Research report on China's FMCG supply chain

CHEP Australia

Monday, 08 February, 2016


CHEP has collaborated with research institute the Chinese Academy of International Trade and Economic Cooperation (CAITEC) in a six-month research project that analyses the status, challenges and trends in China’s FMCG supply chain.

The joint CAITEC-CHEP report includes a detailed cost analysis of a number of logistics scenarios based on pilot projects and case studies, before recommending practical actions to support the Chinese government’s aim of standardised and more efficient supply chain management.

Commenting at the launch event, the president of CHEP Asia Pacific, Phillip Austin, applauded the efforts by China’s government towards standardisation and the adoption of the dynamic flowing supply chains, which he says has the potential to accelerate industry development in China and lower the currently high cost of logistics as a percentage of GDP.

The recommendations made in the report include the potential for government to help accelerate the development of standards for pallets, transportation vehicles, facilities and other equipment through the use of policies and financial incentives; and also to promote good practices and educate stakeholders.

The report also encourages companies to take an overall view of the supply chain and look for ways of collaborating with other participants and with pallet pooling companies. Practical recommendations for companies include upgrading equipment and facilities to national standards, adapting standard processes and prioritising lanes to facilitate palletised delivery, adjusting order sizes to full pallets, and investing in forklifts and related equipment.

To obtain a copy of the report, contact Carter Feng, associate director of sales, marketing and customer service, CHEP China, email: carter.feng@chep.com.

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