Exploring Secret for Schneider’s Success

――Interviews with Mr. Martin Winchell, Managing Director of Schneider Great China Area

Transformation and Expansion

Journalist: At present China is at its stage of transformation. Many private-owned logistics enterprises are transforming from traditional transport and warehousing enterprises to modern logistics enterprises. Schneider also experiences such a transformation. Then in the process of upgrading to be the modern logistics enterprise and in the market competition, what do you think are key points for China private-owned enterprises? 
Martin: Now many private enterprises attach great importance on infrastructure development, which focuses on improving efficiency and cooperate management expertise to realize a qualitative transformation. In market competition, China private enterprises definitely have plenty of advantages, for example, they are familiar with the Chinese geography and market policies. As a result, they are equipped with more flexibility which foreign companies cannot get. Therefore, China enterprises should try to make full use of these advantages. 

Journalist: A logistics company can be expanded by either merging & acquisition or self-development, which is better in your opinion? 
Martin: Merging other companies one after another is not necessarily positive because the current logistics market is still fluctuating. Schneider attaches greater importance on our own natural development. We expect to build a sound base for Schneider by our own development.
China logistics market is still very scattered. In this situation, achieving self-development is a preferred manner. This does not mean that we should expand our company size. We should keep exploring our market, lowering our cost and enhancing our flexibility.

Principle and Technology
Journalist: As we know, Schneider is started by having only one truck. How can Schneider develop itself to be a giant international logistics enterprise? 
Martin: In our venturing process, we focus on operation efficiency and high-quality service. In addition, we also adopt many new management ideas. Not only we make effort to achieve our own self development, but also want to promote the overall development of China logistics industry.  
　　
Journalist: In the past 70 years of Schneider’s development, what kind of technological support does Schneider have for its development stage by stage? 
Martin: Indeed technology is crucial for the logistics industry. The highly ranked logistics companies have strong technology support. Schneider is the earliest to adopt the bi-directional satellite communication to monitor the containers, which is the most advanced in the whole logistics industry. Schneider invests a lot in this technology, which guarantees Schneider’s service quality. However, in addition to technology, which is static, we still need a set of highly efficient service process and management system. We should give equal importance to technology and management. China logistics enterprises should also bear this in mind. 

Merging and Cooperation

Journalist: China logistics market and U.S logistics market are at two different levels. Most China logistics industries are still at low levels compared with U.S. enterprises which are developed much faster. Compared with U.S logistics enterprises, China especially have a long way to go in service and management. How Schneider achieve a smooth connection between this high level and low level in your acquisition process?
Martin: Here I will emphasize that 2/3 of Schneider’s clients are top 500 World Enterprises. We hope that our advantage in top clients can help achieving the connection between high-end and low-end. Another thing I want to emphasize is flexibility. China logistics market has its advantage, such as low cost. We will not mechanically move Schneider’s model in China. Instead, we will study China’s situation and make an optimal combination.  

Journalist: Presently merging and acquisition are becoming more and more frequent, sometimes this kind of activity does not aim in service development, but in capital market. What’s your opinion on this phenomenon?
Martin: We must bear in mind that Schneider is a strategic and far-sighting company. All our activities focus on long-term development because we have a well-defined objective. As to the capital market in which some investment banks and financial agencies acquire some logistics companies and then sell them out for commission, we show no interest because this is not our mode. Our aim is to build an excellent company.   

Journalist: As the leading logistics transport company, how can Schneider give full play to its advantage in the market? 
Martin: We only make capital investment in China, and combine Schneider’s brand name and local concrete business. Facing such a scattered China market, we aim to improve our efficiency and make a long-term strategy to cope with the market trend.

Journalist: Schneider has a lot of transportation tools in U.S. Will you purchase some transportation tools in China so as to have a fleet?
Martin: No, we won’t because China and U.S have different market. U.S has a much larger market, so trucks in U.S are much larger. China market is still scattered, but is quite flexible. 

Journalist: What is your feeling of cooperating with small and medium logistics companies?
Martin: Definitely no, we have good experience of cooperating with our partners. For example, in U.S, we have 600 partners. We have a set of criteria to evaluate our partners by their service quality. We know how to cooperate with our partners more efficiently.