ENETEK, SARL - RCS Meaux 490 571 197 Tél : + 33 (0)1 65 00 177 883 - info@enetek.eu

ENETEK BUSINESS CONSULTING

WHITEPAPER ON

LOGISTICS IN CHINA A BRIEF OVERVIEW

Pune,10th Dec. 2008

Analytics To Simplify The World

ENETEK, SARL - RCS Meaux 490 571 197 Tél : + 33 (0)1 60 70 22 53 - info@enetek.eu

Conclusion - A Brighter Future Ahead The good news is that many of these issues won't be issues forever, because China is in the process of tackling many of its logistics shortcomings. The Chinese government is currently executing some impressive portions of a five-year plan that includes substantial infrastructure improvements, regulatory changes, and a policy that is friendlier toward foreign investment. Overall the following conclusions can be drawn: • Strong out-sourcing growth having major impact on the market • Most logistics business with multi-national manufacturers • No real differences between local Chinese and international logistics providers inmost aspects of

their business and outlook • Joint ventures between international and local Chinese companies to remain, although more ‘going

alone’ • ‘Go West China’ a major issue for the future • Companies equally employing shared user and dedicated warehousing solutions • Leasing warehousing the preferred method

However key issues have to be addressed by both Chinese and international logistics providers, as well as Chinese authorities, if the full potential is to be released:

Additionally, the wave of U.S.-based businesses is already raising the bar on China's logistics practices and introducing new efficiencies into its supply chain structures. Should the prospect of navigating the challenges of Chinese logistics alone still daunt you, bear in mind that several leading U.S. third-party logistics providers have a presence there and many of them are in the process of expanding further into China.

Despite the fact that I have been so candid about some of the logistics challenges you will face in China, it is important to stress that I still see a huge benefit to doing business there. Although you will have to factor a bit more time and money into the portion of your supply chain that includes China, the investment is well worth it. The economic benefits still substantially outweigh the current logistical and infrastructure challenges. Just ask the numerous companies who are already there.

References The whitepaper has been published with references from certain websites like Chinadaily,

- China State Administration of Taxation, - China Air Transport Authority (CATA), - China Federation on Logistics & Purchasing (CFLP) - Ministry Of Commerce (China)

The information contained in this document represents the current view of China Logistics & Distribution on the issues discussed as of the date of publication. Because the ENETEK Supply Chain Analytics must respond to changing market conditions, it should not be interpreted to be a commitment on the part of ENETEK, and ENETEK cannot guarantee the accuracy of any information presented after the date of publication.

This White Paper is for informational purposes only. ENETEK, MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.

Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of ENETEK.

ENETEK may have trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from ENETEK , the furnishing of this document does not give you any license to these , trademarks, copyrights, or other intellectual property.

Unless otherwise noted, the example companies, organizations, products, domain names, e-mail addresses, logos, people, places and events depicted herein are fictitious, and no association with any real company, organization, product, domain name, email address, logo, person, place or event is intended or should be inferred.

© 2008 ENETEK S.A.R.L. All rights reserved.

All other trademarks are property of their respective owners.

ENETEK, SARL - RCS Meaux 490 571 197 Tél : + 33 (0)1 60 70 22 53 - info@enetek.eu

About the Author

Mr. Unnikrishnan completed Post Graduation Degree Program ,with MBA & Electronic Commerce from an Asian Business School. He assumed senior responsibility with ENETEK, for the Asia Pacific & Middle East Region. Unnikrishnan, is an expert energizing professional, who has lead several MNC Organizations to higher levels of performance & Customer Satisfaction in the Logistics & SCM Sector, by using his extensive Global Exposure & Qualifications in International Business, and other Corporate functions for developing & implementing the right IT- driven Supply Chain Breakthrough Strategies. He has worked in various projects related to International Business, Logistics & SCM , E-Logistics etc., and has evolved & establish Logistics & SCM systems leading to better Customer experience & Operational excellence. He has a passion for driving to the Next Generation of Virtual, Intelligence-based, Customer Driven Supply Chain. You can contact him on: uk.apac@enetek.eu, Cell:+919960626888 About ENETEK ENETEK S.A.R.L is a well established, Supply Chain Operations & Consultancy firm, based out from France. It has been successfully providing Supply Chain Analytics, Designing & Modeling Consultation in the areas of Current & Future Distribution Networks, Inventory Mgt. & Optimization, Demand Mgt. & Forecasting, Warehousing/DC Mgt., and Strategic Planning & Operations Excellence etc. since its inception in 2004, and located at Guérard, France. Being an Global Supply Chain & Logistics - Analytics & Consultancy firm, Enetek is primarily dedicated to leading its Clients to Next level of Supply Chain effectiveness, by using the State – Of – The - Art- Technology in Supply Chain Optimization, Simulation, Forecasting Tools & Methodologies. Our proven Track record, expertise & excellent Service offers the tools you need for Supply Chain competency, looking at the current Scenario of shrinking Product Life Cycles, Ongoing Cost pressures, Customer Demand Variability, Supply Chain Complexities & Visibility, With huge impact on Service Level, Revenues & Market Shares. ENETEK has a Strong presence & a broad experience in the Europe, and willingness to grow in the fast Developing Countries. It has strong partnership in Turkey, Brazil, US and India. Its Team comprises of Experts with vast experience in Various Industry and respective Supply Chain fields, and also Academic Experts & Research Professors from renowned Universities. ENETEK’s cliental includes, Hewlett-Packard, Proctor & Gamble, Dell, Johnson & Johnson, Toyota, Safran Aeronautical, Arcelor-Mittal, Conocco Philips, Orange, Idom. We have worked on several Projects on Distribution Reengineering, Spare Parts Mgt., Supply Chain Design, Planning Optimization, Investment Plan reengineering, and Network Design & Optimization. For more Information about our Company, Please visit us at www.enetek.eu

Enetek Competitiveness Optimization Programs

Homepage: www.enetek.eu© Copyright Enetek Business Consulting

Europe (Paris): Thibault QUIVIGERPresident & CEOThibault.quiviger@enetek.euTel: +33 6 5001 7788

Turkey, Middle East (Istanbul):Tolga YanasikVice President- METolga.yanasik@enetek.euTel: +90 532 667 6595

Asia Pacific (Bombay, India)UnnikrishnanMD –APAC Uk.apac@enetek.euTel: +91 99 6062 6888

ENETEK, SARL - RCS Meaux 490 571 197 Tél : + 33 (0)1 60 70 22 53 - info@enetek.eu