Logistics an industrial rising star in China

China logistics market has reached RMB240 billion, and it is expected to grow at an annual rate of 30% in the coming years. Multinational corporations like TNT, DHL, FedEx and UPS have already made moves to traditional large scale Chinese logistic enterprises. Currently four major regional logistic circles centers have been formed in big coastal cities in eastern China, the most prominent one is the Yangtze River Delta logistics circle comprising Shanghai, Nanjing, Hangzhou and Ningo as core.

Cold Chain logistics opportunities in developing markets

According to the latest report published today by Transport Intelligence (Ti), in association with the Global Cold Chain Association (GCCA), developing markets such as China, India and Vietnam represent the greatest opportunities for cold chain logistics. The report, Global Cold Chain Logistics 2008/9, finds that supply chains in those countries are extremely under developed, particularly in respect of refrigerated foodstuffs. Research identified that as much as 40% of the dairy produce, fruit and vegetables produced in India is lost or spoilt because of poor storage, handling or transportation. Similarly, the lack of cold storage in the Vietnamese seafood industry is hampering the development of that sector. The report also finds that third party logistics providers (3PLs) involved in the cold supply chain industry are enjoying real development opportunities as increasing numbers of companies outsource their activities in that sector. The report concludes that the need to reduce costs, increasing globalization and environmental and public health issues will shape the cold supply chains of the future, leading to the further integration of top operators for the benefit of their global clients.

India to establish an Indian Logistics Council

The Indian national government has announced the formation of an Indian Logistics Council to help develop a sector that is disorganised and hampered by inadequate transport infrastructure. Among others, the council’s objectives will be to increase efficiencies and reduce the costs of moving goods across India, as well as supporting and providing input for the growth of the country’s logistics industry. However, it has not been confirmed when the council will be up and running.  Like many projects in India, its implementation is being held up by government bureaucracy in New Delhi. The proposed logistics council would comprise members from industry, while the Government would facilitate the financing of projects, provide technical assistance and give policy inputs designed to significantly improve the logistics industry.

China exports drop due to global economic crisis

The head of China’s Industrial & Commercial Bank said that the current global financial crisis is driving down demand for exports from China, and threatening the country’s economic growth.  Mr Jiang Jianqing, president and chairman of ICBC, said that China’s export-driven economy was already starting to suffer the impact of lower exports, particularly in steel, coal and power. Jiang added that Chinese government will have to increase its spending on social programs such as social security, health care and education in order to stimulate the country’s economic growth

Research findings on Green Supply Chain in Dubai

A recent survey by Dubai Chamber of Commerce and Industry shows that Green supply chain matters are being considered by few companies motivated by regulatory requirements and consumer expectations. Only 38% of companies factored green supply chain concerns when making strategic decisions.  The four main motives pushing companies to establish a green supply chain approach are Consumer expectations (54), Regulation (51%), Corporate Policy (42%) and Market trends or competitor behaviour (35%). Lack of knowledge appears to be the biggest obstacle to establishing a green supply chain approach. Sales of used materials, design of eco-product and packaging are the main practices businesses demonstrating the use of green supply chain in their operations. Finally, there is little visibility of investments in green supply chain and 17% of companies’ surveyed say they invest less than 5% of their total budget and only 11% of those companies invest more than 10% in green supply chain projects.

 

IT sector expected to be hit by credit crunch

The global credit crunch and economic slowdown is expected to create some impact on purchases of supply chain software solutions by both shippers and logistics providers this year. That trend is borne out by the Q3 2008 financial results of Germany-headquartered software (and related services) giant SAP and supported by disappointing performances earlier this year from two other major logistics IT companies – Manhattan Associates and Kewill Systems.  SAP expects its Q3 2008 revenues to be in the range of €1.97-1.98bn, an increase of 13-14% compared to the same period last year. Manhattan Associates reported a disappointing Q2 2008. The company’s consolidated revenue increased by just 1%, compared to Q2 2007, to $90.5m.

Importance of Green Supply Chains

A new 3PL Logistics study says ‘green’ supply chains are essential for future business success yet the majority of logistics executives are unwilling to spend the money to make it happen. The survey shows that while the ‘greening’ of the supply chain will have an increasing impact on network design, transport modes used, selection of equipment, business processes, behaviours and balance sheets, only 46% of respondents say that going ‘green’ is a selection factor. The survey was conducted by the Georgia Institute of Technology and sponsored by Oracle, Cap Gemini and DHL. The latest 3PL study polled 1,644 logistics executives from North America, Europe, Asia Pacific and Latin America. You can visit this link (http://3plstudy.com/) to download the survey report.