U 20 PD 1 AT 4 E
State of Logistics China Survey 中国物流行业状况调查
State of Logistics China Survey
中国物流行业状况调查
Introduction:
Trends and comparison to the 2012 survey
With the outsourcing of services by companies being a common practice in China, the Global Supply Chain Council conducted an online survey involving executives from a range of firms. The survey aimed to gain a better understanding of the current state of logistics in China as well as future prospects and expectations.
As this is the second edition of the State of Logistics China Survey it is therefore important to note the key improvements or dissatisfactions in comparison to the first edition in 2012. There are now more respondents who are satisfied with their 3PL in China, a 4% improvement from the previous survey. Intra-China logistics costs as a percentage of sales averaged 9% this year, a 3% improvement from the average reported in 2012. High cost is still a major problem for respondent’s logistics in China, but it is a 5% improvement from the previous survey. Competitive pricing and reliability are still the two most important criteria in selecting a 3PL in China. Reducing cost was again cited as the key objective for companies in 2014, yet has experienced a decrease in significance relative to 2012.
Findings revealed that direct transportation and customs services were still those most commonly being outsourced by companies in China. Respondents reported that the main problems being faced with logistics were related to cost and reliability of services. A significant level of dissatisfaction with logistics providers was also reported which was again related to price, but also overwhelmingly to issues with service level and professionalism, as well as poor IT and infrastructure. Price again proved to be the biggest factor in the selection of a logistics service provider in China.
Management level of respondents 9% 6%
14% 5%
CEO
Vice President
General Manager Manager Director Supervisor
Employee
Main industries of respondents 9%
FMCG
调查结果表明，中国企业最常外包的业务 仍是运输和海关报关服务。受访者称，物 流业面临的主要问题与成本和服务可靠性 有关。受访者对物流服务供应商有相当程 度的不满，除了价格因素，绝大多数关乎 服务水平、专业度和较差的IT 和基础设 施。价格再次成为在中国选择物流服务供 应商时最为重要的因素。
In the first two months 2014, a total of 218 respondents took part in the State of Logistics China Survey via an online questionnaire, a 23% increase in participation from our survey in 2012. The majority reported working at management level positions and in mostly logistics related fields. The survey aimed for the purpose of getting a snapshot of the current market situation and the main problems impacting logistics service providers in China. The survey also aimed to discover future plans, expectations, priorities, strategies and objectives relating to logistics practices and services in the country. Demographics
The demographics of the respondents varied from CEO’s to company employees. 14% identified themselves as CEO’s, 5% as Vice President’s, 9%and 12% 14%as General Managers or Managing Directors. 19% identified 6% themselves as Directors, 34% as Managers, 6% as supervisors, and 9% 5% as company employees.
34% 19%
企业业务外包在中国已然成为常态，全球 供应链协会（Global Supply Chain Council） 由此开展了一项网上调查，旨在更好地了 解中国物流业的现状、未来前景和期望。 受访者包括多家公司的管理人员。
Methodology:
12% 34%
引言
Over one third 12% (34%) of respondents were in direct logistic related responsibilities, 27% in broader supply chain functions, and 18% in corporate management.
19% The company demographics associated with the respondents were well represented within core industries, with 9% in FMCG, 8% in Retail, 8% in Industrial Equipment, 8% in High-Tech, and 7% in Automotive. Other industries represented included logistic services (17%), other CEO、总裁 副总裁 professional services (12%) and chemical (5%), and healthcare (3%). 总经理 经理 The 员工
总监
管理 of companies (28%) reported total annual revenue in majority China of over 1 billion RMB. 16% of the companies reported with total annual revenues of 100 – 500 million RMB, and 22% at the other end of the scale at less than 10 million RMB.
受访者的职位
9% 6%
9%
14%
14%
6%
5%
5%
12% 34% 19%
CEO
Vice President
General Manager Manager Director Supervisor
12% 34%
9%
FMCG
19%
8% 8% 8% 7%
Employee
High-Tech
CEO、总裁 总经理 经理 员工
Industrial Equipment 副总裁
Retail 总监 管理
Automotive
受访者的主要行业
12%
快速消费品
8%
High-Tech
8%
Industrial Equipment
8%
工业设备
8%
Retail
8%
零售
Automotive
8%
汽车行业
7%
12%
快速消费品
10%
高新技术
State of Logistics China Survey
中国物流行业状况调查
Among them, 36% of respondents cited that service levels and professionalism of their 3PL was the main reason of dissatisfaction, yet this result is still a 18% improvement from two years ago. This result corresponds to a similar trend seen in Western countries, where there is a notable increase level of satisfaction with their 3PL’s. 19% of respondents are quoting poor IT or infrastructure provided by 3PL’s as a reason for dissatisfaction. This result is showing an IT gap, but China is quickly catching up as companies invest more heavily in IT systems and increasingly in best-of-breed SaaS solutions.
