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SC must keep with China’s growth


By: Alethia Tiang, China
Published: Apr 27, 2012


China - China's automotive market is growing tremendously, with light vehicle assembly expected to hit 24.4 million vehicles by 2015, according to recent research by PWC Autofacts.

The dynamic market presents the supply chain industry with immense opportunity, according to Martin Thaysen, executive vice president for CEVA Logistics in China.

"China's automotive market will represent a sizable portion of the world market as the country continues to grow faster than the developed markets like the US, Western Europe, Japan and Korean," he said.

However, Thaysen recognised that this growth will bring challenges to the logistics and supply chain industry. The automotive supply chain will expect to see competition intensify, as car manufacturers and component suppliers will look to grow their market share through innovation, cost reduction and customer service.

"In January, a KPMG survey of 200 automotive executives revealed that half are worried about overcapacity in China within five years," he said.

Hence, Thaysen identified that to be a key supply chain driver, the industry needs to deliver innovation, speed, flexibility and the ability to manage global supply chain effectively to keep up with the market growth.

"An automotive logistics provider who can offer integrated solutions and execute them well will stand to gain in the long run," he said.

"For CEVA, we need to continue driving innovation to support our automotive customers and give them the competitive edge to differentiate themselves through smart engineering of their supply chain looking at transport optimization, speed, reliability, security and greener supply chains," he shared.

Thaysen added the CEVA's competitive strength is in personalising an integrated supply chain approach for each customer, and making the supply chain a value-laden, cost-efficient one.

"China is one of our global strategic priorities and we continue to invest in this market through innovation in services and solutions, developing our organization and capabilities, our systems and technologies to support customers' growth," he said.


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