Facing the challenges of China’s fragmented distribution systems

While others are struggling to cope with rising fuel surcharges and other hurdles, SITC Logistics, which has expanded into an international third party logistics services provider, is seeing excellent results in China's highly fragmented distribution system.

The mammoth China market is facing huge distribution problems, because it is fragmented and lacks the necessary IT support and credit systems, while it also faces numerous hurdles due to lack of uniform rules and regulations among various provinces and districts, Eric Laborie, vice president business development at SITC Logistics, says. "SITC Logistics, which is one of the largest Chinese freight forwarders with 14 years experience in the high-tech industry, handles large multi-national corporations’ accounts, supported by its domestic logistics network comprising 32 service centres plus customised distribution centres (DCs) across thecountry," he says.

Through its extensive service network and ability to operate regional distribution centres within or outside its existing facilities, the all-Chineseowned company has been able to help customers deal with various local problems and assist them in improving overall logistics processes, thus reducing their direct costs and adding value totheir business, he adds.

Last year, SITC Logistics handled over 110,000 tonnes of airfreight, which places the company among the top 10 international freight forwarding companies in China, as well as one of the biggest international air forwardersin export terms.

"Complaints of unsatisfactory fulfillment ratio by customers of high-value good industries due to late deliveries and lack of visibility on shipment fl ows from factory to fi nal destination, are among the major challenges driving the demand for quality supply chain management solution providers in China," Laborie says. In addition, the lack of dedicated customer service and international security compliance along the supply chain, are also of great concern to large manufacturers and enterprises, which produce billions of dollars worth of high value products, such as mobile phones, for the global market. Laborie says that SITC Logistics’ ability to address such concerns satisfactorily had earned it a good reputation in the industry for servicing high-end customers, such as top quality electronic parts and components manufacturers in China.