Taiwan as an international logistics and distribution center: Where your business opportunities begin … Jennifer Fang-Yu Huang Council for Economic Planning and Development The Executive Yuan, Taiwan, ROC April 28, 2004
Jan 22, 2016
Taiwan as an international logistics and distribution center:
Where your business opportunities begin …
Jennifer Fang-Yu HuangCouncil for Economic Planning and Development
The Executive Yuan, Taiwan, ROCApril 28, 2004
OutlineOutline
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
Taiwan’s Competitive AdvantagesTaiwan’s Competitive Advantages
Taiwan’s Global Logistics Development PlanTaiwan’s Global Logistics Development Plan
Policy Measures and Implementation ResultsPolicy Measures and Implementation Results
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
ConclusionsConclusions
The GlobalThe Global EconomicEconomic andand TradeTrade EnvironmentEnvironment
Technological advances innetworking,
telecommunication,& information
Economicliberalization
Capital marketformation
The importance of internationaltrade
The importance of port economics
The role ofmultinationalcorporations
Globalization
Globalization
Globalization
Globalization
Globalization
Globalization of world economy bolsters the increasing importance of international trade and the roles of ports and MNCs.
Distrib
ution
centers
Logistics
centers
Transp
ort
centers
Airports
/
Seaports
Networking & Informationalization
Econ
om
ic L
ibera
lizatio
n
Inte
rnatio
naliza
tion
The increasing importance of air-/ sea- ports and MNCsThe increasing importance of air-/ sea- ports and MNCs
The GlobalThe Global EconomicEconomic andand TradeTrade EnvironmentEnvironment
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
1. China has increasingly become the big growth engine for global Logistics.
A huge consumer market Manufacturing in China Global sourcing of consumer goods from China
raw materials
goods
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
2. The rapid growth of Mainland China in terms of GDP w.r.t. Asia area
East Asia GDP 6.73 trillion USDEast Asia GDP 6.73 trillion USDEast Asia GDP 6.73 trillion USDEast Asia GDP 6.73 trillion USDEast Asia GDP 4.24 trillion USDEast Asia GDP 4.24 trillion USDEast Asia GDP 4.24 trillion USDEast Asia GDP 4.24 trillion USD
Year 1990 Year 2002
JapanJapan3.053.05
(71.9%)(71.9%)
Mainland China 0.39(9.2%)Mainland China 0.39(9.2%)
5 countries of5 countries ofASEAN 0.27(6.4%)ASEAN 0.27(6.4%)
Hong KongHong Kong0.08 (1.9%)0.08 (1.9%)
SingaporeSingapore0.04(0.9%)0.04(0.9%)
South KoreaSouth Korea0.25(5.9%)0.25(5.9%)
Taiwan 0.16(3.8%)Taiwan 0.16(3.8%)
JapanJapan4.174.17
(62%)(62%)
Mainland China 1.16(17.2%)Mainland China 1.16(17.2%)
5 countries of5 countries ofASEAN 0.46(6.9%)ASEAN 0.46(6.9%)
Hong KongHong Kong0.16 (2.4%)0.16 (2.4%)
SingaporeSingapore0.09(1.3%)0.09(1.3%)
South KoreaSouth Korea0.42(6.2%)0.42(6.2%)
TaiwanTaiwan0.27(4.0%)0.27(4.0%)
in trillion USD in trillion USD
Source: International Affairs Weekly (Mar. 27, 2003).Source: International Affairs Weekly (Mar. 27, 2003).
Note: East Asia includes 11 countries: Japan, South Korea, Taiwan, Singapore, Hong Kong, Malaysia,Note: East Asia includes 11 countries: Japan, South Korea, Taiwan, Singapore, Hong Kong, Malaysia, Philippine, Indonesia, Thailand, Vietnam, and Mainland China.Philippine, Indonesia, Thailand, Vietnam, and Mainland China.
