Search

LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

June 27, 2015

10 Points to Cutting Costs While Delighting Customers

Filed under: Logistics,News,Newsletter,Resources,Supply Chain Management — admin @ 11:14 am

reduce-costsCost reductions are uncovered from raw materials to end delivery, but companies must focus on its customers to keep them satisfied.

North American companies increasingly are seeking data-driven supply chain strategies to lower costs while improving customer satisfaction. Robust technologies and advanced analytics drive the business insight needed to streamline processes and reduce costs from raw materials to end delivery. Sophie Dabbs, vice president of client solutions for third-party logistics provider Transportation Insight, discusses the art and science of how shippers can reduce cost while creating more customer value with 10 points that include elimination of expediting costs to technology use in your supply chain.

[Read more… Curated from Inbound Logistics]

0 Comments

March 27, 2015

Advances in Analytics Allow New Thinking in Human Resources, Talent Recognition

Filed under: News,Newsletter,Resources,Supply Chain Management — admin @ 11:12 am

People in businessThe latest data and analytics buzz comes from the field of advanced HR analytics, where the application of new techniques and new thinking to talent management is becoming more mainstream. The implications are dramatic because talent management in many businesses has traditionally revolved around personal relationships or decision making based on experience—not to mention risk avoidance and legal compliance—rather than deep analysis. Advanced analytics provides a unique opportunity for human-capital and human-resources professionals to position themselves as fact-based strategic partners of the executive board, using state-of-the-art techniques to recruit and retain the great managers and great innovators who so often drive superior value in companies.

The insights have been surprising and at times counterintuitive. McKinsey expected factors such as an individual’s performance rating or compensation to be the top predictors of unwanted attrition. But their analysis revealed that a lack of mentoring and coaching and of “affiliation” with people who have similar interests were actually top of list. More specifically, “flight risk” across the firm fell by 20 to 40 percent when coaching and mentoring were deemed satisfying.

[Read more… The full article in The McKinsey Quarterly]

0 Comments

September 25, 2014

China e-Commerce and Logistics

Filed under: Asia Supply Chain Insights,Newsletter,Resources — admin @ 12:02 am

China’s direct-to-consumer e-commerce sales grew 42% in 2013 to USD 305.5 billion and McKinsey forecast that by 2020 e-commerce in China could generate online sales of USD 650 billion.
This massive growth in online sales in turn drives the need for comprehensive nationwide B2B and B2C logistics networks, stretching China’s express logistics sector capabilities like never before. Last year the express delivery providers delivered 9 billion pieces, up 61.6 percent year-on-year.
At the recent Post Expo Conference in Hong Kong, I was privileged to moderate the e-Commerce Panel Discussion, where we discussed how stringent customer expectations are driving fierce competition amongst service providers.

The panel discussed how the multi-national service providers have more sophisticated technology systems and provide online track and trace with end-to-end visibility, but are typically at a cost disadvantage when competing with the many thousands of local providers that make up this particular supply chain ecosystem.

Ms. An Chiem from Nike shoemaker Convers, shared how they use multiple different service providers and said that “there are some regions where we work directly with the provider and some regions where we contract a company and let them handle the service providers”.

She also commented on the varying levels of consumer expectations – another factor driving the use of a range of service providers “Some of our consumers are prepared to pay anything for their products, they don’t care how long the parcel takes as long as it arrives undamaged and is delivered to their door. However, by contrast we also have consumers that don’t care what it is and how it comes, they just want it the same day and they want the parcel delivered for free”.

Federico Manno, eBay Enterprise head of e-commerce in Asia, commented that their strategy in China is also to use many different players, quite different to how they operate in USA and Europe. “Logistics in China is still developing, but consumers are really spoiled because they already expect good service and free delivery, which means that the brands have to improve their P&L in order to subsidize most of the shipping costs.”

Also on the panel was Andrew Eldon, COO of Hong Kong based Strawberry Cosmetics who offer a range of 30,000 products from 700 different brands. Andrew shared that Strawberry Cosmetics subsidizes all shipping and uses the postal service networks to service markets all over the world from their main DC in Hong Kong.

In such a crowded market, the fierce competition amongst express delivery service providers is resulting in volumes growing faster than revenues, reflecting price pressure that is reducing revenue per piece. This is impacting profitability for the service providers with expectations amongst market watchers of some impending consolidation.

