The Chinese economy has been growing rapidly despite an underdeveloped supply chain network. Most Chinese manufacturing companies do not yet rely on supply chain systems, but the environment is becoming increasingly competitive and many enterprises will find it difficult to survive if they do not make their sourcing, production and distribution more efficient. That makes the supply chain management market potential enormous.
Chinas underdeveloped transportation infrastructure, fragmented distribution systems, limited use of technology, shortage of logistics talent, regulatory restrictions and local protectionism still limit the efficient distribution of domestic and imported products. Yet, the growing number of foreign invested companies and multinationals entering China are aware of the importance of supply chain.