Drive is on to Move From China Price to World Class Automotive Logistics

SHANGHAI - Boosting performance rather than cutting price is the major challenge
facing the automotive logistics sector in China, according to key executives
in the sector. Car-makers are increasingly anxious that rising labour costs
and increasing competition in the domestic market mean that logistics
efficiency must be dramatically improved.

‘From China Price to World Class’ is the theme of this year’s principal
gathering of logistics professionals, who will be at the Automotive Logistics
Conference in Shanghai from 20-22 April.

Logistics management including Dr Feng Junxia of FAW, George Ho of Geely,
Jack Cheng of Fiat and Cliff Chen of BMW will be present, along with outward
facing supply chain directors including Carroll Pickett of Ford and Jeffrey
Richards of Delphi.

Improvements in China start with visibility and planning in the supply
chain. ‘A common phrase in China regarding shipping quantities is that ‘it is
close enough’ to the requested level,’ says Karl Neumaier, director of Asia
Pacific supply chain management for Visteon, a major Tier One company. ‘A
supplier says that it has shipped 150 units, but 148 arrive. In North America
the supplier could be disqualified for this type of service.’

He and other senior figures in the sector was speaking to Automotive
Logistics magazine, which is organising the conference.

Another challenge is the mixture of manual and IT processes used in
China. ‘We obtain an electronic version of the purchasing plan from the OEM,
and then enter it into (our) system manually’, says Wang Lin, who handles
information management for Dongfeng Honda’s principal logistics provider,
Wuhan Dong Hon Logistics. ‘Only then can we generate a logistics plan.’

Transport is dominated by small, local providers. ‘Basically the driver
has a mobile phone and most communication is manual,’ says Karl Neumaier.

Finally, for movements of finished vehicles capacity has dramatically
improved, but there is a need for co-ordination. ‘We have been investing in
infrastructure for several years,’ says Owen Xie, senior manager for
automotive at NYK Logistics. ‘Now it is time to integrate them.’

Conference Director Louis Yiakoumi commented: ‘All these challenges will
not be overcome without the collaboration and search for solutions which a
gathering of all the principal players together can produce.

‘This is the sixth annual conference in China. I believe this event - and
similar conferences we arrange around the world - have a good track record in
creating the forums for real improvement.’

The Automotive Logistics China conference is supported by the China
Federation of Logistics and Procurement (CFLP). It will take place at the
Intercontinental Hotel Pudong, starting with a networking reception on the
evening of Monday April 20, and continuing with two full conference days
including gala dinner on Tuesday and Wednesday 21-22nd of April. The
conference is being held at the same time as the Shanghai auto show.

Information and conference registration is at
www.automotivelogisticschina.com

Notes to Editors:

See the range of Automotive Logistics conferences at
www.automotivelogisticsconferences.com/alconferences/

Automotive Logistics magazine www.automotivelogisticsmagazine.com
is the only global print publication covering the logistics sector of
automotive. It circulates worldwide to senior executives at car-makers, tier
one suppliers and service providers. There is a free weekly news service by
email/web, with registrations through the website.

Every issue also includes Finished Vehicle Logistics magazine
www.fvlmagazine.com, which is unique in its coverage in print of the
outbound sector.

All these activities are published by Ultima Media Ltd, a provider of
information and media in print, online and at events which is dedicated to
the global business-to-business automotive sector. www.ultimamedia.com

Contacts:

Louis Yiakoumi
Conference Director
louis.yiakoumi@ultimamedia.com
+44(0)208-987-0944

Chris Ludwig
Acting Editor
chris.ludwig@ultimamedia.com
+44(0)208-987-0968

Source: Automotive Logistics China Conference

Contacts: Louis Yiakoumi, Conference Director, louis.yiakoumi at ultimamedia.com, +44(0)208-987-0944; Chris Ludwig, Acting Editor, chris.ludwig at ultimamedia.com, +44(0)208-987-0968