Checklist: Logistics challenges in China

Checklist: Logistics challenges in China; 15 questions about Chinese supply chains

Supply chain in China was once an afterthought or was only thought of in terms of the ‘Make’ and ‘Ship’ processes included in manufacturing in China. But as China becomes not only the factory of the world but the ‘Mall of the world’ this can no longer be true.

Back in 2001, China was just revving its engine, a $1.3 trillion economy that was the world’s sixth largest, trailing the United States, Japan, Germany, the United Kingdom and France. Today, China’s domestic consumption is rising rapidly. Chinese consumers are buying more of everything – from apparel and white goods to luxury items and homeware – and as they buy more, from more channels, including online, at single brand stores and from large specialty chains, domestic and foreign owned companies have to reassess their supply chain infrastructure in China for both selling and making goods.

According to an article in Forbes, February 2014, superior customs clearance, warehousing, and transportation capabilities can be huge competitive advantages and drivers of brand strength in China. But the logistics infrastructure is a major challenge. For everyone developing distribution networks, land availability will continue to be a problem. There is a strong need to engage with 3rd party distributors to move products to and sell in department stores, big box retailers, grocery stores and specialty shops.

Supply Chain Movement and logistics service provider DSV created a checklist to discover how well your Chinese supply chains are organized.