Logistics being out-sourced

[photopress:logisctics_SAIC_1.jpg,full,alignright]Shanghai Automotive Industry Corporation (Group) (SAIC) and Anji-TNT Automotive Logistics have worked together — never a bad idea — to use Anji-TNT’s services to aid and abet SAIC’s core businesses including the supply of parts, the assembly of complete motor vehicles and the distribution of complete motor vehicles.

In the same way Baosteel has signed three long-term contracts of transportation with China Ocean Shipping Companies Group (COSCO) and COSCO Group became the largest cooperation partner of Baosteel’s 300,000-ton vessels in the world.

He Dengcai, Deputy Secretary General and Director of the Research Chamber of China Federation of Logistics & Purchasing said, ‘Such events are of symbolic significance and mean that a trend of manufacturing and logistics developing together has begun.

‘Analyzed in terms of industries, the trend of separating out-sourcing logistic operations from manufacturing has stretched out from enterprises of household electric appliances, electronics, and fast moving consumer goods several years ago to enterprises in the upper stream in such industries as iron and steel, building materials, and motor vehicles.’

He Dengcai said, ‘Under pressures due to the enlarging demands for logistics and the increasing costs, more and more manufacturing enterprises begin to attach importance to the integration of logistic functionality, conduct flow restructuring, and separate and outsource logistic businesses strategically so as to get more absorbed in the cultivation of the core competitiveness.’ (I think that means outsourcing.)

He said: ‘As modern logistic modes have accelerated their expansion towards purchasing, supply chain management has been developing fairly rapidly in China recently.’

Pushing that part of the business on to an expert partner makes some considerable sense.
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Source: China Economic Net