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CHINA: "Strength of SUVs Does not Change – Independent Brands Face Significant Difficulties" newslet

CHINA: "Strength of SUVs Does not Change – Independent Brands Face Significant Difficulties" newsletter. POLK China Newsletter - March 2013.

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backCHINAtalk May, 2012

Expanding Your Business in China: What You Need to Know

Tips on how to grasp the nuances of operating your supply chain, warehousing and distribution operations within China.

It is an exciting time to be working in the supply chain industry in China. The logistics sector lies in the cross-section of all the growth and changes taking place across the country. The infrastructure is being developed alongside international businesses seeking to manufacture their products, source suppliers or even to begin tapping into the end markets and selling products to consumers.

When well-established businesses seek to expand into China, it is important for them to understand the dynamics of supply chain, warehousing and distribution decisions in this new territory, rather than expect the same rules to apply, or their brand name and reputation to carry over from other parts of the globe. In order to best service international clients in China, my background provides me with the perspective of understanding both local and U.S. customs.

I am a Chinese native and I earned my MBA in the United States, at Michigan State University. I have also worked for a number of other global companies, and all of these experiences allow me to relate to large foreign companies seeking to do business in China, understanding their business practices and priorities, and helping their team achieve success.

Over the years I’ve worked with many logistics services in China that include class-A forwarding, customs clearance, ocean and air booking, international trading and duty, trade finance, Foreign Trade Zones, and non-bonded inventory and warehouse management — all of which allow us to help shippers establish their supply chains in China.

The volume of business is smaller in China than in the U.S. or Europe, but is rapidly growing. The supply chain process is very dynamic, and we have to be flexible enough to cope with all possible changes. Contingency plans have to be thoroughly developed with all possible scenarios.

Problem-solving skills are key to driving excellent customer service. Some customers are new to this, bringing with them stocks that sold well in their home countries. We work with them on the inventory analysis to promote the aged stocks, and stock the right products for the local markets.

With the increasing popularity of online shopping site like Taobao and 360buy, people are starting to realize that logistics can be a core business and are a competitive advantage for companies. The competition is becoming fiercer, and we will see a trend of consolidation.

Multinational companies who are already well-established in China would like to leverage their scale and work with just a few providers. They also like to have visibility into and transparency over the supply chain. Creative solutions, carrier management expertise and localized systems will be areas that can help bring supply chain management to the next level.

To read entire article, please click here.

Source: IndustryWeek - GAI

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