Case StudyEnabling Team: Seeding Internal Products - Transforming a Cost Center into a Revenue-Generating Logistics Platform
Traditionally, logistics departments are seen as cost centers, focusing primarily on cutting costs rather than driving innovation. RRS Logistics, initially a part of Haier’s in-house operations, faced the challenge of overcoming this perception. They needed to transform their logistics function from a mere support role into a revenue-generating, innovative platform capable of handling diverse product deliveries, including those from competitors, while maintaining efficiency and service quality.
The Solution
RRS Logistics redefined their logistics operations by creating a platform-based model. They introduced an Uber-like app to connect a vast network of service providers, vehicles, and workers, which enabled the seamless coordination of deliveries and installations. This shift allowed them to expand their services beyond Haier products, delivering goods from various brands and partnering with external businesses.
Key Actions:
- Developed an Uber-like app for efficient logistics management.
- Expanded network to 6,000 service providers, 100,000 vehicles, and 200,000 workers.
- Shifted focus from only Haier products to include competitor products.
- Partnered with Shunguang Social Commerce platform to support logistics for over 800,000 external store owners.
Outcomes achieved
RRS Logistics successfully transformed from a cost center to an innovative, revenue-generating platform. By 2021, only 30% of their deliveries were Haier products, demonstrating their capability to handle a broad range of products. This transformation not only reduced costs but also opened new revenue streams, increased service efficiency, and ensured coverage across all regions, including remote areas.
Benefits:
- Enabled employees and partners to start their own businesses.
- Achieved extensive delivery coverage, including rural areas.
- Supported logistics for numerous external store owners.
- Increased non-Haier product deliveries, enhancing business diversity.
- Improved overall service efficiency and customer satisfaction.