For Logistics in China we can expect continuing exciting developments, embracing both challenges and opportunities in this rapidly growing sector of e-commerce logistics solutions – which is one of the featured Seminars at the forthcoming 9th China International Logistics Fair (CILF 2014) taking place in Shenzhen, China during 14-16 October 2014 – see http://www.scmfair.com/en/

LSCMS Advisory Board member Mark Millar provides value for clients with independent and informed perspectives on their supply chain strategies in Asia. His series of  ‘Asia Supply Chain Insights’ corporate briefings, consultations and seminars help companies navigate the complex landscapes in China and ASEAN, improve the efficiency of their supply chain ecosystems and make better informed business decisions.

Clients have engaged Mark as Speaker, MC, Moderator or Conference Chairman at more than 350 events in 20 countries. The Global Institute of Logistics recognise him as “One of the most Progressive People in World Logistics”. London based business publisher Kogan Page have recently commissioned Mark to write the book entitled “Global Supply Chain Ecosystems” – due for publication in 2015. Contact: mark@markmillar.com

0 Comments

August 26, 2014

LSCMS launches “aggregator” site for Supply Chain and Logistics

LSCMS has launched another great resource for keeping up on today’s manufacturing and supply chain news: Supply Chain Brief.

Launched by The Logistics and Supply Chain Management Society in August, Supply Chain Brief is a new site that was launched to bring together content from the best bloggers and thought-leaders in supply chain management, operations, logistics, and warehousing from all over the world.

Supply Chain Brief is an “aggregator” or “hub” site, so it allows readers to search for articles tailored to the specific topics you seek. This way you can easily find stories that actually matter to you, and stay informed, so you are in the best position to help your business continue to succeed.

Readers can also elect to receive a daily or weekly message on topics that you select. Just click on the icon to visit the site!

supply_chain_brief

0 Comments

July 16, 2014

Strategy & Strategic Planning for LSP’s

All logistics providers — 3PLs, transport, forwarders, warehouses, logistics centers, ports and others — and whether they are asset based or non-asset based should have a strategy. The strategy identifies challenges, issues and risks with markets and their dynamics; and, going forward, can set the direction where the company is going for new markets and new business and customers to grow sales and profits.

Surprisingly, despite the purpose and benefit, many service providers do not have a viable, current strategy. Instead they view developing one as too much work, react to what customers ask or what competitors are doing, or have one that is outdated. In a way, they letting business vagaries drive their direction and future. Having no strategy can be a risky approach, especially if competitors, established and the potential new entrants, have a well-done strategy and especially given the reality of global economic change.

The strategy can be operations focused or it can be a significant change, to transform the company. Which strategy is developed can be based on and reflect risks for the business or for the service sector, competition, or changing customer and/or market segments.

There are two parts to a successful strategy—first, developing one and second, executing it. Developing a strategy comes from serious, formal strategic planning process. It involves a blend of financial and non-financial objectives. The plan should also focus on the present business, and how it will adapt to the future and new services and opportunities. It identifies where the company is going–and where it is not going– and what it takes to succeed in that service arena.

Planning. The starting point is where the business is now as to present dynamics with trends, markets, services, and customers; value proposition, and competitive positioning, coupled with sales and profits. At any stage of the planning process, at the minimum, a SWOT (Strengths, Weaknesses, Opportunities, and Threats) is useful for the present and potential future scenarios.

Planning contains mistakes that can limit the ability to develop a worthwhile strategic plan. Some of the shortcomings that can lead to a bad strategy include:

• Firms only go out one to three years with the plan. While that span is easier to deal with than looking out five years or so, that is based too much on what has happened, miss-assumes what will happen, over-assumes the company’s position in that future trend and is not strategic. It is more like a budget or extended sales plan.

• As a corollary to the short-span view, companies confuse goals with strategies. Increasing sales or reducing costs by a certain percent is a goal, not a strategy.

• Providers try to mimic what a competitor is doing, especially if it is new. That is not a strategy. A good strategy separates the business from the competition. Emulating competitors or chasing the next new logistics service is a short-sighted approach that often lacks understanding of market niches, operational nuances and value proposition.

• Companies stay with what they are familiar with, their comfort zone. This can be a myopic bias against performing the diligent planning analysis that is necessary.

• It does not identify and address hard questions and challenges, such as how sustainable the present business approach and operations model are. That negates the concepts of strategy and of planning.

• Planning is not rigorous and does not adequately assess both external and internal factors. Internal analysis does not get the rigorous attention it should get. Diligent self-assessment is required, but it can be difficult. Overestimating abilities and underestimating problems short-circuit any serious planning.

