3PL Market Revenues in the Chinese Automotive Sector Likely to Reach $59.91 Billion by 2012.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c47828) has announced the addition of Frost & Sullivan's new report: Strategic Analysis of 3PL Markets in the Chinese Automotive Sector to their offering. This Frost & Sullivan research service entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: Strategic Analysis of 3PL Markets in the Chinese Automotive Sector provides a comprehensive overview of this market, including an analysis of the various segments of the automotive sector and their respective logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation needs. It also provides an in-depth analysis of key market drivers, restraints, and trends that are impacting the 3PL market in the automotive sector. In this research service, Frost & Sullivan's research analyst Keow Soon Hiong thoroughly examines the following segments in the automotive sector: multinational companies, domestic major companies, and domestic small companies. Rapid growth in the Chinese automotive sector has created the need for an effective and efficient logistics infrastructure to take advantage of growing domestic as well as export opportunities, while intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: competition as companies look to increase market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and optimize the supply chain presents a substantial market opportunity to third-party logistics A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part, or sometimes all of their supply chain management function. (3PL) service providers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new report from consulting company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a Frost & Sullivan. An increasing number of automotive companies prefer to focus on core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
The new report finds that these markets earned revenues of $10.45 billion in 2005, with revenues likely to reach $59.91 billion by 2012. Key Challenges for 3PLs Adoption rates of these services are already high among multinational automotive companies due to higher acceptance levels. This is compelling domestic major automotive companies to follow suit in order to retain a competitive advantage. Accordingly, 3PL service providers are gearing up to meet the expected rise in demand by expanding their offerings and providing complete services at relatively affordable prices. However, providers are expected to face a considerable challenge in dealing with the varying levels of logistics infrastructure and development across China. Additionally, significant differences between various regions in terms of consumer habits as well as business, tax, and administrative rules tend to shape the logistics needs of the automotive sector on a regional basis. This could hamper providers' efforts to offer a complete nationwide logistics solution. For instance, the automotive sector is better developed in some parts of the East and South compared to others in the Central and Western regions. Thus, the key challenge for 3PL service providers is to accurately assess the specific needs of a particular region and offer services accordingly, Frost & Sullivan said. WTO See World Trade Organization. Impact "Since the Chinese automotive sector is continuously developing, it is important for service providers to grow in tandem Adv. 1. in tandem - one behind the other; "ride tandem on a bicycle built for two"; "riding horses down the path in tandem" tandem with automotive companies so as to emerge successful," Soon Hiong said. "Service providers also need to assess the geographic needs and expansion plans of end-users and offer appropriate services, including advanced concepts such as just-in-time (JIT JIT - dynamic translation ) logistics." A significant development that is likely to positively impact the logistics industry is the elimination of restrictions on operating in the industry following China's accession Coming into possession of a right or office; increase; augmentation; addition. The right to all that one's own property produces, whether that property be movable or immovable; and the right to that which is united to it by accession, either naturally or artificially. to the World Trade Organization (WTO) in 2001. Foreign enterprises can now operate as wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. in services such as transport, warehousing, freight forwarding and others. The stage is therefore set for substantial growth of 3PL services and the opportunities for service providers are plentiful. However, to fully exploit the potential of this promising market, service providers need to find ways to meet the challenge presented by China's geographical diversity as well as familiarize themselves with local jurisdictions, so that they are able to incorporate a higher degree of uniformity in their service offerings. "Strategic Analysis of 3PL Markets in the Chinese Automotive Sector" provides an overview of this market, including an analysis of the various segments of the automotive sector and their respective logistical needs. It also provides an analysis of key drivers, restraints and trends that are impacting the 3PL markets in the automotive sector. For more information visit http://www.researchandmarkets.com/reports/c47828 |
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