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
3. The rapid growth of Mainland China in terms of trade volume w.r.t. Asia area
East Asia trade volume 1.65 trillion USDEast Asia trade volume 1.65 trillion USDEast Asia trade volume 1.65 trillion USDEast Asia trade volume 1.65 trillion USD
Year 1990 Year 2002
Mainland China Mainland China 0.12(7.3%)0.12(7.3%)
Hong Kong 0.16 (9.7%)Hong Kong 0.16 (9.7%)
Singapore 0.11(6.7%)Singapore 0.11(6.7%)
Taiwan 0.12(7.3%)Taiwan 0.12(7.3%)JapanJapan0.520.52
(31.5%)(31.5%) South Korea 0.13(7.9%)South Korea 0.13(7.9%)
Mainland ChinaMainland China0.62(19.9%)0.62(19.9%)
Hong KongHong Kong0.41(13.1%)0.41(13.1%)
SingaporeSingapore0.24(7.7%)0.24(7.7%)
Taiwan0.24(7.7%)Taiwan0.24(7.7%)
JapanJapan0.700.70
(22.1%)(22.1%)
South Korea 0.31(9.9%)South Korea 0.31(9.9%)
East Asia trade volume 3.17 trillion USDEast Asia trade volume 3.17 trillion USDEast Asia trade volume 3.17 trillion USDEast Asia trade volume 3.17 trillion USD
5 ASEAN countries 5 ASEAN countries and othersand others0.49 (29.7%)0.49 (29.7%)
5 ASEAN countries 5 ASEAN countries and othersand others0.65 (20.8%)0.65 (20.8%)
Note: East Asia includes 11 countries: Japan, South Korea, Taiwan, Singapore, Hong Kong, Malaysia,Note: East Asia includes 11 countries: Japan, South Korea, Taiwan, Singapore, Hong Kong, Malaysia, Philippine, Indonesia, Thailand, Vietnam, and Mainland China.Philippine, Indonesia, Thailand, Vietnam, and Mainland China.
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
4. Major countries’ (/regions’) direct investments in Mainland China
Year 1995
Total volume: 11.01 billion USDTotal volume: 11.01 billion USDTotal volume: 11.01 billion USDTotal volume: 11.01 billion USD
Year 1992Year 2002
in billion USD
Total volume: 37.52 billion USDTotal volume: 37.52 billion USDTotal volume: 37.52 billion USDTotal volume: 37.52 billion USD
Total volume: 52.74 billion USDTotal volume: 52.74 billion USDTotal volume: 52.74 billion USDTotal volume: 52.74 billion USD
Japan0.71, 6%
USA
0.51,5%
Germany
0.09, 1%
Taiwan
1.05, 10%
Singapore0.12, 1%
Korea0.12, 1%
others0.9, 8% Hong Kong
7.51, 68%
Taiwan
3.16, 8%USA
3.08, 8%
Japan
3.11, 8%
Germany
0.39, 1%
Singapore
1.85, 5%
Korea1.04,3%
others4.83,13%
Hong Kong
20.06, 54%
Taiwan
3.97,8%
USA
5.42,10%Japan
4.19, 8%Germany0.93,2%
Virgin Islands
6.12, 12%
Singapore
2.33, 4%
Korea
2.72,5%
others9.2, 17%
Hong Kong
17.86, 34%
Source: http://stats.unctad.org/fdi/Source: http://stats.unctad.org/fdi/
5. North America and NE Asia Trade in TEU
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
0
2
4
6
8
10
12
2002 2003 2004 2005 2006
Asia to NA NA to Asia7
22
7 2
98
33
12
64
8
8 5
43
24
9
35
23
87
4
9 5
65
27
4
37
10
74
5
10
39
9 1
71
38
95
50
3
11
21
1 5
25
40
83
30
3
M TEU
Note:NE Asia: China, Hong Kong, Japan, South Korea and TaiwanNorth America: Canada and US
Source: April 2004 Containerisation International
Q4GR: 16.5%YGR: 11%
YGR:11%
6. Europe and Eastern Asia Trade in TEU
