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Publisher: China Supply Chain Council Ltd. (Hong Kong) CHaINA Magazine is a FREE bi-monthly publication for the members of the Council. There is no charge for members and qualified readers to receive subscriptions in China. For your free subscription, extra copies or address changes, please email subs@supplychain.cn 出版商：China Supply Chain Council Ltd. (香港) CHaINA杂志是为Council会员准备的免费杂志。我们协会会员 和高质量的读者都可以免费订阅。为了及时收到我们的杂 志，额外订阅或地址变更请发邮件至subs@supplychain.cn
Office and Team: Publisher Max Henry Editor Kevin Foehner Junior Editor & Translator Sharon Lu Contributing Writers
Graphic Designers Cherry Chen Kimi Yu Photographer Jimmy Kim
Whitwell Kelly, Jamie Archer-Perkins, Gautam Dalal, Samuele Gabbio, Ken He, Paul Yong Pau Li, Claire Petersen, Josh Hollway, Renaud Anjoran, Stephen Joske, Lara Sowinski, Giraldi Francesco
CHaINA Magazine is the only bilingual supply chain and logistics magazine in Asia with a strong focus on Greater China. In every issue, we write about the news, trends and best practices that will help manufacturers, retailers and distributors make better business decisions with their sourcing, production, logistics from, to or within Asia. CHaINA是亚洲地区唯一一本专注于中国的供应链和物流行 业的双语杂志。在每一期，我们通过刊登新闻，行业动向 和实践经验来帮助制造企业、零售商和发行商进行亚洲内 外的采购、生产和物流形式的选择。
Distribution: 10,000 copies on print (6 times a year) CHaINA Magazine is offered FREE of charge by direct post mail to qualified readers in Greater China who are involved in all aspects of supply chain management. It is also distributed through selected locations in major Chinese cities, including hotels, restaurants, service offices/apartments, business centers, airport lounges and other key locations. 发行量：一年六期，一万本 CHaINA杂志通过直接向中国各供应链管理的专业读者发送 邮件来提供免费的阅读机会。同样也分发到中国的主要城 市并在酒店、服务楼，商务中心，机场大厅或其他中心地 带免费赠阅。
Target Readers Our target readers are R&D, sourcing, procurement, manufacturing, logistics, warehousing, transportation, retail, distribution and operations managers, directors, vice presidents and decision makers. A majority of our readers are end-users shippers, mainly foreign-invested and local manufacturers and retailers. 目标读者 我们的目标读者有来自采购、制造、物流、仓储、运输、 零售和分销的各级管理人士。大部分读者是物流的需求 者，外资或国内的制造企业和零售商。
Subscription for Overseas Readers To be able to read CHaINA from outside of Cina, you can subscribe to the iPad version on iTunes.
THE MAGAZINE FOR GLOBAL SUPPLY CHAIN LEADERS
It gives me great pleasure to introduce myself as the new editor of CHaINA magazine. As most of our loyal readers will notice, our team has kicked off 2011 by giving the magazine a fresh new look with some great new content. We’ll be working hard as always to keep you well informed about all the latest news, trends and interesting events Kevin Foehner surrounding your business. Editor 2010 was an eventful year in supply chain CHaINA Magazine and now it’s time to look ahead to the future. What will be the biggest challenges for your supply chain this year? Where are the most promising emerging cities in China? Which is the most financially sound port for your freight? Where are the best places for sourcing in the Greater Shanghai area? You’ll notice that many of our articles carry a “looking ahead” theme to help you start off this exciting year right. We also take a look at some interesting logistics cases, talk supply chain with a few industry experts, and try to figure out what S.F. Express, Media Markt, and DIY retailers are doing in China. This year, I invite you to give me your two cents on what’s happening in the industry. Email me your commets day or night, so I can continue to evolve this great magazine for you! 初来CHaINA，能在此作自我介绍我甚感荣幸。2011年一、二月刊 CHaINA也将随着新年的临近以全新面貌展现在新老读者面前。我们也 将一如既往为广大读者朋友献上市场最新资讯、企业案例和业内独家观 点。 供应链正从2010年“多事之链”的窠臼中蜕化更新，迎向新年。前 方还会有何挑战？中国最具潜力的新兴城市将会名落何方？哪个港口 将会成为不二之选？大上海最佳采购点潜伏何处？我们的文章暗藏“玄 机”，为您的新年新象拉开帷幕的帘脚；此外我们还探究了物流案例， 采访了供应链专家并分析了顺丰快递成功之因、万得城中国发展之路以 及DIY零售的窘迫现状。 感谢各位阅读最新一期杂志，若您能为CHaINA提供任何意见或建 议，敬请电邮。有您的支持，CHaINA才能更为完善。
Stories Ideas, Comments & Feedback If you have an idea for a story, interview or case study, please contact the editor. We welcome feedback and comments about our content or any issues relating to your operations. Please send your email to editor@supplychain.cn 反馈和意见 如果您有任何新闻故事、采访或实践案 例，请与我们主编联系。如果您就杂志 内容或亚洲供应链管理有任何的意见、 建议或新鲜资讯，请发邮件至 editor@ supplychain.cn与我们取得联系。
DISCLAIMER Editorial and advertising are independent and do not necessarily reflect the views of the Council, the board, its members or the staff. While every efforts has been made to ensure accuracy, the publisher is not responsible for any errors. Views expressed by writers or contributors in this magazine are not necessarily those of the publisher. The publisher is not responsible for product claims and representations. @ Copyright China Supply Chain Council Ltd. (Hong Kong). All rights reserved The contents of the magazine may not be reprinted in whole or in part without the permission of the publisher. No part of this publication may be reproduced without written consent of the copyright holder. CHaINA is a registered trademark of the Global Supply Chain Council. 3
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JANUARY/FEBRUARY
CONTENTS TOP PICKS
JANuary / february 2011
Made in Italy…from China?
3
Who’s driving Italian fashion? 谁在引领意大利的时尚？
4
The Secret Revealed
4
Retail Woes
What makes S.F. Express so good? 原因再探
What Media Markt and DIY retailers are doing…wrong 万得城&DIY在华误入歧途？
46 5
The Upcoming CHAMPS The best and brightest emerging cities in China Run to the Future Challenges for your supply chain in 2011
4 January/FEBUARY 2011
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CHaINA Magazine Content
JANuary / february 2011
frontlines
Procurement
Review 13 Big photo 14 News Bites 16 Lost in Translation 18 Movers & Shakers 19 M & A
21
Kingfisher Interview 23 Best sourcing Blogs 24 2010 Incoterms 26 Sourcing Map
10
10 往期回顾 13 大事件 14 行业新闻简讯 16 译网恢恢 疏而有漏
FEATUREs 48 The CHAMPS are here!
中国最具发展潜力城市
21 专访翠丰物流主管 23 中国最强采购BLOG 24 2010国贸术语解释通则 26 采购地图
18 斗转星移 19 企业并购资讯
MANUFACTuRING
LOGISTICS
KPMG - Cost Shifts Manufacturing East 31 The Devil Sells Prada... But Came From Wenzhou 34 You know Deguo Liu? 36 China’s Labor Cost Competiveness
37 The
29
Fine Art of Logistics 38 Financial View on Ports 41 The Secret to Success for S.F. Express
52 RUN TO THE future
驶向未来
OPINION 28 The
29 毕马威——西厂东“渐”
37 艺术物流
31 卖Prada的温州“恶魔”
38 中国港口之金融视角
34 联想专访——刘德国
41 顺丰成功背后......
Politics of the Yuan 20 Kelly’s st 1 & 2nd Laws
36 成本角力：中国还能守多久？
of China Sourcing
The LINKS
RETAIL Bubble Tea 44 Media Markt: Short Circuit Strategy 45 Home Improvement Headaches 43
43 珍珠奶茶
57 The
Travelling Executive
44 万得城继续被“围城”？
58 Linked
45 DIY的中国窘境
59 The
In
Sourcing Debate 60 China’s Best Business Hotels 61 Top Books 66
Salary Forecast
6 JANUARY/FEBUARY 2011
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Best 3PL Supply Chain Provider in Asia Voted as Asia’s Best 3PL Supply Chain Provider in 2010 CHaINA Awards by the Global Supply Chain Council, Toll Global Logistics is the partner of choice of over 1,000 multinational corporations, including some of Asia’s best known brands. Founded more than 120 years ago, our strength and credibility rests on our ability to provide integrated logistics solutions, backed by innovative technologies and world-class processes to support end-to-end supply chains. Toll Global Logistics covers more than 3,000 Asian cities and towns supporting companies with their supply chains. Our work spans across various industries and products including consumer goods, healthcare, technology, retail, automotive and industrials. Our focus is to help customers get their goods from origin to destination with ease and efficiency.
Contact Us For further information about Toll’s Global Logistics Division and our service capabilities, email us at enquiries.bd@tollgroup.com or call our regional office at +65 6462 8883 Australia Cambodia China Hong Kong India New Zealand Philippines Singapore Sri Lanka
Indonesia Japan Korea Malaysia Taiwan Thailand UAE Vietnam
Toll is rebranding across our entire business with a single and refreshed logo which embodies our strength, reliability and excellence. Look out for it in 2011.
Supplychains.com
Photo Gallery
supplychains.com/en/photos Did you miss CHaINA ’10 Live? Check out the pictures from the biggest supply chain event of the year!
Analytics
News Headlines
66,125 Views 7,858 Visitors
Number of visitors who checked out the CHaINA ’10 Awards voting page. A total of 2,040 votes were cast this year.
5,854 pages were viewed a total of 66,125 times on supplychains.com in the month of December.
The Ikea brass has recently announced their plans to double store locations in China by 2015. China fails to make the top 10 for Ikea’s biggest markets, but this new initiative plans to change that. Check out this article and all the latest headlines at supplychains.com.
Social Network Join the only social network designed by supply chain professionals, for supply chain professionals. Start discussions, post comments, interact and network with professionals today! Get started today at CHA1N.com
iCHaINA
CHaINA Magazine
WebTV
Take the January/February issue of CHaINA on the road with your iPad or iPhone. supplychains.com/apple
Can’t get your hands on a CHaINA Magazine print? Go online to read the latest issue! www.supplychains.com/ chainamag
Hear from Denny Yang, Head of Supply Chain Management & Logistics at Metro, and his perspective on revaluing the Yuan. supplychains.com/tv
8 January/FEBrUARY 2011
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EVENTCALENDAR
upcoming events
JAN 2011 FEB JAN
19 20 WED-THU TUES-SAT
JAN
28 FRI
China IP Law Shanghai Venue:
Le Royal Meridien Organizer:
American Conference Institute
3PL Executives Workshop Shanghai Venue:
TBA
Organizer:
The Council
JAN
7
8
Mastering Global & Local Negotiations training Shanghai Venue:
Shanghai Organizer:
FRI-SAT
UniSCR
JAN
Supply Chain & Logistics Roadshow in Xiamen Xiamen
20
21 TUE-FRI JAN
31 MON
Venue:
TBA
Organizer:
The Council
Thought Leaders Forum – HK’s Changing Roles under the National 12th 5-yr Plan Hong Kong
Venue:
HK Convention & Exhibition Centre Organizer :
EUccc
JAN
11 TUES
JAN
21 FRI
FEB
Industrial & Electrical Goods Distribution Workshop Shanghai Venue:
Renaissance (Cloud Nine) Organizer:
The Council
Training: ISO 26000 & its Implementation Beijing & Shanghai Venue:
Beijing & Shanghai Organizer:
EUccc
Diesel Emissions Conference & AdBlue Forum Beijing
22JAN Grand Hyatt 24 TUES-THU Venue:
Organizer:
Integer
JAN
18 TUES
JAN
25 27 TUES-THU
FEB
24 THU
Making Services Procurement Works' Breakfast Seminar Shanghai Venue:
TBA
Organizer:
The Council
Next Generation Supply Chain Summit Asia 2011 Macau Venue:
Grand Hyatt Organizer:
GDS International Lt
Global Sourcing Leaders Forum Shanghai Venue:
TBA
Organizer:
The Council
9 www.supplychains.com
january/febRuary
FRONTLINES Follow-up
B2C vs LOgistics: Revisited
hinese B2C companies continue to snap up logistics and warehousing C assets since the last issue of CHaINA magazine. The strategy of owning logistics assets is becoming more popular throughout the online B2C industry. The following are comments and updates on the B2C companies’ CHaINA is tracking.
Alibaba buys ONe-touch
A
libaba Group continues its quest for total control the logistics end of its business with the purchase of Shenzhen One-Touch Enterprise Service Limited. The new acquisition will allow Alibaba to export goods much more effectively. OneTouch specialized in many aspects of export, including customs clearance, logistics, currency exchange, and cargo insurance. “One-Touch will bring a lot of synergies to our business and enhance our members’ user experience by reducing the time and money they spend managing their export process and procedures,” said David Wei, CEO of Alibaba.com. One-Touch is now part of a growing list of companies, which includes Alisoft, Hi-China and Vendio, who have been acquired by Alibaba. Looks like Alibaba is truly pushing the idea to “Work at Alibaba” on the industry. Now it’s just a matter of waiting to see if all these acquisition are viable in the long run.
Indian E-Business follows suit
C
hina’s online companies are not alone in their pursuit to dominate the online retail market and the logistics/warehousing needs of their businesses. Fashion and You (F&Y), one of India’s fastest growing fashion websites, has managed to secure US$8 million from Sequoia Capital Investment in an effort to expand as fast as their growth. “Fashion and You has been growing by 3040% month on month,” stated Harish Bahl, Chairman of F&Y. The extreme growth is causing logistical problems for several other online Indian retailers and the reaction is similar to that of the Chinese B2C companies. F&Y has outlined a plan to use the cash for heavy investment into their delivery logistics and warehousing needs. India’s logistics infrastructure is a nightmare in comparison to that of China’s, lacking real-time inventory supplier data, payment systems limitations, and no reverse logistics. Shailendra Singh, MD of Sequoia, has applauded F&Y’s innovation to overcome these issues.
Dangdang.com goes public
I
n an effort to raise cash for their operations, Dangdang.com applied to be listed on the New York Stock Exchange(NYSE). Roughly US$272 million dollars was raised, after shares were purchased at US$16 per unit, higher than the initial asking price of US$13-15 apiece. The shares began selling on December 8th, 2010 under the ticker symbol “DANG”. Dangdang.com plans to use the cash to expand several aspects of its business, including its product offering, and logistics and warehousing infrastructure. Yet another online company that continues to raise cash to purchase logistics equipment, rather than partner with a professional 3PL.
Expert Advice
“
On one hand, I don’t believe they should be doing it. They aren’t logistics specialists and have no experience in this field. At Mary Kay, we are managing partnerships with 3PLs and are doing fine. On the other hand, they are growing so fast that their suppliers cannot keep up with them. They want to ensure their standards are being upheld, so buying and controlling the logistics end can do that. Not to mention, they’re currently very cash rich.” Charlie Zhu, Logistics Director at Mary Kay, regarding B2C players purchasing logistics assets.
10 January/FEBrUARY 2011
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More on Maersk, p.15
Cargo Crisis: Update
I
n the September/October issue of CHaINA magazine, we provided insight into the cargo crisis that was plaguing the overseas shipping industry. NOL Chief Ron Widows is now forecasting “tight capacity” in the foreseeable future. “Ships are no longer being bought on speculation and the KGs are out of business,” according to Widows. In terms of rebalancing, Widows estimates supply and demand will reach some sort of equilibrium by 2013. One factor that should be considered is the historically high asset price for containers, a cost which leasing companies are shifting to the exporter. The cost of a TEU has risen by US$ 1200 to US$2700.
FRONTLINES Rate Wars
M
aersk and FIS say similar elements which sparked problems in 2009 are once again in place, and are setting the stage for a “rate war” in the shipping industry. Rates have declined over the past 22 weeks, and competitors are worried that a move from a single player could result in fierce price-driven competition. Industry consultants are warning business that “unless they maintain discipline, and carefully match demand with supply, a rate war is likely to ensue.”Maersk VP Soren Toft responded by saying his company remains confident, and will take a leadership position for other businesses to follow. An industry wide collaborative effort will be required in order to avoid the looming “war”.
We Want to Hear From You!
We invite you to share your thoughts and opinions regarding all of our articles. We will publish selected readers’ comments in future issues of CHaINA Magazine. Correspondence may be edited for clarity or for length. Email us: editor@supplychain.cn
11 www.supplychains.com
january/febRuary
Exceptional Commitment Logistics from a different angle Your markets are evolving and your supply chain needs and expectations are changing. Meanwhile your demand for an efficient supply chain remains and grows. At CEVA, our supply chain experts are committed to building strong and lasting partnerships with our customers. Our teams bring specific sector knowledge with them and work closely alongside you to deliver effective solutions and generate efficiencies for your business. This is how we will work together to transform your supply chain. Isn’t it time to see your supply chain from a different angle? We think so.
Find out more about transforming your supply chain at January/FEBrUARY 2011 www.cevalogistics.com/commitment
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Contents
High Speed Aspirations/13
高速·雄心 /13
行业新闻简讯 /14
News Bites/14
译网恢恢，疏而有漏/16
Lost in Translation/16 斗转星移 /18
FRONTLINES
Movers & Shakers/18
M&A/19
企业并购资讯 /19
High Speed Aspirations
350KM/HR The top speed of the CRH380A locomotive.
US$300Bn
42
25,000KM
China’s planned budget to be spent on high speed rail development until 2020
The number of major Chinese cities to be linked with high speed rail by 2012.
The coverage of China’s high speed rail network by 2020, the biggest of its kind.
By comparison, the US has pledged roughly US$8bn from their stimulus package and US$5bn over the next 5 years, to fund various high speed rail projects across the country. 13 www.supplychains.com
january/febRuary
Frontlines NEWS BITES Risk
Scandals
Damco, Maersk accused of wrongful charges by Indian NVOCC
Indian NVOCC is seeking US$21,000 in damages and US$150,000 in reparations from Damco US and its parent company AP Moller Maersk. NVOCC claims that Damco US was trying to collect “demurrage and detention fees not listed in the tariffs.” The fees total US$175,000, and the final ruling by the US Federal Maritime Commission will come in March, 2012.
Airlines fined for price fixing
Singapore Airlines pleaded guilty to a criminal fine of US$48 million for price fixing on air cargo. The charge is the latest in an investigation of the air cargo industry, which has seen 20 airlines along with 17 executives charged for more than US$1.7 billion.
carriers Fined So Far:
Canadian thieves steal $1 million in Playstation goods
A trailer containing US$500,000 worth of PS3 and PSP merchandise was stolen from a shipping facility in Ontario, Canada. Workers noticed the missing container and security measures were implemented, however another container valued at the same amount went missing the next day, bringing the total value of stolen goods to US$1 million.
HK gold scam
With gold prices at an all time high at US$1400 an ounce, around 200 ounces of fake gold were found in circulation in Hong Kong, with an estimated that ten times more that has yet to be discovered. The fake gold consisted of 51% gold and a sophisticated blend of nickel, iron, copper, iridium and other metals. Neighboring countries, such as Singapore, are now on high alert in order to avoid the fake bullion from infiltrating their markets.
Sourcing
China sinks Australian rock lobster business
The Australian lobster industry is being threatened, after prices fell more than 60%, from RMB1000 (US$150) to just under RMB 400 per kilo, due to a Chinese import-ban. A longstanding practice to ship lobster to China via Hong Kong, to avoid the 35% import tax from Mainland China is the reason for the ban. China was the largest market for Australian Rock Lobster with a share of more than 80%. Sourcing
Nissan’s sourcing in India to multiply Within the next two years, Nissan Motor Ltd. plans to quadruple the sourcing of production components from India, increasing imports to US$40 million by the end of 2012. Currently, Nissan has a comprehensive plan to move the manufacturing of key com- ponents such as cylinder heads and blocks to India within the next 5 years. In March of this year, Nissan and Renault opened their manufacturing unit in Tamil Nadu and plan to invest another US$49 million in the near future. Retail
Barebone Walmart stores for China Walmart has announced plans to penetrate the lower tier Chinese markets with a new “compact hypermarket” format. The low-cost stores will measure just under
3500 m2, with cement floors, brick walls, and possibly
no air conditioning. The first store has already opened in October, in Zhang Zhu, Jiangxi province.
14 January/FEBrUARY 2011
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Frontlines SHORT AND SWEET
Outsourcing
Philippines: The new call center capital The Philippines will surpass India as the call center capital of the world, based off of the number of employees in each country within the outsourced business-processing sector. President Benigno Aquino forecasts that the industry’s revenues will hit US$12-13 billion next year and by 2020 the country will have acquired a fifth of the global market share. Filipinos enjoy the advantages of former US-colony status, the ability to speak English without a strong accent, and cultural affinity to the West. u
“The country has become the call center capital of the world with its 350,000 call center employees against India’s 330,000 workforce.” -- CCAP
Logisitics
may increase investment in China, India infrastructure
As Asian trade growth outpaces demand in the U.S. and Europe, A.P. Moeller-Maersk contemplates investing in rail, truck or barge operators in China and India. Global containerport traffic is predicted to increase at about 5% a year for the next 5 years. Maersk runs the world’s largest container-shipping line and is currently developing seven new projects, including plans to invest in Yangtze River ports.
Suning Appliance to expand logistics in China
Suning Appliance recently revealed plans to issue new shares on the Shenzhen Stock Exchange in order to raise funding for a large logistics and distribution expansion. Suning plans to establish 60 logistics bases within the next 5 years. The company is currently experiencing a shortage of distribution services making this investment beneficial to their long-term store-opening plan.
Big potential in Chinese Cold Chain
Cold-chain logistics giants from the US and Europe are looking to step up their operations in China, a market valued at US$14 billion annually. There are 440 million tons of goods that need coldchain services every year, grossly exceeding the current 80 million ton capacity. The shortage of cold-chain services in China causes US$10 billion in waste on fruits and vegetables alone. As China’s food industry continues to rapidly develop, demand for cold chain logistics will follow, higher than expected.
