Manufacturers in China Turn to Modern Logistics Equipment to Improve Warehouse Operations

Modern warehouse logistics systems, an essential portion of today's manufacturing and commercial warehouse and distribution center operations, can increase productivity, increase accuracy, and reduce logistics costs. Generally speaking, modern logistics systems can be divided into two categories: those for manufacturing logistics and those for fulfillment logistics in commercial (retail) operations. Both are seeing rapid growth in China.

Why Companies in China Are Embracing Modern Logistics Systems
According to CLTA (China Logistics Technology Association), China's market for logistics equipment reached approximately $6.9 billion in 2014, and will likely continue to grow at around 15 percent annually.

Several factors contribute to this strong growth rate:

• Modern logistics equipment and systems help reduce total logistics costs. This is critical in China, since the ratio of total logistics costs vs. GDP in the country is still much higher today than in the US or Japan; wages continue to rise; and there is significant potential for applying modern logistics technology and equipment.

• China's government encourages both manufacturing and commercial enterprises to implement modern logistics systems and has issued a series of guidelines and development strategies in recent years. The "Made in China 2025" strategy released last year is another driver for implementing modern logistics systems.

ARC Advisory Group clients can view the complete report at ARC Client Portal on www.ARCweb.com or Box.com

If you would like to buy this report or obtain information about how to become a client, please Request ARC Info

Keywords: Logistics Equipment, Materials Handling, Discrete Automation, Machinery, Automated Guided Vehicles, ARC Advisory Group.