Contemporary Logistics

This is an important conference for several reasons. First, logistics and distribution lie at the heart of economic growth and market opportunity. This conference, therefore, is an excellent forum for U.S. business leaders and government officials to meet with our counterparts in China to exchange ideas on these issues. Second, this conference is clear evidence of the commitment of our two countries to the agreement last year between U.S. Secretary of Commerce Donald Evans and NDRC Chairman Ma Kai to establish a strong dialogue between our two agencies. Indeed, this conference is consistent with the desire of our most senior leaders to foster a candid, cooperative, and constructive relationship between our two countries.

The Critical Role of Logistics

This conference is also important because it deals with issues that are critical to the development of both of our economies. As this audience well knows, logistics involves the integration of different modes of transportation in such a way as to best serve the needs of customers. It lies at the heart of contemporary manufacturing processes, and it is integral to the efficient functioning of cargo transportation systems. It is of enormous importance to the U.S.-China trade relationship as both countries develop increasingly integrated processes to turn inputs into finished products and then get those products from the manufacturing plants to businesses and homes.
It was not too long ago that the terms “transportation logistics,” “just-in-time delivery,” “supply chain management,” “harmonized systems,” and “electronic data interchange” were mainly used in academic circles by professors without being central to global business. Today, the situation is quite different. With deeper integration of national economies and the explosive growth in global sourcing at all levels of production, these concepts are central to a company’s efforts to participate in and enjoy the maximum benefits of globalization.
In fact, these ideas are at the heart of the evolution from traditional “push-logistics” systems to the “pull-logistics” systems that are a key contributor to the increases we see around the world in manufacturing productivity. Creating an environment that facilitates the growth of such cutting-edge practices is the focus of this conference.

Credits

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