China’s logistics industry has already reported a RMB100 trillion (US$150bn) in revenue for the first 10 months of 2010, a 16.8% YOY increase.
u
u UK-based retailer Tesco is looking to broaden their product focus and to increase their sourcing from India. u Youku’s share price rocketed up 161% to US$33.44 on the first day of trading, after a successful completion of their US$203 million IPO. u Caterpillar, Inc. plans to move “as much as possible” of its complex parts sourcing from Japan to China. u “The agribusiness giant Charoen Pokphand Group (CP) has committed US$300 million to expand foreign investment in China and Vietnam, focusing on agriculture, real estate and retail. ” u The 6th phase at Shanghai’s Waigaoqiao Port has been completed, and will be operational by 2011. The latest phase will increase the capacity of the port by 2.1 million TEUs and 730,000 units of auto RORO anually. u State Grid Corporation of China has recently purchased 7 Brazilian power generation companies for US$1 billion, betting that energy consumption in South America will increase as their economies develop. 15
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Frontlines Lost in translation
The Biggest Highway Logistics Hub in West China
T
he largest, and only, comprehensive national-level highway hub in West China will be built in Banan District, Chongqing, at a cost of RMB 10 billion (US$15bn). Eleven enterprises currently have plans to move into the hub, including Global Logistics Properties, China Logistics Corporation, Chongqing Food Group.
First Fishery Logistics Center in Hainan
C
onstruction will begin on the first standardized fishery logistics & trading center in Haikou this October and is set to finish by next year covering 1.6 million m2. Blue Sea Aquatic Products Co. has invested RMB450 million (US$68m) for this large-scale comprehensive trading platform which should effectively ease the bottleneck that is currently restricting the development of Hainan’s fishing industry.
Eternal Asia Builds Supply Chain Integration R&D Center
E
ternal Asia kicked off construction of its first supply chain integration R&D center for central and western China recently in Lugu, High-tech Zone, Changsha. The company invested RMB 130 million (US$20m) and plans to cover 32,000 m2, including a 4-storey warehouse and a 6-storey research building. The Lugu Center is expected to be the companies headquarters for Midwest China.
Massive Cold Chain Hub for Nanning
T
he largest cold chain logistics hub in South West China will be built in Nanning, Guangxi. The project will cover roughly 1.4 million m2 of land and will include a modernized multitemperature cold storage warehouse. With a construction site of 60,000 m2 and a current storage capacity of 13 million tons, it meets the needs of downstream customers and will implement cold chain infrastructure that will allow a total storage capacity of 50 million tons in the next three years.
Mushroom Logistics Park for Guannan
Y
ongqian Textile Printing & Dyeing Co. invested RMB500 million (US$75m) to construct the most advanced Asian logistics and distribution park for mushrooms, in Guannan, Jiangsu. The project covers 3.2 million m2 and includes four major functional areas: a mushroom trade market, logistics warehouses, research and food processing area, and casual dining zones.
Shunde Constructs its Largest Cargo Port
C
offee industry giant Starbucks an Shunde kicked off construction of Liaogeshan Port, the largest cargo port of its kind for the city. The first phase of the project will take up 2.4 million m2, of which half will be used for the construction terminal yard, and the other half for a logistics center. The first phase of construction will use 500 meters of coast line, and feature 3000ton multi-purpose terminals. The share-terminal project includes four berth piers with a capacity of 3000DWT each.
16 16
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Frontlines
Extending our reach in Central China!
Yunnan Haohong & Infor develop Logistics System Starbucks to grow Coffee in Yunnan
I
ndustry giant Starbucks announced plans to build its own coffee farms in Yunnan to develop its supply chain presence in China. This is the first time in its 40 year history that Starbucks will step into raw material manufacturing.
Suning Appliance Invests in Logistics Hub
S
uning Appliance plans to build a logistics hub in Zhengzhou. The logistics hub will cover over 600,000 m2 of land including 100,000 m2 construction site, which is valued at RMB400 million (US$60m). The project is expected to create tax revenues of RMB350 million per year. It will become the logistics and distribution headquarters of Suning Appliance in Henan to serve Zhengzhou and the surrounding area.
H
aohong Logistics Group and Infor held a signing ceremony, which included an RMB20 million (US$3m) signing bonus, for their cooperation in building a logistics information system. It is Infor’s first time to work with a logistics enterprise in the province of Yunnan, and will construct an information system as well as provide storage and logistics, supply chain management, and e-commerce solutions.
17 www.supplychains.com
january/febRuary
Frontliness
Didier Chenneveau President of Asia Pacific CEVA Logistics
Kathleen Lee Program Manager Global SCM Cisco Systems
Supply chain expert Didier Chenneveau will be joining CEVA Logistics as the new President of Asia Pacific, leaving his position as the Executive Vice President and Chief Supply Shain Officer for LG electronics. While working at LG, Mr. Chenneveau was responsible for worldwide global supply chain management. Prior to LG, Mr. Chenneveau was the VP of Americas Operations for HP’s Imaging and Printing business.
Kathleen Lee, the former Supply Chain Manager of Microsoft Asia Pacific, has taken on the position of Program Manager, Global Supply Chain Management at Cisco Systems. At Cisco, Ms. Lee will be in charge of managing and driving operation program initiative with Cisco’s ODM supply management. Ms. Lee has worked in supply chain since 2004.
Diana Chan Partner Korn Ferry International
Holger Stoelker Managing Director Taiwan Gebrüder Weiss
Diana Chan is dedicated to the recruitment of Senior Executive in Greater China and now leads Korn/Ferry Supply Chain Practices in the region. Prior to Korn/Ferry, Diana worked with another international executive search firm based in China. A PRC national, Diana returned to China after spending nearly ten years in Hong Kong, the US and Germany. Her understanding of both West and East allows her to help her clients with their leadership challenges and needs.
Gebrüder Weiss, the Austria-based logistics company has appointed Holger Stoelker as Managing Director for Taiwan. Mr. Stoelker was previously based in Hong Kong and held senior positions for Agility in marketing and global accounts in Asia Pacific. Stoelker sees the company’s strong network in emerging Eastern European economies as a competitive advantage for Taiwan and Greater China.
Tom Zhang Associate Director Global Logistics & Supply Pfizer Pharmaceuticals
Alain Ventura Country Manager for Malaysia Singapore Damco
Stepping down from his position as the Category Manager of International Procurement at Smith & Nephew, Tom Zhang will be joining Pfizer Pharmaceuticals as their new Associate Director of Global Logistics and Supply. Mr. Zhang specializes in supply chain organization set-up, cost saving through strategic sourcing, and lean supply chain initiatives. He has been in the industry for over ten years.
AP Moller-Maersk’s logistics branch Damco has appointed Alain Ventura as its Country Manager for Malaysia and Singapore. Mr Ventura joins Damco with about 20 years of logistics experience behind him, having worked in Asia, Europe and the US in different management positions. Most recently, Mr. Ventura was in charge of APAC Strategy Implementation at Syngenta. With talent at a premium, CHaINA keeps an eye on which executives are moving where. 18 January/FEBrUARY 2011
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frontlines M&A
Mergers Acquisitions
US$6bn
2
1 Groupon, an internet-coupon service founded in 2008, turned down Google’s US$6 billion acquisition bid. This would have been Google’s largest acquisition ever. Groupon turned down the deal based on the unclear future of their company and employees.
US$1.23bn 4
US$71m
6
2
Bright Food Group Co. is looking to acquire GNC Holdings Inc., a U.S. vitamin retail chain, for US$2.5 to 3 billion. This is after Bright Food’s talk of acquiring UK-based United Biscuit failed to produce a deal.
7
1
US$3bn
3
US$600m
5
US$50m
US$4m
3 China HuaNeng Group, one of the five largest state-owned power generation enterprises, has acquired India GMR Group’s 50% share in the U.S. based InterGen, for US$1.23 billion with the hopes of further penetrating the Indian electricity market. 4 Shanghai Pharmaceutical Holdings has acquired a 55.45% (US$ 600 million) stake in China Health System Ltd., the largest transaction in China’s pharmaceuticals sector. 5 China Chengniu Dairy Co. will pay RMB 469 million (US$71 million) for a 51 percent stake in Junlebao Dairy Co., located in the northern province of Hebei.” Junlebao is the largest dairy producer in Northern China, and one of the 10 largest producers in China of liquid milk. 6 Ericsson Group has acquired Guangdong Nortel Telecommunication Equipment Co., in a US$50 million deal. This will include Guangdong Nortel’s R&D facilities, manufacturing facilities, network support and customer service units in China. 7 Kuehne+Nagel(K+N) has acquired RR Enterprises, a small Delhi-based cold-chain logistics business. The deal is valued at US$4-5 million and will give K+N control of 50 reefer trucks, four reefer containers, RR’s clients and their operations. 19 www.supplychains.com
january/febuary
Opinion
Kelly’s 1st & 2nd Laws of China Sourcing
Y Y
Whitwell Kelly
ears ago, when Murphy’s Law calendars were all the rage, my father submitted and had two such laws published. Recent events put me in mind to postulate laws of my own Kelly’s 1st & 2nd Laws of China Sourcing: 1 st Every project will suffer delays. 2 nd The primary source of project delays is the customer.
China is inexpensive, but it is NOT fast. There will always be delays in any project. Virtually every decision cycle takes at least 24 hours, often longer. When a client comes to us, I always try to set expectations. Often we encourage a customer to establish or maintain a domestic supply chain while setting up the China connection. The long-term health of the client is the goal for all of us, and we recognize that doing business in a foreign country is never easy or quick. I have had this experience in the Czech Republic and Taiwan before entering Mainland China, so this is not a slam at the Chinese. It is just indicative of doing business across vast distances with a language barrier thrown in for fun. I said the primary source; not the only source, and for the majority of projects, this is true. This in no way means the customers are wrong per se, there are often very good reasons for delays. We have a number of projects in our history that arrived in the market months and sometimes years past schedule because of some very common reasons. I list them here for you to learn from those that came before you.
1 Incomplete Design Databases: This is absolutely the biggest cause of delays. You must have all the elements of the design finalized before going to production. Leaving even the smallest element of the design open to interpretation will lead to the supplier interpreting it in the exact opposite way. Remember Murphy’s Law, “If it can go wrong it will”.While some of our team members are engineers, and many of us have years of manufacturing experience, we are not getting paid to do the design work. For that reason we began building our ESP network for clients who came with “databases” they’d spent thousands of dollars on that... weren’t. 3D CAD packages with no 2D drawings and vice versa are common. In one case after signing an NDA, the client gave us a drawing of a circle with no scale or dimensions at all. I asked if it was a drawing of the moon to illustrate the point, and then advised them to get a refund from the “engineer” they paid to produce that useless document.
20
3 The uncommunicative client: It is not uncommon for projects to get caught in the doldrums and go nowhere for days, weeks, even months because the client is AWOL. Panicked project managers have contacted me because they haven’t gotten a client response to a critical question for over a week, only to find out that the client went on vacation without telling anyone. January/FEBrUARY 2011
2 Payment: China is pretty close to a cash economy unless you are a buyer for a Fortune 500 company. All POs will require a deposit, in most cases because the manufacturer is going to use that money to pay cash for the raw materials. Tooling is typically 30% At Time of Order (ATO), 40% at first article and 30% at final approval, before delivery. Production is most often 50% ATO and 50% At Time of Shipment, which means 100% is due before the product leaves the factory. All these terms are clearly communicated early in the project, but at least 80% of the time, there are delays from clients not paying on time. We advise the client to transfer the entire PO amount to an escrow account at the beginning so funds are immediately available to disburse when milestones are met. 4 The client who’s in a hurry: While this might seem to be the right kind of client to have, the client who is in a hurry often places speed over accuracy. They want to cut corners, skip prototypes, not proofread or skip writing a product quality manual altogether. When you deviate from the normal project flow, you end up causing more delays. Chinese vendors screw up all the time, otherwise we would have a lot less work to do, but it is not all the vendors’ fault. In short, the customer is not always right.
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Procurement
Kingfisher Interview /21
专访翠丰Christel Costagli /21
Best Blogs /23
Incoterms 2010/24
中国最强采购博客 /23 《2010国际贸易术语解释通则》/24
PROCUREMENT
Kingfisher’s :
Sourcing map /26 采购地图 /26
英国翠丰物流供应链部门前任主管
专访翠丰 Christel Costagli Head of Supply Chain and Logistics at Kingfisher plc. discusses the challenges they’ve faced, lessons they’ve learned, and important strategies for business in China.
What exactly is your role in Kingfisher China? I am the Head of Supply Chain and Logistics for Kingfisher Global Sourcing, which is a procurement hand basically for the Kingfisher Group. The headquarters of all the procurement operation is in Hong Kong, but we also have a sourcing office in Shanghai, in Poland, and also some offices in South East Asia like Vietnam, in South America, and in India. 我在翠丰国际采购任供应链和物流部门的主 管，翠丰国际采购负责翠丰的采购业务。业务总 部设在香港，但我们在上海、波兰、越南等东南 亚国家、南美、印度等都设有办事处。
Can you give us a short profile of your company? When you talk about Kingfisher I think it’s important to point out that we are talking about Kingfisher the DIY retailer from the UK, not Kingfisher: the beer or the airline, which is usually what comes to mind. Kingfisher is the 3rd largest DIY retailer in the world, but it is the most international with 820 stores in 8 countries in Europe alone,. Main branches include B&Q, Castorama, Brico Depot, Screwfix, Koctas, and Hornbach. If you are based in Europe you are probably familiar with those brands.
21 www.supplychains.com
january/febRuary
PROCUREMENT
Kingfisher Sourcing
B&Q in China First store in China:
Year: Shipped volumes of DSP*
opened in 1999
2009:
US$ 696 m
Employees: 6,309
2010:
US $794 m
Stores: 41
2011:
US $1 bn
Products in store: 19,000
* direct sourced product
Kingfisher Procurement offices: 6
$
Sales: US$ 146.5 million
Factory audits conducted in 2010: 541
B&Q is strong in China, and are being developed quite well here. The strategy of the group is to be #1 or the #2 position wherever we operate. 其实一提到我们公司，要先强调一点：翠丰是做DIY零 售的，而不是人们通常联想的啤酒制造商或者航空公司。 翠丰是全球第三大DIY零售商，但是国际化方面它首屈一 指——仅欧洲就在8个国家拥有820个分店，下属主要品牌包 括B&Q,Koctas，Hornbach，这些品牌在欧洲都是耳熟能详。 百安居在中国发展很不错，不管在哪里运营，我们的策略目 标就是成为第一或者第二。
What are the challenges when sourcing in China? I think one of the key issues today when sourcing out of China is the stability of supply. It is challenging to build strong partnerships with the vendors and we are trying to reduce the number of vendors so we can focus on quality and strong relationships with key partners. We have found that in order to build strong partnerships you really need to focus on collaboration and sharing information. 我觉得现在在中国做采购有个很重要的问题就是供应的 稳定性，要和供应商建立合作伙伴关系其实并非易事，所以 我们也尽力减少供应商，这样可以专注于巩固同重点合作伙 伴的战略关系。我们认为要推动巩固合作关系，必须致力合 作并且懂得信息共享。
What are the strategies Kingfisher has used to overcome them? In terms of our strategies for these areas, we are really planning to develop our forecasting capability and the capacity to share forward information on orders. We also want to fully commit which will help our vendors plan their production better, therefore reduce lead times and reduce MOQ. This will also help us order more from them in smaller quantity, which is what you need when you want to improve working capital.
说到这些地区的策略，我们确实计划提高预测水准，并 增强信息共享能力。同时，我们也致力帮助供应商更好地规 划生产以减少交货时间和起订量。这样也便于实现“小规 模、多订单”——这对提高营运效率很必要。
What would you define as the biggest lesson from China through your experience here? Well I think the biggest lesson I’ve learned is that process is everything. It really helps to have a very clear process defined and build them in collaboration with your partners whether they are vendors, 3PLs, shipping lines, integrating actually all of the different actors of supply chain into one process is the key to success. 我在这里得到的最有价值的经验就是：过程决定一切。有 一个清晰的过程计划很重要，但是这不够，你必须在过程中同 伙伴建立良好的合作关系，不管他是供应商、第三方物流，还 是船运公司。把供应链各不同要素整合到同一个过程体系中是 至关重要的。
What are Kingfisher’s plans in the near future for China? China is very big for us because about 85% of the products are sourced for Kingfisher from this part of the world. I think it will definitely continue and China will definitely remain a key area of sourcing for us. In the nextthree years, we are looking at doubling direct import that we actually carry for Kingfisher. So, there is much more activity to come in China and in Asia in general. 中国对于我们来说市场相当大。因为翠丰有85%的产品 是从这里采购的，中国是非常重要的供应源。在未来三年 中，我们力图保持直接进口量的双倍增长。这么看来，在中 国和整个亚洲市场还有很多业务活动亟待完成。
*Note: Christel Costagli left her position at Kingfisher shortly after this interview was published”
22 January/FEBrUARY 2011
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Best sourcing blogs in China Renaud Anjoran www.qualityinspection.org/blogs-sourcing-china/
The following is a list, in no particular order, of the best sourcing blogs currently available in China from Renaud Anjoran at Sofeast Ltd. Silk Road International blog: David lives in Shenzhen and deals with Chinese manufacturers on a daily basis. His detailed descriptions and candid analyses of all the traps and how to plan for them are extremely insightful. He is also the editor of the promising China Sourcer magazine.
www. silkroadintl.net/blog/
China Law Blog: Dan gives advice that few consultants will think of, but that can save your business! Just an example: did you know that importers should register their trademark in China even though they have no plan of selling anything there? www.chinalawblog.com/
Imports Oriental Blog: I like Danny’s angle on some unique “Chinese cultural things”, and Tanya does a great job of spotting the best content from other blogs. www.importsoriental.com/blog/
PROCUREMENT
Quality Wars: Written by my friend Andrew, who also lives in Shenzhen. This blog contains some excellent information for quality control practitioners and for demanding importers. Unfortunately, new articles are rather irregular.
www.quality-wars.com/
Whit’s China Business Blog: A great mix of China sourcing tips and commentary of the latest weird news. The updates are rather irregular, but worth following. psschina.com/category/whits-china-business-blog/
Tips for buying in China: How is it different from Quality Inspection Tips? It will have a broader focus (not only quality control, but also supplier qualification, production schedule follow up…) and it will be mostly targeted at new importers. www.sofeast.com/blog
I should also mention a few other websites that are not exactly blogs but that provide regular reading: • China Briefing: news and analyses about China business environment • Smart China Sourcing: timely articles from the Global Sources editorial team
Global Sourcing Leaders Forum February 24th, 2011, 8:30am - 5:30pm
Downtown Puxi, Shanghai (Venue to be confirmed)
Register Now! Registration deadline is Thursday, Feb 24 2011 8:30 AM www.supplychains.com/en/cev/579
www.supplychains.com 23
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january/febRuary
PROCUREMENT
Giraldi Francesco
International Commercial Terms are important to help avoid misunderstandings between buyers and sellers in cross border contracts for the sale of goods.
