Trade mission in profiles: Logistics
What kinds of participants are there in these trade missions? This week, Prime Minister Rutte is travelling to China with about 165 companies and knowledge institutes. Therefore, we will highlight some of the participants and their motivations and experiences.
Minister for Foreign Trade and Development Cooperation Sigrid Kaag is heading the mission on logistics and e-commerce. With the boom in e-Commerce and higher-value products from China to Europe, there is an urgent need for more sustainable transport solutions in China. The Netherlands is pioneering developments in environmentally sustainable logistics operations and silent logistics.
One of the companies that could literally bridge China and the Netherlands is Inchainge. This company is specialized in developing and marketing simulations and learning programs in Supply Chain Management and Supply Chain Finance. They have been active in China since 2013 and Development Manager Turner Tian told us why they are joining the Minister-President to China.
What is your experience on the Chinese market?
“China has a very unique culture and history, so its market has many special features and these change very rapidly. Therefore, it is very important to go along with the rhythm of the market. In the past years we also experienced that it is crucial to do business and collaborate with the right people or organizations through the correct channels in China.”
“China is the first country in which we developed and tested a new model to grow business through individual supply chain professionals. This proves that localization and adopting a proper model for China is key. Localization in this case not only concerns the language, but also operations, product re-design, sales approach, marketing strategy etc.”
In which way can the Dutch government provide further support?
“The services of Inchainge are all about delivering supply chain management knowledge through the internet. We noticed there are many special rules of internet services for international companies. It would be very helpful if there is a very clear compliance scheme that international companies can follow. The policies for manufacturing, international trade and other more ‘traditional sectors’ are well developed. It would be good to pay more attention to this aspect of internet-based industries.”
What do you think is key in creating a long-term impact?
“The logistics market in China is already huge and we have seen in recent years that the logistics sector is heavily innovating. Players are actively upgrading themselves to become more responsive and intelligent. We believe Dutch companies can play a big role in bringing advanced logistics and supply chain knowledge to China. Once there are several successful Dutch examples in China which can serve as a benchmark, it can also lead to a more sustainable and responsible supply chain and Chinese logistics sector.”