Release Date: 11 October 2007
Release ID: 1358
China as Global Growth Engine for the Booming Logistics Industry
Globalization and logistics form a symbiosis, in which both sides profit from one another. Transport and logistics are the foundation for networking global markets. Globalization provides the industry with a "road map", in which new markets are canvassed for companies and which also shows the respective key figures of individual markets and their attractiveness for those involved in specific industries. Whoever wants to enter the Chinese global market today needs above all comprehensive logistic know-how. This goes far beyond purely transport problems in actual practice; it starts with an understanding of Chinese culture and goes all the way to mastery of administrative processes and red tape.
For example, more than 1600 German companies took on this challenge in 2006 and many are preparing to take this step. What help they need and can already find in China, which potential the giant country and its production forces provide as well as specific questions about market conditions of your own products will be answered at transport logistic China, which will take place in Shanghai from 17 to 19 June 2008. On the other hand, the trade fair provides exhibitors with a forum to offer their products to the Chinese market as well as to companies entering the market there.
According to a study of the corporate consulting company Bain & Company (09/2006), overall the industry has above-average growth rates of approx. 9%. The companies in the transport and logistics industry profit especially from this, which provide comprehensive processes to increase efficiency and cut costs. Three focal points can be seen:
Optimization of intermodal transport on roads, rails and water as well as in the air
Optimization of industry-specific logistics, for example, in the automobile, aerospace, chemical and textile industries thanks to in-house competence or via external service suppliers on the basis of contract logistics
Optimization of logistic processes via use of new technologies, for example, from RFID to precise site tracking of goods and further developed software and planning tools
China as a Significant Growth Engine
China has the greatest movement of goods in the world and is considered the engine of the global economy. Approx. 1.3 billion people live on an area that is 27 times larger than Germany. The country might be the largest economic power in the world in the year 2015. Due to the good production conditions and the relatively low wages, which are 1/40 of those in Germany, involvement is also interesting for small- and mid-sized companies. If you need partners for this, Transport Logistic China is also just the right place for establishing such contacts.
The extremely large population in China also has increasingly more money and consumption wishes for Western products. On the other hand, the country as the first among those at the point of economic take-off is expanding its export potential rapidly, and the products must be transported to the rest of the world. Modern structures are often lacking to do this. The enormous distances – China's coastline is 14,500 kilometers long – puts especially high demands on logistics companies. Due to the long transport times at slow speeds and outmoded infrastructure, special packaging is required in many industries such as chemicals, pharmaceuticals and foodstuffs. In addition, intermediate storage sites often need to be set up in planning logistic processes. Among others, the pioneers in setting up complete transport chains were the American shipment pros UPS and Fedex, Dutch TNT, the British logistics company Wincanton and the German companies DHL and Schenker.
The term logistics in China denotes above all transport and storage. Because there are no uniform standards, service suppliers are often contracted for this, often many different ones. The need for general supply chain management is correspondingly great, whereby the lack of an IT standard represents a great obstacle here. Consequently, there is still a lot to do in this industry. The key players will present their innovations and latest technologies in an international ambience in Shanghai at transport logistic China from 17 to 19 June 2008.
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