Oct 27, 2009 3:00 AM AWST

New Research Reveals a Fast Evolving China Logistics Sector

The Global Supply Chain Council and logistics services provider FM Logistic have announced results from their China Warehousing and Transportation Survey, which reveals that the logistics sector in China may be more globalized and advanced than industry players think.

Max Henry, founder of the Global Supply Chain Council, says, “Our research indicates that logistics efficiency in China—measured by logistics costs as a percentage of sales—may be higher than commonly believed. The average of our respondents’ reported costs, about 10% of sales, is much lower than commonly cited estimates of China logistics costs as a percentage of GDP.”

Mr. Jean-Cyprien Onteniente, China Sales Director for FM Logistic, adds, “People answering the survey clearly indicated that service quality is a more important factor than price when they are evaluating logistics services providers. It is good to see that the ‘price-is-everything’ mentality is less common in the market, and that companies understand that service quality is a substantial contributor to overall performance and profitability.”

Concluding in summer 2009, the Global Supply Chain Council and FM Logistic conducted a web-based survey, gaining 125 valid responses from members of the Council’s community of logistics professionals. Nearly half of the valid responses came from supply chain or logistics directors or managers, with an additional 15% coming from managing directors, general managers or chief representatives. A sizeable number of survey respondents came from the retail and automotive sectors, with a range of other sectors such as high tech, clothing and textile, and the food and beverage sector also represented.

To read the executive summary of the survey, click on http://www.supplychains.com/attachments/files/3593/China%20Transportation%20and%20Warehousing%20Survey.pdf

About the Global Supply Chain Council:
An industry association headquartered in China, with the mission of driving supply chain excellence through information, events and benchmarking of best practices across industries, the Council publishes both CHaINA Magazine and a Vendors’ Directory and reaches a community of over 65,000 supply chain professionals in China, India and Vietnam.

About FM Logistic:
A leading European-based logistics company providing a high standard of warehousing, distribution and transport services in high growth markets such as Central and Eastern Europe, FM Logistic serves its clients through the company’s own network. With a long-term commitment to China, since 2004 FM has been investing in a domestic logistics network to support the needs of major multinational fast-moving consumer goods companies. This network already includes three large high-grade warehousing platforms and a regional transport hub network.