Ningbo Liftstar creates a new logistic model

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Category: Ningbo Business

Published: Tuesday, 23 August 2011 08:47

Speaking of large modern enterprises, what comes to people's mind are often big workshops, workers, assembly lines, etc. But in Yinzhou, a logistic company has been outstanding for 28 years with its virtual business management model and information management philosophy. Being a leading company of logistics, the company named Liftstar has contributed a lot to the local economic development.

Like a great majority companies, Liftstar once took the structure of "management + workshops", each workshop having a director. "A big disadvantage of this model is that nobody would like to take the responsibility if something happens, which would lead to low efficiency", said Wang Wenping, the Chairman of Board.

In 1992, Liftstar developed its first manual hydraulic pallet truck, which marked that the company had stepped into the manufacturing of logistics equipment. Since then, Wang Wenping has started thinking about the change of the future development model. Finally in 1998, he decided to reform the business management model. He broke up all plants and workshops and formed a number of small plants according to the processes of spar parts processing. Then he equipped necessary equipment to each plant. The directors of plants and workshop directors are elected from the employees according to their competence. They would registered a business of independent legal person status, which become the suppliers of the Liftstar.

In face of skepticism and criticism, Wang remains calm. "Many people want to be boss. I just give them the chance. I always believe that to work for oneself can always arouse the motivation and creativity", he said.

After the reform, the creativity of the workers and the work efficiency increased dramatically. Previously, the enterprise generated yearly income of 45 million yuan, while now the sales income reaches 250 million. "So, the same people, same equipment, but with different management pattern, the results come out totally different", Wang said.