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Service and quality first: at a price

Supply Chain ChinaGlobal Supply Chain Council, in partnership with FM Logistic, launched the 2009 Warehousing and Transportation Survey in late spring, to assess the current situation in the sector. 
The results show an industry in good health:
75% of customers say that they are "satisfied" (67%) or "strongly satisfied" (8%). 
Those answering "dissatisfied" are strongly correlated with those who manage less than 5,000 square meters of warehouse space.
 
The result is consistent with other research done on services purchasers in China: service quality is a more important decision driver than price once a deal has been done and service has started .
A 2007 survey by the Council found the same thing.
65% of those who reported dissatisfaction with their 3PL responded that "service quality and professionalism" is the cause of their dissatisfaction, with "price" and "inability to adapt" far behind at 43%.
 
However later questions showed that people rank service quality as the highest priority but are not in fact willing to pay for it—that price is more important than respondents indicate.

Global Supply ChainChina  carries a very full coverage by John D. Van Fleet, a director of marketing solutions for the Global Supply Chain Council. 

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