China And Roles In Third Party Logistics Explained
Manufacturing goods takes a lot of money, and transporting them can be just as costly. Businesses can cut down on their costs by outsourcing operations to China, which is known for its low labor costs. Regardless of this fact, some businesses are now finding that their third party logistics operations are best outsourced to other places.
Small and medium businesses are out of the running in most cases, since outsourcing logistics to China will demand that you also send over staff to manage operations. Without a clear management and indication of what is being conducted, businesses would find themselves in tight predicaments. Unfortunately, the move would just be too much to handle for the inexperienced.
Transportation costs have made shipping products to or from China more costly than normal. With the high level of cost efficiency slowly waning, businesses are looking for other alternatives to China-based manufacturers. Gas and oil prices seem to be climbing steadily each year that passes, so it doesn't seem that things will get better any time soon for logistics operations in the area.
A single recall from one shipment of goods can cost a company millions. A recent case that was made into a global news story would be with Mattel- a famed toy company. Mattel ended up losing millions of dollars due to a single recall that affected millions of toys that were shipped from China. Not only does Mattel lose out on profits, but also on the lack of trust that is now instilled in consumers who were once fans of Mattel's commitment to excellence.
Since China does indeed have cheap labor, most of the workers are considered to be replaceable. This fact doesn't bode well with businesses who have products that are tough to create, since workers will have to be trained over a long period of time in order to manufacture it. If you do find a manufacturer with a high turnover of employees, you are at worse odds of actually finding a logistics operation that is going to be efficient and adhere to strict deadlines.
Some consumers have a strong sense of patriotism- meaning they won't buy products from other nations if their own nation is in economic turmoil. Businesses can actually miss their target market if they outsource their logistics to other countries in this case. When dealing with expensive products such as vehicles or farm equipment, even a small dip in sales can mean trouble for a business outsourcing their operations to China.
In Conclusion
Even though there are some negative aspects of outsourcing your operations, the goal to move logistics operations to China is still worthwhile for some businesses. You should speak with a logistics company for more information on what you should do in your situation. - 23223
Small and medium businesses are out of the running in most cases, since outsourcing logistics to China will demand that you also send over staff to manage operations. Without a clear management and indication of what is being conducted, businesses would find themselves in tight predicaments. Unfortunately, the move would just be too much to handle for the inexperienced.
Transportation costs have made shipping products to or from China more costly than normal. With the high level of cost efficiency slowly waning, businesses are looking for other alternatives to China-based manufacturers. Gas and oil prices seem to be climbing steadily each year that passes, so it doesn't seem that things will get better any time soon for logistics operations in the area.
A single recall from one shipment of goods can cost a company millions. A recent case that was made into a global news story would be with Mattel- a famed toy company. Mattel ended up losing millions of dollars due to a single recall that affected millions of toys that were shipped from China. Not only does Mattel lose out on profits, but also on the lack of trust that is now instilled in consumers who were once fans of Mattel's commitment to excellence.
Since China does indeed have cheap labor, most of the workers are considered to be replaceable. This fact doesn't bode well with businesses who have products that are tough to create, since workers will have to be trained over a long period of time in order to manufacture it. If you do find a manufacturer with a high turnover of employees, you are at worse odds of actually finding a logistics operation that is going to be efficient and adhere to strict deadlines.
Some consumers have a strong sense of patriotism- meaning they won't buy products from other nations if their own nation is in economic turmoil. Businesses can actually miss their target market if they outsource their logistics to other countries in this case. When dealing with expensive products such as vehicles or farm equipment, even a small dip in sales can mean trouble for a business outsourcing their operations to China.
In Conclusion
Even though there are some negative aspects of outsourcing your operations, the goal to move logistics operations to China is still worthwhile for some businesses. You should speak with a logistics company for more information on what you should do in your situation. - 23223
posted by X - Men @ 3:50 AM
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