German Companies in China Logistics Processes in Transition

Transcription

1 German Companies in China Logistics Processes in Transition

2 China: An important trade partner for Germany Selected imported products Share of imports (in %) In the year 2017, China and Germany traded imports and exports with each other for billion in total. Electronic components Mineral resources, fuels Machines, mechanical products Optical, photographic, medical tools Mineral ores, scoria Other goods Selected exported products Share of imports (in %) Source: Destatis, Grafik ) Electronic components Machines, mechanical products Furniture, lamps, prefabricated constructions Clothes Other goods 46.3 In the year 2016, China imported agricultural products for 1.8 billion from Germany. The USA imported agricultural products for the same volume from Germany. 2

3 Active areas Western inland provinces 25% 23% -2 Beijing Changchun Northeast China % % Eastern coastal region -10 Southern coastal region % 76% % 4-9 Chongqing Shanghai Mid-coastal region Taiwan 28% 35% -7 Hong Kong Xiamen Taipei % 30% -6 Source: 3

4 German companies in China bring their supply chain into line Change in % in comparison to Research/development 10% 0 0% 10% 20% 30% 40% 50% 60% 70% 80% Design 13% Manufacturing/assembly 47% After-sales services 53% Marketing/sales 61% Transport and logistics 6 Procurement 65% Percentage of companies that complete their value chain in China (%) 4

5 Validation of the performance of logistics providers in China (2/2) Quality management Automotive 2017 Mechanical engineering 2017 Consumer goods 2017 Retail 2017 Total % 14% 20% 24% 21% 54% 46% % 18% 10% 24% 16% 18% 10% 28% 6% 19% 7% Almost every fourth company in the retail and consumer industry gives good grades in quality management. In contrast, mechanical engineering are much more critical. Automotive % 44% 24% 1 Just-in-time delivery Mechanical engineering 2017 Consumer goods 2017 Retail % 1 18% 38% % 3 24% 4% 14% 6% Just-in-time delivery is top-rated by companies in the automotive and mechanical engineering industry. Total % 40% 31% 13% Staff qualifications Mechanical engineering 2017 High Average Low Unknown, n/a Automotive 2017 Consumer goods 2017 Retail 2017 Total % 10% 1 20% 16% 58% 46% 56% 60% 53% 20% 4% 38% 6% 20% 1 16% 4% 21% 9% More than one-third of companies in the mechanical engineering industry experience low competence in staff qualifications. On the contrary: companies in the automotive and retail industry are of the opinion that staff qualifications changed positively. 5

6 Automotive and mechanical engineering companies struggle more in finding a qualified workforce % % 68% 7 60% 5 Retail and consumer goods Automotive Mechanical engineering Yes 2011 Yes

7 External, non-chinese logistics companies lose orders; own car pool becomes more attractive Organisation of logistics processes in respective companies Automotive % 4 Warehousing services Mechanical engineering 2017 Consumer goods 2017 Retail % 26% 5 30% 8% 10% 20% 38% 30% 24% Total % 2 7% 29% Automotive % 30% 20% 16% Customs clearance Mechanical engineering 2017 Consumer goods 2017 Retail % 20% 28% 38% 38% 44% 20% 18% 24% 2 10% 4% Total % 37% 26% 7% Automotive % 20% 14% Transport services Mechanical engineering 2017 Consumer goods 2017 Retail % 16% 30% 40% 24% 46% 3 26% 10% 10% 1 Total % 40% 5% Internal External, non-chinese logistics companies External, Chinese logistics companies Unknown, n/a, does not apply to our company 7

8 Warehouse logistics Only Chinese logistics providers manage to enhance customer satisfaction Satisfaction with warehousing services Total -2 Total 2017 Total % 41% 44% 4% 7% 21% 14% externally Non-Chinese logistics companies 2017 Non-Chinese logistics companies % 50% 43% 40% 14% 10% externally Chinese logistics companies 2017 Chinese logistics companies % 33% 51% 58% 5% 9% 6% 3% internally % 34% 35% 38% 4% 8% 30% 20% High Average Low Unknown, n/a 8

9 Warehouse logistics in the automotive branch Internal handling: customer satisfaction declines Satisfaction with warehousing services internally Automotive % Automotive % High Average Low Unknown, n/a 33% 28% 9% 14% of companies in the automotive industry supervise warehousing services internally. 9

10 Warehouse logistics in the mechanical engineering branch Customer satisfaction declines Satisfaction with warehousing services 5 internally Mechanical engineering % 35% Mechanical engineering % 33% High Average Low Unknown, n/a 1 11% 31% 30% of companies in the mechanical engineering industry organise warehousing services internally. 10

11 Warehouse logistics in retail and consumer goods branch Customer satisfaction declines Satisfaction with warehousing services externally by Chinese logistics companies Consumer goods 2017 Retail 2017 R&C % 39% 58% 53% 50% 6% 6% 7% 13% 4 58% internally Consumer goods % 33% Retail % 38% R&C % 47% High Average Low Unknown, n/a 33% 31% 13% of companies in the retail and consumer goods industry organise warehousing services internally or externally with Chinese logistics companies. 11

12 Transportation services Customer satisfaction in total unchanged Satisfaction with transport services Total ±0 Total 2017 Total % 50% 45% 47% 3% 1% externally Non-Chinese logistics companies 2017 Non-Chinese logistics companies % 6 4 3% 38% externally Chinese logistics companies 2017 Chinese logistics companies % 45% 46% 57% 5% 4% 5% internally % 48% 45% 49% 3% 3% High Average Low Unknown, n/a 12