0
2
4
6
8
10
2002 2003 2004 2005 2006
E to Asia Asia to E2 8
22
471
5 4
26
02
7
2 8
80
222
6 3
28
76
5
3 0
35
458
6 7
63
99
6
3 1
93
600
7 2
04
79
7
3 3
58
136
7 6
50
78
9
M TEU
Note:Eastern Asia = North East Asia (China, Hong Kong, Japan, South Korea and Taiwan) + South East Asia (Singapore, Malaysia, Philippines, Indonesia, Thailand and Vietnam)
Source: April 2004 Containerisation International
The Global Economic and Trade EnvironmentThe Global Economic and Trade Environment
Q4GR:17%
Q4GR: 12%YGR:6%
Taiwan’s Competitive AdvantagesTaiwan’s Competitive Advantages
1. Taiwan’s excellent geographical position as an international transportation and commerce hub
Source: MOTC, ROC (Apr. 2001)Source: MOTC, ROC (Apr. 2001)
Taiwan’s Competitive AdvantagesTaiwan’s Competitive Advantages
JFKLHR
TokyoSeoul
Shanghai
HongKongManilaTAIPEI
Singapore
Comparison of the average flying time among 8 major airports of the Asia-Pacific Region
124
Singapore Tokyo Shanghai Manila Hong Kong Kaohsuing
53 hour
78
64
110
68
Comparison of the average ship traveling time among 5 major harbors of the Asia-Pacific Region
hour
Sidney Singapore Tokyo Seoul Manila Shanghai Hong Kong Taipei
4:554:15 4:00
3:30 3:253:05 2:55
6:15
2. Transportation advantage
3. Taiwan’s niches - Global logistics management
Source: Research Reports of the MOTC
Operation mode value-added per container
Whole container transshipping USD 1,625
Simple processing USD 4,750
High value-added transshipping USD 18,500
overseas
overseas
Taiwan’s niche
Taiwan’s Competitive AdvantagesTaiwan’s Competitive Advantages
Source: IDB, MOEA (Apr. 1, 2004)
Keelung(2)
Taipei (58)
Taipei County (43)
Taoyuan (23)
ShinChu (20)
MiaoLi (2)
TaiChung County (12)
NanTo (1)
ChiangHua (7)
YunLin (1)
TaiNan (9)
Kaohsuing (3)
Kaohsuing County (4)
Switzerland Switzerland Samancor AG, Samancor AG, Singapore BayerSingapore Bayer
Applied Materials’ Taiwan, Intel Applied Materials’ Taiwan, Intel Microelectronics Asia Ltd., IBM,Microelectronics Asia Ltd., IBM, Hitachi China Hitachi China Ltd., Fujitsu Microelectronics AsiaLtd., Fujitsu Microelectronics Asia
PingTung (1)
SmartLink Ltd. Taiwan Branch (Israel)SmartLink Ltd. Taiwan Branch (Israel)
International Logistics & Distribution International Logistics & Distribution Centers (8)Centers (8)
Mining Mining industryindustry
Semi-Semi-conductor conductor
equipmentsequipments
ComputerComputerperipheralsperipherals
TelecommuniTelecommunication cation
Component Component sol. plansol. plan
11 11 55 11
KaohsuingKaohsuing TaoyuanTaoyuan TaoyuanTaoyuan TaipeiTaipei
44444455383898983333
Service Industry (17)Service Industry (17)ManufacturingManufacturing
(169)(169)
Enterprise Operation Headquarter (186)Enterprise Operation Headquarter (186)
ME EIT CE TS WR FI TW
ME: Metal & Electrical machine, EIT: Electronics & IT, CE: ChemicalEngineering, TS: Technological services, WR: Wholesale & Retail,FI: Finance & Insurance, TW: Transportation & Warehousing.