I
NCOTERMS 2010 are exists where applicable. In order to over the “ship’s rail at the loading adjusted to meet new facilitate use in the EU where border port” indicated by the buyer. The commercial practice and formalities have for the most part “ship’s rail” as the point of delivery adapt them for a suitable disappeared and in the US, where has been changed in preference for use for new major play- there has been a growing willing- the goods being delivered “on board ers in international trade such as ness to use INCOTERMS rather the vessel” in order to more closely China, South America and India. than the former Uniform Commer- reflect modern commercial reality INCOTERMS 2010 does not cial Code shipment and delivery, the and to avoid disputes over where expresent any substantial change new terms are now easier to apply. actly the goods pass the “ship’s rail”. from INCOTERMS 2000, rather The transfer of risk provision rethe terms have been developed FOB and CIF key changes mains the same, aside from the clariand clarified. FOB and CIF are the terms most fication that risk passes when the Part of the logic for fewer terms often incorporated in cross border goods are on board the vessel, not and a clear distinction between the sale of goods contracts. The new when they pass over the ship’s rail. two categories is that traders often rules reaffirm that both FOB and The seller is obliged to package the select the “wrong” term leading to CIF are for use “only when goods goods (as opposed to simply providcontradictory or unclear contracts. are transported by sea or inland wa- ing packaging), unless it is usual for The terms must be used for the cor- terway” and those terms should not the particular trade to transport the rect mode of transport if they are to be used where there is any form of type of goods sold unpackaged. offer any protection to the buyer or road/rail/air transport involved Regarding the CIF term, the seller the seller. is required to obtain cargo For the shipping documents The most important changes insurance complying at least there is now an express ref- in INCOTERMS 2010 with the minimum cover proerence to the use of “equivavided by the Institute Cargo lent electronic records”, if Clauses (this is a minimum Removal of the DEQ (Delivered Ex the parties agree or it is cuslevel of insurance and covers Quay) and substituting it with the DAT (Detomary. While this may be a only major casualties like the livered At Terminal). good idea in practice, to entotal loss of cargo). The buyRemoval of DAF (Delivered At Frontier), sure speed and consistency, a er has the option of requiring DES (Delivered Ex Ship) and DDU (Delivparty who wishes to insist on that the seller provides, at the ered Duties Unpaid) and substituting it with paper documentation should buyer’s expense and where the DAP (Delivered At Place) make that clear in the sale procurable, any additional incontract. surance coverage. The new INCOTERMS are The buyer is to bear the costs Regarding the FOB term, the delivexplicitly stated to be for “both do- ery provisions are similar to INCO- of any mandatory pre-shipment inmestic and international trade”. This TERMS 2000, however, the seller’s spection, except when such inspecis achieved by statements within the obligation is now to place the goods tion is mandatory by the country of rules that the obligation to comply “on board the vessel” rather than export. with export/import formalities only 24 January/FEBUARY 2011
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PROCUREMENT
国际贸易 术语解释通则 《国际贸易术语解释通则》有效帮助减少或避免买卖双方在订立交易 合同时产生的矛盾和纠纷 《2010国际贸易术语解释通则》（INCOTERMS 2010）是国际商会为适应国贸发展和实践中发生的新变化而改进的，新 版本将于2011年1月1日生效，但旧版本在当事人订立贸易合同时仍然有效。 术语分类-由原来的EFCD四组分为两组： INCOTERMS 2010术语调整
1. 适用于海运和内水运输的 FAS 船边交货（……指定装运港） FOB 船上交货（……指定装运港） CFR 成本加运费（……指定目的港） CIF 成本、保险加运费付至（……指定目的港）
- 删除DEQ（目地港码头交货），增加DAT （目的地或目的港的集散站交货） - 删除DAF（边境交货）、DES（目的港船上交货）、 DDU（未完税交货），增加DAP(目的地交货)
2. 适用于各种运输 EXW 工厂交货（......到指定地点） FCA 交至承运人 （……指定地点）） CPT 运费付至……指定目的地 CIP 运费、保险费付至（……指定目的地） DAP 目的地交货 DAT 目的地或目的港的集散站交货 DDP 完税后交货（……指定目的地）
Prime Generic Factory/Warehouse with Vacant Land FOR SALE - DONGGUAN, GUANGZHOU
FOB和CIF显著变化 FOB 当货物在指定的装运港越过船舷，卖方即完成交货。 买方必须从该点起承当货物灭失或损坏的一切风险。FOB 要求卖方办理货物出口清关手续。和2000年的“越过船舷交 货”相比， “船上交货”能避免货物无意越过船舷而引起的 纠纷。该术语仅适用于海运或内河运输。 CIF 卖方必须支付将货物运至指定目的港所需运费和费 用，交货后货物灭失或损坏的风险及由于各种事件造成的 任何额外费用即由卖方转移到买方。但在CIF条件下，卖 方还必须办理买方货物在运输途中灭失或损坏风险的海运 保险，因此由卖方订立保险合同并支付保险费。买方应注 意到，CIF术语只要求卖方投保最低限度的保险险别。如 买方需更高保险险别则需要与卖方达成协议或自行作出额 外的保险安排。 这两类术语的分类逻辑在于交易者往往不恰当引用而导致 矛盾纠纷。如果在保障买卖双方的权益时使用这些术语，那么 必须分清运输方式。关于货运单据，现在明确提及出示”同等 作用的电子讯息”。这能保证效率和连贯性。INCOTERMS 2010的 适用范围从国际贸易扩大到国内贸易，赋予电子单据与书面单据 同样的效力，将承运人定义为缔约承运人。
PROPERTY DETAILS
Steel structure Floor loading: 4-5 tons/sq.m Ceiling height: 8.1 meters (to the lowest beam) Electrical capacity: 1,600kVA Loading docks: 8 Break-down of areas Total land area: 45,300m2 approx. Vacant land for development: 14,000m2 approx. Usage 1. Production 2. Recreation / Dorm 3. Office & option for Canteen 4. Boiler 5. Dormitory 6. Canteen Total
GFA (m2) Level 15,545 1,458 1,714 131 805 772 20,425
1 3 2 1 3 2
SOLE AGENT Contact Information
Roland Burton www.asiapacificproperties.com
roland.burton@asiapacificproperties.com +86 21 6288 7333 ext. 336 +86 137 9524 8045
Pictures, specifications, and other information provided in this material are for reference only. Alll details and information are subject to final government approved plans and legal documentation.
25 www.supplychains.com
january/febuary
Jiashan 嘉善
Haiyan
Wood
海盐
Shanghai
Machine parts Toys
Leather Warp knitting
Bamboo
Medicines Hardware
Yuyao 余姚
Ningbo 宁波
Mould Plastic Products
Textile
ng
Card paper processing
舟山
Pinghu
e g
Steel
Zhoushan
Heat treatment Wood products
Toys
Cixi
Construction materials
Shangyu 嵊州
Jiangshan
Ties
Ninghai
ou
宁海
Ninghai
u
Stationery
mall mmities
g
Textile Dyeing
Plastic Package printing
Clothing
Electronics
Bird feather products
Cotton knitwear Printing machinery
Opto-mechatronics Clothing, bags
Pig leather
Fur
Valves Food machinery
Watches
Muli-coloured lights
Gas appliances
永嘉
Plastic shoes Ties
Measuring instruments
Switchers Electric parts
Pearls
Construction materials Switchers
Leather shoes Bolts Pig leather
Valves Steel pipesTiles Artificial leather
Fish cultivation
Hongqiao Ouhai
Daji
Liushi
Ouhai
Locks
Guoxi
Oubei
Panshi
Wenzhou
Longwan
Shacheng
龙湾
Valves
Longwan Leqing
Wenzhou
n, Tangxia
gyang
Linhai
Anyang
Yandang
瓯海
ng
Luqiao
Beibaixiang
桥下
QiaoxiaOuhai
Molds Electric parts
Qiaoxia
Yongjia
Glasses Plastic shoes
Hardware Electric tools
Buttons
Stationery
Bolts Automobile parts Plastic ropes cloth Motocycle parts Water pipes
Household electronic appliances
Taizhou
Yongjia
Package printing
Safes
Solid waste recycling
Xianxiang
lighter
Children's wear
Nails
Hengjie
Shengzhou
Clothing
Hardware
Silk Synthethic fabrics
Farming
Ningbo
Yuyao
Hardware
Protective clothing
Umbrellas
Leather, shoes
Zhoushan
Clothing
furniture
Springs
Haining 海宁
Haiyan
axing
g
Scoks
Shuttlecocks
Jiashan
g Xiuzhouqu Haining
Magnetic materialsSuits
Shirts
Medicines Hardware
Longgang Leqing 乐清
Pingyang
平阳
astic oven ackaging
Cangnan
Medium low voltage electrical appliances
Shuitou
Yongzhou Qianku Xinqiao
www.supplychains.com
Tangxia
Wenyang
November/december january/febuary
27
Opinion
The Politics of the Yuan
A A
“A ten percent appreciation of the Yuan would result in 424,000 US jobs lost.”
gainst the backdrop of a stuttering global economy lmost every multinational compaandmajor stubborn unemployny with branches in China is beginning ment rates, there has recently to look atbeen the next that will push a lotsteps of posturing and its China rhetoric supply chains the next level, aboutto the valuation both domestically and internationally. of the Chinese Yuan (RMB) The market is more demanding, arethat going and and theprices impact it up, is havit’s time to factor organizational flow ing on trade imbalances and the and health of technology the global into the equation. economy as a whole. On September 29th 2010, the In order to help with the efficiency theaimed sustainUnited States’ Congress even passedand a bill at ability of their business, Bosch China in the process of imposing tariffs on imports from iscountries whose rolling out is SupplyOn in their purchasing, logiscurrency deemedsolutions to be undervalued. (which ittics, and quality as part ofofa greater global self is likely to departments be in contravention the WTO). initiative. Bosch, iswhich has 15political departments and The problem that already the existing dialogue plants in China the SupplyOn operates is plagued withusing arguments that areplatform, simply not true. 47 entities to in the China and sees their branches as the Contrary emotive rhetoric, a rapidhere apprecianext of important node of modernization. “Ourhurt purchastion the RMB is more likely to actually coning has already reached scale in China,” sumers in Europe and an theeconomy US and of is unlikely to lead saysanHuang Bin, Purchasing Asia to increase in Corporate manufacturing jobs inDirector, the West. Pacific Bosch (China) Investment Ltd. “At this point, The atCentre for Economic Policy Research it’s very important we have purchasing (CEPR) confirmsthat this. Manya very US clear exporters buy strategy andcomponents a well structured parts and fromorganization.” China and any revaluation would raise their costs and impact the gross Purpose for Using profit margins. In It terms of trying to quantify the With these goals in mind, rolling a new IT platform impact of any appreciation, the out CEPR believes that wasthe theRMB nextwere step to in appreciate streamlining10%, purchasing practices if there would be Bosch China. While there aforloss of 424,000 jobs in theare US.many If andifferent import forms tariff that10% SupplyOn take on when with an a company, in of were can added topdealing of that, estimated Bosch’s case solution actsinasthe a web-based platform 947,000 jobsthe would be lost USA. between Boschisand on effect” which they can share Then there thesuppliers, “Walmart – cheap impurchasing and delivery in order ports frominformation China actually help theforecasts US consumer’s to help the transparency procurementprofitability, transactions. pocketbook, increase ofcompanies’ “It’s really encourage important tomore use modern technology in inortherefore hiring and jobs. An der to secure andtotoincrease establishthe a standardcrease in the information RMB is likely cost of ized process,” saysconsumer Mr. HuangonBin. increasingly products for the the“IT highis street or at important through allalone of the supply chain, especially in the mall (Walmart currently imports 70% of the goods logisticsfrom and purchasing its China). areas.” At the are Bosch Automotive branch in Suzhou, SupThere a number of other factors that could plyOn works to shorten the(1) communication also beWebEDI considered in greater detail: any revalualengthof between andlikely the suppliers, saves tion the RMBBosch is more to lead to which an increase both Bosch andinthe suppliers a lotCountries of time. Charling in production other Low Cost (such as Shen, Production of (2) Bosch Automotive ProdVietnam) before Planner the USA. Western economies ucts (Suzhou) Ltd,economies also says that for his have evolvedCo. into that are department, more serSupplyOn helps to ensure accuracyand andany transparency of vice and high-tech orientated revaluation each not datareverse transfer.this. Bosch also recently promoted will (3)has Although it might reducea new business mode via SupplyOn entitled Vendor Managed Inventory (VMI). 28 January/FEBUARY 2011
Jamie Archer-Perkins
any trade deficit with China, it is likely to increase the deficit with other Low Cost Countries. (4) A Becauseofof other these new implementations, Charling says number countries are arguably “maniputhat the their platform has optimized the process of recently procurelating” currency. For example, Japan ment planning his department whileintervention increasing work completed its infirst unilateral yen in efficiency. we got purchasing our six years. “Before, We can only hope that theorders West from (and the suppliers by email orlearnt fax, which wastedfrom time the and Smootcouldn’t US in particular) its lesson ensure 100% datatariffs transfer,” “Now the are datareccan Hawley import of he thesaid. 1930s that be delivered accurately oncontributory time, and suppliers ognized as significant factorscan to also the download our procurement plan are at fast speed.” - fears Great Depression. The signs promising the suppliers, advantages of a wars new platform mean ofFor a global currency and trade have jumped thatthe they canofseethe order requirements on SupplyOn imto top agenda at IMF and World Bank mediately. The Bosch get Advanced Shipping meetings which weresystem held will in mid-October. Notification There no manual All of the(ASN) aboveautomatically. said, the RMB is is undervalued operation during the process, less chance and will appreciate at a pacewhich that means will allow China for human error and less need re-confirmation of (and the global economy) to for gradually rebalance. data. There is no manual entrance of that data Chinese Premier Wen operation Jiabao hasor confirmed during was the process, so the datatobecomes China indeed planning proceedmore withcredible. reforms aimed at “increasing flexibility” in the exchange Set upbut has also suggested that it would not be rate, In terms effort, Bosch is working slowly rushed. It of is not in anyone’s interesttofor thereroll to out be system to all of its Currently large- and small-scale athis rapid appreciation. the 1 yearsuppliers. futures During their introduction meeting withRMB supplisuggest that kick-off the RMB will be closer to 6.5 to ers, they doyear initial training monitorthe thehead suppliers until the $ one from now.and Notably, of Morthey Stanley get the hang the system. Charling says gan Asiaofrecently commented thatthat the from fact start the to finish, the rollout processtheir normally takes to a total that Chinese have pegged currency the of one month. advantage of this systemtoiswhat that new US Dollar wasThe providing some stability is a users only need short-term training. fragile global financial system at thisThomas time. Fendt, Senior Supplier Quality and Supplier DevelWhatManager impact of will any RMB appreciation have on opmentchains at Bosch Power Tools supply throughout the(China) West?Co. Ltd. says that people be fully and ready in a matter of half First can of all, theretrained is certainly no need to panic. As whichwe canbelieve also bethat applied to new users entering a day, country, China’s expertise, labor the company. The mostand difficult part of this proforce, infrastructure productivity willwhole continue cessbeseems to be making sure newChina users to understand the to factors that will enable offer comconceptspricing behind SupplyOn, actual mechanisms. petitive and absorbnot thethe appreciation of the To helptowith thisextent. issue, Bosch does regular check-ups on RMB some theChina process, SupplyOn offers and help hasand spent the past 40 maintenance years developing an desk services forand users who run into trouble. infrastructure logistics capability that will allow One huge concernbase about for many the manufacturing to online migrateplatforms further inland to suppliers isoff information security. mitigate this, Bosch leverage lower cost bases To (which Foxconn has Global recently non-disclosure recently done). Itsigned is also aimportant to lookagreement at China (NDA) with SupplyOn. SupplyOn also and has very limited in comparison with other countries not to lose accessofbetween Bosch individual suppliers; in other sight the fact that and China is also not the only Low words,Country SupplyOn different authorization Cost to assigns suffer inflationary pressures.to every user ID to ensure data security. Jamie Archer-Perkins is a Board member of ET2C International Influencing Suppliers
Contents
KPMG/29 The devil sells Prada… but came from Wenzhou /31 China’s Labor Cost Competitiveness /36 卖Prada的温州“恶魔”/31
联想专访 /34
You Know Deguo Liu?/34
成本角力——中国还能守多久？/36
MANUFACTURING
西厂东“渐 ”/29
Cost Shifts Manufacturing East Gautam Dalal
How industry leaders manage risk and gain advantages Why Excessive focus on cost damages relationships with suppliers Techniques to enhance supplier relationships
A
clear majority of leading industrial companies still see cost as their main priority when managing supply chains, despite emerging evidence that excessive focus on cost has damaged relationships, and that new approaches to supply chain management are gaining hold among leaders in the field, a survey from KPMG International has found. The survey, entitled Global Manufacturing Outlook – Relationships, Risk and Reach, polled nearly 200 senior-level executives from the aerospace, metals, engineering and conglomerates sectors across North America, Western Europe and AsiaPacific to understand how their supply chains were changing as a result of prevailing economic uncertainty. It revealed that cost still reigns among 66% of respondents as the leading consideration of their supply chain models. But 63% of respondents agreed that more atten-
tion should be paid to non-financial elements of the supply chain and 38 % said that an acute focus on cost has harmed relationships with suppliers. The survey also showed that many of the world’s leading companies are applying new methods of supply chain management designed to weather an economic climate where various forms of risk have become the norm. These new approaches – more strategic than tactical – could well emerge as best practices.
KPMG International
“The fact that nearly 40% of respondents acknowledge that a focus on cost has done damage to relationships with suppliers is an alarming statistic,” said Jeff Dobbs, Global Head of Diversified Industrials for KPMG. “Those businesses that continue to follow the traditional ‘low cost or bust’ model in supply chain management are at risk of losing a foothold in the market.” In interviews with bellwether companies such as Philips, Leggett and Platt, Rolls-Royce, U.S. Steel
Upcoming Changes in your Supply Chain: 41%
more long-term contracts with suppliers Decrease the number of its suppliers globally
39%
Strategically select suppliers that are located in or near its target markets
37%
Integrate its supply chain management IT with its supplier IT systems
30%
Cluster its supplu chain regionally around areas with greatest expecrted demand
28% 24%
Bring more of the supply chain in-house Cluster its supply chain around its final manufacturing or assembly plants Respondents were allowed up th three selections. Source:KPMG International,2010
19% 0
10
20
30
40
50
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“53% of companies are looking for longer contracts with fewer suppliers”
and Tata Chemicals it becomes clear that new supply chain strategies are emerging. The survey revealed that some companies are forging stronger relationships and engaging in collaborative innovation with suppliers; strategically investing in key suppliers or bringing parts of the supply chain back in-house; and applying a mix of both regional and global supply sources to achieve the best combination of speed, quality and cost. “It used to be that sourcing decisions rested on routine considerations,” Mr. Dobbs said, “like who could make the best component for the best price. This approach worked when there was little variability in input costs. Now, leading supply chain strategies must involve detailed scenario modeling to determine the appropriate response to a host of volatile elements. The most successful companies will be those who build adaptability and flexibility into their supply chains.”
TOP 10 Primary Sourcing Locations 41% 35 30% 30 26% 25
21%
20 14% 13%
15
9% 9%
10
8%
7%
Italy
Japan
Canada
India
Austraila
UK
France
US
Germany
0
China
5
Respondents were allowed up to three selections. Source:KPMG International,2010
Deeper Relationship Having stronger and deeper relationships is Other- 14% critical among leading EGY, HK, HU, NG, P, DZ , BD, CO, EE, companies with 53% of KEN, MZ,UA- 1% respondents expecting to TW, THAI,TR,PH- 2% enter into more long-term contracts but with fewer RO,VN, IT, MY, PL, SA, KR- 3% suppliers. Cost remains ID,JP, RU,FR,MX- 4% China- 39% the key driver for much of CA,SG- 5% the collaboration. More important than BR- 6% the duration is the depth India- 26% AU- 7% of the partnerships. Over UK- 10% half of the respondents US,DE- 11% plan to collaborate more closely with suppliers on product innovation and develop- ing from China’s increasingly strong ment, research and development and innovative technological base. “A progressive way of thinking (R&D), and cost reduction. Such collaboration appears to be a pre- contends that companies should be ferred approach among the top per- willing to look outside their businesses for potential IP and be willformers. “Viewing the supplier relationship ing to license out any IP not core to as a strategic partnership helps top their business,” said Mr. Dobbs. performers ensure certainty of sup- Sourcing Geography ply, improve demand planning and China remains the most common fine-tune the mechanism for getting sourcing location among 35% of rethe product to the customer,” said spondents. When asked where reTim Waters, Director for KPMG’s spondents expect to increase sourcPerformance and Technology Advi- ing over the next two years, China sory practice in the UK. also ranked first (39%), with India New Risk Management Perspectives not far behind, at 26%. Cost remains Top performers are also paving the predominant deciding factor. Yet some top performers are the way in cultivating relationships thinking beyond sourcing locations and controlling risk when it comes for low-cost alone and considerto R&D and sharing intellectual ing ways to align supply chains and property (IP). their inherent geography to other While 26% of survey respondents key considerations such as the busisee IP protection as one of their bigness model, market dynamics, local gest supply chain risk concerns over talent pools, customer profiles and the next two years, cooperative indemand. novation on IP can be very lucrative “The financial crisis dealt a blow with the proper risk management in that sent shockwaves through the inplace. dustry, but those same forces are the China presents a particular IP catalysts that are helping organizations challenge and respondents continue create more dynamic, resilient and reto look to that country largely for sponsive supply chains,” Mr. Dobbs low-end jobs, such as production of said. “It’s incumbent upon businesses goods involving little IP, assembly, to embrace new ways to use the supply and warehousing. Companies like chain to “future-proof” their business Philips, on the other hand, which models.” has several joint innovation projects and patents there, are benefit-
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The devil sells Prada… but came from Wenzhou
A baffling look at the Chinese garment industry in Prato, Italy Samuele Gabbio
P
araphrasing a famous proverb: “if your country does not move its industry to China, then China will move to your country – and take the industry over!” Supply-fiction paranoia? Conspiracy theory? Take a look at what is happening in the Italian city of Prato and a few concerns might seem legitimate. Pronto Moda The beautiful city in the heart of Tuscany, adorned with Renaissance buildings and home to a textile manufacturing tradition dating back to the middle ages, has become the stage of a Chinese industrial boom since the early 90s. The migrants initially came – mostly from the Wenzhou area– to work for the Italian leather and textile industry, and then gradually developed their own market segment, now known as “Pronto Moda.” The term refers to a breed of
garment industry with dramatically reduced production times and stretched costs for models copied from the latest designer lines. Retailers come from all around the world to buy these products and later sell them in their own countries for huge profits The estimated 3,500 Chinese factories present in Prato can jointly produce up to one million items per day. The secret behind the success is importing everything –for the most part illegally– from China, workers included, in order to elude taxation and labor laws and eventually keep costs at Chinese levels with the added bonus of the “Made in Italy” tag. This booming industry has generated a massive outcry from local residents who resent the substandard living conditions of the migrant workforce, and grudgingly view the fast fortunes accumulated by many Chinese while the ma-
jority of textile businesses run by Italians –producing mostly highend fabrics and yarns– are closing down. Today 27 percent of the fabric imported in Italy from China goes to manufactures in Prato, that very same city that used to be a major luxury fabrics exporter a few years back. To make things worse, the majority of the money earned by the Chinese in Prato is remitted to China rather than invested locally: a figure hovering around US$1.5 million a day, according to the Bank of Italy. Prato’s municipal authority reports a presence of 11,500 legal Chinese immigrants plus an estimated 25,000 illegal ones, out of a total population of 187,000. Why Prato? The country of Armani and Prada has an unfortunate history of slack law enforcement and loose controls, which certainly helped 31
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“ Italian manufacturers in Prato have ironically moved production to China ”
the initial boom of illegal Chinese industries. Recently, police crackdowns have significantly intensified, but the network of Chinese businesses is already too large and sophisticated for Italian authorities to compete with. Sweatshops are hidden in basements and secluded locations, and as soon as the police raid one operation, another one opens up in a different part of town. At the same time many established Chinese entrepreneurs now own officially registered companies with modern showrooms and legally employed workers, just to have the dirty job done by subcontractors. Meanwhile many of the Italian manufacturers in Prato have ironically moved production to China in order to cope with cost pressure. “We have mid and high end products that our customers in Europe and the USA don’t want to pay for at “Made in Italy” rates anymore. We have been forced to move to China and establish a new plant to try to match quality and cost,” says Francesco Godi, a textile consultant working for an established Italian company from Prato. “The decision is strictly price related”, says Godi, “as theoretically China could offer the condi-
3,500
3500家华工企业
Chinese fashion items produced daily in Prato
1m
$
Number of Chinese businesses in Prato
每天多达100万件服装商品
US$1.5 27%
million channeled to China from Prato
每天普拉托华人把150万美元纺织制衣收入汇到中国
fabric imported in Italy from China goes to Prato 意大利从中国进口面料27%用于普拉托服装制造
11,500
legal Chinese immigrants
11500名合法中国移民
tions to develop new things, but the reality at the moment is that Chinese suppliers are pursuing nothing but short term gains, and show no interest in developing new products. The prevailing factor is the need from the buyer to get lower prices in order to invest more in shops and advertising.” When asked about the possibility of integration in Prato between Chinese and Italian businesses, he comments: “it is a utopia that only serves political purposes. Collaboration between Chinese and Italian manufactures in Prato cannot happen because of the radical differences in product and production standards.”
