Related Information:
› How to get products from A to B
Related Kiwi Lessons:
› Look for a one-stop shop
› Realise logistics can take a little longer
Home › Challenges in China › Operational challenges ›
Managing logistics
Getting your products from A to B will cost you more in China than in developed markets.
At their worst, logistical costs and problems can wipe out the advantages of being in China in the first place.
China Federation of Logistics and Purchasing figures suggests that China wastes around one-tenth of its total GDP through logistical inefficiencies caused by fragmentation, complexity, local protectionism, inadequate infrastructure, unfair competition and lack of professional skills.
And though the logistics market has been opened up to competition, there's still a variety of regulatory-driven inefficiencies in the system.
Logistical services are improving with the arrival in China of multi-national logistics companies, but the transport infrastructure they and their Chinese partners and competitors rely on is often stretched to breaking point.
Key learnings
- The quality of China's logistical and transport systems is patchy.
- The situation in both is improving.
- Look at partnerships with local operators.
- Cool store facilities are lacking, but availability is also improving.
Where to from here?
Discover how to get products from A to B.
