Cargo Business Techwire

Friday, May 30, 2014

UPS grows contract logistics business in China

UPS announced the opening of its new contract logistics distribution facility in Beijing.

The 6,500 square meters of warehouse space, near Beijing Capital International Airport, is capable of servicing contract logistics orders with four-hour delivery within the metropolitan Beijing area and next-business-day orders for major cities throughout China, UPS said.

"The Beijing facility is the latest addition to UPS's portfolio of contract logistics facilities nationwide, which strengthens our integrated China network," said Craig Foster, UPS Asia Pacific senior vice president of supply chain and healthcare logistics. "Our warehouses throughout China, including the new facilities in Beijing, Shanghai and Chengdu, enable us to effectively support national and regional order fulfillment and give customers better warehousing and distribution access to developing cities throughout the country."

The opening of the Beijing facility follows the opening of UPS distribution centers in Chengdu and Shanghai in 2013. Together, the centers support growing industries in China, including high-tech, industrial manufacturing, aerospace and retail.

UPS says the facilities include order fulfillment, inventory management, kitting, packaging and other specialized value-added services.

According to market research firm Transport Intelligence, China is expected to overtake Japan in becoming the largest contract logistics market in the Asia Pacific region by 2016, driven by rising domestic consumption.