At this year's China conference in Shanghai delegates called for better and more consistent standards to stabilise the industry.
“The price of logistics service has declined, and the economics of small and medium sized LSPs have been hurt severely. Some companies have been experiencing an extreme loss.”
Wei Yong, Economic Operation Bureau Transport and Logistics, Division Chief, National Development and Reform Commission (pictured)
“We should study politics as well as economics. You cannot get rid of the OEM-owned companies just because their efficiencies are low. We need to create more job opportunities and in this way the society will be stabilised. We should not just drive them out of the market.”
Ma Zengrong, Vice General Secretary, China Automotive Logistics Association of CFLP
“We have seen that China has lots of infrastructure for a shared network. In north China, where FAW and Toyota are the main players, we would find a lot savings by better sharing the resources.”
Dr Feng Junxia, Logistics Department Manager, FAW
“I do not discriminate against a local Chinese company or an international one, but the limit is that, if you don’t have an overseas branch in North America or wherever the origin is, then I cannot trust you that you deliver my product on time. There is no way to convince me otherwise.”
Jack Huang, Director Supply Chain, Magna
“Delphi must have all contracts with variable fuel factors – we’re actually getting a fuel rebate in Asia today. We have nearly 50 warehouses and cross-docks in Asia Pacific, and we pay by variable contracts. We only pay for what we use and if we can in-source, then we don’t pay for it.”
Delphi, Dr Jeffrey Richards, Asia Pacific Logistics Directory
“European, American, Korean and Japanese already have large scale reputations, and can negotiate with associations and governments, like in Russia. China is less qualified and experienced – for these Chinese carmakers, they are in an inferior position to negotiate things like customs. In my opinion, the ministry of commerce can play a bigger role.”
George Ho, Senior Logistics Manager, Geely International
“If suppliers send us parts damaged by poor packaging, and Ford has to send them back 10,000 miles to North America by airfreight, guess what? We’re going to pass on those costs to you [suppliers].”
Carroll E Pickett, MP&L Director, China Sourcing Office, Ford Motor (China)
“We need to agree to speak the same language and establish industry standards for packaging. Sometimes in China, you don’t even have the same standard in one plant.”
Jean-Luc Guenard, Business Development Director China, CHEP