• Companies oversimplify trends, especially global ones, and their impact on future business. They let the past dictate too much of what will happen, even against the dynamic and changing global business world. Firms do not comprehensively deal with uncertainty and look at “what if” scenarios. It is a dismissive approach based on the past. Change, with its speed with competitors and markets, is more than local; it is global.

• Businesses create a wish list of strategies. Aggregating a catalog of possible ideas, no matter how worthwhile, is not strategic planning. The effort dictates potential strategic choices be culled and prioritized and that hard decisions must be made on what to do.

• Service providers do not scrutinize how well the strategy positions the service offering to the dynamics of global economic and business forces. They also overestimate potential competitive advantage—and underestimate its transiency– that the firm may create with its strategic placement.

• Companies keep the planning within the C level and do not extend down to others who may have a better understanding of the present activity. There is also an underlying assumption that what a company and its executives do are transferable to the future. This lack of communication and buy-in with the planning often continues with attempts to execute the strategy—attempts that often fail.

• Planning is an annual process with little happening with regards to implementation. That creates frustration and lack of interest with the effort.

There are basically three approaches for logistics service providers to strategically differentiate themselves—

1) Status quo. The conservative, stay-the-course option may seem like the safest choice; but it carries significant risk in the ever-changing and competitive global economy. Executives with strong risk aversion favor this way. It depends on the past to predict the future and on simplified assumptions to assume away uncertainty.

2) Organic growth. This can be a slow and assumed steady method using internal capabilities and resources. The approach implies high expectations and requires improved performance.

3) Aggressive growth. External partnerships or alliances and, especially, merger and acquisition are options with this choice. In addition to identifying right target firm, timing is an issue with this choice.
Companies, whether using organic and aggressive, can pursue one strong initiative or a few worthy opportunities. These approaches mean there will be an allocation, even reallocation, of resources–capital, people, assets and technology.

Going forward, firms should adapt and change their present businesses and build new ones. Companies should both change existing services and create fresh service offerings. It is not an either-or as to adapt or create; it is to do both, unless the plan involves divestiture or maximize profits of the present service and let it fade away.

Execution. Strategy implementation is critical. The best strategy, without good execution, will struggle to succeed. And the more dramatic the strategy is with scope and impact, the greater is the challenge for sound execution. An operations strategy has an internal capabilities and requirements, perhaps best-in-class. The significant change strategy has both internal and external requirements. Each strategy carries different proficiencies to implement and creates challenges for present executives, managers and employees to have the skills to implement the strategy.

Achieving the strategy separates planning for the sake of planning and planning needed to advance into the future. It also demonstrates the conviction that the company has in the strategy. Executing the strategy means communicating the plan within the company and with stakeholders to build support—both operating and financial–and aligning the business with its strategy. Adequate resources and defined responsibilities for execution are needed, along with corresponding, relevant metrics to track progress.

The transformation and its rate of implementation to carry out the strategy may require recognizing and dealing with the need for change management. In reality, there are strong similarities between change management and successfully implementing a strategy.

Tied to the grand strategy are underlying strategies and implementation plans for sales, pricing, marketing, positioning, operations and technology. Logistics providers should recognize the life cycle to their services, especially with regard to profit maximization and the commodity service view of their offerings. This service life cycle creates the need for the subset of strategies and fulfillment of them. How people within the company grasp and execute these opportunities can have significant effect on long-term margins.

While direction can come from the top level, carrying out the execution needs clear lines of responsibilities couple with a coordinated, cross functional effort by different groups within the company. There can be no standalone activities for success. It should be integrated. The potential for assuming away the need for the collaboration can create unnecessary surprises and failure to gain all the market, operations and financial benefits of the strategy.

Strategy planning and execution are not easy for logistics providers. They are a challenge. But as difficult as they are, doing nothing in the face of dynamic competitive and market changes can be dangerous for all stakeholders. Logistics providers that do not plan well and implement well let events drive where they are going. They do not control it. These providers are market followers, not market leaders. As a result, these firms do not transition to take full advantage of opportunities. They miss out on market share, customers and profits that companies, who have a coordinated planning and strategy execution, earn and enjoy.

TomLTD2Tom Craig is president of LTD Management, a cutting-edge consulting firm that specializes in logistics and supply chain management. Tom has real world supply chain experience with major global corporations. He has an MBA in logistics from The Pennsylvania State University. 

