|
The Chinese market holds a vast potential for US and European businesses that are able to solve the complex supply chain problems associated with doing business there. Indeed, a recent survey of 117 companies doing business in China revealed that 90 percent of the respondents with the highest costs also had the longest delivery times. The problem is magnified by the fact that, according to Accenture, there are only 18,000 licensed logistics experts in China, as opposed to 500,000 in the US. Another difficulty is that receiving updates as to shipping cycles can take much longer than in the US because of the inability of the infrastructure to transmit information electronically. Bosch Rexroth, an $800 million manufacturer, deals with the problem by selling 95 percent of its Chinese manufactured goods in China. Rockwell Automation, a $4.4 billion manufacturer, has established three training centers in China to support its distribution network. Infor, a software supplier, teamed up with Grape City, a firm with 17 years of experience dealing with the Chinese market.
|
Information Sources, Inc.
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}