普拉托坐落于托斯卡纳中心，它美丽典雅，处处可见文艺复 兴时期的建筑名胜。它享有数百年的纺织品制造史，有“欧 洲纺织之城”的美誉，但自90年代初“华工时代”便在这里 拉开“华丽的”序幕。 这些华人移民大多来自温州，他们最初是在一些意大利的 皮毛纺织厂打工，而后逐渐发展起自己的“快时尚时装”。
25,000
(estimated) illegal immi grants 25000（估计）非法“黑工”
The Future Despite the widespread unease, there are already cases of Chinese enterprises that have come out of the underworld and even hired Italian employees. The most famous case is that of “Signor Giulini”, born Xu Qiu Lin, the first Chinese entrepreneur to join Confindustria, the Italian industrial federation, and a model for integration in the city of Prato. His business produces leather items designed by Italians and manufactured by Chinese, partly in Italy and partly back in China. “Mr. Giulini” seems to have found the formula to thrive on Chinese resources while paying taxes and complying with Italian laws.
“快时尚时装”名副其实，意为在极短生产时间内仿制 出米兰最新时尚服饰。来自全球各地的零售商在此进货，之后 便以高价出售给本国消费者，赚取超额利润。现在普拉托约有 3500家华人，每天总计可生产多大100万件服装产品。 “成功”的秘诀便是从中国非法进口——包括劳动 力——目的是逃避稅收和劳动法，最終保证中式低成本，同 时还能贴上“意大利製造”的标签。
32 January/FEBrUARY 2011
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徐秋林“意大利 制造”——中意 合作之典范。
当地居民对这个新兴产业怨声不断，移民劳工生活水平 低下惹人不满，华人迅速鼓起的腰包也让人觊觎不已；意大 利人经营的生产高端面料纱线的企业则纷纷倒闭……现在意 大利从中国进口的面料中有27%用于普拉托服装制造，而這 个城市在几年前还在奢侈面料出口方面独占鳌头。 肥水不流外人田，意大利央行估计，普拉托华人每日把 150万美元纺织制衣收入汇到中国，数额刹人。 这个阿玛尼和普拉达的故乡却也执法不严，制度松散， 让一些不法华人有机可趁。虽然最近执法力度有所增加，但 是华工企业蓬勃发展，其规模和复杂度让意大利官方难以应 对。血汗工廠隐藏于地下室或偏远地区，警方前脚“突袭” 一个非法企业，另一个地方紧接着就会冒出一个华工企业。 很多华工企业现在已经拥有正式的注册公司，配备时髦 的陳列室并合法僱用员工，而见不得人的勾当就由分包商全 权承当。 讽刺的是，普拉托很多意大利制造商又把生意转移到中 国，以缓解成本压力。 普拉托一知名公司纺织部门的员工Francesco Godi告诉我们，其公司的“中高端产品已不能刺激欧美 消费者的胃口，因为他们再不愿意为‘意大利制造’付更多的 钱。我们迁到中国也是不得已而为之，只有这样才能平衡质量 和成本付出。” Godi说，“价格因素对决策影响很大。理论上，在中国
Sales Contact Jellis Kan, T. +852-2965-1668, jellis.kan@reedexpo.com.hk Contact Reed Exhibitions airfreight@reedexpo.com.hk
MANUFACTURING
发展新事物，可谓应有尽 有，但现实是：中国很多供 应商只看短期利益，对发展 新事物并没什么兴趣；而当 下最能吸引买家的便是低价 格。” 而对于普拉托本地企 业和华工企业合作的可能 性，Godi认为那“仅是乌托 邦，顶多适用于政治范畴。 普拉托的中意制造商无法开 展合作，因为双方在生产水 平和产品规格等方面相差甚 远。” 尽管各种怨声未平，但是一些华工企业已经步入正轨，甚 至开始招聘意大利的员工。最著名的莫过于“Signor Giulini”——第一位加入意大利工业家联合会Confindustria的华人 企业家徐秋林——其GIUPEl S.P.A公司为普拉托中意企业的 结合提供良好的范式。公司旗下的设计工作由意大利设计师 完成，而生产则是华人负责，中国和意大利均设有其生产基 地。Giulini先生貌似已经挖掘出立足于中国资源而致富的渠 道，而同时又可以不怠慢税法和意大利的法律。
The right place. The right time. The right people. The interactive global platform where East meets West for business. AsiaWorld-Expo, Hong Kong www.airfreightasia.com
33 www.supplychains.com
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You know
?
Deguo Liu
He’s the executive director of Lenovo, and he was happy to sit down with CHaINA Magazine to talk about Lenovo’s emerging markets focus and coping with excessive growth in the next few years.
:
What were the significant events or changes in 2010 for Lenovo? Well as you know, in 2008 we had the financial crisis, so in 2009 we completely reorganized our management team. We came up with a clear strategy and in 2010 we executed it very carefully, so that now our performance is better. Tell us more about the strategy. Our strategy consisted of breaking down the market into the mature market and the emerging market. We have a strategy to try to attack the emerging market and the transactional, consumer business. We are also protecting the Chinese market and our relationships with our customers here. In 2010 we had a very strong performance and we’ve captured a lot of market share. In fact, we are the fastest growing amongst our competitors. What do you think is going to be the most promising market in 2011? We are still looking at the emerging markets, so we are looking at India, Russia, the Middle East, Brazil, and of course the ASEAN countries. These are the key markets that we are focusing on. We hope to get more from them. Any significant plans, projects, or goals for Lenovo in 2011? Usually at the end of the year we draft a plan for the following year. Right now we are in the planning stages for 2011 and I think we will keep executing the same strategy, focus-
ing more on the Indian and Latin American markets. On the supply chain side, I think we are going to transform some more sites to respond to the emerging market as quickly as possible. What do you think is the biggest challenge when doing business in China? Right now in China the economy is getting bigger and better. From our point of view, we think China is still a very good market and the market will eventually become mature as a whole. I think the biggest challenge is still trying to manage fast growth. If you can do something that is different from the others, then you can get more from this market. I think there are a lot of challenges and a lot of opportunities here. What is Lenovo’s perception of this challenge? It’s a good challenge and China now is the second largest economy in the world, right? Let’s take an industry, say the PC industry, where China is going to be number one in two or three years. It’s going to happen very soon—the car market is already number one I believe, so China is growing now and a lot of industries are growing very quickly. The future is still very promising and we need to be ready.
34 January/FEBrUARY 2011
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“China will have the biggest PC industry in 2 or 3 years”
MANUFACTURING
认识刘德国吗？ 这位平易近人的联想执行总监欣然接受了 CHaINA的采访。在采访中他和我们谈到联 想的发展重点和以后几年的增长计划。
2010年联想经历的最重要的事件或变化？ 2008年金融危机，在2009年我们就重组 了管理团队，并且制定清晰有效的策略，在 2010年的操作中也审慎执行，所以现在成效 不错。 可以详细谈谈这些策略吗？ 我们的策略要据市场而分，市场可分为 成熟市场和新兴市场。对于新兴市场交易、 客户等我们有“攻”略，当然我们也会注意 保护国内市场，维护客户关系。这就是我们 的攻守之所在。2010年联想表现突出，占据 不少市场份额。是行业中增势最快的。 您认为2011年最具潜力的市场在哪里？ 我们一直在台湾进行尝试，对印度、俄 罗斯、中东、巴西和东南亚国家也一直在关 注。这些都是我们重点发展的市场。希望能 有更多更好的表现。 2011年联想的重点计划或目标是什么？ 一般来说我们会在年底拟定来年的计划 草案。现在我们正在为2011年制定阶段发展方 案，大体策略不会变；主攻市场会更多集中于 印度和拉美。供应链方面，我们会对一些基地 进行转型发展，让其更好更快地适应新兴市 场。 现在在中国发展所面临的最大挑战是什么？ 现在中国经济发展快了，市场更好了。 我们认为中国是个非常好的投资市场，而且 最终它会走向成熟。如果你能有新点子，那 就可能从这个市场中脱颖而出。这里的挑战 多，机遇也多。
“中国的电脑行业规模在未来一两年内就 能成为全球最大”
联想如何看待这些挑战？ 挑战是积极的，中国现在是全球第二大 经济体，不是吗？举个例子，中国的电脑 行业规模在未来一到两年内就能成为全球最 大。这并不遥远，汽车行业其实已经独占鳌 头。中国在发展，很多行业的发展速度也非 常快。前程远大，我们也需未雨绸缪。 35
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january/febRuary
MANUFACTURING
China’s Labor Cost Competitiveness
L
ow labor costs have been a crucial element of China’s low cost country sourcing advantage. Yet over the course of the year a series of strikes and labor shortages in China has, to some observers, herBarry van Wyk, THE BEIJING AXIS is a cross-border business bridge to /from China in three principal areas: Strategy, Sourcing and Investment. alded the end of the “cheap” era in China. Salary increases have become common in China’s manufacturing sector - high-profile increases at firms like Hon Hai and Foxconn have been prominent examples of this. A detailed analysis on these developments is available in an article by the Wall Street Journal’s Andrew Batson and Norihiko Shirouzo.
ANALYTICS
Labor Costs: China vs Developed Countries Labor Costs: China vs Developed Countries 2000 --------------------------------------------------------------------------------------------
2002
2004
2006
2008
22.66 2000
24.31 2002
33.14 2004
34.26 2006
41.55 2008
---------------------------------------------------------
40
Germany
40 30
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Italy Germany
14.53 22.66
16.23 24.31
23.66 33.14
25.17 34.26
31.37 41.55
30 20
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
UK Italy
16.31 14.53
18.15 16.23
24.37 23.66
26.36 25.17
27.86 31.37
20 10
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
US UK
19.88 16.31
21.6 18.15
23.12 24.37
23.84 26.36
25.65 27.86
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Japan US
21.69 19.88
18.42 21.6
21.65 23.12
19.99 23.84
23.15 25.65
-------------------------------------------------------------------------------------------Germany Italy China US Japan UK
China Japan
21.69 0.12
18.42 0.15
21.65 0.22
19.99 0.26
23.15 0.40
China
0.12
0.15
0.22
0.26
0.40
010 0
2008
2000
2008
2000
Source: US Bureau of Labour Statistics; NBSC; GSOV; BPS; DSM; THE BEIJING AXIS Anaylysis Germany Italy UK Japan US
China
Looking over theofcourse of the 2000s however, it is clear that China’s labor costs have crept up marginally, yet as Source: US Bureau Labour Statistics; NBSC; GSOV; BPS; DSM; THE BEIJING AXIS Anaylysis they are rising from such a low base they are still vastly in arrears of labor costs in developed countries. Yet if we compare China’s labor costs over the same period with other developing countries, China’s advantage is still perceptible, yet it no longer has a singular advantage. Over the course of the decade, China’s labor costs have gradually eclipsed those of Vietnam and Indonesia, yet it is still below those of countries like Mexico, Brazil and Hungary. Labor Costs: China vs Emerging Markets
ANALYTICS
Labor Costs: China vs Emerging Markets --------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
10
10 8
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8 6
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
6 4 4 2 2 0 0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2008
2000
--------------------------------------------------------------------------------------------
2000 Czech
Malaysia Czech Malaysia
Hungary
Indonesia Hungary Indonesia
Brazil
Brazil
Mexico
Mexico
2000
2002
2004
2006
2008
Czech Rp.
2.85 2000
3.85 2002
5.48 2004
6.83 2006
10.35 2008
Hungary Czech Rp.
2.78 2.85
3.94 3.85
4.93 5.48
5.26 6.83
7.52 10.35
Brazil Hungary
3.5 2.78
2.57 3.94
3.14 4.93
5.01 5.26
6.93 7.52
Mexico Brazil
2.07 3.5
2.49 2.57
2.45 3.14
2.77 5.01
3.12 6.93
Malaysia Mexico
0.50 2.07
0.55 2.49
0.59 2.45
0.63 2.77
-3.12
Vietnam Malaysia
0.09 0.50
0.10 0.55
0.13 0.59
0.17 0.63
0.23 -
Indonesia Vietnam -0.09
0.1 0.10
0.12 0.13
0.15 0.17
0.15 0.23
China Indonesia 0.12 -
0.15 0.1
0.19 0.12
0.26 0.15
0.40 0.15
China
Vietnam2008 0.12 0.15 0.19 0.26 0.40 China Source: US Bureau of Labour Statistics; NBSC; GSOV; BPS; DSM; THE BEIJING AXIS Anaylysis China Vietnam Source: US Bureau of Labour Statistics; NBSC; GSOV; BPS; DSM; THE BEIJING AXIS Anaylysis
Wages are slowly but surely increasing, and in the next ten years we might very well see China catching up with other emerging countries. 36 January/FEBrUARY 2011
www.supplychains.com
Contents
The Fine Art of Logistics /37 Financial View on Ports /38 The Secret to Success for S.F. Express /41
艺术物流 /37
中国港口之金融视角 /38
顺丰成功背后...... / 41
LOGISTICS
Chinese artist Zhang Huan’s
“Three Heads Six Arms”
Lara Sowinski
E
xtreme logistics moves are typically associated with challenges related to time, infrastructure, location, and sheer size. For Atthowe Fine Art Services in Oakland, California, these are all in a day’s work—plus, the moves usually involve art that is irreplaceable and of incredibly high value. The company is well-equipped to handle Van Goghs, Warhols, and everything in between, with air-ride trucks and oversized lift gates, climate-controlled storage with customized racking, expert riggers operating OSHA-rated rigging equipment, and cranes, gantries, and helicop-
World Trade 100
ters, making any seemingly impossible job possible. Even more impressive, is that Atthowe’s staff—all professional artists themselves—are extremely qualified for the job, which can range from transporting and coordinating exhibition installations throughout the world for science and history museums to galleries, public spaces, corporate buildings, and private homes. In May, the company installed Chinese artist Zhang Huan’s “Three Heads Six Arms” Buddha sculpture in San Francisco’s Civic Center Plaza. Scott Atthowe, who purchased Atthowe Transportation from his father in 1975 and turned it into Atthowe Fine Art Services, recently shared some de-
tails of the installation. “Our job was to arrange to move the piece from the artist’s studio outside of Shanghai to San Francisco and install the sculpture. We coordinated all aspects of the move and installation,” he said. The Buddha was shipped in four 40-foot ocean containers via Matson from Shanghai to Los Angeles then trucked north to Atthowe’s facility in Oakland, where it was unloaded and prepared for installation. According to Atthowe, “The installation at the Civic Center Plaza took 3 days, 8 to 10 people, a crane and a forklift. The piece itself is 30 feet tall, 55 feet long, 40 feet wide, and weighs approximately 15,000 pounds and is in 9 parts.” 37
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january/febRuary
LOGISTICS
Financial View On Ports Ken He, Paul Yong Pau Li
C
DBS Vickers Security
hina’s port sector has experienced several development phases since the PRC was founded in 1949. Although the sector achieved rapid development in the earlier phases, investments in ports really surged from 2000 (especially after joining the WTO at the end of 2001), driven by booming international trade. Exports and imports jumped over 35% YOY in 2003 and maintained a growth rate in excess of 20% during the 20042007 period. As ports’ capacity could not catch up with the rapid growth in international trade, some terminals had to operate beyond their capacity, which then triggered huge investments in port infrastructure beginning in 2003. By the end of 2009 the total number of berths along the coastal line amounted to 5320, which is more than four times the number in 1991. Although foreign trade slumped to 14% YOY in 2009, fixed asset investments on waterway infrastructure nationwide mounted 38%, driven by the government’s stimulus package.
registered a CAGR of 24% between 2000 and 2008, much higher than the global growth rate of 11%. In 2009, container throughput in coastal China decreased 6%, compared to the 11% decline on a global basis. As a result, China’s share of the global container throughput rose to 24% in 2009. The figure was less than 10% in 2000. In the first half of 2010, container throughput surged 22% as compared to the first half of 2009. Port operators should benefit from the recovery of throughput and handling tariffs, higher port-related and container-related businesses, as well as the sector’s high operating leverage, leading us to predict significant improvement or turnarounds for all ports in 2010. Construction Plans In order to optimize the coastal layout and avoid irrational competition, the government issued a national plan for the coastal ports, with a focus on the framework of five port clusters and eight transportation systems. l
Progress Driven by foreign trade, total cargo throughput in the coastal Top 10 Container Ports Worldwide 1999 mn TEU 2008 mn TEU ports of China experienced dou- rank Hong Kong 16.21 Singapore 29.92 ble-digit growth at a CAGR of 1 17% from 2000 to 2008. In 2009, 2 Singapore 15.49 Shanghai 28.01 total cargo throughput continued 3 Kaohsiung 6.99 Hong Kong 34.30 to grow, rising 13%, while the 4 Busan 6.44 Shenzhen 21.42 rest of the world felt the impact 5 Rotterdam 6.34 Busan 13.42 of the financial crisis. In the first 6 Long Beach 4.41 Dubai 12.00 half of 2010, total cargo throughShanghai 4.22 Guangzhou 11.00 put achieved a commendable 20% 7 8 Los Angeles 3.83 Ningbo 10.92 YOY growth rate. Container throughput in coastal 9 Hamburg 3.74 Rotterdam 10.83 China, driven by higher exports, 10 Antwerp 3.61 Qingdao 10.02 l
Yoy(%)
2009
mn TEU Yoy(%)
7.2
Singapore
25.87
-13.5
7.1
Shanghai
25.00
-10.7
1.8
Hong Kong 20.98
-14.3
2.9
Shenzhen
18.25
-14.8
1.1
Busan
11.95
-11.0
13.8
Guangzhou 11.19
1.7
19.5
Dubai
11.12
-0.6
15.9
Ningbo
10.50
-6.5
0.7
Qingdao
10.26
5.9
Rotterdam 9.74
-0.6 -9.8
38 January/FEBrUARY 2011
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LOGISTICS
The five port clusters are positioned to serve different hinterlands. Leading and comprehensive ports are identified for each region, with support from the surrounding satellite or feeder ports. The planning also aims to construct eight efficient transportation systems. The focus will be on the large-scale and deep-water transportation systems for coal, crude oil, and iron ore in the midterm to facilitate the rising appetite for raw materials and the “North Coal goes South” project. l The
Future of Port China’s firm demand for raw materials will help drive imports and non-containerized cargo throughput growth. Meanwhile, coupled with rising consumption and China’s continuing role as the world’s factory, major coastal ports are predicted to see 8-12% annual growth in container throughput over the next two years.A number of factors ensure that China ports will continue to grow. The recovery of the global economy and China’s exports will support growth, along with the increase of imports driven by the growing demand for imported raw materials and high-end products. However, the growth rate may not be quite as impressive as it was in the past due to the already large base. On the supply side, port investments will slow down due to overcapacity and major ports should be listed this year. As a result, we will begin to see a matured port sector in China, which should provide stable growth over the medium to long term. China’s port sector is still a sunrise industry, riding on the country’s position as the world’s factory as well as the insatiable appetite for raw materials and growing consumption internally. However, risks such as overcapacity and competition do exist for some regions so investors should buy selectively.
l IPO
Outlook All leading Since Shenzhen Chiwan Wharf was coastal ports listed on the Shenzhen Stock Exchange in to be listed by 2011 1993, there are now a total of 19 port operators listed on A-share and H-share markets. Most of these stemmed from local port groups rather than the two port conglomerates. We also found that several port operators are seeking a domestic listing by the end of 2010 (including DLP’s A-share IPO). Once that happens, all of the leading coastal ports will then be listed except for Guangzhou Port Group, which has not figured out a detailed timetable due to restructuring problems. Since all of the major ports have completed capital financing, we expect a slowdown in major port investments to occur in the near future. l Top
picks CMHI and Dalian Port (DLP). For the two port conglomerates, we prefer CMHI to Cosco Pacific, as CMHI has consistently delivered a strong performance. With a large operations base and high ROE, CMHI deserves a higher valuation among its peers. The successful listing of Ningbo Port Company and Zhanjiang Port Group may further drive up CMHI’s valuation. Amongst the three pure port players, we like DLP because it has multiple growth drivers with limited downside risks. Its growth is primarily fuelled by crude oil imports, where it has a near monopoly in northeastern China, underpinned by rising demand from China’s growing industrialization and demand for motor vehicles. In addition, DLP could potentially benefit from the RMB appreciation.