8% 30% 61%
Reasons for dissatisfaction
Se pr rvic of e es le si ve on l a al nd is m in fra P st oo ru r ct IT ur / e
19%
n
U
18%
ss t ne es g n v illi in w to
14%
13%
e ric
In to abil i ci my ty to rc p um ar ad st ticu ap an la t ce r s
36%
61% of respondents reported being satisfied with their current logistics service provider in China, a 4% increase from the previous survey conducted two years ago. Despite this, a solid one third of respondents are still dissatisfied with their 3PL’s in China.
The inability of the provider to adapt to particular circumstances (18%) is also another area expected to improve as the level of competition increases among the local providers. Price (14%) and unwillingness to invest (13%) were still a constant source of dissatisfaction for respondents. Another respondent stated that they are dissatisfied because their 3PL cannot provide everything they need. There weren’t any respondents who listed innovation as the main source of their dissatisfaction, which we find to be quite interesting. For in the 2013 Third-Party Logistics Study conducted by Penn State and Capgemini, 53% of respondents quoted that they are dissatisfied with their 3PL provider’s ability to innovate.
P
Criteria for selecting a logistics provider in China
现有第三方物流满意度
强烈不满 1% 非常 满意
8%
不满意
30% 满意
61%
不满的原因
36% 19%
18%
无 特 法 殊 适 状 应 况
1%
Satisfaction with current logistics service provider:
服 信 务 用 水 不 平 合 与 格 IT /基 础 不 设 合 施 格
Satisfaction with current 3PL
14%
13% 资
格
投
价
愿
不
The survey also revealed some of the criteria for selecting a logistics provider in China. The most important factors in selecting a 3PL in China were respectively competitive pricing with 24% of respondents, and reliability of service providers with 17%. Other factors that influenced selection included safety and security (14%), quality of assets (7%), and advanced IT capability (7%). One respondent also listed the Total Customer Experience as another criterion for selecting a 3PL in China. Compared with two years ago, price is relatively less important in the process of selecting a service provider. The percentages may have changed, but competitive price and reliability still have the utmost importance in the decision.
24%
Main criteria for selecting a 3PL in China 17% 14% 7%
Competitive Reliability price of service
Safety and security
7%
Quality Advanced IT of assets capability
As a comparison, selection criteria in Western countries are usually focused on cultural alignment, company infrastructure, and their IT capability. As China continues to move up the value chain, there will be a continued focus on other value-add variables besides cost. PWC published a report on the state of logistics in China for German companies in early 2012, conducted in May 2011. The survey revealed that price was ranked fifth in level of significance when choosing a 3PL in China, with factors such as punctuality and quality being the most important. The demographics of their respondents widely differed from ours with engineering comprising 40% of the industries surveyed. Their respondents were also primarily middle managers so it can be deduced that they are more focused on execution than cost control. We find this survey to be an interesting comparison, yet we understand that relevance of price often differs depending on the industry.
在中国选择物流供应商的主要标准
24% 17% 14% 7%
有竞争力的价格 可靠的服务 安全性
7%
资产质量 先进的IT能力
State of Logistics China Survey
9%
average logistics cost as % of sales
Key Contributor to Logistics costs in China
中国物流行业状况调查
Key contributor to Logistics costs in China
International freight (31%) and Domestic freight (31%) were the greatest portions of logistics costs for the respondents. Warehouse/ Distribution Centers (21%), Logistics administration (8%), and Intracompany transportation (6%) were other contributors for the respondent’s logistics costs in China. Another respondent listed Customs/CIQ charges also as a key contributor to their costs. In the U.S. there has been a recent rise in the cost of transportation and storage, with total transportation accumulating 63% of logistics costs. (CASS Annual State of Logistic Reports, 2013) Logistics costs as a percentage of sales
3%
6%
8%
31%
21% 31%
Transport packaging
22%
people voted Reliability of 3PL’s as the biggest problem impacting the respondent’s current domestic logistics.
