The OYM Logistics Alliance utilizes an advanced International Logistics Services Platform (Platform-as-a-Service) to facilitate fast market penetration for global brands in China.
Hong Kong, July 18, 2014 – The OYM Logistics Alliance was established in Hong Kong in 2012 with the objective to streamline regional distribution in China. It was organized to accommodate the needs of global brands, which need a large distribution footprint in China without making large capital expenditures in warehousing facilities.
Initially, the Alliance was comprised of a smaller group of selected regional third party logistics providers servicing only key markets in major cities in China. The supply chain benefits of that approach quickly became obvious to all parties involved. International brand owners liked the opportunity to streamline their regional distribution in key Chinese markets, and have it managed by a trusted partner in Hong Kong. Smaller logistics providers throughout Greater China, on the other hand, saw the opportunity to expand their services to global manufacturers by adopting the global fulfillment standards established by the Alliance.
Considering the numerous advantages of this type of collaboration, the Alliance grew at a staggering pace. As of July 2014, there are over 2,300 members, with a combined warehousing space of over 50 million square meters, covering over 255 cities in China, including 147 airport cities, and 47 at the harbors. This is the most comprehensive supply chain network in China to date.
Managing a logistics network of such scale is not an easy task. It requires enormous supply chain management expertise, a thorough understanding of global fulfillment standards, and of course, sophisticated technology. The key driver behind the Alliance is one of the founding members, Hong Kong-based OYM Logistics. Their strategic position in Hong Kong was instrumental in materializing a model that delivers the best of both worlds – high level knowledge of the requirements of global manufacturers, as well as an intimate understanding of how to operate in the complex regional markets of China.
To manage its growing scale of operations, The OYM Logistics Alliance made substantial investments in technology. In 2012 it rolled out a highly sophisticated IT system utilizing a Platform-as-a-Service (PaaS) Model – The OYM Logistics Alliance Platform.
It is well known that distribution is China is a highly complex endeavor. Not only that there are a lot of details to be handled, but also each region in Mainland China have its own specific way of doing things. Considering the broad variety of specific supply chains utilizing the warehousing alliance (cold chain, wine delivery, etc.), OYM Logistics launched a global consulting division, intended to quickly match the needs of global customers with the right facilities in Mainland China for the most effective deployment of various distribution models.
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