China’s Top 10 Hubs in terms of container throughput (th TEU)
2007
2008
2009
CAGR
Shanghai
26,150
27,980
25,002
19%
Shenzhen
21,099
21,400
18,250
17%
Guangzhou
9,260
11,001
11,190
27%
Ningbo
9,430
11,226
10,503
31%
Qingdao
9,462
10,320
10,260
18%
Tianjin
7,103
8,500
8,700
20%
Xiamen
4,627
5,035
4,680
17%
Dalian
3,813
4,503
4,552
18%
Lianyungang
2,001
3,001
3,021
45%
Yingkou
1,889
2,030
2,537
36%
Total Coastal Mainland
104,700
117,006
120,820
22%
HK
23,998
24,493
20,816
2%
Source: CEIC, China Ports & Harbours Association, DBS Vickers
39 www.supplychains.com
january/febRuary
中国港口之 金融视角
自
1949年新中国成立以来，港口发展经 历了几个阶段。二十世纪末中国经济 增长表现耀眼，沿海各集装箱港快速 崛起。据统计资料显示：1997年，中 国大陆港口集装箱吞吐量突破1000万
标箱大关，达到1076万标箱。港口集装箱化水平不断提高， 平均年增长2%-3%，到1997年，中国港口集装箱化率已达60 ％。1998年，中国港口集装箱吞吐量达到1300万标箱，2000 年达到了2263.8万标箱，仅仅3年时间，吞吐箱量 翻了2.3倍，其发展速度令全世界瞩目。 2004年至2007年，我国港口集装箱吞吐 量一直保持世界第一，年增幅都在20%以 上。 截至2009年中国沿海岸线总泊位数达 5320，这是1991年的四倍。虽然2009年外 贸同比下滑14％，但是在国家经济刺激计 划的带动下，水路交通基础设施方面的固 定资产投资增长了38％。
l发展历程 2000年到2008年，由于外贸增长，中国沿海港口货物吞吐 总量年复合增长率达17%；2009年受经济危机影响，全球货 运低靡，中国货运则逆流而上，增长率达13%；2010年上半 年，增长率达20%。 中国沿海货柜吞吐总量受出口增长拉动，从2000年到2008 年年复合增长率达24%，而同年全球货柜吞吐量仅达11% ；2009年全球货柜吞吐量下滑11%，中国仅下滑6%；2010年 上半年的货柜吞吐量飙至22%，出口和吞吐量复苏强劲，以 及该行业营运杠杆较高，港口运营商从中受益，各港口都有 望改善或得到周转。 l建设计划 2006年，政府颁布全国沿海港口布局规划，引导港口协调 发展，避免盲目投资和竞争，将全国沿海港口划分为环渤 海、长江三角洲、东南沿海、珠江三角洲和西南沿海5个港 口群体，强化群体内综合性、大型港口的主体作用，形成煤 炭、石油、铁矿石、集装箱、粮食、商品汽车、陆岛滚装和 旅客运输等8个运输系统的布局。
l港口未来 中国这个“全球工厂”的经济持续增 长，对原料需求旺盛，投资与消费的持续 扩大将对进口产品需求飞涨，非集装箱货 物吞吐量也会随之增加——主要沿海港口在 未来两年内的集装箱吞吐量年增长率预计可达 8-12％。 世界经济复苏，中国出口增长, 另外随着国内市场对原材 料和高端产品的胃口大增，进口也会明显涨势。但是，增长 率相比往年可能会稍显逊色，一方面因为港口公司 的上市和产能过剩，投资会相对减少。中国港 口在逐渐走向成熟，那之后增长率在中长期 内都会保持相对稳定。 lIPO前瞻 深圳赤湾港区码头在1993年整合组建成 深圳赤湾港航股份有限公司， 并在深交所挂牌上市，之后共有19家港 航公司上市。其中绝大多数都由当地港口 集团发展而来，2010年底一些港口运营商也 争取到国内上市，包括大连港。除了广州港因其 重组暂无具体上市安排之外，主要沿海港口也都将上 市。各港口实现融资，主要港口投资将有所减少。
l热门精选 - 招商局国际和大连港 招商局国际一直表现不俗，其运营基地规模大，净资产收 益率高，实属上选。随着宁波港和湛江港集团的成功上市， 招商局国际更会因此受益。选择大连港，因其增长动力多 样，下行风险有限；其增长主要依赖的原油进口在中国东北 已近垄断，同时随着工业化程度的增加和对汽车需求量的飞 涨；此外，人民币升值也能让其受益.
40 January/FEBrUARY 2011
www.supplychains.com
LOGISTICS
The
S.F. Express
to Success for
A look at a local player turned top competitor
S
ince its establishment in 1993, S.F. Express has risen through the ranks in the ultracompetitive Chinese logistics market, and now sits at the top of the heap, as one of the industries’ most successful players. Their rise has been quiet and shrouded in secrecy, as the company rarely reveals any information or participates in interviews. Their success is undeniable, now competing with the likes of UPS and FedEX, and the mystery surrounding it has created much debate within the logistics community. CHaINA magazine asks the million dollar question: What is the secret to the success of S.F. Express? Being Local One of the most significant advantages that S.F. possesses is that they are a local firm. Frank Schwerdtfeger, BD Manager at Simba Logistics believes they are successful because they’ve been in the market since 1993 when nobody else was willing or allowed to enter freely. Throughout this time, they have developed with the Chinese economy, which has given them the ability to grasp an excellent understanding of the local market. Being local coupled with their history in the market, has
165,000 orders
daily in Shanghai area with couriers handling 100-200 each
lead many industry professionals to believe that S.F. has well established relationships with the government officials, which as we all know is a key to doing business smoothly in China. Their foreign competitors, for example DHL/Sinotrans, have used joint ventures to enter the domestic Chinese market, which in many cases is slow or even counterproductive due to communication problems, integration issues, etc. By comparison, S.F. is still Chinese owned and they’ve been around the industry since its infancy. This aspect is the first of many positive attributes for S.F. Express. Cost Control S.F. Express has been able to maintain a low-cost operation for a combination of reasons. First, they have focused their operations on the small and mediumsized enterprises (SMEs) for the bulk of their business. By doing this, they have avoided negotiations for special pricing from bigger operations, and have been able to commit to their set-pricing and control their margins. The aforementioned focus on SMEs leads into the second factor behind S.F.’s low cost operation, which is an efficiently structured organization which reduces overheads. By training their courier staff
to take on the sales role, they have removed the need for a dedicated sales force. With the support of an excellent training program, the S.F. couriers have been able to achieve successful sales results. According to CHaINA magazine’s S.F. courier, the salary for a courier is very good, which likely means staff turnover is lower. Another reason why this method works so well is because of the natural relationship that evolves when dealing with smaller businesses. A larger company, who might not know the delivery guy well, would more than likely demand to speak to a dedicated sales representative. A smaller company, who probably knows their local courier by face or maybe even by name, is satisfied to voice their sales needs to a familiar face. Speed and Accuracy After taking to the skies in late 2009, S.F. Express has enjoyed a major speed advantage over the competition. As the only private Chinese courier in the air cargo industry, S.F. has been able to offer a “within 24
15
26,000
70%
to be introduced by S.F. Airline by 2014
of annual business volume
average annual growth rate since 2004
freighters
tons
41 www.supplychains.com
january/febRuary
hours” guarantee to first tier cities in China. While their competitors can only commit to a “within 48 hours” guarantee, SF offers next morning and next afternoon service during the business week, and “within 48 hours” to any other part of China. Helping to speed up their service is a network covering 250 cities in Mainland China, with an additional 1300 counties that are supported. S.F. runs all of their own service points, where competitors often use allied points. While allied points are often cost effective, they slow the speed of deliveries due to volume, and affect the accuracy due to multiple package sources. Not only are they fast, but the IT solution they have chosen has greatly reduced their error rates. According
to Cristina Falcão, pharmaceutical and change manager at Farmacia, “S.F. Express uses a combination of an Oracle database, an IBM SMS platform, and the Unitech PA962 mobile device with GPRS.” This configuration allows more accurate information to reach all aspects of the operations, especially during the “last mile” of delivery, which ensures that nearly all packages are delivered promptly to the correct location.
Strategic Expansion With over 1500 locations in Mainland China, and operations in Hong Kong, Macao, and Taiwan, S.F. has strategically been expanding their reach. Unsatisfied with simply being a national player, they have devised plans to expand their coverage internationally. In 2010, S.F. became an interna-
tional courier by furthering their reach to South Korea and Singapore. They now have 100% coverage in S. Korea, and have most areas of Singapore covered. SF has entered and implemented major coverage all within the same year in both countries, making them extremely competitive against the local courier services. This strategic planning has been yet another contributing factor to their success.
The secret revealed? It’s difficult to pinpoint the exact reasons for success, when very little can be confirmed regarding the internal workings of S.F. Express. Professionals looking in should agree that their speed, cost management, accuracy and expansion efforts have contributed to their top position in the market.
Aviation & Aerospace Supply Chain Summit Wednesday, March 9th 2011 AsiaWorld-Expo Centre, Hong Kong
Registration deadline is March 9th 2011 7:30 AM
Partner:
Organizer:
www.supplychains.com/en/cev/580
42 January/FEBrUARY 2011
www.supplychains.com
Retail
Bubble Tea /43
珍珠奶茶 /43
Media Markt: Short Circuit Strategy /44
万得城继续被“围城”？ / 44
RETAIL
Home Improvement Headaches /45
自己动手？不，谢谢——DIY的中国窘境 / 45
Market Share
(Percentage of Locations in Shanghai)
Originally from Taiwan, Bubble Tea was introduced into the mainland in 1998 and can now be found on almost every corner. People like bubble tea for the unique flavors and texture, with chewy tapioca “ bubbles” in tasty milk tea. Chain stores such as Tea Storm, CoCo, Jack Jut, and Happy Lemon can be found throughout Shanghai.
CoCo 16%
Tea Storm 24%
CoCo
薡茶 9% HappyLemon
7%
CHATIME 4%
Jack Hut 22% 85°C 15%
台湾一品茶 3%
Tapioca Pearls: RMB0.14 /cup Creamer: RMB0.4 /cup Tea: RMB1.8 /cup
The Rough Numbers:
≈8 per cup ≈5.6 AVG Profit Margin ≈60% profit margin per cup ≈ 600 daily cup sales per location
The intense competition has allowed more low quality bubble tea brands to pour into the market, and has lowered the standards of the entire industry. For this reason, bubble tea is now labeled as “junk food”, which has forced some sellers to withdraw from the fragmented market. What does the future hold for bubble tea? Can any of the current players become the industry’s Starbucks? 43
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january/febRuary
RETAIL
Media Markt: Short Circuit Strategy Retail-Giant Tests The Chinese Market
A
nother German-giant has landed in Shanghai with the hopes of taking the electronics market by storm with an opening-day slogan proclaiming “the lowest prices in the city”. Media Markt opened their doors to the public on November 17th and then swiftly closed them due to an overwhelming amount of traffic in the stores. It’s not uncommon to shut down early on your opening day in Shanghai, especially if you’re claiming to have unbeatable deals, but if you take a closer look at the measures that Media Markt has taken to enter China, one can’t help but foresee further closures in the company’s future. For starters, the location that Media Markt has chosen leaves little to be desired, as Huaihai Middle Road is known to be a less-than-ideal location for successful businesses. Over the past few years, a variety of business have closed down or moved away from this location. Isetan, a Japanese department store, closed down its store location in the very same area after losing money for year, while the Barbie flagship store continues to lose money in the neighbourhood. The location seems to be some kind of “dead-zone” for traffic. Perhaps it’s an awkward place to get to, or maybe the neighbourhood bolsters a strange demographic, either way very few business have managed to achieve success on this particular section of Huaihai Middle road. Media Markt has made it clear that it will “test” the market in China and wishes to establish over 100 locations should it find success by 2012. Shanghai has proven to be an extremely tough market for consumer electronics, given the volume of competition, so the
Kevin Foehner reason behind choosing Shanghai to “test” the Chinese market is certainly puzzling. Media Markt should fare well against its foreign competition, as Best Buy has been doing so poorly in China that it barely counts as competition anymore. Gome and Suning are the serious competitors which Media Markt needs to be worried about, as they both have an established network of stores throughout China. If you factor in the countless electronics markets, who offer extremely low prices due to their operating models, and then the online giants like Taobao and 360buy.com, Media Markt will likely struggle to find success during the “testing” phase of their stay in China. Finally, for assistance in establishing their retail presence, Media Markt has chosen none other than Foxconn to partner with, saying they were selected based on their broad understanding of the Chinese market. Foxconn is an outstanding manufacturer of iPhones and Dell computers, but it has little-to-no experience when it comes to the retail sector in China. Apart from these factors, Media Markt is still a successful business that has entered eight other markets and has flourished. The key to their establishment in China will be their ability to react to the different needs of the market and to differentiate themselves from the many other electronics retailers in Shanghai. This isn’t the first retailer to enter China thinking that they can apply their foreign models to the local market and if they choose to compete solely on price, their adventures in China will quickly come to an end. From what we’ve seen so far from Media Markt, if this is the “test”, they’re probably going to flunk it.
44 January/FEBrUARY 2011
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RETAIL
Do you think these retailers can surivive? Email: Editor@supplychain.cn
Home Improvement Headaches Do-it-yourself? No thanks.
D
o-It-Yourself (DIY) businesses have ate turnoff for a Chinese consumer. Hypermarkets in struggled to find success since strolling China still carry the stigma of being high priced. While into the world’s largest consumer mar- this is acceptable for grocers -where higher prices equal ket in the late 90s. The situation seems better quality, in turn safety - homeowners will sooner to be worsening, as some of the big- find a cheaper, local alternative. gest players from North America and Europe continue Researchers suggest that local retailers operate on to bleed money. Home Depot Chief Executive Frank margins of 1-2%, meaning they can offer far cheaper Blake describes their business in China as “problem- prices than any foreign retailer can afford to comatic”, while B&Q CEO plans on re-evaluating business pete with. Competing on price in any retail sector, let in China for 2011. B&Q closed 22 loss-making stores alone DIY, is never a profitable or sustainable model in 2009, and according to November 2010 financial re- for foreign businesses in China. ports, they are still failing to make a profit in China. Staff and Inventory Frustrations Are these retailers destined to cut their losses and An important rule of retail: products that aren’t on leave? Or can they find an innovative way to adapt the shelves cannot be sold. Inventory management and establish a profitable model in the is another problem that needs to be local market? There are a number of reviewed by the DIY brass. “Their factors that need to be considered beChina Profit inventory seems to be relatively high fore they call it quits in China. overall, but also poor in mix,” comProfit 07/2008 08/2009 09/2010 mented David Robb, an associate proCulture Clash Loss fessor of Operations and SCM at TsinThe Chinese mentality seems to be US$ ghua University. “I’ve noticed limited the overwhelming factor that impacts 42m US$ fill rates, especially of items on sale.” the DIY business and retailers have 53m Staff members also contribute to failed to consider this difference by atthe complaints. They usually lack tempting the western model in China. US$ the knowledge to explain products 99m In general, Chinese homeowners properly, and struggle to create subusually call the repairman for minor stitutes when a situation requires an fixes, which puts major renovations completely out of the question. “The average home- innovative solution. “The young sales staff are hardly owner possesses little knowledge or desire to do their knowledgeable enough to explain how to properly own renovations,” commented Renaud Anjoran of measure dimensions...let alone explain how to build The Beijing Axis. Naturally, this type of attitude to- your bathtub,” commented Chun How Loh, Business wards home improvement will limit the potential of Development Director at NOL Group. There is a pile of issues for the foreign DIY retailers to DIY retailers. On top of that, consumers who are part of the middle class or overcome, but most of them are possible to control. Busiabove, see no reason in doing renovations which can easily and nesses need to find their place and a model that works for cheaply be done by a hired worker. If you are rich you simply don’t the Chinese market, similar to what grocery and personal do manual labor, meaning Chinese consumers’ pride stems care retailers did. Trying to apply a foreign model on the from the ability to pay someone else to renovate for them. Chinese market has proven to be unsuccessful time and Simply put, the average Chinese consumer thinks: time again, and it seems like the big foreign players have finally lost enough money to make some changes. “Do-It-For-Me”, not Do-It-Yourself. Buying Local The sheer size of B&Q and Home Depot locations is an immedi45 www.supplychains.com
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FEATURE
Anshan
Shenyang
I
Pingdingshan
Hefei
Chongqing Maanshan
n 2007 the birth of the next “New China” took place. The beginning of the key trend is the rise of inland Chinese cities. China’s past 30 years of growth were characterized by the exceptionally strong performance by the coastal cities, but this changed in 2007 when inland China started growing at a faster pace than the coastal area. The global financial crisis accentuated the trend, as it hit the export income of the coastal powerhouse while leaving the less trade-exposed inland cities relatively untouched. Economic data for the third quarter of 2010 reaffirmed the picture: growth in central China was 18.9%, compared with 15.6% in the eastern region. Against this backdrop, the Economist Intelligence Unit has sought to identify the champions of global growth—the fastest-growing cities in the world’s most vibrant economy. The CHAMPS are among the top 20 cities. They include a broad range, from Chongqing, the Yangtze River metropolis, to the explosive coal-centered economy of Pingdingshan. However, they all have one thing in common: rapid increases in population, income and infrastructure development.
THE
CHAMPS ARE HERE Stephen Joske
Economist Intelligent Unit
46 January/FEBrUARY 2011
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Read how Lenovo is handling emerging markets on p.34
The Economist Intelligence Unit took a close look at China’s 287 prefecture-level cities and forecast their respective populations using a unique methodology that adjusts for urbanization and flows of migrant labor within China. We then culled all cities with a population of less than 1m by 2014, and ranked the remaining 86 cities by a variety of growth measures including our forecasts of population and real GDP growth. The CHAMPS are Chongqing, Hefei, Anshan, Maanshan, Pingdingshan and Shenyang, taken from our list of the top 20 fastest-growing Chinese cities. The top 20 major cities in China show a strong performance from central provinces like Anhui and Henan, but parts of the northeast—cities such as Shenyang—also stand out. Anshan, a steel town, has relatively slow population growth but is experiencing a solid investment boom in heavy industry driven by the government in Beijing. Shenyang also shares these charac-
Economy Output per head, sophistication of the economy and openness to trade and foreign invest5 ment. As infrastructure improvements and customs reforms make the Yangtze River increasingly easy to transport goods directly from river ports to overseas destinations, the CHAMPS are likely to gain ground.
FEATURE
What are CHAMPS consumers buying?
(CHAMPS annual increase in market uptake* to 2013; millions)
发展最快城市商品年均销售量（至2013年; 单位： 百万）
Mobile phones ᢁᵰ 2.3
PCs ⭫㝇 1.8
Television sets & cameras ⭫㿼 ᵰ 1.6
Microwave ovens ᗤ⌘⚿ 0.8
Private cars ⿷䖜 0.7 * First-time purchase
teristics—like the rest of the northeast it suffers from slow population growth but this is offset by strong investment. Maanshan and Chongqing get a head start from their position on the Yangtze River, giving them low transport costs. Coal is the backbone industry in Pingdingshan. All of the CHAMPS are inland. Although the CHAMPS tend to have lower incomes than their east coast counterparts, they are by no means poor. In fact, the average income in a top-20 city in 2009 was
Consumer markets The Economist Intelligence Unit forecasts that the average disposable income of the top 20 emerging cities will rise to RMB 57,000 by 2020, within a hairline of the RMB 65,000 that will be enjoyed by the country’s richest 20 cities.
Logistics The CHAMPS are the best performers in this category. As China’s high-speed rail networks develop, even a city as far inland as Chongqing will be accessible within half a day. China already has the world’s longest high-speed rail network (>7,000 km) and it is planned to increase to 16,000 km by 2020.
roughly RMB17,000, on par with China’s average urban income level. This means that CHAMPS consumers are representative of the bulk of China’s urban population. Opportunities in emerging cities Our six CHAMPS illustrate the variety of business opportunities available. Most tend to be fuelled by construction booms, with rising home ownership closely linked to spending on appliances and cars. To get a clearer picture of business opportunities, we also ranked all cities with a population of over one million people by specific factors beyond growth: the level of economic development, consumer markets, logistics, IT connectivity, education, healthcare, average wages and pollution.
Wages Rising wages are often cited as one of the main considerations of manufacturers when contemplating a move to an inland site. The CHAMPS benefit from their location in China’s rural heartland, the origin of the bulk of low-skilled laborers.
Industrial pollution Today’s environmental regulations were not in effect when coastal cities began to draw in investment. Cities like Beijing tend to discharge less industrial pollution, but Guangzhou, with its large petrochemical and automotive industries, is rich, dirty and a key market for clean technologies.
47 www.supplychains.com
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FEATURE
2 3 4 5 6
uil t F inv ixed est as me set nt Po pu lat ion R pe eal r h GD ea P d
U are rba a nb
Hefei
86
100
95
63
Baotou
55
66
86
66
Shenyang 64
72
71
71
Jiazuo
61
82
85
56
Changchun 87
65
70
71
Hohhot
58
45
92
55
Wuhu
ll r a Ov era 1
Outlook
Cit y
nk
Infrastructure
70
60
85
64
Zhengzhou 88
49
70
72
64
70
83
58
Chongqing 72 Pingding 53 11 shan Nanchang 58 12
48
79
77
75
87
56
65
67
72
13 Luoyang
62
79
81
55
14 Xiamen Xuzhou
86
53
77
61
7 8 9
Xinxiang
10
96
45
75
64
Maanshan 55
53
88
60
Wuhan
97
48
83
53
Anshan
49
55
66
84
Changsha 82
53
64
76
Huainan
58
83
62
15 16 17 18 19
20
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over threefold in the short space of a decade. Overall growth prospects are relatively stable and sustainable in the long term, owing to the magnitude of the urbanization ahead. The current gap in income levels between the fast-growing CHAMPS and the established urban centers on the coast means that the opportunities for business will differ. While wealthier consumers in coastal cities will exhibit higher levels of sophistication, many CHAMPS consumers are making their first purchases of numerous consumer durables, ranging from PCs to mobile phones. China’s future megacities will attract a relatively high proportion of upper-income earners, and their sizes will offer economies of scale and scope that will drive productivity growth in the service sectors. The size and variety of CHAMPS markets means that knowledge of local business environments is crucial to any strategy. Patience is required as companies adapt and readapt their strategies over time. Given the mass of choices confronting investors in China, reliable benchmarks for strategic planning are essential.
