Excerpt from:  China Supply Chain and Logistics Strategy
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August 04, 2005

2005 China Logistics User Survey

Conducted by China Supply Chain Council (CSCC)
The recent survey conducted by the China Supply Chain Council (CSCC) and sponsored & supported by Maersk Logistics reveals third-party logistics provider (3PL) trends in 2005.

According to the survey, there is a trend for foreign manufacturers to have pre-storage/consolidation of their goods in China to support their global operations. Approximately 80% of respondents are working or looking into pre-distribution solutions in China.

Another trend is that companies plan to use another warehouse/DC facility in Shanghai over the coming 2 years. Finally, the survey confirms the unusually high cost of logistics services in China, with logistics cost reaching 11%. 63% of spending on 3pls in China goes to warehousing and 31% to transportation and distribution.

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