Logistics in China
27 Oct 2009

Chinese logistics ‘more advanced than thought’

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.

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