“China’s employment numbers will peak at
1 billion in 2013”
Guang zhou
Shang hai
Chong qing
Cheng du
Bei jing
Qing dao
Wu han
Tian jin
Da lian
Nan jing
Shen zhen
Hang zhou
Ning bo
Bao tou
Guang zhou
Wen zhou
Shang hai
Su zhou
Wu xi
Dong guan
Beij ing
Hang zhou
Shen zhen
Ning bo
Chang zhou
Zhong shan
Zhu hai
Nan jing
Su zhou
Da lian
Shen yang
Wu xi
Yang zhou
Chang zhou
Xia men
Zhu hai
Tian jin
Hang zhou
Shang hai
Dong guan
Ning bo
Dong ying
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ᧈ ank on 㔅 o 㺂 ⎄ m
Co Lo n g ᇘ sum ⢟ isti cs ⍷ y ᡭ er
What Urbanization and city growth mean for business The pace of urbanization in China will have a fundamental effect on all businesses. Unlike Europe and the US,China is still a developing market. Urbanization does
more than just drive growth; it also makes it more stable. As the global financial crisis showed, with growth increasingly driven by domestic urbanization, China is less dependent on more volatile and slower growing export markets to keep its economy afloat. Urbanization means that growth is sustainable, despite an ageing population. China’s working age population will start to decline soon—it is expected to peak at around 1bn in 2013. But the rate of urbanization will continue for decades. The Economist Intelligence Unit’s new population forecasting model for China and its cities shows that China’s urban population will not start to decline until 2037, when it peaks at 880m. This positive macro environment will support business for over two decades. With a long period of strong growth ahead, businesses in China need to plan for long-term growth opportunities, and also need to take a closer look at the pattern of urbanization. As reflected in our city rankings, growth will be increasingly driven by inland cities. Conclusion Just as the emergence of China’s coastal cities was one of the world’s greatest opportunities in the past three decades, the rise of inland Chinese cities brings with it a fresh source of rapid growth. With the CHAMPS, businesses have a chance to gain a foothold in cities where the population will increase by nearly one-third and incomes will grow by
Business opportunity rankings in 2009, top 30 cities by category ѣളᴶޭѐਇኋ▒࣑คᐸ723 48 January/FEBrUARY 2011
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FEATURE
预知联想新兴城市 策略请参见34页
中国最具 发展潜力城市 中国最具发展潜力城市CHAMPS 自2007年开始，中国内陆地区开 始全面推进，随着产业梯度转移和资本 西进步伐加快，它们逐渐紧跟东部沿海 地区发展步伐甚至超越其强劲态势。经 济危机挫伤了沿海城市的出口贸易，但 内陆城市相较而言损失甚微。《经济学 人》智库据各项指标评出中国最具发展 潜力城市（CHAMPS），这些城市人口和 收入增长迅速、基础设施完善且仍在大 力发展。 经济学人智库深入调查了中国287 个地级城市，根据中国城市化发展现状 预估其人口数量走势，其中86个城市的 人口总数截至2014年将小于100万，我 们跟据各项指标对其进行排名——重 庆、合肥、鞍山、马鞍山、平顶山、沈 阳在中国20个发展迅猛的城市中名列前 茅，包括安徽、河南；另有沈阳——因 鞍山钢铁脱颖而出，其重工业稳步发 展，投资不断增加，抵消了人口涨幅小 的不足；马鞍山和重庆因地处长江，地 理优势为其节省不少运输成本；平顶山 丰富的煤矿同样得天独厚。入选城市都 位于内陆，虽然人均收入远不及东部沿 海地区，但它们却构成消费者市场的主 力。 新兴城市带来机遇
济体系、对外贸易程度等。沿海城市因 其开放度而大放异彩，但随着基础设施 的改善和关税改革，长江内河运输直达 海外越发完善，大力推动了内陆城市的 发展。 消费者市场经济学人智库预 测，2020年排名前20位的新兴城市人均 可支配收入将上升到57000元/年；而中 国最富有的20个城市人均可支配收入同 期将达65,000元/年。 物流 CHAMPS在物流方面算是首屈 一指。中国大力推动铁路建设，现在已 经拥有7000公里以上的铁路，已在全球 独占鳌头，但在2020年这个数字将上升 到16000（公里） 教育 CHAMPS此方表现优良。师资 占总人口比例相对其它地方尚属可观。 医疗 这在沿海城市而言是发展重 点。老龄化某种程度上推动了医疗设施 建设。 收入生产商颇为关注收入水 平，CHAMPS因其地处中国农村腹地、劳 动力素质较低而享有一定成本优势 工业污染 根据人均排污量排名。 沿海城市注重投资而对环境法规有所让 步，比如北京力图降低工业污染，但是 重点发展石化和汽车的广州环保方面则 大为逊色。
新兴城市自然带来全新的商机，
CHAMPS因居民收入水平不同于沿
为明晰商业走向，我们对比人口上百万 地区按类别总述如下：
海地区，消费品种类也有一定差异。比 如上海人均拥有1.1台电脑，但是重庆 人均只有0.6，所以这些内陆城市上升 空间也较大。
经济 衡量标准包括人均产出、经
城市化和城市增长对商业之影响 中国的城市化进程对商业的影 响不可小视。中国市场仍欠发达， 而城市化推动市场增长，也让其更 为稳定。经济危机的浩劫并未重创中 国，因为中国凭借自身发展，对出口 的依赖大大降低。老龄化不减，但是 城市化可保证持续性增长。经济学人 智库分析，中国的城市人口直到2037 年达到88亿才有望减少。宏观经济可 人，可在未来20年内支撑商业的持续 增长，所以中国有必要在拟出长远商 业发展规划的同时仔细研究城市化进 程。 总述 中国内陆城市迅速发展，随之而 来的商机不可小觑。CHAMPS中不少城 市的人口总数可在十年内增长三分之 一，收入增长三成，这为商业定位带 来启发。在城市化的引领下，城市总 体发展会相对稳定。CHAMPS中低收入 城市和沿海城市的差距说明商业运营 模式、消费品种类、市场定位等也需 因地制宜。中国将来的大城市会吸引 更多高收入人群，也会出现推动服务 业发展的规模经济。CHAMPS中城市市 场规模种类迥异，经商需立足实际， 适应调整颇费耐心，选择不少，投资 者需谨慎抉择！
Ji nan
Kun ming
Hai kou
Xia men
Yan tai
Zheng zhou
Tai yuan
Su zhou(J)
Shen yang
Da tong
Wen zhou
Chang sha
Fu zhou(F)
Xi an
Yue yang
Dong guan
Bao tou
Xia men
Fu zhou(F)
Hoh hot
Ji nan
Tai zhou(Z)
Da lian
Shen yang
Yan tai
Shan tou
Qing dao
Tian jin
Yang zhou
Chang sha
Dong ying
Zi bo
Chang chun
Bao ding
Zhong shan
Bei jing
Da qing
Hai kou
An shan
Shen zhen
Guang zhou
Yan tai
Tang shan
Wu hu
Nan jing
Ma anshan
Qing dao
He fei
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FEATURE
Run to the f uture Top ! suppl y chain chall enges for
11
2011
Follow us in this supply chain symphosium and learn about the top 11 challenges for 2011!
CHaINA has called on some of the most influential executives in Asia to discuss their visions for the coming time and to get some insight into their new year objectives. A look at the most singnificant hurdles of doing business in Asia and the opportunities that lie behind. Welcome new year! And welcome the time for decision makers to implement new strategies and see new goals for the future.
50 January/FEBrUARY 2011
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FEATURE
2011 年供应链领域 11 大挑战
Samuele Gabbio
兔年大吉！辞旧迎新，决策者们也更加忙碌，他们 纷纷为公司制定新策略、设立新目标。CHaINA访 问了一些在亚洲颇具影响力的执行官，他们将同大 家分享跨年大计和新年展望。 现在就和我们一起看看2011年供应链领域中的11大挑战吧！
1: Growing… Wiser? 更加...智慧？
For many companies in Asia, particularly in China, growth is primarily a goal, but can often become a source of troubles. Growing bigger does not necessarily mean growing more efficient and in fact, keeping performance continuous and consistent can become extremely complicated. Christoph Schittny, Bayer Healthcare’s Head of General Procurement, says: “We had tremendous growth starting from 2007 of up to 50%, being the sector leader in China. When you are growing at such rate, it is hard to keep the infrastructure up to the necessary level and keep processes running correctly, if not improving them. From a quality perspective growing above average, and maybe above need, is quite a challenge. The growth also has a geographical dimension, which means expanding to tier 3, 4, and 5 cities, where maintaining procurement requirements are definitely hard.” 拜耳医药保健公司的采购主管Christoph Schittny称，拜耳“从2007年开 始增长率达到50%，在中国算得上是行业领头羊。但是高增长率也要求基础 设备等达到相应标准，否则难以保证整体运营的连贯无误，可是要将质量水 平提高到平均水平以上或者平均需求水平以上绝非易事；同时增长率是有地 域差异的，在三线乃至四、五线城市，采购需求很难稳定；为此，我们需重 整管理团队为2011年的发展打好基础。
Asia/Pacific Stats
57*
Companies
21,600
Employees
US$7.48bn Sales US$171m
R&D Expenses
US$688m
Capital Expenditures
*fully consolidated subsidiaries (as of Dec. 31, 2009) 51 www.supplychains.com
january/febRuary
FEATURE
2: Cheap and Good 价廉“物”美
“China has the numbers to grant stability and sustainability of production.”
Costs are going up for manufacturers in China: prices of commodities and labor keep rising and many procurement professionals are trying to look at alternative sourcing havens. “With costs and exchange rates going up, we have been looking at other countries in South-East Asia and Eastern Europe, but China will still remain a competitive country,” says Patrice Bodet, China Sourcing Director at Saint-Gobain, “There are many reasons and the first is demographics. A country like Vietnam has 80 million people, China: 1.3 billion. After the initial stages of development, labor cost is going to grow anywhere, but China has the number to grant stability and sustainability ofproduction.” “成本上涨，汇率上升，我们开始在东南亚和东欧寻找可替换采购源”圣戈 班中国采购总监Patrice Bodet认为，”即便如此，中国的优势也会继续保 持，原因很多但首先从人口看，越南人口总数8000万，而中国是13亿。 发展到一定程度，劳动力成本都会有所上升，而中国相较之下更为稳 定，更能保证生产的持续性；另外竞争方面，中国生产商发达多源，你 有更多的选择。” Learn more about revaluing the Yuan -P28 币值专题请见p28
“The central and western provinces are growing very fast”
3: Going West 到西部去
As China’s consumer numbers continue to expand and infrastructure and living conditions across the country improve, business opportunities will start sprouting up in new parts of the country. Feng Lei, Manufacturing Continuous Improvement Director for Asia Pacific at Kraft Foods, says: “Originally our consumers were concentrated in the cities on the eastern coast of China, but now the central and western provinces are growing very fast and we are seing a lot of opportunities in those areas”. 中国消费者数量与日俱增，生活水平 提高，基础设施不断完善，各个地区 商机涌现 卡夫亚太区制造业改部门总 监Feng Lei对我们说“我们的消费者 大多集中在东部沿海城市，但是随着 中西部城市发展加快，其消费市场潜 力不容小觑。”
4: Currency War 币值角力
The Renminbi is set to keep appreciating against the dollar, a trend that is destined to strongly impact sourcing and procurement operations. Exporters will face increased pressure to keep their prices competitive in the global markets, while the importers will benefit from the lower cost of foreign goods. As Denny Yang, Head of Supply Chain Management & Logistics at Metro, points out “a future increase of the value of the Yuan would not have a negative impact on our business in China, it could actually be positive, as we could buy imported products at a lower price...” For exporters the game will be tougher, and improving efficiency and quality will be the main weapons for the survival of the fit.
人民币币值持续上扬，采购供应领域将大大受 其影响。出口商面对国际市场，压力增大，但 是进口方面则将大大受益。麦德龙供应链及物 流部门总监Denny Yang 指出“人民币币值 上涨会对中国商业带来好处，因为能够以更低 价格进口更多像红酒、巧克力、饼干这样的洋 货。”出口方面，一定要保证高效高质这条生 存之道。
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5: Il-logistics 国际物流
Despite the fast expansion of logistic networks and the growing competition in the sector, logistics is still an immature industry in China and across Asia. Frank Tonna, CHEP’s Director of Sales, Marketing and Customer Services,FMCG, explains: “If you take the example of pallets, in China there is still a lot of useless manual handling that is a waste of time, resources and money, because the process is not integrally organized from the beginning to the end. The goods are moved through several pallets rather than having a pooling systems allowing a continuous flow. This happens because the country is still a manufacturing and labor oriented one, a fact that heavily slows down the supply chain. The priority is to move away from a manual oriented supply chain and become more dynamic.” 尽管物流网络高速发展，行业竞争更加激烈，中国乃至整个亚洲的物流都只 是停留在极不成熟的阶段。集保的市场销售总监兼客服快消品总管 Frank Tonna解释说：”就拿托板来说吧，在中国，人工操作浪费了大量的时间 资源和金钱，因为从头到尾都缺乏整体性。货物从这个托板到那个托板，完 全没有形成系统性的运营，连贯性难以保证。中国是生产/劳动力指向性国 家，供应链要高速运转相较不易。现在可以尝试让劳动指向型的供应链更为 灵活。因为劳动成本增长，开发更多创新模式会自然而然地成为行业趋势”
6: Next Export Market
7: That Green on Your Face
As emerging markets keep growing and their consumers have more money to spend, export-driven businesses will broaden their scope to new and promising opportunities, many of them located in Asia itself. Liu Deguo, Executive Director of Emerging Markets for Lenovo, says “We are targeting emerging markets like India, Russia, the Middle East, Brazil, and of course, the ASEAN countries. But obviously China in one of the top markets and is becoming mature. To maximize success, it is important to diversify products and differentiate from competitors
After years of focus on unrestrained growth, Chinese authorities are slowly moving towards the promotion of environmental practices, and many international companies have started developing CSR and green campaigns for China. Dell’s Regional Director Charla Serbent decribes the bamboo packaging project her company has succesfully implemented: “We chose bamboo as it is a fast growing raw material, very sustainable, and does not require fertilizers. We have also worked to have it certified in order to be recycled. The feedback we are receiving from our customers is really great: they care about what we are doing for the environment. Often people believe that being green and reducing cost are a trade off, but the reality is that you can do both at the same time, and big companies like Dell have the responsibility to lead the way.”
新兴市场不断成长，其消费者花销越来
中国在经过多年飞速发展之后，政府终于逐渐开始重视 环境保护，越来越多的国际公司也开始在中国推广企业 社会责任，发起绿色环保运动。戴尔地区总监 Charla Serbent对我们再次提到了戴尔的竹包装项目，”竹子这 种可持续性的原料生长迅速，无需肥料，所以我们选择它 并努力实现其再利用。用户给我们的回馈反映了他们也在 关注我们的环保计划。很多人认为环保和低成本无法兼 得，但实际它们并不矛盾，像戴尔这样的大公司就该率先 引领先河。”
出口市场下一站
越多，出口指向性企业可以向更多新领 域拓宽业务，比如亚洲市场。联想新兴 市场执行总裁Liu Deguo称联想的” 目标就集中于像印度、俄罗斯、中东、 巴西、亚太等新兴市场。但中国这种日 趋成熟的市场仍是重点’打击’对象之 一。成功的要因在于想办法实现产品多 样化并能从众多竞争者中脱颖而出。”
绿色产业链
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More on labor costs...p46-49 更多劳动力相关 内容请见 p46-49
FEATURE
8: Lost in Regulation 制度漩涡
China’s industrial regulations are notorious for being restrictive and often extremely complex, but companies who want to take full advantage of the market have to learn how to find their way out of the maze. Henry Li, Regional Supply Chain Director for Asia Pacific at Honeywell, observes: “We are in the chemical industry, a strategic business for the country, so the central government has very strict regulation. In order to grow our business in China we need to follow the government’s strategy very closley to indentify opportunities and risk. This is very critical. What we do is try to gather as much information as possible and share best pactices with other companies.”
中国的行规可是臭名昭著，制度松散，规定冗繁。可是要想就 地崛起，对规章制度不闻不问是万万不可。霍尼韦尔亚太区 供应链总监Henry Li也注意到这个问题，”我们涉及化工领 域，在中国是处在战略地位的，因此中央政府订立的行规会更 加严格。要在中国发展业务，我们必须紧跟政府计划，并同时 看到前面的机遇和挑战。这一点至关重要，我们必须对各种信 息非常敏感，还要和其它公司多多交流。”
9: Laboring with
Labor 劳神的劳动力
While better salaries for Chinese workers will help develop internal consumption and consolidate demand, on the other hand companies will have to struggle to handle the extra cost and remain competitive. As Michael Lee Serwetz, President of Prophet Business Services, puts it: “In China the population is aging, the birth rate is low, and the youngsters do not want to work in factory jobs. Moving production to other provinces is not a viable solution, as Chinese workers
11: The Great Lean Forward “大跃进”
“It’s necessary to reduce the number of vendors, to focus on quality and to build strong partnerships with suppliers.”
Lean manifacturing, automatization, and use of innovative sotware: these are just some of the solutions required to introduce a smarter and more modern approach to the supply chain across Asia. As local companies grow, they need to invest more money and resources in solutions that can improve their efficency. Christel Costagli, Head of Supply Chain and Logistics for Kingfisher, comments: “In order to ensure sustainability of supply it is necessary to reduce the number of vendors, to focus on quality and build strong partnership with suppliers, to optimize production and make it better suited to the buyer. Integrating all the different actors of the supply chain into one process is the key to success.” 精益生产、自动化、运用创新软件——如何在亚洲 引入更快捷更现代的供应链方案？这些只是少数的 解决之道。国内公司在发展中需要更多资金和资源 以提高效率。翠丰前供应链物流部门主管 Christel
Costagli建议说：”要保证供应可持续性，必须减少
供应商数量，致力提高质量，巩固与供应商的合作伙 伴关系，还要贴近买家要求，优化生产；注重产业链 的整合性。”
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are migratory and move to where the production takes place. Therefore in the long term the same shortages will appear everywhere in China. The result can only be one: higher costs and higher prices.” 只有可观的薪水才能在中国 稳定及发展内需，那公司也 需着手管理成本，保持优 势。 Prophet 商业服务公司董 事长Michael Lee Serwetz 说“中国老龄化增加，出生率 低，年轻人不愿从事工厂工 作，将生产转移不是上乘之 举，因为中国劳工流动性大， 会自主朝生产集中地迁移，这 个问题短期内在中国无法解 决，而后只有一个结果：高成 本，高价格。”
10: Retail Revolution 零售风暴
As the consumer market gets bigger and gains confidence in China and across Asia, newer and better retailing models will be required in order to take full advantage of this potential. Jacky Huang, Operation Director at Yihaodian.com, describes the online B2C model as “more efficient, providing a better customer experience, at a lower cost, and with a larger coverage. It is important to delight your customer, as word of mouth is the most powerful marketing channel for B2C operators.” The astonishing growth of online retailing in China is a testament to his belief. 中国和亚洲消费者市场规模日趋庞大，为其引入更新更适宜的零售模式才能充分 利用其发展潜力。一号店运营总监Jacky Huang将在线B2C称为“低成本、更高 效、辐射更广且能提供更好客户体验的模式。‘取悦’客户很重要，好口碑对于 B2C运营商来说更是营销必杀锏。”要证实他的想法，中国网上零售的“狂飙”是 再好不过的例证了。
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Winners On November 18th, 2010, the Global Supply Chain Council hosted the fifth annual CHaINA Awards to recognize excellence in the various fields of supply chain. Congratulations to the winners and nominees.
Best Supply Chain IT Solution Project: SupplyOn for Bosch —S.C.A.N. Project The S.C.A.N. Project provides much needed transparency in Bosch’s supply chain and ensures that Bosch can maintain contact with all of their vendors around the clock.
Best Supply Chain Consulting Partner Project: Resources for Unilever China —U2K2 Implementation The fact that Resources Global Professionals was able to initiate and design cut-over systems set up, define processes, establish structure, and above all, go live across 55 Unilever warehouses with no business interruptions was nothing short of amazing.
Green Supply Chain Award in China Project: Dell—Greens its Supply Chain with Bamboo By using bamboo as an “in-region” packaging material, Dell has managed to eliminate over 8 million kilograms of packaging since 2008 while remaining profitable. A perfect example that going green and being cost-effective is possible with a little bit of innovative thinking.
Best 3PL Supply Chain Provider Project: Toll for Colgate Palmolive—Delivery Schedule System Project Toll Group reduced order numbers by 24% while increasing order quantities by 72% for Colgate Palmolive through supply chain optimization and increasing distributor benefits.
Best Real Estate Development Award Project: GLP for Fashionlog—GLP Park Lingang Two Storey Warehouse A new two-storey warehouse design increased the land-utilization ratio while ensuring clearance and efficiency on both floors, which in turn helped GLP increase their piece-handling rate fivefold.
Supply Chain Operational Excellence Project: SKF—Distributors Integration Utilizing SAP and the SKF add-on, SKF improved supply and demand transparency. Distributors can now order and stock the right products at the right time, reduce the risk of bullwhip effects, reduce inventory and improve service level along with inventory turnover, profitability and cash-flow.
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The Links On the road... /57 China’s best business hotels /60
Linked in /58 Top books /61
The Sourcing Debate /59 The job hunt /66
在路上—— Chris Beukenkamp的商务之旅 / 57 Linked in 观点 / 58 亚马逊| 卓越商业类畅销书TOP 5 / 61 求职 ——“身价”预测 / 66
THE LINKS
IPO 大家谈 / 59 2010年中国最佳商旅酒店 / 60
On the Road With Chris Beukenkamp
I
Claire Petersen
n a field as diverse as supply chain, it’s no surprise that managers and executives often travel great distances for their jobs. As the Managing Director, Asia for SPS Commerce, Chris Beukenkamp knows what it means to travel for your job. Covering over 50 countries, Mr. Beukenkamp is often on the road for SPS Commerce, a hosted EDI service and B2B integration leader based in the US, and has been called the “go-to” guy for best practices on monitoring and improving enterprise information systems. CHaINA Magazine sat down with Chris to discuss some of the essentials of a frequent traveler.
