What Are the Problems in the Process of Developing Logistics in China

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What are the problems in the process of developing logistics in China?

The economy development in China has experienced a rough way since national founding. It was not until 1978 that Chinese people began to see a hopeful start in Chinese economy. Chinese government implemented reform and open, which makes GDP a great leap. With the rapid growth of GDP rate, more and more people showered in the sweet breeze of reform and open. Many new industries “immigrate” into China, and these new companies bring more development chances to China. Meanwhile, logistics industries become a popular business among these new industries, and many universities have started to offer logistics courses. Most of the students with diplomas of logistics can find greats jobs with good remuneration because many logistics enterprises in China want professional talents working for them. So then, just like we saw, the logistics developing by leaps and bounds in just few years. But the fast development always accompanies many problems in the process of developing logistics in China, and there are some major problems in developing logistics should be noted by us: first, the high cost of logistics; second, the management of logistics still need to be improved; third, the drawback in green logistics. First of all, the high cost of logistics is the most challenging problem in China. The low value added nature of business logistics is an important part that should be focused on in high cost problem. According to Bolton, Jamie (2003) “Morgan Stanley estimated that in 2001, logistics spending in China amounted to one-fifth of the nation's GDP and twice the proportion spent on logistics in the United States.” By this token, there is less logistics value-added services in China, and the level of logistics nalue-added can not adapt to the new international trend. The article named “several problems in the logistics sector in China” (2011) explained that the new trend of distribution is a polytypic,

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