[photopress:logistics_lu_jiang_1.jpg,full,alignright]If you sell more goods you have to move them around — logistics — and therefore the direct correlation is more goods, more logistics. Elementary stuff. Yet the figures continue to astound.
According to the China Federation of Logistics and Purchasing (CFLP for short) last year China’s total logistics flow rose 25.5% to RMB74.8 trillion or US$10.27 trillion.
Lu Jiang, chairman of the CFLP said that domestic logistics enterprises faces challenges including competition from foreign companies, insufficient information technology support and transportation methods.
These are called growing pains. When you start talking about a $10 trillion industry it is a given the big will get bigger and, unless they are very specialized, the smaller players will proably get amalgamated.
Lu Jiang said there were challenges facing domestic logistics enterprises, including insufficient information technology support and transportation methods that were sometimes less than the state of the art.
He also said, ‘Although the industry maintained stable development in 2007, competition from foreign peers will mount in 2008 and the domestic logistics sector will see increasing openness.’ Which is a bit statig the obvious.
Sources: RTT News and Window of China