1 1. Travel time: As the Managing Director of Asia, I cover from Japan to Australia, the Philippines to India and all points in between, so I do quite a bit of traveling. 2. Favorite airline: From the US to Beijing, I always fly United Airlines. To Hong Kong or Australia, I fly on Cathay Pacific and I fly Delta into Shanghai and the other regions I cover. Cathay is my favorite because even in economy I feel relaxed and not cramped.
4 3. Something you wish was available in every city you travel to: .com - It is Netflix for music but SO much better. 4. Essential electronic device: iPhone! Hands down. Besides being my phone it is my map, social outlet, email, money, airline tickets, camera…everything. I would rather a thief take my wallet than my iPhone. I also have the iPad, but I think my daughter enjoys it more than me. She travels almost as much as I do—she’s three, and has al-
Managing Director, Asia for SPS Commerce
6
5 ready been to 17 countries. With the iPad we can watch movies on a nice HD screen, and we really enjoy that. 5. Best hotel: Hotel Ivy in Minneapolis, MN is near our headquarters and doubles as a spa, so it is very relaxing to stay there when visiting the US. Also, a tiny boutique hotel called Lan Kwai Fong hotel in Central (Hong Kong) is convenient and very quaint. Make sure to say hello to the turtles in the entryway.
6. Favorite Magazine: Wired! That and my seatmates cast-off copy of People. 7. Essential Carry-on: It sounds silly, but a pen. I seem to always be losing pens. When electronic devices are turned off it is great for doing crosswords in the in-flight mags. You need a pen to fill out customs forms, sign credit card slips, etc. and the flight attendants NEVER have one. You also never know when an idea will hit and you may need to jot it down. 57
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THE LINKS
Seen
on
?
Does Infor Software acquired brands
KILL
It was an interesting year for Infor, who worked very hard to be taken seriously in the enterprise application solution space. Despite a number of high-profile hires in early 2010, there was a quiet and steady exodus of global senior executives. They also acquired a number of great solutions but have often failed to integrate them with their current offering. Their customers are now complaining that they don’t see the rich and deep features that were promised to them, and its latest acquisitions have often resulted in ‘killing’ high level brands. Is Infor really serious about integration? Or are they simply beefing up to impress their investors? Steve Christensen
President BabbleWare Inc Any company that goes on an acquisition spree has two primary goals; revenue and market increase. The revenue that Infor gains from maintenance contracts versus new sales is the telling factor. They are prepping for an IPO. Combining many disparate technologies into one is virtually impossible, so they acquire a large install base, have consistent maintenance revenue and they get to “cash out” with the IPO. Ralph Yin COO and Founder Shanghai RockBay Management Infor intends to create a SaaS solution by consolidating existing functional software. It might be more practical, but the complexity of an integrated solution is a lot to plan for. Infor, like any company, faces performance pressure and short term time restrictions, which push their strategy to build a long term SaaS solution. SaaS might need a dynamic environment with government or NPO support, like J2EE with more time. Either way, there are timing issues. Industry Expert Most large IT companies kill the brands they buy, look at Oracle, Infor, RedPrairie, Manhattan and indeed SAP, they have all done it in the last few years. Integration is very difficult if not unwise. Even SAP’s supply chain suite is a bolt on, with little integration back to the core.
Mike Flanagan CEO and Co-Founder Less Software-SCM Solutions I don’t think they intend to kill the brand or integrate it. The mixture of technologies they have make it very hard and expensive to stabilize on a single platform. I think they are cash-cowing the products. I expect customers will pay for a time as it is so disruptive to change systems. But when they do they will look for a SaaS solution. Peter Robilliard Technology Advocate Retail & SCM In my opinion, Infor appears to be serious about the SCM sector so it really comes down to the management team in Asia and what they wish to focus on. Based on progress to date, I’d suggest SCM is a lower priority than ERP in Asia. Jeff Broadhurst Apprise Software Inc. I don’t think they are killing off products or integrating products. Why would they buy a cash flow to kill it? And how can they integrate so many very vertically specific applications that took over a decade each to create? The answer would be in the financial end of it, not the technical or functional. Cash flow and sales growth are king in this castle. I read a while ago that their goal was to get sales to US$1 billion to maximize their profit on an IPO.
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THE LINKS
The Sourcing Debate Kevin Foehner
A
Where is the future of sourcing?
recent luncheon saw some of the best and brightest procurement specialists gather in Shanghai to talk about the latest trends in global sourcing. The discussion was based around a recent survey conducted by Smith&Nephew, Emlyon Business School and supported by The Council, which was published in the November/December issue of CHaINA Magazine. The major topic that emerged was the future challenges for sourcing. For those in the industry, Asia is not necessarily the cheap option anymore, it is the only option for manufacturing many goods and materials. So what’s affecting the future of sourcing right now? A resounding complaint was the increase in supplier leadtimes. The room unanimously agreed that their lead-times have doubled in the last six months due to the massive demand, and has caused serious delays for meeting overseas demand. There seems to be no end in sight for reducing those lead times back to their normal rates, so it’s an aspect that procurement officers will have to adapt to. Another challenge was finding suitable labor for production and management. An experienced labor force is lacking in many manufacturing regions that require higher standards, and the younger work force no longer want to work in factories, which is causing idle factory capacity. Local Chinese management talent has also become a problem, now demanding salaries that are comparable to that of expatriates. These aspects have led to overall increases in operating costs, which have in turn led to higher overall prices for goods sourced from China. The conversation of course continued with the question: where is the next hotspot for sourcing? Vietnam, India, perhaps Indonesia? The general consensus however, was that we should not be asking where we should start sourcing next, but rather what we should continue to source from China, and what we should consider sourcing elsewhere. According to our experts, China will continue to dominate the high-tech manufacturing sector, while garment manufacturing will move to India, and cheap consumer goods to Vietnam. Indonesia was also mentioned as a viable and often forgotten alternative for pharmaceuticals, with a high standard of labor for a low price. So what are the trends for sourcing in 2011? In theory, diversifying your sourcing locations is considered a good move,
especially since inflation and labor costs are steadily increasing in China.In practice however, these trends are more difficult to implement, as China has put many other manufacturers out of business. For some industries, China IS the only option. So for the time being it remains the most stable option that any sourcing expert has. This is very likely to change however, as other countries catch up in terms of infrastructure, quality, and variety, so professionals should start planning for more cost-effective alternatives now.
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THE links
China’s Best Business Hotels 2010
A
Claire Petersen
s any frequent traveler knows, business travel is about more than making deals and spending time in the boardroom. Top-notch services and a warm, hospitable environment can improve the quality of a business trip enormously, while a central location can easily become the main priority of your visit. As the economic outlook begins to brighten up, luxury business travel is making a comeback. The following is a list of some of the top boutique hotels in China that cater to the traveling businessman, so that when you are planning your next business trip you can enjoy both business and leisure. US$284
The PuLi prides itself on being Shanghai’s first five-star urban resort. Located in the central Jingan district, this urban oasis also has an in-house spa with five different treatments suites, and an infiniti pool overlooks the nearby Jingan park. Two private rooms in the hotel can be converted into conference rooms, and the 32 m Long Bar offers an impressive wine and champagne list. US$484
The Upper House an urban oasis in the center of Hong Kong’s financial district. A result of the collaboration between local designed Andre Fu and British designer Thomas Heatherwick, the hotel features a modern yet welcoming atmosphere. Both the Sky Lounge on the 49th floor and Café Gray Luxe offer breathtaking views of the city and Victoria Harbour. US$60
This boutique hotel offers a luxurious place to stay for those who are looking for a smaller, more intimate business travel experience. Featuring 180 stylishly decorated rooms, Hotel Kapok also offers extensive services for the business traveler, including a banquet hall and a fully equipped meeting rooms. During down time, travelers can also take advantage of the Reading Bar. US$338
This trendy and modern hotel in the Sanlitun district of Beijing has thought of just about everything a business traveler desires when on the road. The multipurpose Green Room can be transformed into a boardroom or a theater style setting. In addition, the simple glass and blonde wood design along with deep oak soaking tubs in every room guarantee R&R between meetings. US$114
Each of the three Tango Hotels in Taipei offers a unique business getaway. Each room comes equipped with state-of-the-art technology and one remote control for all of the gadgets. Both the business center and lounge are impeccably decorated and have a modern yet comfortable atmosphere. A few of the rooms even come with a personal zen garden located just outside the window. 60 January/FEBrUARY 2011
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Top 5 Business Books on: 1
THE INVESTMENT ANSWER $10.00 by Daniel C. Goldie & Gordon S. Murray
1
Dan Goldie Financial Services LLC, 2010
THE links
$4.00 Earn ¥100,000 A Year After Graduation by王海涛，吴梓境，姜萌， 姚永清，邓蕙悦 Chinese Business Press, 2010
A professional development guide for every new or recent graduate in modern day China.
A primer to help individual investors understand how markets work, select a financial advisor, and make smart financial decisions.
2
$18.00 The Truth About Getting the Best From People by Martha I. Finney
2
Reveals 49 proven leadership principles for getting the best from every employee, every team, every organization. $27.00 All the Devils Are Here by Bethany McLean & Joe Nocera
A closer look at the background of the world’s financial hotspot: Wall Street.
3
4
FT Press, 2010
Lessons of a Brand Manager by Michael F. Golden
$16.00
FT Press, 2010
The story of CEO Michael Golden and the team of brand-builders he put together to reclaim the market share of Smith & Wesson.
$3.20 REWORK by Jason Fried, David Heinemeier Hansson, Mike Rohde Citic Publishing House, 2010
Not your mainstream business book! Rework goes against all mainstream corporate ideas for a new perspective on the corporate world.
Learn to stay away from individual stocks and create sustainable wealth by creating a balanced portfolio of cash, real estate, retirement funds, etc.
5
$4.70
An essential read for marketers all over, Influence explains the psychology behind why people say “yes” and how to apply this to your marketing strategies.
Chronicles major events that contributed to today’s economic climate, sharing critical narrative assessments of the roles played by Wall Street, the mortgage industry and the U.S. government $16.00 Never Buy Another Stock Again by Bethany McLean & Joe Nocera
INFLUENCE by Robert B. Cialdini
Volumes Publishing Company, 2010
Portfolio Hardcover, 2010
4
$4.00
Chinese Business Press, 2010
Dan Goldie Financial Services LLC, 2010
3
Wall street by Documentary “Wall street” Production Team
5
Delivering Happiness by谢家华,谢传刚
$2.80
中华工商联合出版社CICAP, 2010
Lessons from Xie Jiahua, cofounder of LinkExchange and CEO of Zappos, on the power of corporate culture to achieve success
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CLASSIFIED Listings
LOGISTICS SERVICES
LOGISTICS SERVICES
4SCM A10, 5/F, 61 Old Warehouse Building, 61 Yangshupu Road, Shanghai 200082 上海市杨树浦路61号老栈商务楼5楼A10室 邮编200082 +86 (21) 6148 9800 www.4scm.com.cn
Deret Logistics Asia Suite 1703 Shanghai Bund International Tower, 99 Huangpu Road, Shanghai 200080 上海市黄浦路99号上海滩国际大厦 1703室，邮编：200080 +86 (21) 6306 2592 www.trans-access.com.cn
Arvato Services B-1/F XingHong Science & Technology Industrial Park, Feng Huang Gang Village, Xi Xiang, Bao’an District, Shenzhen 200231 深圳宝安区，宝安西乡前进二路凤凰岗村星 宏科技园，邮编：518102 +86 (755) 3386 1666 www.arvatoservices.com.cn
DHL Supply Chain 3398, Xiupu Road, Shanghai 201315 上海市秀浦路3398号， 邮编: 201315 +86 (21) 3825 6288 www.dhl.com
ARJ Commercial Leasing Limited 1500 Lianhua South Road Max-Mall Office Tower Block 8-9 Unit 810, Shanghai 201100 中国上海市闵行区莲花南路1500弄 梅陇镇新都会,商务中心8-9号楼810室 邮编：201100 +86 (21) 3358 2270 +86 (21) 3358 2170 www.arjchina.com AsiaInspection 2201-03, Guidu Building, 3007 Chun Feng Road, Luo Hu DistricUnit 810, Shenzhen 深圳市罗湖区春风路3007号， 桂都大厦 2201-03室 +86 (755) 8231 6796 +86 (755) 8231 6739 www.asiainspection.com BDP International Unit 2101-2110, Shanghai Bund Int’l Tower, 99 Huangpu Road, Shanghai 200080 上海市虹口区黄浦路99号上海滩国际大厦 2101-2110室，邮编：200080 +86 (21) 6364 9336 www.bdpinternational.com Best Logistics Technology Bidg 11 West, 1F West Lake Soyea Software Park 176 Tianmushan Road, Hangzhou, Zhejiang, 310013 浙江省杭州市天目山路176号西湖数源 软件园 11号楼1层西2201-03室 +86 (571) 8899 5656 +86 (571) 8827 0027 www.800best.com
DSV Air & Sea Logistics 38/F, 1 Grand Gateway, 1 Hongqiao Road, Shanghai 200030 +86 (21) 5406 9800 www.dsv.com www.dsv.com/cn DTW Logistics Group 16 Tianzhu Middle Road, Zone A, Tianzhu Airport Industrial Area, Shunyi District, Beijing 101312 北京市顺义区天竺空港开发区A区天柱中路 16号，邮编101312 +86 (10) 5923 7777 www.dtw.com.cn Duisport Packing Logistics A, 8/F Shanghai Industrial Bldg, 18 North Caoxi Road, Shanghai 200030 上海漕溪北路18号上实大厦8楼A座， 邮编200030 +86 (21) 6427 2906 www.duisport-packing-logistics.com Elee 375, Kefu Road, Nanxiang Town, Jiading District, Shanghai 上海嘉定区南翔镇科福路375号 +86 (21) 3912 4360 www.eleechina.com Emptoris Unit 01, Floor 7, 1 Grand Gateway 1 Hong Qiao Road, Shanghai 200030 虹桥路1号港汇中心1座701单元， 邮编200030 +86 (21) 6447 6600 +86 (21) 6407 2737 8www.emptorischina.com
CEVA Logistics 19/F, Jiang Nan Shipyard Building 600 Luban Road, Shanghai 200023 上海鲁班路600号江南造船大厦19楼 +86 (21) 5302 9988 www.cevalogistics.com
FM Logistic 3 West Guangzhou Road, Taicang EDZ Jiangsu Province.
Damco 5/F, Tian An Centre, 338 West Nanjing Road, Shanghai 200003 上海黄浦区南京西路338号天安中心24楼， 邮编：200003 +86 (21) 2306 2000 www.damco.com Dajin Logistics 3000 South Lianhua Road, Prologis Logistics Park, Minhang, Shanghai 201109 莲花南路3000号，普洛斯闵行物流园区 内， 邮编201109 +86 (21) 3430 7666 +86 (21) 3430 7221 www.dajin.com.cn
江苏省太仓市经济开发区 广州西路3号 邮编：201103 +86 (512) 8889 8666 www.fmlogistic.com Geodis 3/F. OOCL Plaza, 841 Middle Yan’an Road, Shanghai 200040
LOGISTICS SERVICES 上海市静安区延安中路841号 东方海外大厦3楼，邮编200040 +86 (21) 6193 2323 www.geodis.com H&T International Transportation 5/F, China Merchandise Building 152-155 Connaught Road Central, Hong Kong +852 2543 0708 http://www.hthkg.com.hk HAVI Logistics 6 Xingsheng Jie, Beijing Economic & Technological Development Area, Beijing 100176 北京经济技术开发区兴盛街6号， 邮编：100176 +86 (10) 6788 3335 www.havi-logisitics.asia Hercules Logistics Unit 5A, Bldg. A, Shenfubao Hightech Park, No. 3, Huanghuai Road., Futian Free Trade Zone, Shenzhen, Guangdong 518038 广东省深圳市福田保税区， 黄槐道3号深福保科技工业园A栋5A， 邮编518038 +86 (755) 8358 0000 www.hercules-logistics.com
LOGISTICS SERVICES Linkstar Logistics 49A, 199 North Riying Road, Waigaoqiao Free Trade Zone, Shanghai 200131 上海市外高桥保税区日樱北路199号49A, 邮编：200131 +86 (21) 5046 1865 www.linkstarlogistics.com Logisfashion Transportation Tower, Room 1101 218, Hengfeng Road, Shanghai 上海市现代交通大厦恒丰路218号1101室 +86 (21) 5180 1781 www.logisfashion.com
13/F Tower A, Golden Eagle Mansion, 1518 Min Sheng Road, Shanghai 200135
上海浦东新区民 生路1518号 金鹰大厦A座13楼 邮编：200135 +86 (21) 6160 1198
www.menloworldwide.com
8/F Tower Block, LiFung Plaza 2000 Yishan Road, Shanghai 201103
上海市闵行区宜山路2000 号利丰广场 主楼8楼，邮编：201103 +86 (21) 2416 4700 www.idslogistics.com ID Logistics Room 19D, Dong Tai Plaza, 309 Tanggu Road, Shanghai 上海市塘沽路309号19D +86 (21) 6306 7083 www.id-logistics.com Kuehne & Nagel Block 1, 11-16F, 1868 Gong He Xin Road, Shanghai 200072 上海共和新路1868号大宁国际商业广场 第一幢11-16楼，邮编：200072 +86 (21) 2602 8000 www.kuehne-nagel.com Linfox Road Transport 26-F, Cross Region Plaza, 899 Ling Ling Road, Xuhui District, Shanghai 200030 上海市徐汇区零陵路899号飞洲国际广场26 楼F座，邮编：200030 +86 (21) 5150 6699 www.linfox.com Linghua Logistics 333 Ke Yuan Road Zhangjiang HiTech Park Pudong New Area, Shanghai 201203 上海市浦东新区张江高科技园区科苑路333 号，邮编201203 +86 (21) 5080 0107
Logwin Air+Ocean China 5/F & 6/F, Ocean Towers, 550 East Yan’an Road, Shanghai 200001 上海市延安东路550号海洋大厦5楼和6楼， 邮编：200001 +86 (21) 2326 2000 www.logwin-logistics.com Nowaday Rational Logistics 685 Huadan Road Qingpu District Shanghai 201708 上海市青浦区华丹路685号， 邮编201708 +86 (21) 5155 6226 www.heli56.com Penske Logistics Room 1801, Honi International Building, 233 Weihai Road, Shanghai 200030 上海威海路233号恒利国际大厦1801室， 邮编：200041 +86 (21) 6227 8566 www.penskelogistics.com P.G. Logistics Group 4/F, Baogong Building, 361 East Longkou Road, Tianhe district, Guangzhou 广州市天河区龙口东路361号宝供大厦四楼 +86 (20) 3848 2090 www.pgl-world.com Schneider Logistics UC Tower,Suite 1605, 500 Fu Shan Road, Shanghai 上海浦东福山路500号城建国际中心1605室 +86 (21) 5058 7970 www.schneider.com SDV International Freight Forwarding 20/F, East Building, New Hualian Mansion, 755 Middle Huai Hai Road Shanghai 200020 上海市淮海中路755号新华联大厦东楼20 楼，邮编：200020
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CLASSIFIED Listings
LOGISTICS SERVICES +86 (21) 3395 0600 www.sdvchina.com SunJet Logitics 299 Huaxiang Road, Shanghai 上海华翔路299号 +86 (21) 6127 2637 www.sunjex.com Sinotrans Guangdong 16/F, 97 Haiyuan Road, Huangpu, Guangzhou, China 510700 广州市黄埔区海员路97号外运大楼16楼， 邮编：510700 +86 (20) 8710 2800 +86 (20) 8710 8400 gd.sinotrans.com Toll 18/F, Times Plaza, 1 Taizi Road, Shekou, Shenzhen 518067 深圳蛇口太予路1号新时代广场1801室， 邮编：518067 +86 (755) 2681 9188 www.st-anda.com TNT Hoau 2239,Huaxiang Road,Shanghai 上海市华翔路2239号， 邮编201107 +86 (21) 6091 6666 +86 (21) 5080 0109 www.hoau.net Werner Global Logistics 5/F South Harbour Building, 1 Fenghe Road, Shanghai 上海市浦东新区丰和路1号港务大厦南5楼 +86 (21) 3887 9520 www.werner.com YatFai Logistics 39-H, Fortune Building, 88 Fuhua San Road Futian District, Shenzhen, Guangdong Province 广东省深圳市福田区福华三路88号， 财富大厦39楼H座 +86 (755) 3336 6898 www.yatfai.com YRC Logistics 8F, Building 2#, Xinda Commercial Building, 1158 Xiehe Road, Shanghai 200335 上海协和路1158号鑫达商务楼2号楼8楼， 邮编：200335 +86 (21) 6137 7668 www.yrclogistics.com PROFESSIONAL SERVICES Accenture 30/F, Central Plaza, 381 Huaihai Road, Shanghai 200020 上海市淮海中路381号中环广场30楼， 邮编：200020 +86 (21) 2305 3333 www.accenture.cn Baker & McKenzie Suite 3401 China World Tower 2 China World Trade Center, 1 Jianguomenwai Dajie, Beijing 100004 +86 (10) 6535 3800 www.bakernet.com BBK Consulting 17/F Lippo Plaza, 222 Middle Huaihai Road, Shanghai 上海市淮海中路222号力宝广场17楼 +86 (21) 5396 5600 www.e-bbk.com BPS Global Group Unit 3104, Tower 1, Kerry Everbright