Taiwan’s Competitive AdvantagesTaiwan’s Competitive Advantages4. Enterprise operation headquarters in Taiwan
Formulating institutionsFormulating institutions
ConstructinginfrastructureConstructinginfrastructure
To make Taiwan become the best location for regional operation headquarter for Taiwanese Businesses and MNCs
To make Taiwan become the best location for regional operation headquarter for Taiwanese Businesses and MNCs
GoalsGoals
Challenge 2008 – The 6-year National Development PlanChallenge 2008 – The 6-year National Development Plan
1. Planning free ports2. Providing incentives for
enterprise operation headquarters
1. Planning free ports2. Providing incentives for
enterprise operation headquarters
1. Constructing joint air-/sea- port
2. Barrier-free customs clearance
3. Global E-logistics
1. Constructing joint air-/sea- port
2. Barrier-free customs clearance
3. Global E-logistics
Taiwan’sTaiwan’s GlobalGlobal LogisticsLogistics DevelopmentDevelopment PlanPlan
Free PortsFree Ports Planning single-window administrationfor free ports
Planning single-window administrationfor free ports
Providing favorable measures for taxation and land
Providing favorable measures for taxation and land
Providing digital single-window trade platformto simplify trade procedures and documents
Providing digital single-window trade platformto simplify trade procedures and documents
Strengthening infrastructure and integrating multi-modal transportation linkage
Strengthening infrastructure and integrating multi-modal transportation linkage
Barrier-freeCustoms
Clearance
Barrier-freeCustoms
Clearance
JointAir-/Sea Port
JointAir-/Sea Port
Establishing global e-supply chain system to enhance competitiveness
Establishing global e-supply chain system to enhance competitiveness
GlobalE-Logistics
GlobalE-Logistics
EnterpriseOperation
Headquarters
EnterpriseOperation
Headquarters
Taiwan’sTaiwan’s GlobalGlobal LogisticsLogistics DevelopmentDevelopment PlanPlan
資料來源 : 經建會法協中心整理
PolicyPolicy MeasuresMeasures andand ImplementationImplementation Results Results The planning of Taiwan’s free ports breaks through the existing administrative and operational restrictions.
Free p
ort
Ship or airplane arrival
Area for simple processing, warehousing, and transshipping
Movement of imported or exported goods
Customs territory, bonded zone
In-Depth value-addedprocessing area
BusinessService center
Movement of people
The breakthroughs:
1.Exemption from customs clearance
2.Tax exemption3.Granting selective
landing visa for foreign business personnel
4.Autonomous management
Source: CEDI, CEPD, the Executive Yuan
Facilitating business activities
(streamlining procedures for granting entry and issuing landing visas to business personnel; providing exhibition facilities and services)
Ease of financial operations
(permitting setup of holding companies for offshore investment, and allowing OBUs to handle foreign-currency transactions)
Rooting deeply in Taiwanwhile deploying globally
Within national territory, but outside the customs territory
(autonomous management; exempted from customs checking and
inspection, as well as cargo tracking and escort)
Duty & tax exemption(exempted from customs duties,
commodity tax, sales tax, tobacco and wine excise tax)
Relaxing hiring ratiofor foreign workers
Allowing in-depth value-added processing
(e.g. assembling, packaging,
manufacturing)
Free Ports
Source: CEDI, CEPD, Executive Yuan
The incentives for attracting businesses to free ports
Policy Measures and Implementation ResultsPolicy Measures and Implementation Results
Taxation measures for Free portsTaxation measures for Free ports
