Opening Remarks
International Conference on Modern Logistics and E-commerce
29-30 October 2000
By
Kerstin Leitner
UN Resident Coordinator and Resident Representative of UNDP in China
Excellency, Mme. Wu Yi, distinguished guests, ladies and gentlemen, Good Morning.
It is a pleasure for me to participate in the opening of this International Conference on
Modern Logistics and E-commerce on behalf of the United Nations Development
Programme.
The conference comes at a time when China is experiencing again sustained economic
growth and is entering the final stage of its WTO entry negotiations. Logistics and supply
chain management is rapidly becoming one of the most central issues in the business
world, globally as well as in China. This multi-disciplined sector, which links communication, transportation, warehousing, production and consumption is profoundly affected by the rapid development of the Information and Communication Technology. E-Commerce, is giving rise to a revolution in the logistics area. How to live up to meet these requirements of the ICT Age, is a big challenge to businesses, as the service providers, and the government, as the provider of a regulatory framework. In fact, the ICT age raises some very fundamental questions regarding the formulation of legal and regulatory systems and the generation of public revenue, which will fund the required public infrastructure given access to all to the emerging
new economic environment.
China has invested into the development of its logistics industry. However, the industry is
still slow in adapting to full-fledged market conditions and the development of E-commerce.
Logistics in China¡¯s industrial production takes almost 90% of the time of the whole
production cycle and 40% of general production costs. Expenditure on logistics takes up
20% of GDP, while this ratio had dropped to 11.1% in the US in1986, and has declined even further since then.
Business processes throughout the enterprises are being enriched with easy access to information which is woven together from multiple sources. Such enhanced access has in turn resulted in administrative rationalization and automation. The recent explosion of the internationally increasing usage of the Internet has led to the emergency of e-applications adding yet another dimension of complexity to the enterprises. The Internet poses challenges to the business community by integrating new functionality into daily management operations. As the Internet increases the speed of business, companies face new challenges to keep pace with Internet-accelerated change, while maintaining low cost, high quality products and services and contend with increased globalization and rely on supplies and partners thousands of miles away. Strategic use of Internet-powered business practices can positively increase organizational growth, boost efficiency and help achieve competitiveness.
Developed countries are already reaping the benefits via the Web. China is quickening its
pace in preparing its economy to best compete in the Internet economy. There is a tremendous need in China to have the best road maps to the establishment of a modern logistics system.
Although the ¡°information affluence¡± for the developing world may still be a long way off, if approached with smart thinking, real commitment and proper resources, ICT can do a lot to penetrate even the remotest markets, and to reach those who have been excluded from the market economy. UNDP commits itself to provide smart, strategic policy advice to developing countries; to serve as catalysts for broader national and regional efforts to harness the full power of the innovative technologies, and to galvanize governments, the international community, the private sector, foundations and civil society around comprehensive ICT strategies, that address the fundamental problems of limited infrastructure and access.
To succeed in managing needed change in China¡¯s logistics industry and bridging the digital divide, there is justification for increased and strengthened partnership among key actors: the government; international organizations; civil society organizations and the private sector. Increasingly, the private sector drives economic development in China and the entry into WTO is expected to accelerate the growth of the private sector. The expertise, knowledge and best practice by the private sector will be beneficial in support of China¡¯s logistics reform. I would like to thank companies such as CISCO, Maersk Logistics, TNT, and Chinadotcom who have co-sponsored this conference and encouraged participation of the private sector in a future working group. As one of the possible follow-up actions of this public-private partnership initiated by UNDP and the Chinese government, we plan to focus attention on capacity building, the development of a modern regulatory framework and a smooth interaction between all partners for the further development of the logistics sector in China.
This conference is indeed a good example of such cooperation among actors interested in the reform and development of China¡¯s logistics sector. I wish you fruitful discussions and look forward to seeing the results of your deliberations. I hope that this conference will be the starting point for a continuing dialogue, which will contribute to the rapid and dynamic development of the logistics sector in China.
