Logistics and manufacturing are collaborating to create a new benchmark for cross-border integration

Qilu.com Lightning News, August 20th: Amidst the wave of high-quality development in the manufacturing industry, the synergy between logistics and manufacturing is becoming a key driver of industrial upgrading. Shandong Fang'an New City Logistics Co., Ltd., through its innovative "park + supply chain management" model and supported by precise government services, has fully integrated itself into every link of the manufacturing industry's supply chain. This has fostered deep collaboration between the logistics and manufacturing industries, enabling a "two-way journey" between logistics and manufacturing, and setting a new benchmark for cross-industry integration in modern logistics.

Entering the Fang'an New City Logistics warehouse, towering metal shelves stretch like giants, each shelf neatly stacked with labeled goods. These labels serve as their own unique "identification cards," allowing the warehouse management system to track the precise location of each item. Workers expertly operate electric forklifts, moving effortlessly between the shelves. Unlike traditional warehouses, all goods here come from supply chain companies within the manufacturing industry's core chain.

A supplier told reporters that this model significantly reduces transportation and logistics costs, as well as material storage costs. This model also significantly improves the timeliness and effectiveness of materials used by chain-leading enterprises. This model provides the final bridge between our suppliers and chain-leading enterprises.
"Chain" connects both ends of supply and demand, enabling industrial collaboration. Since transitioning from traditional logistics to modern supply chain management in 2018, Fang'an New City Logistics has provided services to over 170 companies, including Weichai Power and Weifang Special Steel, managing over 7,000 types of materials. Through integrated warehousing and distribution services, the company integrates material management into the manufacturing process, proactively aligning with the production plans of chain-leading enterprises and precisely coordinating spare parts warehousing and distribution. This ensures that the "logistics rhythm" keeps pace with the "production rhythm," transforming the park into a "superfactory" off-site warehouse for local chain-leading enterprises, ensuring zero inventory and direct delivery of raw materials to production lines.
Zhang Zhenlin, Chairman and General Manager of Shandong Fang'an New City Logistics Co., Ltd., explained, "For OEM chain leaders, they can more accurately monitor their inventory. The entire process is now oriented toward enterprise suppliers. When the OEM chain leader issues a production schedule, we respond in real time. That is, the moment the plan is released, our planners develop a sorting plan based on it, and then perform the initial sorting at the warehouse. Through this initial sorting, we clearly and individually control each model, and then adjust its production wave at our line-side warehouse, continuing down to the workstation."

This synergy stems from the innovative "park + supply chain" model. The park houses both a logistics hub and manufacturing branches, with supply chain management acting as the "link," integrating warehousing, transportation, and information services. Even more ingenious is "resource sharing" through peak hours: sharing transportation vehicles and equipment with companies like SF Express not only improves equipment utilization but also enables rapid response to unexpected transportation needs from manufacturers. Last year, the company's operating revenue increased by 19% year-on-year, a clear reflection of this synergy. Zhang Zhenlin, Chairman and General Manager of Shandong Fang'an New City Logistics Co., Ltd., explained, "Because our business covers all categories, from manufacturing to mass-market goods, daily consumer goods, and even e-commerce, we provide comprehensive services. We adopt a business-plus-park model. That is, we develop not only a business, but also a park. Currently, we own our own park, and approximately one-third of the space is used by us ourselves. This provides the park with a stable revenue model and development model, while also supporting our business and providing feedback to the business."

Today, this provincial-level brand logistics park has attracted 48 leading companies, including SF Express and Kuayue Express, to settle in, with a daily handling capacity of 200,000 pieces of freight. It has been selected as a core planning project for Weifang's logistics industry during the 14th Five-Year Plan period. Zhang Zhenlin, Chairman and General Manager of Shandong Fang'an New City Logistics Co., Ltd., stated that the business environment in Fangzi District, Weifang City, is truly excellent. When our company encountered difficulties requiring government coordination, we actively reported this to the local government. Whether at the district or subdistrict level, or across various departments, they all provided professional guidance and helped us address the root causes of the issues. This proactive approach has truly made us feel a sense of warmth and strengthened our confidence in future development.

Today, this logistics company, rooted in Weifang, is striving to become a benchmark for comprehensive modern logistics services. Its exploration demonstrates that when the logistics industry truly understands and integrates manufacturing, it can transition from back-office support to front-end empowerment. This is not only a path for growth for the company, but also a vivid example of cross-industry integration and shared advancement.

Zhang Zhenlin, Chairman and General Manager of Shandong Fang'an New City Logistics Co., Ltd., stated that the company's next goal is clear: to become a national benchmark supply chain management hub. The company aims to continue its business and advance in this direction.