Managers' Forum ~ Business Case Reviews
China Logistics: Obstacle and Opportunity
Business Case Review by: Prabhu F
Thomas
The case I have reviewed is a study done by Mercer Management Consulting,
and
published in their publications, online.
This is a case based on the transportation and logistics that prevail
in China
and the impact it has on doing business in China. It is especially
relevant to
the manufacturing industry as it details how and where there are deficiencies
in this critical aspect to doing business in China.
With more industries moving from the first stage of importing into China
and
selling, to manufacturing locally, there is a need to view the infrastructure
critically before embarking on major projects. The article details
comprehensively the various facilities available, including ports,
roadways,
railways, airports, data and communications and warehousing.
This article also details how China deals with issues regarding
infrastructure, and the way things are dealt with at each stage by
different
agencies of the government. It helps the reader to get an idea as to
what is
to be done, what are the opportunities that present themselves to
entrepreuners eyeing the Chinese market, and the opportunity for the
transportation and logistics management industry.
An interesting snippet from the article is about "guangxi" - Chinese
for
relationships. This article stresses the importance of building relationships
to be able to succeed in China. Cultural acceptance of the reality
as it
exists is very important, and is the first thing to be observed, by
foreigners
intending to do business in China.
With more than US$100 million committed by foreign logistics companies
in
China, this is an industry that will see a lot of growth and change
in the
future of China as a leading economy. I recommend this article for
those who
intend to do business in China and are looking for information on the
infrastructure facilities available in China.
Laurence H. Alberts, Hugh L. Randall, and A. Guy Ashby
China Logistics: Obstacle and Opportunity
Mercer Management Consulting.
http://www.mercermc.com/texts/ch6.7.html
