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LogisticsInChinaLogisticsInChinaIn1996aliteraltranslationfortheword“logistics”didnotexistintheChineseLanguageTodaytherearemorethan50,000registeredbusinessesinChinausing“logistics”intheirnameANewWorldANewWorldlogīstics,n.pl.
“Theorganisationandcontrolofthemovementofmaterials,goodsandinformationfrompointoforigintothepointofdelivery”TheSupplyChainTransportationSupplier-RawMaterialsBaseComponentsRansManufacturerDistributionCentreRetailer/PointofSaleEndUserTransportationTransportationTransportationlogīstics,n.pl.“TheorgaChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaGrowthinChina-GDP(BillionUSD)*JapanUSAChinaGermanyGrowthinChina-GDP(BillionJapanUSAChinaGermanyAverageRateofGDPGrowthinChina*%%%%%%JapanUSAChinaGermanyAverageRa
“Within20yearsChinawillaccountfor10%ofworldtradeandrivaltheUSAandtheEuropeanUnioninsize”BillionUSD96979899949392919500(est)*Source:ChinaStatisticalYearbookForeignTradeGrowthinChina* “Within20yearsChinawillaMorethan50%ofMNCdistributeto>20provinces*Morethan50%ofMNCdistributeto>50cities*Acceleratinggrowth outsidetraditional coastalareasCentralandWest are50%ofGNP and62%ofpopulation*USChinaBusinessCouncilThePatternofTradeisChangingMorethan50%ofMNCdistribut
RetailSales+6.8%butChainStoreGrowth+27%ChainStoreshavenowrisento20%oftotalOneexample:WewillseebiggercompaniesoperatingacrossregionsAndcentralisingfacilitiesindifferentregionstolowercost*ChinaChainStoreandFranchiseAssociationWithGrowthcomesConsolidation*ChinaChainStoreandFrGeneraltariffreductiontoaverageof9.4%by2005(ITtozero)Importquotaremovalby2005Fulltradinganddistributionrightstoforeignfirmswithin3yearsRelaxationofownershiprestrictionsRestrictionsonownprovisionofservicesbeingphasedoutincludingWarehousing,FreightForwarding,Transport,ExpressDeliveryandAirCourieretcRelaxationofprotocolprovisionsandbetterservicesLeadingtoanincreaseinChineseGlobalcompetitivenessandlocaladoptionofWorld’sBestPractice(egJ.I.T)
AspectsofChina’sEntrytotheWTOAspectsofChina’sEntrytothIncreasingviabilityofrailtransportationtoHub(+1500kms)SupplementedbyRoadtocustomer(+3000kms)Increasingopportunityfor MajorDistributionand Logisticsfacilities“Morethan55%offoreigncompaniesrateLogisticsandDistributionastheirsinglegreatestchallenge”DevelopmentofTransportInfrastructure*SingaporeUniversityResearchStudy“Morethan55%of
GrowthinChinaConsolidationandCentralisationChangesinthePatternofTradeWTOandGlobalCompetitivenessContinuedImprovementsinInfrastructure
“OnlythemostcompetitivecompaniesthatcanprovideafastandreliableLogisticsservice,atthelowestcost,willsurvive”Summary-KeyChangesandTrends “OnlythemostcompeChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaAndMinimumHandling
-Quality -ErrorreductionAchievingCompetitiveness
TheLowestDeliveredCost
-
EfficientNetworkDesign -SpaceEfficiency -Productivity -AccuracyandControl
TheFastestResponse
-HighThroughput -E-Business
AndMinimumHandling -QCaseStudy-AccuracyandControl
ContainerPorts-RadioFrequencyCaseStudy-AccuracyandContCaseStudy-HighThroughput
RetailIndustry-Cross-DockingCaseStudy-HighThroughput
RemovesPrimaryWarehousesfromtheSupplyChainAndYet50%ofallWebretailerslosemoneyoneveryordershippedDistributioncostisdoubleconventionalSupplyChainBecausemoresmallerordersdeliveredmoreoftenE-BusinessSystemsneed*Source:USForresterResearchCaseStudy-E-Business
-Speed-Accuracy-Modularity*Source:USForresterResearcChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaFindingaWayForwardFindingaWayForwardManufacturingEngineeringEvaluationInstallationLogisticsSystemsIntegrationFindingaWayForwardManufacturingEngineeringEvalua
TherightanswerinChinawillbedifferent
Economics
MarketConditions
“InChinaweneedtocombineanunderstandingofWorld’sbestpractisewithlocalknowledge”-Costofland-Costoflabour
-DistancesandTimetomarket-AgreaterneedforFlexibilityApplyingWorld’sBestPracticeinChina-Costofland-DiLogisticsinChinaLogisticsinChinaThankyou!Thankyou!LogisticsInChinaLogisticsInChinaIn1996aliteraltranslationfortheword“logistics”didnotexistintheChineseLanguageTodaytherearemorethan50,000registeredbusinessesinChinausing“logistics”intheirnameANewWorldANewWorldlogīstics,n.pl.