PROFESSIONAL SERVICES City, 218 West Tianmu Road, Zhabei District, Shanghai, China 200070 中国上海市闸北区天目西路218号嘉里不夜 城第一座3104室, 邮编:200070 +86 (21) 6317 8830 +86 (21) 6317 2030 www.bps-group.net Control Risks Suite 1001 East Tower China Merchants Plaza, 333 North Chengdu Road, Shanghai 200041 上海市成都北路333号招商局广场东楼 1001室， 邮编200041 +86 (21) 5298 1800 +86 (21) 5298 0991 www.control-risks.com Demand Solutions PO Box 6180, Norwest Business Park, Baulkham Hills BC NSW 2153 +612 9659 4555 Dragon Sourcing Suite 1502, Jin Tian Di International Mansions 998, Renmin Road Shanghai 200021 上海市人民路998号今天地国际大厦 1502室，邮编：20002 +86 21 61413955 www.dragonsourcing.com ET2C International 23 Wangjiao Plaza, 175 East Yan’an Road, Shanghai 200001 上海黄浦区延安东路175号旺角大厦23楼， 邮编：200002 +86 21 5308 1220 www.et2cint.com
27/F, Room 02 418-428 Jiang Ning Road 200041 Shanghai, China
上海市江宁路418-428号 27楼02室， 邮编：200041 +86 (21) 6217 0253 www.iiaps.org InnoCSR Room 11- A2, Yujia BD, 1336 Huashan Road Shanghai 200052 上海市长宁区华山路1336号 玉嘉大厦11 楼A2座, 邮编：200052 +86 (21) 5237 7387 +86 (21) 6091 9265 www.innocsr.com Ivie Asia Room 1507, You You International Plaza, 76 Pu Jian Road, Pu Dong New District, Shanghai 200127 上海市浦东新区浦建路76号由由国际 广场1507单元，邮编：200127 +86 (21) 6165 9100 www.ivieinc.com
PROFESSIONAL SERVICES
PROFESSIONAL SERVICES
Lloyd’s Register Asia 20/F Ocean Towers, 550 East Yan’an Road, Shanghai 200001 上海市延安东路550号海洋大厦20楼， 邮编：2000012 +86 (21) 5158 5700 www.lr.org www.lloydsregisterasia.com
World-Check Unit 4C, Times Plaza, 1, Taizi Road, Shekou, Shenzhen, 518067 深圳蛇口市太子路1号新时代广场4C座， 邮编518067 +86 (755) 2688 9786 www.world-check.com
Logistics Executive Suite 13G, Shanghai Ind’l Investment Bldg. 18 North Caoxi Road, Shanghai 200030 上海市徐汇区漕溪北路18号， 上海实业大厦13楼G座，邮编：200030 +86 (21) 6427 6697 www.logisticsrecruitment.com.cn
AMB China Suite 2908, Plaza 66 II, 1366 West Nanjing Road, Shanghai 200040 上海南京西路1366号 恒隆广场二座 2908单元， 邮编：200040 +86 (21) 6135 1688 www.amb.com
Michael Page International 601-603 Shanghai Kerry Centre 1515 West Nanjing Road, Shanghai 200040 上海南京西路1515号，嘉里中心601- 603 邮编：200040 +86 (21) 3222 4758 www.michaelpage.com.cn PricewaterhouseCoopers 11/F, PricewaterhouseCoopers Center, 202 Hubin Road Shanghai 200021 上海湖滨路202号普华永道中心11楼， 邮编200021 +86 (21) 2323 8888 +86 (21) 2323 8800 www.pwccn.com Resources Global Professionals Room 2705-06, Lippo Plaza, 222 Middle Huaihai Road, Shanghai 200020 上海市卢湾区淮海中路222号 力宝广场2705-06室， 邮编：200020 +86 (21) 6386 8710 www.resourcesglobal.com Russell Reynolds Associates 4504, Jin Mao Tower, 88 Centure Avenue, Pudong, Shanghai 200121 上海浦东世纪大道88号金茂大厦4504， 邮编200121 +86 (21) 6163 0888 www.russellreynolds.com Smart Sourcing 1210-1213 Guo-Li Plaza, 1465 West Beijing Road, Shanghai 200040 上海市北京西路1465号 国立大厦1210-1213室， 邮编：200040 +86 (21) 5212 1200 www.smart-sourcing.com ThreeSixty Sourcing International 3/F, Hua Sheng Mansion, 398 HanKou Road, Shanghai 200001 上海市汉口路398号华盛大厦3楼 邮编: 200001 +86 (21) 6322 5000 +86 (21) 6352 8899 www.threesixtysourcing.com Tractus Asia Suite B, 22/F, Zhaofeng Universe Building, 1800 West Zhongshan Road, Shanghai 200235 上海中山西路1800号 兆丰环球大厦22楼B座， 邮编：200235 +86 (21) 6440 0990 www.tractus-asia.com
REAL ESTATE SERVICES
BlueScope Steel 12F HSBC Tower, 1000 Lujiazui Ring Road, Shanghai 200120 上海陆家嘴环路1000号汇丰大厦12楼, 邮编：200120 +86 (21) 6841 1898 +86 (21) 6841 2340 www.bluescopesteel.com Blogis International Logistics +86 (755) 2669 4211 www.blogis.com.cn CB Richard Ellis Suite 3201 K Wah Center, 1010 Middle Huaihai Road, Shanghai 200031 上海淮海中路1010号嘉华中心3201室， 邮编：200031 +86 (21) 2401 1200 www.cbre.com.cn Colliers International 16/F Hong Kong New World Tower, 300 Middle Huaihai Road, Shanghai 200021 上海淮海中路300号， 香港新世界大厦16楼， 邮编：200021 +86 (21) 6141 3688 www.colliers.com/china
Room 2708 Azia Center, 1233 Lujiazui Ring Road, Shanghai 200120
上海市陆家嘴环路1233号 汇亚大厦2708室， 邮编：200120 +86 (21) 6105 3999 www.GLProp.com Goodman Group 2107 - 2109, Shui On Plaza, 333 Middle Huaihai Road, Shanghai 200021 上海淮海中路333号瑞安广场2107-2109室 邮编200021 +86 (21) 6133 2000 +86 (21) 6386 2386 www.goodman.com Lingang Free Trade Port Economic Development 6/F, 188 Yesheng Road, Pudong,
63 www.supplychains.com
january/febRuary
CLASSIFIED Listings
REAL ESTATE SERVICES
REAL ESTATE SERVICES
Shanghai 201308 上海市浦东新区业盛路188号6楼, 邮编：201308 +86 (21) 2095 0600 +86 (21) 2095 0604 www.linganglogistics.com
36 Fengshou Road, Pingsha Town, Gaolan Container Port Zone, Zhuhai, Guangdong 27C Industry Building, 18 North Caoxi Road, Shanghai 200030
上海市徐家汇漕溪北路18 号实业大厦27C, 邮编200030 +86 (21) 6090 1388 +86 (21) 6090 1399 www.gsegroup.cn
广东省珠海市平沙镇丰收 路36号 +86 (756) 772 7118 +86 (756) 772 7122 www.volumeip.com Yupei Group Yupei Building, 2500 Jinchang Road, Shanghai 200331 上海市普陀区金昌路2500号宇培大厦， 邮编：200331 +86 (21) 6627 7577 www.yupeigroup.com IT & SOFTWARE SOLUTIONS
25/F, Tower 2 Plaza 66, 1366 West Nanjing Road, Shanghai 200040
中国上海市南京西路1366 号恒隆广场2座25楼，邮 编200040 +86 (21) 6393 3333 +86 (21) 6393 3080 www.joneslanglasalle. com.cn Mapletree Suite A-D,14/F, Times Square Office Building, 500 Zhangyang Road, Pudong, Shanghai 200122 上海市浦东新区张扬路500号, 华润时代广场办公楼14楼ABCD单元， 邮编：200122 +86 (21) 5836 7177 www.mapletree.com.sg
Apprise Software 6009 Changjiang Science Building, 40 Nanchang Road, Nanjing 210037 江苏省南京市南昌路40号长江科技园大 厦6009室，邮编210037 +86 (25) 8345 5308 www.apprise.com.cn Barloword Optimus 15/F NCI Tower, 12A Jianguomenwai Avenue, Chaoyang District Beijing 100022 北京市朝阳区建国门外大街甲12号新华保险 大厦15楼邮编，邮编：100022 +86 (10) 8523 3103 www.barloworldoptimus.com BravoSolution 19F-08, Chinese Overseas Building, 129 West Yan’an Road, Shanghai 200040 上海市静安区延安西路129号华侨大厦 19楼08室，邮编：200040 +86 (21) 6145 8500 www.bravosolution.com DDS Logistics & Sourcing Software Suite 2605,26/F, Hong Kong Plaza, 283 Huaihai Road, Shanghai, 200021 上海市淮海路283号香港广场26楼2605室， 邮编：200021 +86 (21) 6103 5715 www.ddslogistics.com/cn
IT & SOFTWARE SOLUTIONS Epicor Software 2008 Cross Tower, 318 Fuzhou Road Huangpu District, Shanghai 200001 上海市黄浦区福州路318号 高腾大厦2008单元，邮编：200001 +86 (21) 63912808 www.epicor.com GXS International Room 1602, 16/F, Grand Gateway Tower 1, 1 Hongqiao Road, Shanghai 200030 上海市虹桥路1号港汇广场1座1602室， 邮编：200030 +86 (21) 6120 1088 www.gxschina.com.cn JDA Software Unit 06, 29/F, Raffles City, 268 Xizang Middle Road, Shanghai, 200001 上海市西藏中路268号,来福士广场2906 室，邮编:200001 +86 (21) 2327 9400 +86 (21) 2327 9401 www.jda.com Manhattan Associates Software Unit 2110, 21/F, Shui On Plaza, 333 Middle Huaihai Road, Shanghai 200021 上海淮海中路333号瑞安广场21楼2110 室，邮编：200021 +86 (21) 6386 8800 www.manh.com Schmidt Room 2406 Huashen Mansion, 398 Hankou Road, Shanghai 200001 上海市黄浦区汉口路398号华盛大厦2406室 邮编：200001 +86 (21) 6133 9708 +86 (21) 6133 9718 www.schmidthk.com SEEBURGER Room 523-526, 5F, Cimic Tower, 800 Shangcheng Road, Shanghai 200120 上海浦东新区商城路800号 斯米克大厦5层523-526室, 邮编：200120 +86 (21) 5835 7779 www.seeburger.cn Tradecard Room B, 23/F, Jinrun Mansion, 6109 Shennan Road, Futian District, Shenzhen 518040 深圳市福田区深南路6109号 金润大厦23楼B座，邮编：518040 +86 (755) 8830 9265 www.tradecard.com
IT & SOFTWARE SOLUTIONS
Suite 1515, Silver Centre, 1388 North Shanxi Road, Putuo District, Shanghai 200060 上海陕西北路1388号 银座中心1515室， 邮编：200060
+86 (21) 6149 8042 www.supplyon.com +852 2893 3321 +852 3051 8209 www.vocollect.com CHEP (China) 40/F, Suites 8-10, 2 Grand Gateway, 3 Hongqiao Road, Shanghai 200030 上海市虹桥路3号港汇二座40楼08-10室 邮编200030 +86 (21) 6127 2488 +86 (21) 6127 2466 www.chep.com EQUIPMENT PROVIDERS Dexion (Shanghai) Logistics Equipment 155, Zha Yin Road, Shanghai 200438 上海市闸殷路155号， 邮编 200438 +86 (21) 6505 0011 www.dexion.biz Loscam Packing Equipment Room 508, 707 ZhangYang Road, Pudong, Shanghai 200120 上海市浦东新区张扬路707号508室， 邮编：200120 +86 (21) 6104 8156 www.loscam.com Schoeller Arca Systems Unit 1111-1112, Shui On Plaza, 333 Middle Huaihai Road, Shanghai 上海淮海中路333号, 瑞安广场办公楼1111-1112室 +86 (21) 3133 2081 www.schoellerarcasystems.comApprise
Vocollect Asia Pacific Unit 3, 29/F, Sino Plaza, 255-257 Gloucester Road, Causeway Bay, Hong Kong 香港铜锣湾告士打道255-257号 信和广场3单元29楼
Nanjing ZAL Management Office 18 B Deji Mansion, 188 Changjiang Rd. Nanjing 210018 南京市长江路188号德基大厦18楼B座， 邮编:210018 +86 (25) 8572 6079 info@nzmcl.com Vailog Room 702, City Gateway, 398 North Caoxi Road, Shanghai 200030 +86 (21) 6090 5292 www.realtyvailog.com
64 January/FEBrUARY 2011
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COMPANYINDEX 360buy.com ���������������������������44 Agility ������������������������������������ 18 Air France �����������������������������14 Alibaba ���������������������������������10 Amazon ��������������������������������61 AMB �����������������������������������5,63 American Conference �������������9 Apprise Software ������������������58 Asia Pacific Properties ���������25 AsiaWorld-Expo ���������������33,42 BabbleWare ��������������������������58 Bayer Healthcare ������������������51 Best Buy �������������������������������44 Blue Sea Aquatic Products Co. ����������������������������������������������16 B&Q ����������������������������21,22,45 Bright Food Group ����������������19 Caterpillar �����������������������������15 Cathay Pacific �����������������14,57 CEIC �������������������������������������39 CEVA ��������������������������12,18,62 Charoen Pokphand ���������������15 Chengniu Dairy ���������������������19 Chep ��������������������������������52,64 China Briefing �����������������������23 China Health System Ltd ������19 China Logistics Corporation �16 China Ports & Harbours Association ����������������������������39 Chongqing Food Group ��������16 Cisco ������������������������������������18 CMHI ������������������������������������39 Colgate Palmolive ����������������56 Cosco Pacific ������������������������39 Dalian Port ����������������������������39 Dangdang �����������������������������10 DBS Vickers ��������������������38,39 Dell ������������������������������44,53,56 DHL ���������������������������������41,62 Emlyon Business School ������59 Ericsson ��������������������������������19 ET2C International ���������� 28,63 EUccc �������������������������������������9 FedEX ����������������������������������41 FIS ����������������������������������������11 FM Logistics ���������������������17,62 F&Y ����������������������������������������10 GDS International Lt ���������������9 Gebrüder Weiss ���������������������18 GIUPEL S.P.A �����������������������32 Global Logistics Properties16,56,63..................... Global Resources Corporation �� 2 GMR Group ��������������������������19 Gome �������������������������������������44 Google ���������������������������������� 19 Guangzhou Port Group ��������39 Home Depot �������������������������45 Honeywell �����������������������������54 HP’s Imaging and Printing ����18 HuaNeng Group ������������������� 19 IDS ���������������������������������������62 IKEA ����������������������������������������8 Infor ���������������������������������17,58 Integer �������������������������������������9 Isetan ������������������������������������44 J2EE ��������������������������������������58 Joyo ���������������������������������������61 Junlebao ��������������������������������19 Kingfisher ���������������6,21,22,54, Korn/Ferry ����������������������������18 KPMG ���������������������������6,29,30 Kraft ��������������������������������������52 Kuehne+Nagel �����������������19,62
Leggett ���������������������������������29 Lenovo �������������������29,34,47,53 LG ����������������������������������������� 18 Maersk �������������������11,14,15,18 Martinair ������������������������������� 14 Mary Kay ������������������������������10 Media Markt ������������3,4,6,43,44 Menlo ��������������������������������� 9,62 Metro ���������������������������������8,52 Microsoft �������������������������������18 Ningbo Port Company ���������� 39 Nissan ����������������������������������14 NOL ���������������������������������11,45 Nortel Telecommunication ����19 NVOCC ��������������������������������� 14 One-Touch ����������������������������10 Pfizer Pharmaceuticals ��������� 18 Philips ������������������������������������29 Platt ���������������������������������������29 Playstation ����������������������������14 Polar Air Cargo ���������������������14 Prophet Business Services ��54 Reed Exhibitions ������������������33 Renault ���������������������������������14 RockBay Management ����������58 Rolls-Royce ���������������������������29 Saint-Gobain ������������������������52 SAP ���������������������������������56,58 SAS Cargo ����������������������������14 SCM ����������������������������45,55,58 Sequoia Capital Investment ��10 S.F.Express �������3,4,6,37,41,42 Shanghai Pharmaceutical Holdings �������������������������������19 Shenzhen Chiwan Wharf ������39 Simba �����������������������������������41 Singapore Airlines ����������������14 SKF ���������������������������������������56 Smart China Sourcing ����������23 Smith&Nephew ���������������� 18,59 Sofeast ��������������������������������� 23 SPS Commerce ��������������������57 Starbucks �������������������16,17,43 State Grid Corporation of China ����������������������������������������������15 Suning Appliance ��������15,17,44 Taobao ����������������������������������44 Tata Chemicals ���������������������30 Tesco ������������������������������������15 THE BEIJING AXIS (TBA) �����������������������������������������36,45 The Centre for Economic Policy Research ������������������������������28 The Economist �����������46,47,48 ThreeSixty Sourcing �������� 27,63 TOLL ������������������������������7,56,65 Unilever ��������������������������������56 UniSCR ���������������������������������� 9 UPS ��������������������������������������41 US Federal Maritime Commission ���������������������������14 U.S. Steel ������������������������������29 VIP ����������������������������������������19 Walmart ���������������������������14,28 World Trade 100 �������������������37 Xiamen Port ��������������������������39 yihaodian.com ����������������������55 Yongqian Textile Printing & Dyeing Co. ����������������������������16 Youku ������������������������������������15 Yunnan Haohong �������������������17
2011 Vendors Directory
New at Form
Print, Web, Mobile > Listings from all over Asia > New services categories > More Interactive features > Integrated Google mapping > Advanced search features > Multi-language interface > Listing Viewing Tracking
65 www.supplychains.com
january/febRuary
THE LINKS
The Job Hunt SALARY
By Josh Hollway Michael Page International
EMPLOYMENT FORECAST
Employment Outlook The pace of jobs growth across the procurement and supply chain sectors is expected to be steady over the next six months. Some 57% of companies surveyed for this report will increase employee numbers over this period. Chinese New Year is likely to temporarily slow down hiring activity. However a sharp rise in opportunities is expected after February 2011 as more professionals gain the confidence to make their next move. If the economy continues to strengthen over the next six to 12 months, the demand for middle management roles will increase as companies look for support in managing supply shortages. Employment Conditions Over the last 12 months, hiring activity has increased significantly across the procurement and supply chain sectors. Of the companies surveyed for this report, 71% have increased employee numbers over the last six months. As economic conditions improve, more international purchasing offices and global sourcing businesses will expand their operations again. This business growth and expansion is increasing the volume of purchasing in mainland China which is driving increased demand for raw materials. With a growing requirement for raw materials from local manufacturing operations across all sectors, strong employment opportunities will result across all levels of the procurement and supply chain sectors. Skills In Demand Indirect/Corporate Procurement Managers As companies increase their focus on controlling corporate spending, medium to large multinational comFuture retention strategies: Salary review Training and development Career development and planning
21% 14%
29%
Strong leadership/ clear communication
0%
5%
10%
15%
20%
25%
30%
40%
panies are particularly eager to source these professionals. In 6 months, Supplier Quality Experts employment will: Professionals with experience in global sourcing are increasingly required due to the rise of global low 29% cost sourcing in mainland China and 57% the trend toward high quality assur14% ance requirements. Required skills include: English language skills, strong supplier knowledge, a technical background, deep industrial/ product knowledge and great communication skills to work with local In 6 months, will suppliers and overseas colleagues. salaries increase? 3PL Market Solution Design Engineers are particularly sought after by 3PL 24% companies, who are familiar with 62% supply chain upstream functions 14% are required to help support manufacturing operations and procurement for clients. Employers are Yes looking for experts with operations No experience in warehouse manageUnsure ment or handling transportation, and the ability to integrate theory In 1 year, will a and practice when generating cliprofessional skill shortage be an issue? ent proposals. Retail/FMCG Industry Logistics 3% Managers 8% Companies are seeking professionals with operations experience in import customer clearance and/ or export declaration, as well as a familiarity 24% with DC/warehouse operations and international and domestic transporYes tation. 3PL professionals with operaNo tions experience are being considered Unsure for in-house logistic roles.
ADVICE FOR EMPLOYERS
ADVICE FOR JOB SEEKERS
To attract and retain top performers, employers should: • Provide clear career progression opportunities • Invest in training and skill development
Job seekers planning to change roles in the next six months should: • See if the opportunity exists to expand or upgrade their current role first • Investigate the stability of a potential role/company • Consider the non-financial and long term benefits of changing roles
66 January/FEBrUARY 2011
www.supplychains.com
DON’T MISS OUT!
List your company in the most comprehensive directory of supply chain & logistics related services in Asia.
VENDORS’ DIRECTORY
NOW on Print, Web, Mobile! • Logistics Services
• IT & Software Solutions
• Professional Services
• Equipment Providers
• Real Estate Services A comprehensive bi-lingual listing of vendors, service and equipment providers, consultants and IT solutions providers for the supply chain and logistics industry Companies are listed according to their specific service offering
Integrated Google mapping Advanced search features Multi-language interface Listing Viewing Tracking
Listings from all over Asia New services categories More Interactive features
Who should list in the VENDORS’ DIRECTORY? Any company that provides services, solutions and equipment in the supply chain logistics, manufacturing and procurement spaces should be listed.
How much does a company listing cost? A 12 month listing in the Vendors’ Directory costs US$ 299 for a premium listing and US$ 699 for a showcase listing (Council members can enjoy a 40% discount). The price includes a one year listing online, print edition and mobile.
Who reads the VENDORS’ DIRECTORY? The Directory is read and used by key decision-makers in companies that regularly buy and use supply chain and logistics services and facilities in Asia. These are the people that decide which supply chain and logistics service providers to use.
How is the VENDORS’ DIRECTORY distributed and promoted? Targeted at qualified decision-makers, the directory is distributed free-of-charge to subscribers of CHaINA Magazine and companies based in Asia who request a copy (companies are only asked to cover the mailing cost). Copies are distributed by direct mail and are given out at more than 50 supply chain and logistics-focused events each year.
To find out more about how the VENDORS’ DIRECTORY can contribute to your marketing needs in China, please contact: +86 (21) 6280 1232
directory@supplychain.cn
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JANUARY / FEBRUARY 2011
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