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China Logistics Sector Continues To Expand

China Supply Chain Insights - New and expanded inland factories have boosted job opportunities in second, third and fourth tier cities throughout China.

This increased employment, together with the related economic benefits and enlarged consumer spending power, expands the consumption market further afield throughout domestic China – the Workers have become the Shoppers.

There isnow thereforean important need for distribution channels to get products to market throughoutthe hinterland into third and fourth tier cities, which increases demand for domestic contract logistics solutions.

Contract Logistics solutions to deliver consumer products throughout the nationwide domestic market now include extensive logistics facilities networks

around the country, with configurations ranging from five to fifteen multiple distribution centres (DC’s), typically supported by three or four regional distribution centres

(RDC) in tier one cities. This in turn is impacting the property development sectors, driving increasing demand in the industrial sector for land and large facilities to be used for logistics purposes.

All these developments are positive for the logistics industry and will therefore enable improvements in product supply chains for both local and global markets. The domestic transportation network will only keep on getting bigger and stronger, with ongoing investments of billions of dollars in infrastructure expansion. At the same time, we can also expect China’s logistics industry to continue to improve due to market - led factors, government initiatives, the growing presenceof multi

-national service providers and increasing adoption of international best practices.

Learn more about the exciting developments in China’s Logistics Sector at the 9th China (Shenzhen) International Logistics and Transportation Fair (CILF 2014) taking place in Shenzhen, China during 14 -16 October 2014.

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