Customsterritory
Other free ports
Gate
Bonded zones,EPZs,
Science parksFree Portenterprise
Free Portenterprise
Tax exemption for transshipping goods and facilities used by the businesses
In compliance with regulations for bonded goods
0 Sales Tax
Exempted taxes :
Customs duties,
commodity tax, sales tax,
tobacco and wine excise tax, public health and welfare dues on tobacco products, trade promotion service fees, and harbor service dues
In compliance with regulations for exported goods
Gate1. In compliance with regulations for imported goods
2. Special regulations for goods processed within FP and transported back to FP
Policy Measures and Implementation ResultsPolicy Measures and Implementation Results
Tax exempted
FreePortArea
FP accessvia specifiedlocations
off
board
Foreign business personnel
Free Port
Visa-free (21countries)
Landing visa (24 countries)
Visa (stay 、 residing)
Selective landing visa(not restricted to countries without embassy or counselor)
NotifyingForeignAirline
company
Documentscheck
Luggageclaims
Customsinspection Arrival
Urgent casesapproved and submitted via FP
management agency
MO
FA
(3 workdays)
Streamlining procedures for granting entry and issuing landing visas to business personnel (§32 I)
Source: CEDI, CEPD, Executive Yuan
Policy Measures and Implementation ResultsPolicy Measures and Implementation Results
Port of Keelung (approved)
Port of Mailiao
Port of Taichung
Port of Taipei
Taoyuan Air Cargo Park
Port of Kaohsuing (approved)
Nan-ShinFree Port
(Kaohsuing City)
Changbing Industrial District
Southern Free Port (Tainan County)
An-Ping Free Port (Tainan City)
Port of Hualieng
Economic Processing Zones(being under review)
2
3
Source: CEDI, CEPD, Executive Yuan
Policy Measures and Implementation ResultsPolicy Measures and Implementation Results
The Port of Keelung
East Container Warehouse
East14 to 22 Wharf
East 6 & 7 Wharf
West 29 to 33 Wharf
West 11 to 15 Wharf
West Container Warehouse
1. The development area: East 6 to 22 Wharf and West 11 to 33 Wharf
2. Being approved by the FPC on Mar. 8, 2004.3. Formal operation to be launched on Sep. 1, 2004.
The Port of Kaohsuing
1. The development area: the 1st to the 5th container centers.2. Being approved by the FPC on Mar. 8, 2004.3. Formal operation to be launched on Jan. 1, 2005.
Far Glory Air Cargo Park
Taipei
Keelung
Taoyuan
ChungLi
CKS International Airport
Taipei County
ShingChu Highway
HSR
Port ofTaipei
Expressway
Port ofKeelung
Railway
MRT
Taoyuan Air Cargo Park
Taoyuan Air Cargo Park
Logistics Center
Operation Center
Internet
Warehouse
Cargo Transport Station
Value-added Park
Data Center
Taipei Data Backup CenterPark backbone
Outbound connection
Dedicated data lines
Foreignenterprise
Tax Incentives for Facilitating the Establishment of International Logistics and Distribution Center in Taiwan:
1. Statute for Upgrading Industries (Article 14-1) 2. Regulations for Encouraging Foreign Profit-Seeking
Enterprises to Establish International Logistics and Distribution Center in Taiwan (Article 3)
International logistics& distribution center/Bonded warehouse
Policy Measures and Implementation ResultsPolicy Measures and Implementation Results
The total selling prices
of exported cargos > 100 Million NTD
The total selling prices of exported cargos
>= 10% of the aggregate selling
prices of the cargos
The total selling prices of cargosdistributed or released by such
center in a year>= 200 Million NTD
Foreign Enterprise (business items)Foreign Enterprise (business items) Distribution Center (location)Distribution Center (location)
