Home » 3PL/4PL, Breaking News, Customs & Trade » China’s globalization to alter balance of power among supply chains

The next 10 years may see China shifting from low-cost supplier of cheap goods for OEMs to producer of its own global brands, with serious ramifications for the logistics market, predicts an official of a global logistics research firm.

John Manners-Bell, CEO of Transport Intelligence, said the move by China to step up the supply-chain ladder was a sensible one considering the growing difficulties for Chinese manufacturers to compete on cost alone. But it will have a dramatic impact on the balance of power in global supply chains, he added.

In a report by eyefortransport.com, Manners-Bell said that to bring a Chinese brand to the Western market, Chinese firms will have to take greater control of their supply chains, including founding distribution networks in North America and Europe.
Logistics service providers will therefore need to keep up with this change in customer profile in order to grab the opportunities it presents, he said.

The globalization of Chinese products will also impact on the structure of the international logistics industry. As Chinese supply chains spread around the globe, exporters will avail themselves of the services of Chinese logistics providers to facilitate their growth.

Should this happen, Manners-Bell said, the global logistics market could look very different in the coming years, with Asian providers possibly rising as the dominant force.

 

Photo by Robert Scoble

 

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