13 Transportation services in the automotive branch Customer satisfaction increases Satisfaction with transportation services externally by Non- Chinese logistics companies Automotive 2017 Automotive % 61% 67% 33% 6% 66% internally Automotive % Automotive % High Average Low Unknown, n/a 50% 40% of companies in the automotive industry organise their transports internally or externally with non-chinese logistics companies. 13

14 Transportation services in the mechanical engineering branch Customer satisfaction with Non-Chinese logistics companies drops dramatically Satisfaction with transportation services externally by Non- Chinese logistics companies Mechanical engineering 2017 Mechanical engineering % 83% 67% 17% externally by Chinese logistics companies internally Mechanical engineering 2017 Mechanical engineering 2011 Mechanical engineering 2017 Mechanical engineering % 47% 33% 4 60% 53% 58% 8% 8% 5% 8% of companies in the mechanical engineering industry organise their transportation externally with Non-Chinese companies. High Average Low Unknown, n/a 14

15 Transportation services in the retail and consumer goods branch Customer satisfaction with Chinese logistics companies rises Satisfaction with transportation services externally by Non-Chinese logistics companies Consumer goods 2017 Retail 2017 R&C % 71% 31% 8% 31% 6% 29% 43% externally by Chinese logistics companies Consumer goods % Retail % 60% R&C % 6 High Average Low Unknown, n/a 39% 10% 10% 8% of companies in the retail and consumer goods industry organise their transports externally with Chinese logistics companies. 15

16 Customs clearance Customer satisfaction with Chinese logistics companies sinks significantly Satisfaction with customs clearance Total -8 Total 2017 Total % 57% 30% 31% 6% 14% 6% 5% externally by Non-Chinese logistics companies % 67% 2 28% 15% 5% externally by Chinese logistics companies % 43% 43% 11% 11% internally % 55% 19% 23% 5% 5% 19% 18% High Average Low Unknown, n/a 16

17 Customs clearance retail and consumer goods branch Customer satisfaction with Chinese logistics companies decreases Satisfaction with customs clearance externally by Non-Chinese logistics companies Consumer goods 2017 Retail 2017 R&C % 67% 64% 8% 30% 25% 41% externally by Chinese logistics companies internally Consumer goods 2017 Retail 2017 R&C 2011 Consumer goods 2017 Retail 2017 R&C % 53% 53% 80% 37% 11% 5% 3 9% 23% 4 5% 10% 10% 29% 18% 6% 24% of companies in the retail and consumer goods industry organise their transports externally with Chinese logistics companies. High Average Low Unknown, n/a 17

18 Punctuality and flexibility are important criteria for choosing a logistics provider Criteria for selecting a logistics provider Punctuality 90% 8% 1% Flexibility 77% 21% 1% Sufficient capacity 75% 2 1% Quality management 66% 3 1% Security systems 66% 29% 4% IT-Security und data protection 65% 30% 4% 1% Price 53% 44% 3% 1% Environmental aspects/sustainability 43% 4 13% Database management systems 38% 51% 10% Nearby location 48% 14% 3% Reputation, eg, in social networks 8% 39% 50% 4% High Average Low Unknown, n/a 18

19 Contract logistics providers lose orders at German companies Awarding of contracts to contract logistics providers -13 Retail and consumer goods 2017 Retail and consumer goods % 28% 74% 70% 11% -14 Automotive % 8% Automotive % 66% 8% -2 Mechanical engineering 2017 Mechanical engineering % 60% 74% 18% Yes No Unknown, n/a 0% 20% 40% 60% 80% 100% 19

20 Contract logistics Returns management expands Potential for contract logistics providers (multiple answers possible) Returns management 38% 31% +7 Manufacturing 28% 28% ±0 Complaints handling 13% 15% -2 Packing 34% -2 Assembly 28% 33% -5 Repairs and spare-parts supply 2 31% -9 Packaging 47% Procurement 28% 46% Materials recycling 25% 51% None, Unknown, n/a 9% 5% % 20% 40% 60% 80% 100% 64%

21 Potential for contract logistics providers exists Returns management 2017 Returns management % 50% Quality control 2017 Quality control 2011 Procurement management 2017 Procurement management 2011 Complaints handling 2017 Complaints handling 2011 Order management 2017 Order management % 26% 37% 37% 33% 47% Manufacturing 2017 Manufacturing % 39% Accounting and settling accounts 2017 Accounting and settling accounts 2011 Sales planning 2017 Sales planning % 13% 18% 15% None, n/a 2017 None, n/a % 2 0% 20% 40% 60% 80% 100% 21

22 Industries surveyed 25% Automotive 25% Retail 25% Mechanical engineering 25% Consumer goods 22

23 Number of employees 2017 in Germany worldwide Under 500 employees 500 to employees to employees employees or more Unknown, n/a 23

24 Companies line of business 75% Manufacturing 25% Retail 24

25 Contacts Dietmar Prümm Industry Leader Transportation and Logistics Dr. Christian Wulff Industry Leader Consumer Markets Germany Dr. Klaus-Peter Gushurst Industry Leader Industrial Production Felix Kuhnert Industry Leader Automotive Thomas Heck China Business Group Germany Phone Germany Phone Germany Phone Germany Phone Germany Phone

26 Thank you PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved. In this document, refers to PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, which is a member firm of PricewaterhouseCoopers International Limited (IL). Each member firm of IL is a separate and independent legal entity.