The logistics market in China is fragmented and complex. With the rise of cross border ecommerce, foreign businesses looking to export into the Chinese market should have a good understanding of the logistics in China.
There are thousands of logistics companies in China that market themselves as freight forwards and trade brokers. It takes rigorous research and accurate market insights to distinguish credible service providers from the ones that are less so. Besides that, foreign businesses need to be aware of pricing in the market and service offerings to ensure that any cooperation and negotiation conducted is fair and reasonable.
Foreign businesses breaking into the Chinese market not only have to think about international logistics but also intra-China transport. Ensuring a seamless and effective supply chain would require a diligent management team to oversee every step and process. These include warehouse facilities, procurement and distribution.
If your business is planning to take it a step further by establishing a physical presence in China for logistical purposes, there are free trade zones (FTZs) in China that you can consider. FTZs are special economic zones where goods may be landed, handled and manufactured with little to no intervention from Chinese customs authorities.
When choosing the right logistics provider, it is important to ensure that they are reliable in terms of consistency, quality and communication. As mentioned above, sound decision making on service providers would require thorough research and market knowledge which may pose a challenge for foreign businesses who are unfamiliar with the industry in China.
Besides that, there are many local regulations that foreign businesses are required to follow. These can be tricky as there are different requirements depending on the customs gateways used, goods, etc. Moreover, the management and communication among your network and suppliers should be efficient and effective. Time differences between countries may cause an issue as logistics and transportation is a time-sensitive industry. These are just a few of the many challenges foreign businesses may face.
Our team can help in doing the research required to help your business identify the right inter- and intra-national logistics and transport suppliers in China. We will ensure that all negotiations done are fair according to market standards, and to get your business the best deal and package based on your needs and budget. We also will help you navigate the challenging local regulations and identify local policies that your business can leverage and maximise. As always, our service is comprehensive and long-term – we will also handle the management of your supply chain vendors and ensure all deadlines are met and operations supervised.