“Theorganisationandcontrolofthemovementofmaterials,goodsandinformationfrompointoforigintothepointofdelivery”TheSupplyChainTransportationSupplier-RawMaterialsBaseComponentsRansManufacturerDistributionCentreRetailer/PointofSaleEndUserTransportationTransportationTransportationlogīstics,n.pl.“TheorgaChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaGrowthinChina-GDP(BillionUSD)*JapanUSAChinaGermanyGrowthinChina-GDP(BillionJapanUSAChinaGermanyAverageRateofGDPGrowthinChina*%%%%%%JapanUSAChinaGermanyAverageRa
“Within20yearsChinawillaccountfor10%ofworldtradeandrivaltheUSAandtheEuropeanUnioninsize”BillionUSD96979899949392919500(est)*Source:ChinaStatisticalYearbookForeignTradeGrowthinChina* “Within20yearsChinawillaMorethan50%ofMNCdistributeto>20provinces*Morethan50%ofMNCdistributeto>50cities*Acceleratinggrowth outsidetraditional coastalareasCentralandWest are50%ofGNP and62%ofpopulation*USChinaBusinessCouncilThePatternofTradeisChangingMorethan50%ofMNCdistribut
RetailSales+6.8%butChainStoreGrowth+27%ChainStoreshavenowrisento20%oftotalOneexample:WewillseebiggercompaniesoperatingacrossregionsAndcentralisingfacilitiesindifferentregionstolowercost*ChinaChainStoreandFranchiseAssociationWithGrowthcomesConsolidation*ChinaChainStoreandFrGeneraltariffreductiontoaverageof9.4%by2005(ITtozero)Importquotaremovalby2005Fulltradinganddistributionrightstoforeignfirmswithin3yearsRelaxationofownershiprestrictionsRestrictionsonownprovisionofservicesbeingphasedoutincludingWarehousing,FreightForwarding,Transport,ExpressDeliveryandAirCourieretcRelaxationofprotocolprovisionsandbetterservicesLeadingtoanincreaseinChineseGlobalcompetitivenessandlocaladoptionofWorld’sBestPractice(egJ.I.T)
AspectsofChina’sEntrytotheWTOAspectsofChina’sEntrytothIncreasingviabilityofrailtransportationtoHub(+1500kms)SupplementedbyRoadtocustomer(+3000kms)Increasingopportunityfor MajorDistributionand Logisticsfacilities“Morethan55%offoreigncompaniesrateLogisticsandDistributionastheirsinglegreatestchallenge”DevelopmentofTransportInfrastructure*SingaporeUniversityResearchStudy“Morethan55%of
GrowthinChinaConsolidationandCentralisationChangesinthePatternofTradeWTOandGlobalCompetitivenessContinuedImprovementsinInfrastructure
“OnlythemostcompetitivecompaniesthatcanprovideafastandreliableLogisticsservice,atthelowestcost,willsurvive”Summary-KeyChangesandTrends “OnlythemostcompeChangesandTrendsinChineseLogisticsHowLeadingCompaniesWillAchieveCompetitivenessFindingAWayForwardAgendaAgendaAndMinimumHandling
-Quality -ErrorreductionAchievingCompetitiveness
TheLowestDeliveredCost
-
EfficientNetworkDesign -SpaceEfficiency -Productivity -AccuracyandControl
TheFastestResponse
-HighThroughput -E-Business
AndMinimumHandling -QCaseStudy-AccuracyandControl
ContainerPorts-RadioFrequencyCaseStudy-AccuracyandContCaseStudy-HighThroughput
RetailIndustry-Cross-DockingCaseStudy-HighThroughput
RemovesPrimaryWarehousesfromtheSupplyChainAndYet50%ofallWebretailerslosemoneyoneveryordershipped
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