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Logistics company sees bright future
By Lu Nengneng |
October 24, 2012, Wednesday
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Print Edition
Print Edition
ANJI-CEVA Automotive Logistics, founded as the first company of its kind in China in 2002, has ridden the coattails of the nation's auto boom to become the largest in its field in China.
Automobile production in China has grown from 3.29 million units in 2002 to estimated 19.85 million units this year. Anji-CEVA, which helps manage the supply chain for the industry, is on pace to generate 3.7 billion yuan (US$590 million) of sales, advancing an annual compound growth rate of 52.7 percent.
The company is a joint venture between Dutch-based CEVA Logistics and Chinese partner Anji Logistics based in Shanghai. It employs more than 10,000 people.
"Ten years ago, when the company was first registered, it was hard for authorities to define who we were," Xu Qiuhua, president of Anji-CEVA, said during ceremonies marking the company's 10th anniversary. "At that time, China had warehouse and transport companies but no idea about third-party logistics."
Indeed, Chinese automakers used to handle all the logistics themselves. But following the rise of production scale and globalization, the increasing complexity of the supply chain forced them to outsource some of those management functions to professionals.
Anji-CEVA provides logistics services to several vehicle manufacturers, more than 400 auto-parts suppliers and over 1,000 car dealers in China. The company also serves over 200 overseas auto parts suppliers in more than 20 countries.
Investment bank Morgan Stanley has predicted that China will become the world's third-largest market for contract logistics by 2016, worth 1.1 trillion yuan of business. That paints an even larger canvas for Anji-CEVA to expand and to improve the cost efficiency of China's auto industry, Xu said.
According to the 2012 State of Logistics China Survey, logistics costs are equal to about 18 percent of China's gross domestic product, almost double the level in Western countries.
The government is trying to address problems of fragmentary regulation and inadequate infrastructure that contribute to the problem. For its part, Anji-CEVA is trying to address poor supply-chain efficiency by providing end-to-end logistics solutions for more customers, said Martin Thaysen, executive vice president of CEVA China.
It is very important to bring down logistics costs from 18 percent if China wants to achieve higher competitiveness overseas and offer more to domestic consumers, Thaysen said.
Automobile production in China has grown from 3.29 million units in 2002 to estimated 19.85 million units this year. Anji-CEVA, which helps manage the supply chain for the industry, is on pace to generate 3.7 billion yuan (US$590 million) of sales, advancing an annual compound growth rate of 52.7 percent.
The company is a joint venture between Dutch-based CEVA Logistics and Chinese partner Anji Logistics based in Shanghai. It employs more than 10,000 people.
"Ten years ago, when the company was first registered, it was hard for authorities to define who we were," Xu Qiuhua, president of Anji-CEVA, said during ceremonies marking the company's 10th anniversary. "At that time, China had warehouse and transport companies but no idea about third-party logistics."
Indeed, Chinese automakers used to handle all the logistics themselves. But following the rise of production scale and globalization, the increasing complexity of the supply chain forced them to outsource some of those management functions to professionals.
Anji-CEVA provides logistics services to several vehicle manufacturers, more than 400 auto-parts suppliers and over 1,000 car dealers in China. The company also serves over 200 overseas auto parts suppliers in more than 20 countries.
Investment bank Morgan Stanley has predicted that China will become the world's third-largest market for contract logistics by 2016, worth 1.1 trillion yuan of business. That paints an even larger canvas for Anji-CEVA to expand and to improve the cost efficiency of China's auto industry, Xu said.
According to the 2012 State of Logistics China Survey, logistics costs are equal to about 18 percent of China's gross domestic product, almost double the level in Western countries.
The government is trying to address problems of fragmentary regulation and inadequate infrastructure that contribute to the problem. For its part, Anji-CEVA is trying to address poor supply-chain efficiency by providing end-to-end logistics solutions for more customers, said Martin Thaysen, executive vice president of CEVA China.
It is very important to bring down logistics costs from 18 percent if China wants to achieve higher competitiveness overseas and offer more to domestic consumers, Thaysen said.
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