LTD Management’s consulting is reflects the actual experience and knowledge of its team. LTD provides strategic and tactical consulting with solutions that work. The company website is http://www.ltdmgmt.com

Tom is a long standing Advisory Board Members of LSCMS and a judge at the upcoming LogiSYM2015 Industry Awards – www.logisym.com

Tom can be contacted at tomc@ltdmgmt.com

0 Comments

May 26, 2014

Vietnam Container Ports Development

With its lengthy coastline of some 3,200 km, Vietnam’s seaport network comprises of numerous small and medium-sized entities, the fragmented sea-side capabilities further hampered by inefficient land-side distribution. Most large ports are located on rivers, like Hai Phong and Ho Chi Minh City, typically with limitations of access from the ocean, water depth, quay length and container yard space, compounded by downtown city locations making cargo transfers to other modes of transport difficult and inefficient due to traffic congestion. Hence the development of modern deep-water port facilities at Cai Mep – further out from HCMC and closer to the ocean.

As discussed however in a recent ASEAN Ports and Shipping forum, the fragmented approach to the development of multiple container terminal facilities at the Cai Mep-Thi Vai port complex – situated on the southeast coast some 50 km from Ho Chi Minh City – has resulted in over-capacity, to the extent that operations at several of the new terminals have been suspended, due to a shortage of cargo and absence of ships.

Distance from major industrial zones, together with limitations in land side connectivity – and associated additional cost implications – all combined to make cargo owners reluctant to utilise the newly built facilities, in turn making shipping lines question the viability of making port calls at the new terminals.

Vietnam Ports

Picture: South Vietnam fragmented container port developments resulting in over capacity and underutilisation (source: ICF GHK Hong Kong)

Compounding the unfortunate scenario is the continuing operation of the Saigon city river ports in downtown HCMC, thereby supporting the existing inefficient operations within the busy city, with the related congestion and pollution, and further entrenching the incumbents’ reluctance to move cargo operations to the new Cai Mep facilities.

As a ray of sunshine amongst the gloom, CMIT (Cai Mep International Terminal) see many positive opportunities for Vietnam to capitalise on the newly constructed, modern, deep-water terminal facilities and their strategic geographic location near the ocean, not least of which is to connect south Vietnam to the major international trade flows from Asia to Europe and USA, eminently feasible assuming larger container vessels can be persuaded to return to Cai Mep and that multimodal hinterland connectivity can be enabled through effectively integrated logistics networks.

In the international context, Vietnam’s location on the South China Sea provides access to the main intra-Asia and inter-Asian shipping routes, which are forecast for above average growth in the coming years. Adopting a more holistic and integrated approach to deep-sea port development, and the related multimodal hinterland connectivity, will enable Vietnam to better capitalise on its strategic position and vast potential – with many opportunities to empower performance and growth throughout regional supply chain ecosystems in this Asia Era.

Mark Millar provides value for clients with independent, external and informed perspectives on their supply chain strategies in Asia. His series of ‘Asia Supply Chain Insights’ presentations, consultations, seminars and corporate briefings help companies to improve business operations, plan more effectively, and increase the efficiency of their global supply chain ecosystems. Clients have engaged Mark as Speaker, MC, Moderator or Conference Chairman at more than 300 events in 20 countries. The Global Institute of Logistics recognised him as “One of the most Progressive People in World Logistics” and USA-headquartered Supply & Demand Chain Executive named him as one of their 2014 Pros-to-Know in Supply Chain. mark@markmillar.com

0 Comments

Raffles joins LSCMS as Corporate Member

rafflesRaffles College of Higher Education, a subsidiary of Raffles Education Corporation Limited has recently joined the Logistics and Supply Chain Management Society. Raffles is the largest private education group in the Asia Pacific region and has an extensive network of 34 colleges in 31 cities across 12 countries in Asia Pacific: Australia, Cambodia, China, India, Indonesia, Malaysia, Mongolia, Philippines, Saudi Arabia, Singapore, Sri Lanka and Thailand.

Raffles will be launching a new course on Supply Chain and Logistics and will be collaborating with the Society in a number of ways such as inviting industry professionals to conduct talks, workshops and seminars for Raffles students. Industrial attachments with the relevant industry players, site visits, and networking opportunities with LSCMS’ extensive network of organisations and individuals are also some of the things that can be coordinated to enhance students’ career advancement.

0 Comments

May 17, 2014

Benefits of On-Line Learning

Logisticians occasionally write to us to enquire about courses and training. We are more than happy to assist with this.

