【正文】 inthecity? AlsoserveeasternChinaandthewholecountryShanghai Commercial Logistics CenterPublic Policy and Spending2 ? Highwaydensitywillgrowtoabout1650km/inyear2023? InvestRMB270BntoupgraderailwayinfrastructureNewrailways,electricrailways,highways,expresswaysareinphase:Interviews with SOEs and foreign invested enterprises in China indicate a relatively strong interest in outsourcing logistics servicesSource:.Kearneyfieldinterviewsandresearchn SOEsusuallyhaveownwarehousesandtruckingdivisions,therefore,theydemandlesswarehousing,transportationandotherrelatedvalueaddedservices.However,infaceofincreasedpetition,SOEshaveagrowinginterestinoutsourcinglogisticsn Foreigninvestedenterpriseshavethehighestrequirementforlogisticsservicesintermsofrangeandquality.ThesepaniesareextendingtheirsupplychainsintoChinareplacingmiddlemenwhousedtogetChinaorigincargototheport.MNCswillbelookingforlogisticsservicespaniesinChinatohelpthemfillthevoidn Import/exportpanieshavetheleastdemandforlogisticsservicesproviders,becausemostofthesepaniesalsoprovidetransportation,customsclearanceservices,etc.Remarks% of Respondents with Interest in Outsourcing Logistics Services (2023)Increasing Interest in Outsourcing for Logistics Needs3Chinabased panies have a positive attitude towards purchasing advanced logistics services and quality, speed, and price are the most important purchasing criteriaNote: (1)SurveybytheChinaWarehouseAssociation(2023)Attitudesandpreferencesfordistributionof450largeandmediumsizedenterprises(2)Therespondingenterprisesdealinelectricalhomeappliances,electronics,foodstuffsandchemicalsfordailyuseSource:Chinainfobank,ChinaWarehouseAssociate,.Kearneyfiledinterviewsandresearch7%22%26%29%44%52%64%75%Looking for distribution servicesPrefer transportation paniesUse general logistics agentsPrefer trunk line servicesLooking for new logistics agentsHire third party agentsHope that new logistics providers will provide prehensive logistics servicesLooking for modern logistics paniesInterest in Logistics Services – Survey Results (2023)Logistics Services Purchasing Criteria ChinaNetworkDocumentationReputationInfo TrackingProfessionalismPriceService SpeedService QualityRelative ImportanceHighAvg. = Increasing Interest in Outsourcing for Logistics Needs3LowOnline transactions provides an additional source of growth for logistics servicesSource:ResearchReportofChinaEBusinessAssociationandNetworkEvaluationCenter,Apl.2023Growth of Online Transaction in China(US$, Bn)B to B(US$, Bn)B to C(US$, Bn) CAGR (0004)B2B: 53%B2C: 167%Growing IT and EBusiness4n IndustryPublicinformationplatform?Reducingcostandoverlapininvestment,informationsharen Customers/shippers?Standardbarcodingsystem,easierforoutsourcing?Betterfacilitiestomunicatewithserviceproviders,easiertomanageandsupervisen ServiceprovidersIntra?Costreductionfromhigherefficiency?Betterservicequality,becauseofinter/intraenabledrealtimecargotracking,etc.?Broaderservicerange,.tradeconsultingCurrent Industry Initiatives2. Service DemandCustomers are increasingly demanding high value logistics service solutions, requiring global reach and advanced supply chain management capabilitiesService Demand Global Trendsn Traditionally, cost reduction has been the main reason for panies to outsource logisticsn Today, customers are increasingly demanding more advanced services and endtoend solutionsn “DemandPull” logistics requires the logistics service providers to be flexible and to ‘control’ a large part or the entire supply chainn Leading logistics service providers are developing logistics onestopshops from raw material sourcing to delivery of finished goodsn Customers are increasingly interested in contracts with both fixed and variable pricing schemes based on risk sharingn The opportunity for risksharing contracts is considered to be greatest in transportation and inventory managementService Demand China Trendsn In the China market, logistics demand is still posed of basic services, such as transportation and warehousingn Going forward, demand for logistics services in China will mainly e from Transportation/Distribution, Warehousing/Consolidation as well as Customs Brokerage and Forwardingn The quality of logistics services offered in China are not good – as indicated by poor performance on ontime delivery, cargo loss and document accuracyn However, satisfaction levels for logistics services in China are relatively high, possibly indicating low expectationsService Demand Global TrendsTraditionally, cost reduction has been the main reason for panies to outsource logistics1. Reduce and control operating costs2. Improve pany focus3. Gain access to worldclass capabilities4. Free internal resources for other purposes5. Resources are not available internally6. Accelerate reengineering benefits7. Function difficult to manage/out of control8. Make capital funds available9. Share risks10. Cash infusion15%–25%15%10%–15%6%–8%3%–5%4%–6%20%–28%10%–15%10%–12%7%–10%10%–13%Estimated Cost SavingNote: (1)Useof53footequipment(2)Consolidation,schedulingandmodeselectionSource:CSFBHard Savings (mainly transportation)?Dynamicconsolidation?Dedicatedoperations?Modeconversion?Cubeutilization(1)?Carrieroptimization?Ratemanagement?Inbound(2)Soft Savings (mainly warehousing)?Reverselogistics?Locationstudy?Inventory?DistributiondesignsystemAreaTopten Reasons Companies Outsource LogisticsToday, customers are increasingly demanding more advanced services and endtoend solutions, such as supply chain integration733333333475353536666667373808087LaborCostSavingsTransportationCostSavingsAccesstoSkillsFreedomtoFocusonCoreCompetenciesCapitalAsset16