Magic Capital, and Yangcheng as the center, there is at least one flight every day for round-trip cargo transportation, so there are twelve flights every day, which will be delivered. The goods are delivered to the corresponding cities."

“Then, these goods are sorted and sent to surrounding cities by traditional land transportation. This is faster than other express companies! Of course, only in the areas covered by our business.”

"Outside these four areas, we do not provide any shipping or pickup services for the time being."

Lu Mingliang couldn't help being stunned.

It turns out that President Pei didn't disagree with his opinion, but wanted to go ahead!

At present, the world’s courier companies still rely mainly on land transportation. If the express is sent from Yangcheng to the Imperial Capital, it will take three days, and if there is a delay, it will even take four days or more.

Mr. Pei’s idea is to delimit the surrounding cities as a land transportation area centered on the four cities that are highly covered by the four upwind stations of Jingzhou, Imperial Capital, Magic Capital, and Yangcheng.

Between these four cities, the use of pure air transportation can shorten the express delivery that originally took three days by land transportation to within one day.

In the region, such as from Jingzhou to other cities in Handong Province, it can be transported by conventional land transportation.Although it may not have a clear advantage over other express delivery in terms of speed, don't forget that Upwind Station is opened by Tenda.

For the same goods, Fengfeng Station must give priority to its own courier before sending it to other courier companies.

In this way, in the area covered by the Upwind Station, using Upwind Logistics to send and receive express delivery will definitely get a better experience than ordinary express companies.

The more than four thousand upwind stations are not in vain, and they must be effective at this time.

And what Pei Qian really cares about is actually very simple, the threshold for air transportation is high, and it can cost more!

Is it a concept for the fuel cost of a plane flight to run a long distance with a few large trucks?

Moreover, the air freight charges will definitely be much higher than ordinary express delivery, and there will not be many people using it in the initial stage.Moreover, there are strict restrictions on air cargo, and many items cannot be boarded.

At that time, no matter whether a plane is full or not, it will take off as scheduled and fly a trip empty. Isn't this pure money?

What's more, cooperating with airlines, leasing planes, building self-built airports, buying planes directly, etc., are all huge expenses, and there is great potential for burning money in the future.

Of course, if air transport can be done, then land transport is certainly easy to do.

With the further development of upwind logistics, the upwind station will certainly spread to more cities, and long-distance transportation will certainly not be possible only by air transportation, and will gradually use land transportation, including rail transportation and long-distance freight.

But those are things to worry about later.

In the short term, Headwind Logistics will only do the current "trans-regional air transport and intra-regional land transport" method, which will definitely lose money.

As for which goods can be delivered, which cannot be delivered, and which places can be delivered and which places cannot be delivered, these will be checked by the courier at the bottom.

As long as the customer sends the item, the courier can check whether the goods meet the standards and whether there is a wind station at the destination.

If yes, then use upwind logistics to send, if not, then use other express delivery.

After business expansion, the upwind logistics section on the Tenda Life APP must also be updated to allow players to query the location of their express delivery in real time.

But these are things that Lu Mingliang will worry about for some time in the future.

Pei Qian said: "This is probably the case. Of course, it is necessary to cooperate with airlines, lease aircraft, and establish a sorting center in the outskirts of the leased plant. It is also necessary to further update the entire express logistics system to allow transfer between different steps. Smoother..."

"All require a lot of preparatory work."

"Well, let's give you three months to prepare and negotiate business, and then allocate a special fund to you after three months to gradually implement the new business."

In fact, the main reason is funding.

Tengda had just recovered from the previous money-burning battle. Although he was recovering his blood quickly, Pei Qian had already thought of many ways to spend the money again.

The business upgrade of Upwind Logistics is an unplanned expenditure, and Pei Qian has not arranged special funds before.To rent planes and build a batch of sorting centers in various cities, this is not something that can be done with a small amount of money. It is a bit difficult to squeeze hard.

And it was only two months before the settlement, so obviously there was no time to make the trip.

When the next cycle begins, it is estimated that the film's payment will be coming soon, and various departments have also saved a large amount of money, which can be burned into the headwind logistics.

Lu Mingliang was very happy. It can be said that this time to see Mr. Pei has been quite rewarding.

He nodded immediately: "Okay, President Pei, I'll go ahead and make arrangements, and I must make this matter beautiful!"