China to adopt Western model of logistics
to cope with booming demand
BEIJING 9 March 2010: China’s car companies are set to turn to a Western outsourced model of logistics as they struggle to cope with booming volumes and more demanding consumers.
Domestic carmakers have typically relied on their own captive logistics arms. As they partnered with the principal Western and Japanese car companies which have previously made up the bulk of car production, this method continued. But while efficiencies have risen over time, logistics is a specialist activity which is not typically a core competence of an OEM.
So China is expected a move towards the model used in the rest of the world, of employing third party logistics providers (3PLs). At present the 3PLs with the expertise are almost all foreign companies. Even where the logistics operation is retained by a Chinese OEM, that operation is likely (in a selective way) to seek external customers.
Li Wang, vice president at Toyota Lujie, the logistics joint venture between an arm of Chinese domestic carmaker First Auto Works (FAW) and the world’s biggest car company, commented: "Lujie also has to look behind FAW and try to speed up the co-operation with other carmakers and industry players. The FAW Group encourages this independence as well."
The modernisation of creaking logistics networks will be the focus of the 7th Automotive Logistics China conference, to be held in Bejing from 18-20 April 2010, just in advance of the country’s annual international motor show.
Bringing together carmakers and logistics service providers of all types, the conference is the recognised forum for making introductions and doing business in what has become the world's largest auto market. The conference covers the logistics of car production and delivery within China, as well as the start (and end) of automotive supply chains which stretch across the world.
This year Automotive Logistics China has teamed with the China Federation of Logistics and Purchasing (CFLP) to organise special sessions on finished vehicle logistics, which run throughout Day 2 of the conference. They will incorporate the previously-separate meeting arranged directly by the CFLP, and so ensure that all companies in the sector – OEMs and 3PLs, Chinese and foreign – come together. Special delegate rates for China-based attendees and CFLP members will help facilitate attendance.
Automotive Logistics China is supported by Gold sponsors Geodis Wilson and United Road, by Global sponsor Wallenius Wilhelmsen, and by Silver sponsors Chep, NYK Logistics, Ryder and Union Pacific.
The conference is one of a series organised around the world by Automotive Logistics magazine, the leading global publication in the field. The series includes events in Europe, Russia, North America, South America and India.
Contacts:
Marketing Manager: Elisabeth Quesseveur
Automotive Logistics magazine is published by Ultima Media Ltd, a provider of information in print, online and at events dedicated to the global business-to-business automotive industry. www.ultimamedia.com