More and more we are getting questions about on-line courses. Given the exponential growth of on-line learning over the last decade and the amazing growth of MOCC’s like Coursera on-line education is now a widely accepted mode of learning.

In many countries, access to good, recognised, quality education and training is not always accessible or available. On-line learning helps overcome this. Also, on-line learning can be just as challenging – maybe even more so – than conventional classroom learning.

Additionally, there are several benefits of on-line learning that will help you acquire valuable career skills that you will not get from any textbook. These skills are essential to succeed in the workforce; they are also skills that traditional classroom students often will not develop until long after they have graduated – if ever.

In many countries today, having a paper qualification is fairly common. The individual with the soft or less tangible skills like high EQ is what employers are looking for.

The following are just 4 benefits we see from on-line learning.

Benefit 1 — Self-Motivation: Traditional students are required to attend a class. They meet with an instructor on a regular basis. Instructors deliver lessons, answer questions, and help keep students on track.

In an on-line learning environment however, you rarely have a set class time. In progammes that do not incorporate on-line webinars and the like, it is unlikely that you will ever see your instructor face-to-face.

On the positive side, this allows for a flexible schedule but since there is no one there to make you show up and learn, you have to learn how to stay motivated. You have to hold yourself accountable. Self-motivation, once mastered, is an amazingly beneficial skill to possess in the real work world.

Benefit 2 — Communication: Being a highly motivated go-getter is terrific, but what good is that when you cannot convey your ideas to others? Being a good communicator will be highly valued wherever you work.

On-line learning is perfect for helping develop those communication skills. Because you do not get to sit next to your classmates on-line group projects and communication with your instructor is very common and carry their own unique communication challenges.

The primary way you will communicate with them will be through written assignments, e-mails, and posts. To them, you are essentially just “words” on a screen or someone they will see on-line for just a few minutes. Communication therefore has to be clear and succinct. Your communication skills have to be sharp. You want every message, every paper you submit, to communicate your thoughts as clearly as possible. Simple written misunderstandings can lead to bad grades. On-line learning teaches you to communicate well and often.

Benefit 3 — Organization & Time Management: It does not matter how motivated and eloquent you are if you cannot juggle your school work with the rest of your life. As an on-line student, you have to develop a time management plan and prioritise your coursework, otherwise you can easily get left behind.

How much time will you have each day to study? How can you make the most of that time? Will you be able to be more productive during the morning or evening? How many classes will you be able to take at once and still stay sane? You have to ask yourself questions about time management from the beginning, and constantly re-evaluate your time use as your tasks and priorities change.

Benefit 4 — Adaptability: Regardless of how well you plan and prioritize, there is always the chance that something unexpected will happen. You must be able to adapt quickly whether it is a  crashed computer, loss of internet connection, or something else.

In a nutshell, employers today are looking for individuals with these four highly beneficial skills:

  • self-motivation
  • communication
  • time management
  • adaptability

On-line learning students must acquire these same four skills in order to successfully complete an on-line course. Regardless of the programme you choose, the benefits of on-line learning will help you build career strengths that will pay off daily in the real world of work.

0 Comments

April 4, 2014

AED Readiness Seminar

Filed under: Logistics,Newsletter,Resources,Singapore — admin @ 10:59 am
Singapore Customs: Avoiding Financial Penalties and Delays with Advance Export Declaration (AED)

Key Takeaways

 

A step-by-step approach to ensuring exporting processes and procedures are robust and capable of taking the organization into the era of AED.

  • Get up to speed on the new Singapore Customs rules.
  • Understand the implementation timelines and penalties.
  • Perform a health check on export processes and procedures.
  • Obtain practical compliance advice and implementation ideas.
  • Take advantage of the latest customs processing technology to avoid costly inspections, delays, and financial penalties.

Who Should Attend

This Half Day Seminar is highly valuable for:

  • Directors and Senior Managers of organisations which export goods from Singapore
  • Line Managers with MNC and SME manufacturers, traders, distributors as well as forwarders, logistics companies, and other organisations exporting on behalf of clients
  • Line Managers, Team Managements and Department heads, Consultants and trainers who are involved with export of goods.

Register today to avoid disappointment; all registrations are processed on a first-come, first-served basis.

