Many companies start their supply chain in China. Unfortunately, there are many shortcomings in the existing transportation market in China. As described by the President and CEO of YRC Logistics Jim Ritchie, “it is very common for a shipper to tender a shipment to an approved service provider, who is turn sub-contracts the shipment to an unknown service provider, who in turn sub-contracts again. In essence the shipper loses all visibility relative to who has their cargo, resulting in serious inefficiencies.” With the acquisition of Shanghai Jiayu Logistics Co. Ltd, YRC Worldwide Inc. will provide reliable service to companies in China as well as the rest of the world. Additionally, companies will be able to track the status of the shipment through the combination of the existing Jiayu’s technology and the global contact visibility tool that is currently under development by the YRCW. The acquisition is part of the four-phase strategy. Phase 1(completed): Enter the market through acquisition of a China freight forwarder Phase 2(completed): Launch its own China-based 3PL company Phase 3(current): Provide additional ground transportation services Phase 4(current): Build a global supply chain visibility application to improve visibility for all clients worldwide down to the SKU level The completion date is set for the second quarter of 2008. | 
