Massive potential exists in the Chinese logistics market
for integrated contract logistics companies. This is one of the key
findings of a new survey by Transport Intelligence contained in its
latest report China Logistics 2006. The survey comprised interviews
with over 230 senior professionals representing a cross section of
logistics users and providers with operations in China.
According to the survey, 68% of respondents from logistics
companies believed that out-sourcing was having a 'noticeable' or
'major' impact on their businesses. When questioned further 76% of
respondents stated that the majority of their out-sourced logistics
business was derived from multi-national manufacturers with the
remainder being generated by locally based Chinese companies.
Another of the findings of the survey was the extent to which the
trend towards out-sourcing could still develop. 48% of respondents
indicated that they out-sourced none or just some of their logistics.
Chief Analyst, John Manners-Bell commented: 'Out-sourcing will be
the defining trend behind the growth of the Chinese logistics industry
over the coming few years. Our survey has identified that increasing
numbers of manufacturers and retailers are looking to out-source to
integrated logistics providers due to cost advantages as well as their
greater understanding of local markets and regulations. The greatest
potential lies with domestic Chinese shippers rather than
multinationals which have been amongst the earliest adopters. However
competition for this business will be fierce as domestic logistics
companies are now increasingly seen as a viable alternative to western
and Japanese providers.'
Just published, China Logistics Report 2006 is essential reading
for all companies doing or intending to do business in this market.
The report provides the information needed for a basic understanding
of the country's transport and logistics industry, the companies which
are present in the market, and its prospects for growth. This updated
and considerably extended report includes a wide-ranging survey of
shippers and logistics operators, market sizing and forecasts, as well
as profiles of the leading companies.
For more information, reports and insight into the China Logistics
market, or to subscribe to Transport Intelligence's free daily
Logistics Briefing service, go to www.transportintelligence.com or
contact Mike Nordmann on +44(0)1666 511880.
