News and Sports

Logistics In China To Copy Manufacturing Footsteps For Overseas Expansion

FedEx is a top logistics brand in the United States and one of the leading courier companies in the world but it was caught red-handed many a times for mishandling packages from Huawei. Despite the fact that it is considered one of the most reliable final mile carrier in the planet, the manhandling incidences proved that global companies should be wary of their packages’ safety when using international courier services.

Courier services, at the most basic sense, are not the same as logistics services. If the contents of the package are sensitive and confidential such as business intelligence and business tenders and it were to be stolen or damaged on transit, the sender might not be able to retrieve it back. This is the reason why many express delivery couriers are promising their clients that they have the utmost credibility especially when it comes to handling the packages of the customers and securing their information.

A government should not be able to wield its power in order to spy into corporate mails. Logistics has proven time and time again that it is a crucial link that binds the supply chain. Huawei might soon take the independent route and create its own chip after it was band from using US chips but does the company have contingency plan in place in case the logistics did not go as planned?

Currently, consumer electronic products demand that logistics should be fast such as air delivery in order to avoid delays in the global supply chain. Around 70 per cent of China’s international deliveries are handled by the tree leading companies – DHL, FedEx and UPS. Though China has its own international logistics provided by a domestic company called SF Express, it is still not enough because of its lacking air transport capabilities and few networks for its overseas services.

In order for the manufacturing industry of China to prosper, it needs modern logistics on its heel. It is now time for China to decide where its loyalty really lies by choosing Chinese companies to provide final mile carrier rather than resort to international giants that fail to advocate the information security.

Comments are Closed