Provincial Tobacco Industry Establishes Large Physical Distribution System

Source from:  xinhuanet.org 10/13/2005

The tobacco industry of central China's Henan Province has recently kicked off the project to establish Zhengzhou Tobacco Allocation and Distribution Center as the largest physical distribution system for the provincial tobacco industry. Backed by automatic storage facilities, Zhengzhou Tobacco Allocation and Distribution Center will have a coverage of over 100 kilometers in radius. When its construction is completed in May 2006, Zhengzhou Tobacco Allocation and Distribution Center will be responsible for allocating and distributing cigarette products for sales in the six counties and districts in Zhengzhou City - the provincial capital city of Henan - on a unified basis. With a total investment of nearly 100 million yuan (nearly 12 million U.S. dollars), Zhengzhou Tobacco Allocation and Distribution Center will be based in the Economic and Technological Development Area of Zhengzhou City, and will cover 76.13 mu (5 hectares) in area. The center will have four automatic sorting lines, will be capable of distributing cigarettes to more than 30,000 retailers in Zhengzhou City, and is capable of putting 15 billion cigarettes (300,000 cases) on the market annually. As a modern physical distribution system with a complete range of functions and facilities, Zhengzhou Tobacco Allocation and Distribution Center will have a maximum storage capacity of over 10,000 cases (500 million cigarettes), and a maximum daily sorting capacity of 1,600 cases (80 million cigarettes). In the past, cigarettes were distributed to retailers before assortment, which was time-consuming and costly. After establishment of Zhengzhou Tobacco Allocation and Distribution Center, retailers will be able to assort cigarettes at the center before distribution in a convenient and fast way. Enditem