Intra-China logistics cost as percentage of sales averaged around 9%, which is a 3% improvement from two years ago. Average logistics costs as percentage of sales in the US range between 7 to 13% for non-‘best-in-class’ companies. Assuming these figures to be a close representation of the market, we are currently witnessing a drop in Intra-China costs over the past two years. The average composition of logistics costs include: ~50% for transportation, ~22% for inventory carrying, ~10% for labor, ~8% for customer service, ~4% for rent, ~3% for administration, ~2% for supplies, and ~1% for other. (Source: Establish, Inc. / HWD & Grubb & Ellis Global Logistics) With new technologies and more efficient techniques you can argue that there is always utilization improvement opportunities. Yet while companies want to increase efficiency and reduce costs, it is still important to maintain the same level of quality and customer satisfaction. The problems impacting respondent’s intra-China domestic logistics
9%
是物流成本占 销售额的平均百分比 影响中国物流成本的关键因素 3%
6%
8%
31%
21% 31%
货运包装
公司内部的运输
国际货运
国内货运
仓储配送中心
物流管理
Reliability of 3PL’s (22%) was voted as the biggest problem impacting the respondent’s current domestic logistics. This states there is a 4% increase in reliability compared with two years ago. High cost (18%) was again a problem in China, yet also a 5% improvement from the previous survey. Quality of data tracking (15%) was voted the third most significant problem, yet made a significant improvement from the previous survey. Another respondent listed countrywide support from a sole logistics company as main problem in China. As the size of China’s land is comparable to that of Europe, we therefore thought it would be interesting to see what are some of the problems that are faced in Intra-Europe today. Currently there are many customs procedures in Europe that are in place to determine EU and non-EU goods. There are also many difficulties with air traffic control based on national borders and not traffic flows in Europe, causing many delays and strains on efficiency in logistics. As is the case with North America, old infrastructure is putting more strain on the flow of logistics in Europe.
22%
的受访者 表示第三方物流的可靠性 是目前国内物流的最大问题
State of Logistics China Survey
中国物流行业状况调查
Top drivers for logistics in China 17% 15% 14%
Operational Excellence
Talent
13%
12%
10%
Culture of Technology Process Exposure to Continuous Integration overall Improvement business challenges
Innovation within logistics
For the first time the survey explored the state of innovation in logistics throughout China. Of the respondents, 44% believe that they innovate sufficiently within their organization’s logistics functions in China. While 42% believe that they do not, and 15% do not know whether they innovate sufficiently. Respondents were also asked about what are the key drivers for logistics in China. Operational excellence (17%) talent (15%) and a culture of continuous improvement (14%) were voted the most important in their search for innovative solutions. Other drivers were technology (13%), process integration (12%), and exposure to overall business challenges (10%). Another respondent also listed customer expectation as a key driver for their firm in China.
Increase in Shipping Costs
More complex invoices
39%
31%
Unclear regulations
30%
China’s Value Added Tax:
In early of 2012, China began a process of phasing in a VAT system to compliment and eventually replace the existing Business Tax (‘BAT’). This affects logistics in two main areas, the new 11% VAT rate for transportation industries replaces the previous 3% BAT; while storage, delivery and cargo forwarding services adopt 6 percent VAT, replacing the previous 5 percent BAT. According to the survey, 39% of respondents claim that the VAT caused an increase in shipping costs. Others stated that more complex invoices (31%) and unclear regulations (30%) were also a difficulty this reform has caused.
Import predictions for the next 1-+2 years
9% 15%
High Fashion Medical
18%
Mobile and Telecommunication
19% 27%
17% 15% 14%
卓越运营
人才
The survey also tackled what they believe will be the most innovative practices or solutions in China. Respondents reported being interested in a number of innovative logistics practices or new initiatives in China. Collaborative carrier management (20%), reverse logistics (16%), and cross docking/flow through (15%) were the most popular response. Other practices that were of interest to respondents included consortium transport buying strategies (10%), and customer specific packaging (10%). Another respondent also listed pallet pooling as a type of logistics innovation they are interested in China. In the U.S. as a comparison, many companies have been in investing in analytics such as big data within logistics. In a study conducted by TATA consulting services, big data investments in logistics and distribution have achieved the greatest ROI with 78% compared to other sectors.
Effect of China’s VAT on logistics operations
中国最具创新的物流解决方案
Import prediction for the next 1-2 years
The majority of respondents believe that Industrial and Manufacturing components (27%) will dominate China’s import over the next 1-2 years. However others believe that the automotive industry (19%), Mobile and telecommunication (18%), and Medical (16%) will dominate. The oil and automobile industry is quoted by many external sources as most likely to dominate China’s imports over the next few years.