Speaker and Facilitator

 

Neil Johnson is the CEO of Mangrove Holdings, an investor in and advisor to organisations in the shipping, logistics and transportation sectors. Through his involvement as either board director or investor in a range of businesses, including air and ocean carriers, fourth party logistics, customs and freight forwarding, he has built substantial practical experience in the sector. Neil was a founding director and investor of TNETS and Chairs the Shipping Transport and Logistics Group of the British Chamber of Commerce in Singapore.

 

 

KEY TOPICS

  • General Information on AED
  • Scope of the new rules
  • List of fields affected
  • Exemptions
  • Penalties and delays
  • AED Roadmap to Success
  • FAQ & Contact Us
  • Other Useful Resources
 

Sponsor

was established in 2004 and has grown rapidly over the years to become the leading back end BPO for the logistics industry, and now operates the largest and most professional customs declaration business in Singapore.

 

TNETS unique service offering brings together the most skilled, professional and dedicated processing personnel together with TNETS v4.1, the latest and most efficient Singapore Customs approved declaration platform.

 

When it comes to customs permit declarations, TNETS Integrated Solution is the ONLY offering which brings together highly skilled declarations personnel AND the newest and most efficient declaration software on the market.

 

0 Comments

February 11, 2014

Changing Landscape of China’s Supply Chain

Exploring the key dynamics impacting low cost manufacturing in China . . .

As China continues its impressive development path of the last twenty years, it has now become two economic markets that are interconnected and converging – its Global market which is driven by mass production for export to developed countries, and its local market which revolves around rapidly expanding domestic consumption.

Multi-national companies first came to China to take advantage of low-cost labour and Special Economic Zones. Nowadays they remain in China to sell products to Chinese consumers in the local market. One development has fuelled the other. As quoted by the Economist ‘foreign firms came for the workers, now they stay for the shoppers’.

The logistics emphasis is therefore no longer just on transporting products from the factories to the ocean ports on the eastern seaboard for export to the west. Nowadays there is just as much emphasis on distributing goods within and throughout the domestic China market in order to reach the increasingly prosperous consumers located all over this vast country.

Amongst the many dynamics influencing shifts in China’s production landscape, Labour related challenges are one of the key driving forces for change:

Labour Shortages – the migrant labour force in the coastal areas, in the range of 200 million workers, is reducing in size. There is now more work available in the inland provinces, where workers can live at home with their families, instead of in a cramped dormitory at a coastal factory. Some migrant workers who have worked away from home for 20 years or more may have saved enough money that they do not need to work in the factories anymore. Living costs in the developed coastal cities are continually rising, so in many cases the lower cost of living in a rural province more than offsets the lower wages, resulting in more actual spending power from the workers’ net disposable income.

Labour Costs – in coastal areas the cost of labour is becoming more expensive, with the minimum wage increasing by an average of over 18% last year. Local governments are committed to raise workers’ wages, with Guangdong province having a mandate to increase the minimum wage by 20% for each of the next five years. This reflects national priorities to increase domestic consumption and thereby reduce the economic dependency on exports.

Labour Unrest – there is emerging unrest and dissatisfaction amongst factory workers in the coastal cities. Historically these migrant workers had little choice but to accept the poor working conditions in the factory complexes. However, the latest generation of young migrant workers are better educated and technologically enabled. They are much less willing than previous generations to put up with the hardships of factory life. As digital natives they are constantly connected through technology and thus become more organised and vocal in their protests for higher wages and improved conditions.

Supply and demand economics thus come into play, whereby the reduced supply of labour commands a higher price. In Guangdong province, there are currently one million vacancies for production workers, even with most factories offering salaries above the minimum wage. These labour challenges, together with government incentives to attract investments into the provinces, and potential cost savings in the region of 40% on land and 50% on labour, are resulting in some of China’s production moving inland.

To address these dynamics and capitalise on the rapid emergence of inland consumption, companies will need to adapt and adjust their business models accordingly – reconfiguring their supply chain ecosystems to focus on the expanding domestic markets throughout China.

Businesses that successfully address this challenge will become empowered to gain competitive advantage and drive profitable business growth – accessing the knowledge and networks that provide independent and informed supply chain insights will be critical to your success.

Mark Millar provides value for clients with independent, external and informed perspectives on their supply chain strategies in China and Asia. Clients have engaged Mark as Speaker, MC, Moderator or Conference Chairman at over 300 events in more than 20 countries. The Global Institute of Logistics recognised him as “One of the most Progressive People in World Logistics”.  Based in Hong Kong, Mark serves on the Advisory Board of the Logistics and Supply Chain Management Society (LSCMS) 

0 Comments