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The Ins and Outs of Asian Supply Chains

There's more places for low-cost sourcing than just China.
BY ANDREA MACDONALD

In the pursuit of lower costs and increased margins, many companies have looked to Asia for product sourcing. Yet, low cost labor doesn’t always translate to low cost goods if a company ends up scrambling to meet delivery timelines. For businesses looking to source offshore, be it Asia or elsewhere, a realistic assessment of the logistics market conditions needs to been undertaken.

"Besides price, consideration needs to be given not just to the local expertise and capability of the service provider, but also the extent of the network from Asia to the rest of the world. Logistics is largely a network game, and each node within the Asia Pacifi c network serves a critical role in determining the strength, versatility and scalability of the entire chain," says Karl-Heinz Matthes, CEO, Schenker Asia Pacific.

Asia Pacific is a massive region and the state of logistics services and infrastructure across the region is extremely varied from sophisticated, high-tech Singapore, to rapidly developing Vietnam. "The sheer size and complexity of the Asian market needs to be managed with very tailored strategies," says Matthes.

With that in mind, here is an overview of five movers and shakers in the Asia Pacifi c region. Some offer globally competitive logistics services, while others are in their infancy. But regardless of what stage there at, the consensus is that the rate of logistics development is accelerating across the board. (see page 18)

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