by Gabrielle Martin
The new platform aims to establish information labs for a more efficient logistics plan, saving billions of dollars. Renowned filmmaker and CEO of ZS2 Media Group, Scott Hillier, recently went to this major port city for a corporate film project.
China is a leader in the world for the production and transportation of goods, yet it has not modernized its use of computers and technology. Chinese logistics industries are not computerized, manual systems are still in use, and there are no technology systems to monitor and organize results. The effect of this leaves many trucks and containers being sent to the same places, some of which are half, or even completely empty. This inefficiency is having a considerable impact on the city of Ningbo; the second busiest coastal port in China, the fifth largest port in the world, with 384 million tons of goods imported and exported each year. The lack of information technology has financially regressed Chinese logistics industries an unnecessary 30 percent. Simply put, if more logistics companies in Ningbo could be informed of where the goods were being transported, more companies could pool together, leaving potential to make savings of 20 percent. As China is the world’s largest manufacturer, these numbers are truly staggering, perhaps a saving of 200 billion dollars.
IBM is working on one particular project, where IBM labs are being established and will focus on software development, testing, consulting and training, making better use of IBM’s resources. This will improve infrastructure and create more sophisticated logistics and logistic networks, readily reducing the current transportation costs.
These systems create a win/win situation for IBM and some Ningbo logistic companies who use Ningbo port, lowering costs along the global supply chain, and ultimately minimizing prices for consumers worldwide. Imagine, making goods made in China even cheaper? Wow!