LOGISTICS OUTSOURCING BY MANUFACTURERS IN CHINA: A SURVEY OF THE INDUSTRY

With China's entry into the World Trade Organization, the role of private logistics firms is poised to grow significantly, given the country's historic lack of providers of this type of service due to state control of logistics operations such as warehousing and centralized distribution systems and the ban on private enterprise. This paper looks at the future prospects for the use of external logistics services by Chinese firms as well as the characteristics of those who use them and those who don't. It is based on data gathered in a 2002 survey. There has been little if any work on logistics requirements and providers from the point of view of Chinese manufacturers. Many current enterprises find logistics coordination a challenge due to a lack of a mature transportation system and unreliable providers. While some responded by taking logistics work in-house, as the economy matures, outsourcing of logistics is becoming more likely. The survey identified several firm-specific characteristics of logistics requirements and their decision whether to outsource for the services. Survey respondents were also asked to describe perceived barriers to developing an outsourcing market for logistics, with the most serious problem identified as the lack of awareness of logistics and the lack of adequate infrastructure and multi-mode capabilities. Firms dealing in chemical products, electrical and electronics products, pharmaceuticals and health care and biotech are more likely to outsource. Many foreign logistics providers are being attracted to China, with logistics information system management and system design being two of the more required types of value-added services, but also the type of services where there is the least expertise.

Language

  • English

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Filing Info

  • Accession Number: 01001767
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Jul 7 2005 12:00AM