9% 15%
13%
不断进步的 企业文化
技术
流程整合
面对整体 业务挑战
Medical
中国的增值税对物流运作的影响 Mobile and Telecommunication 增值税导致了 改革后
18%
运输成本的上升
10%
High Fashion
发票更复杂
19% 39%
Automotive Industry31%
27%
Manufacturing Components
规章 不明
30%
未来一两年内的进口市场预测
9% 15%
高级时装 医疗
18%
移动通信
Automotive Industry
19%
汽车行业
Manufacturing Components
27%
工业和制造业
The regions that expected to dominate this import are Europe (31%), North America (30%), and APAC (24%).
12%
State of Logistics China Survey
Top three objectives for 2014
20%
14% Improving visibility in the supply chain
improving service levels to customers
25%
中国物流行业状况调查
2014 年度供应链的三大目标
Top three supply chain objectives for 2014
Reducing cost (25%) was again cited as the key objective for companies in 2014, yet a decrease in significance from the previous survey. The next supply chain objective for companies in China was identified as improving service levels to customers (20%), a new trend listed in the survey. Improving visibility in the supply chain (14%), another new trend, was another main objective for 2014. Also one respondent listed solidifying the domestic network as a key objective for their firm in 2014. This year the focus on reducing costs is still have the greatest importance, but it is still a significant decrease from two years ago. Improving service levels to customers is a new leading objective for companies striving to keep up with changing trends and demands, especially as sophisticated as the new Chinese consumer.
Reducing cost
要点回顾
HIGHLIGHTS • 61% of respondents reported being satisfied with their current logistics service provider in China • 40% of respondents reported the main intra-China logistical problems to be related to cost and reliability • Operational excellence (17%) was voted the top driver for innovation within respondent’s China operations during 2013 • Over the next 1-2 years, 27% of respondents believe that Industrial and Manufacturing components will dominate China’s import • One fourth of respondents (25%) felt the top supply chain object for 2014 is reducing costs
• • • • •
61% 的受访者对他们目前在中国的物流服务供应商表示满意 40% 的受访者认为中国物流的主要问题与成本和可靠性有关 卓越运营（17%）是 2013 年度受访者在中国运营中最重要的创新驱动力 在未来一两年内，27% 的受访者认为工业和制造业将主导中国进口 四分之一的受访者（25%）认为 2014 年度供应链的首要目标是降低成本
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Founded in 2002, the Global Supply Chain Council is Asia’s leading professional organization serving a fast growing community of more than 50,000 executives and representing leading companies who view their value chains as a critical driver of shareholder value and competitiveness. As an independent professional organization, the Council’s mission is to stimulate the understanding and adoption of supply chain management by providing a range of services including a social platform, websites, magazine, directory, newsletters, research, workgroups, conferences, maps, video among other services. For more information, please visit www.chain.net Global Supply Chain Council成立于2002年，是亚洲领先的专业机构，服务于快速发展的超过5万高层管理者团体，代表了 视自己价值链为股东价值和竞争力的一个关键驱动的龙头企业。 作为一个独立的专业机构，Global Supply Chain Council的使命是通过提供一系列的服务，包括社交平台，网站，杂志，指 南，通讯，调查，专题研讨会，会议，地图、视频以及其他的服务，以促进供应链管理的了解和应用。有关详细信息，请访问 www.chain.net
Established in August 2007, CEVA Logistics has now become one of the world’s leading supply chain companies. We design and implement industry leading solutions for large and medium sized national and multinational companies. Approximately 50,000 employees are dedicated to delivering effective and robust supply chain solutions across a variety of sectors in over 170 countries. CEVA started operations in China since 1988. Growing with the market, CEVA has 88 sites throughout mainland China, Hong Kong and Taiwan and 14,000 employees specialize in all aspects of supply chain. CEVA is not only a multinational company but also a domestic player in China market. CEVA成立于2007年8月，如今已成为全球最大的物流公司之一，为国内外大中型企业设计并实施业内领先的物流解决方案。 在世界各地，我们5万余名公司员工，为全球170多个国家提供高效而稳健的物流服务。CEVA在中国的业务始于1988年，现已 在中国大陆、香港及台湾设立了88个营业点，拥有14,000多名员工，提供全方位的供应链服务。CEVA不仅是国际领先的物流 公司，也是中国国内市场的有力参与者。