China's Logistics Sector Advancing?

Logistics efficiency higher than commonly believed

The answer is yes according to new research from the Global Supply Chain Council and logistics services provider FM Logistic. Their China Warehousing and Transportation Survey revealed that the logistics sector in China may be more globalized and advanced than industry players think.

"Our research indicates that logistics efficiency in China -- measured by logistics costs as a percentage of sales -- may be higher than commonly believed. The average of our respondents' reported costs, about 10% of sales, is much lower than commonly cited estimates of China logistics costs as a percentage of GDP," explained Max Henry, founder of the Global Supply Chain Council.

Jean-Cyprien Onteniente, China Sales Director for FM Logistic, adds, "People answering the survey clearly indicated that service quality is a more important factor than price when they are evaluating logistics services providers. It is good to see that the 'price-is-everything' mentality is less common in the market, and that companies understand that service quality is a substantial contributor to overall performance and profitability."

Te Global Supply Chain Council is an industry association headquartered in China. It reaches a community of over 65,000 supply chain professionals in China, India and Vietnam.

To read the executive summary of the survey, click on

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