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China well behind the west in logistics savvy
POSTED: 9:11 a.m. EDT, June 11,2007
The gap in logistics know-how between China and the West remains large in management, training and IT applications, says Luo Kaifu, vice president of FIATA (Federation Internationale des Associations de Transitaires et Assimilies, also known as the International Federation of Freight Forwarders Associations).
Speaking at a press conference during the recent 4th Annual Sino-International Freight Forwarders Conference in Guangzhou, Mr Luo said: "If we take the logistics development level of the western countries as 100 per cent, then that of China would be 40 - which means that the gap is still very big."
The Guangzhou convention drew 1,342 delegates from 675 organisations including 586 Chinese from 293 firms as well as 756 foreign representatives from 382 overseas companies.
Mr Luo said the industry in the west has been at the forefront of logistics management, IT, conceptual understanding as well as professional training, which led to higher efficiency and lower costs.
Although the management and IT level of Chinese logistics industry has been developing fast, most firms in this country still lack efficient networks and this results in higher costs, he said.
But Mr Luo said the logistics market of China has great potential, and as communications between the Chinese and foreign logistics companies improves, local firms will soon come to grasp advanced techniques.
Spreading such knowledge and awareness, said Mr. Luo, is the main purpose of the Sino-International Freight Forwarders Conference. |
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