Drive Is On To Move From China Price To World Class Automotive Logistics

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20th March 2009, 02:09pm - Views: 812

People Transport Automotive Logistics China Conference 1 image

Drive is on to Move From China Price to World Class Automotive Logistics

SHANGHAI, Mar. 20 /PRNewswire-AsiaNet/ --

    Boosting performance rather than cutting price is the major challenge

facing the automotive logistics sector in China, according to key executives

in the sector. Car-makers are increasingly anxious that rising labour costs

and increasing competition in the domestic market mean that logistics

efficiency must be dramatically improved.

    'From China Price to World Class' is the theme of this year's principal

gathering of logistics professionals, who will be at the Automotive Logistics

Conference in Shanghai from 20-22 April.

    Logistics management including Dr Feng Junxia of FAW, George Ho of Geely,

Jack Cheng of Fiat and Cliff Chen of BMW will be present, along with outward

facing supply chain directors including Carroll Pickett of Ford and Jeffrey

Richards of Delphi.

    Improvements in China start with visibility and planning in the supply

chain. 'A common phrase in China regarding shipping quantities is that 'it is

close enough' to the requested level,' says Karl Neumaier, director of Asia

Pacific supply chain management for Visteon, a major Tier One company. 'A

supplier says that it has shipped 150 units, but 148 arrive. In North America

the supplier could be disqualified for this type of service.'

    He and other senior figures in the sector was speaking to Automotive

Logistics magazine, which is organising the conference.

    Another challenge is the mixture of manual and IT processes used in

China. 'We obtain an electronic version of the purchasing plan from the OEM,

and then enter it into (our) system manually', says Wang Lin, who handles

information management for Dongfeng Honda's principal logistics provider,

Wuhan Dong Hon Logistics. 'Only then can we generate a logistics plan.'

    Transport is dominated by small, local providers. 'Basically the driver

has a mobile phone and most communication is manual,' says Karl Neumaier.

    Finally, for movements of finished vehicles capacity has dramatically

improved, but there is a need for co-ordination. 'We have been investing in

infrastructure for several years,' says Owen Xie, senior manager for

automotive at NYK Logistics. 'Now it is time to integrate them.'

    Conference Director Louis Yiakoumi commented: 'All these challenges will

not be overcome without the collaboration and search for solutions which a

gathering of all the principal players together can produce.

People Transport Automotive Logistics China Conference 2 image

    'This is the sixth annual conference in China. I believe this event - and

similar conferences we arrange around the world - have a good track record in

creating the forums for real improvement.'

    The Automotive Logistics China conference is supported by the China

Federation of Logistics and Procurement (CFLP). It will take place at the

Intercontinental Hotel Pudong, starting with a networking reception on the

evening of Monday April 20, and continuing with two full conference days

including gala dinner on Tuesday and Wednesday 21-22nd of April. The

conference is being held at the same time as the Shanghai auto show.

    Information and conference registration is at

    Notes to Editors:

    See the range of Automotive Logistics conferences at

    Automotive Logistics magazine is the

only global print publication covering the logistics sector of automotive. It

circulates worldwide to senior executives at car-makers, tier one suppliers

and service providers. There is a free weekly news service by email/web, with

registrations through the website.

    Every issue also includes Finished Vehicle Logistics magazine, which is unique in its coverage in print of the outbound sector.

    All these activities are published by Ultima Media Ltd, a provider of

information and media in print, online and at events which is dedicated to

the global business-to-business automotive sector.


    Louis Yiakoumi

    Conference Director


    Chris Ludwig

    Acting Editor


    SOURCE: Automotive Logistics China Conference

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