Substantial efficiency improvements

Substantial efficiency improvements could be achieved if China‘s logistics
industry were to consolidate. The sector has considerable inefficiencies, with poor
inventory management, low on-time delivery, high damage rates and sub-standard
tracking. Most warehousing is, in general, ill equipped, and characterized by little
or outdated technology. These issues are compounded by a shortage of staff that
have the required logistics skills (both professional and manual). Training is weak
on both a practical and strategic level. Whilst shipment of goods out of the country
is relatively easy and straightforward, moving goods within the country is fraught
with difficulties. Inadequate infrastructure outside the main coastal cities is only
the beginning.