Supply Chain Logistics

Logistics/supply chain management (SCM) enabling technologies cover a wide spectrum of technologies that facilitate the smooth flow of goods, services and related information as well as the integration of business processes across the supply chain. In particular, the emerging Radio Frequency Identification (RFID) technology could revolutionize the product information flow and has a high potential to transform the whole global supply chain into a highly effective and efficient information pipeline, especially when coupled with a global information network, such as the EPCglobal Network.
Hong Kong is a major logistics hub that possesses a world-class transport infrastructure and excellent information connectivity. Transportation and logistics related sectors (including freight and passenger transport) account for over 7% of our GDP, employing over 210 000 workers. Every day, over $2 600 million worth of goods are produced by tens of thousands of factories scattered over the Mainland and shipped to Hong Kong for export. Such export activities require quality logistics support to keep the supply chains intact and efficient. Hong Kong's logistics facilities and services have contributed significantly to the Pearl River Delta's (PRD) rapid rise as a production base. The PRD, in turn, has provided Hong Kong with a huge and expanding cargo base. Mainland China has become a major manufacturing base in the world, supplying a majority of commodity items to the world market. Hong Kong occupies a unique position as the gateway and logistics hub to link the Mainland with the world, especially after the implementation of CEPA. It is vital to develop and introduce appropriate technologies to support the growth of the logistics/SCM industry. In this regard, the benefits of developing RFID-based logistics are significant, as the new technology will greatly improve the visibility of products flowing along the supply chain. The development of RFID-based logistics is gaining momentum on international fronts, with many top worldwide retailers already initiated adoption of the technology in their operations. In fact, there is an increasing awareness on RFID technology in the local industry and some local companies are actively exploring its potential in their supply chain operations.

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