Transcript 幻灯片 1

Automotive Logistics
in China
Wang Shuqin
Institute of Systems Engineering
Southeast University
Nanjing, P. R. China
Outline
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Economic and logistics development
Automotive logistics
Logistics of Volkswagen
Industry prospects
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Economic Reform
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The Chinese economic reform refers to the
program of economic reforms called "Socialism
with Chinese characteristics" .
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1970s -1980s, opening trade with the outside world, instituting the
household responsibility system in agriculture.
1980s -1990s, focused on creating a pricing system and decreasing
the role of the state in resource allocations.
1990s focused on closing unprofitable enterprises and dealing with
insolvency in the banking system.
After the start of the 21st century, increased focus has been placed
on narrowing the gap between rich and poor in China.
WTO Entry
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The World Trade Organization (WTO)
On December 11, 2001 China formally became
the 143rd member of the WTO.
What really behind these changes is the
transformation from planned economy to
market economy.
Signing ceremony
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GDP and foreign trade both have dramatic growth
Foreign Trade
350000
ond hundred million dollar
one hundred million yuan
GDP
300000
250000
200000
150000
100000
50000
0
1978198819982008
5
30000
25000
20000
15000
10000
5000
0
2008 Data
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GDP
30 trillion yuan
Import and export trade
2.56 trillion U.S. dollars
Total social logistics
89.9 trillion yuan
Total rail freight
3.3 billion tons
Total rail freight turnover
2.5 trillion tons/km
Total River freight
2.86 billion tons
Total river fright turnover
4.1 trillion tons/km
Port throughput
4.28 billion tons
Container throughput
128 million standard containers
What is Automotive Logistics ?
Transportation
Suppliers of raw materials
Warehousing
Spare parts providers
Vehicle manufacturers
Packaging
Integrated
management
Bridge
Wholesalers
Handling
Logistics companies
Modification
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Information
End users
The Characteristics of
Automotive Logistics
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Automotive Logistics
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With sustained economic development and
increasing living standard, automobile
consumption grows rapidly.
In the next 10 years, auto demand will
remain 10% to 15% increase.
China has becoming the supply base of
world's automobile production, so its auto
logistics market cannot be ignored.
1999-2008 Automobile production scale and growth rate
Source: China Association of Automobile Manufactures, CAAM
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2000-2008 Automobile sales volume and growth rate
Source: China Association of Automobile Manufactures, CAAM
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The Important Role Port Plays
in Automotive Logistics
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Port is important hub in automotive logistics chain.
Guangzhou automobile port
Dalian automobile port
Shanghai port
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Parts suppliers
Country A
Parts suppliers
Country B
Parts suppliers
Country C
Local parts
suppliers
Overseas
assembling
Multi-country
cross-docking
warehouse
Business Process of
Port Automotive
Logistics
Parts
Suppliers
CKD/SKD
JIT/VMI
Warehouse
Vehicle
assembly
plants
Port
Port
Parts
supplier #1
Cross-docking
Warehouse
Parts
supplier #2
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Parts logistics
Postpartum logistics
Dealers
Shipping Capacity
COSCO
China Shipping
Company
COSCO-MOL
CSC
6000 parking
spaces
6580 parking
spaces
600-700 parking
spaces
3000 parking
spaces
4 Auto Ships
4 Auto Ships
3 Auto Ship
9 Auto Ships
Top Ten Car Shipping Transportation Companies
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Name
Company
Number of
Ships
Total capacity
DWT
Vessel
age
1
MOL
55
888141
16148
11
2
NYK
54
904995
16759
15
3
K-LINE
50
733380
14667
14
4
Cido
38
564181
14846
12
5
Wallenius
Wilhelmsen
30
642992
21433
17
6
Leif Hoegh
28
484608
17307
15
7
Eukor Car Carrier
23
366697
15943
11
8
Crimakli
22
400636
18210
5
9
Yoyofuji Shipping
16
198165
12385
11
10
UECC
14
55139
3938
14
Source: Clarkson Research 2007.9
Worldwide Automotive Logistics Transit Ports:
 New York Port and New Jersey Port, USA
 Bremerhaven, Germany
 Zeebrugge port, Belgium
 Tahara car terminal, Japan
 Halifax Harbour, Canada
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The Main Problems
The supply chain of automotive logistics is very long.
 Automobile logistics business model should be
improved.
 Entry barrier is low, and out frequently.
In the international market, 80% of the automotive enterprises outsourcing;
 Slow progress in the standardization of automotive
In china, the vast majority of logistics providers are the subsidiary
logistics.
companies
of manufacturer.
 Automotive Logistics revenue mainly from basic
services.
National Standards, GB1589-2004
Length, 16.5m,
2.5m,information
Height 4.2m technology
 The application
ofWidth,
advanced
in fact
is notBut
popular.
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Length, 22m, Width, 2.7m, Height 4.4m
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German Cars
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There many world famous auto brands.
German cars take up a great market share in China.
Audi
Volkswagen
Mercedes-Benz
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BMW
Porsche
Volkswagen
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In Germany, 29% of logistics companies involved
in automotive logistics.
Four-layer supply chain of Volkswagen:(Schenker)
Retailers
Kassel
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Parts
distribution
center in
Singapore
Spare parts
importers
Shanghai Volkswagen
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In China, Volkswagen has two joint venture.
Founded in 1985, Shanghai Volkswagen, a Sino-German
joint venture, the investment ratio of 50% each. It is one of
the largest production bases in China.
For automobile enterprises, automotive logistics includes
production planning, purchase order devolution and
tracking, BOM maintenance, etc.
PASSAT
POLO
Touran
LAVIDA
TIGUAN
SANTANA
Development
needs
Focus on core
business
Data Base
Improve
customer
satisfaction
outsourcing
Logistics strategy
Reduce costs
Increase
efficiency
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Risk sharing
Saving
investment
After outsourcing:
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Warehouse logistics
Transport logistics
MIS(TMS and WMS)
Industry Prospects
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There is still a great room for development of
automotive logistics in China.
International automotive logistics all want to share
the Chinese market.
3PL will be the dominant mode of automotive
logistics.
More value-added services, and the optimization
of automotive logistics supply chain is important.
Thank
you!
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