China Needs More Supply Chain Planning

153832 Resource 94086 93210 94146 1166773258092 1201209447488 Controlled China Marketplace Logics and Supply Chain Optimization Modeling

Need for Network Optimization Varies by Market Segment

Competitive Markets Predominate Many multinational companies in China are selling in the very competitive marketplaces in which customer loyalty is low and the main concern is to increase volumes and distribution channels. Markets are established and growing and customer service is oriented towards providing distribution speed, with a high unpredictability of demand. Logistics service providers are chosen based on speed. Companies operating in such markets may not have placed a priority on the use of supply chain optimization tools due to the unpredictable nature of their customer demand and the intensive orientation towards speed and growth in the market. Stable Markets Emerging The need for supply chain modeling and optimization tools is becoming a more practical necessity for some multinationals in China that are competing in more stable markets where their customers order regularly from stock and seek reliability and consistency in service levels. Demand in their markets is more predictable, and the business orientation is more towards providing efficient and predictable service at a low cost. As these companies begin to work with logistics providers providing nation-wide service, the ‘National Stablizers’ mentioned in my previous posts, it is becoming more feasible to use a software model which can assist in assessing various strategic scenarios and their impact on the performance of the network. Need for Supply Chain Optimization Modeling Grows In order to model and optimize the supply chain, data on costs, capacities, volumes, and constraints in the network needs to be captured. Companies selling in stable markets in China may now be ready to utilize supply chain network optimization tools for the following reasons: <ul><li>Logistics service providers with nationwide and integrated services </li><li>Reliable logistics service on a nationwide basis (1 day from RDC to customer)</li><li>Infrastructure has improved rapidly</li><li>Maturing IT capabilities of 3pls </li><li>Multi-nationals more mature in China market </li><li>Supply chain data more readily attainable </li><li>Supply chain professionals more plentiful </li></ul> 9 application/xml false china 3pl china DC china logistics china logistics service china supply chain optimization china warehouse china warehousing global supply chain network optimization supply chain modeling China Needs More Supply Chain Planning China Economic Review: China Logistics News http://www.chinaeconomicreview.com/logistics/2006/12/21/china-needs-more-supply-chain-planning/ Inspiring Results in Supply Chain Planning China Now Ripe for Supply Chain Optimization: Manufacturing and Logistics IT http://www.logisticsit.com/absolutenm/templates/article-supplychain.aspx?articleid=2664&zoneid=5 Mozilla/5.0 (Windows; U; Windows NT 6.0; en-US; rv:1.8.1.11) Gecko/20071127 Firefox/2.0.0.11 127.0.0.1 127.0.0.1 Establish 208.105.4.154 false true false false true 187565 false false true false false false true 194068 Resource 187565 173239 173239 1199711335340 1199711335340 Controlled Supply Chain Optimisation Services

Optimizing supply chain management can cut the operating costs as much as 30 – 60% with good software. I came across a site which was discussing about cutting costs. Thank you.

  10 application/xml true Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.8.1.11) Gecko/20071127 Firefox/2.0.0.11 127.0.0.1 127.0.0.1 121.246.163.231 false true false false true 94086 blog blogsite/ChinaSupplyChain/web