11 Switzerland Samancor AGSwitzerland Samancor AG (mineral sand) (mineral sand) UNITOP CorporationUNITOP Corporation (Kaohsuing) (Kaohsuing)
22 Applied Materials’ TaiwanApplied Materials’ Taiwan (Semi-conductor (Semi-conductor equipment)equipment)
UPS International Inc., Taiwan BranchUPS International Inc., Taiwan Branch (Singapore) (Taoyuan)(Singapore) (Taoyuan)
33 Intel Microelectronics Asia Ltd. Taiwan Intel Microelectronics Asia Ltd. Taiwan BranchBranch (computer parts and peripherals) (computer parts and peripherals)
UPS International Inc., Taiwan BranchUPS International Inc., Taiwan Branch (Singapore) (Taoyuan)(Singapore) (Taoyuan)
44 Fujitsu Microelectronics AsiaFujitsu Microelectronics Asia (Singapore) (Singapore) (computer parts and peripherals)(computer parts and peripherals)
Amigo Logistics CorporationAmigo Logistics Corporation and and DHL DHL (Taoyuan)(Taoyuan)
55 Hitachi China Ltd. Taipei BranchHitachi China Ltd. Taipei Branch (computer parts and peripherals)(computer parts and peripherals)
CTW Logistics CorporationCTW Logistics Corporation (Taoyuan) (Taoyuan)
66 Singapore BayerSingapore Bayer (South East Asia) Pt. Ltd. (South East Asia) Pt. Ltd. (Chemistry & Pharmaceutical Industry)(Chemistry & Pharmaceutical Industry)
Bayer Polyurethanes Taiwan Ltd., Bayer Polyurethanes Taiwan Ltd., UNITOP UNITOP CorporationCorporation, Trends Pacific Chemical , Trends Pacific Chemical Corporation Corporation (Kaohsuing)(Kaohsuing)
77 IBM IBM (computer parts and peripherals)(computer parts and peripherals) UPS International Inc., Taiwan BranchUPS International Inc., Taiwan Branch (Singapore) (Taoyuan)(Singapore) (Taoyuan)
88 SmartLink Ltd. Taiwan BranchSmartLink Ltd. Taiwan Branch (Israel) (Israel) (Telecommunication components solution (Telecommunication components solution plan)plan)
SmartLink Ltd. Taiwan BranchSmartLink Ltd. Taiwan Branch (Israel) (Israel)
Policy Measures and Implementation ResultsPolicy Measures and Implementation ResultsThe following enterprises are qualified to enjoy the aforementioned tax benefits:
Source: Bureau of Industrial Development, MOEA (March 2004)
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
Traditional paradigm -Outsourcing SC
in order to lower cost
New paradigm -Outsourcing SC for strategic &
competitive advantage
customer
Man
ufac
turin
g
War
ehou
sing
Com
plia
nce
Tra
nspo
rtat
ion
Dis
trib
utio
n
GlobalIntegrated logistics
Logisticsproviders
Ord
er m
anag
emen
tcarrier carrier
carrier
Source: Council of Logistics Management (March 2004)
customer
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
The 5 stages of supply chain evolution and the tools to enable its excellence
Individualsupply chain
alignedsupply chain
integratedsupply chain
extendedsupply chain
networkedsupply chain
ERP system
Solutions for in
tegrated information & visibility
Optimization
Global integrated logistics Global integrated logistics
Complete visibilityEnd-to-end solutionsCustomized & flexible
Trading Partner Integration HighLow
Sup
ply
Cha
in V
alue
HighGlobal integrated logistics
Source: Council of Logistics Management (March 2004)
55
24
70
29
5156
3236
10
61
23
75
30
51
61
4539
9
0
20
40
60
80
NBPC DT PC MB Server CDTMNT
LCDMNT
ODD DSC Projector
2001 2002
%
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
The Global Market Share of Taiwan’s Major IT Hardware Products
Source: MIC IT IS Project (Nov. 2002)
55
3427
18
73
15
6564 67
39 39
70
51
6676 73
46
71 70 6679
0
20
40
60
80
100
NIC WLAN Switch Soho Router AnalogModem
xDSLModem
CableModem
2000 2001 2002
%
Hub3%
LAN Output Ratio
SOHO Router24%
Switch28%
WLAN27%
NIC10%
Others 8%
WAN Output Ratio
xDSL Modem39%
Cable Modem26%
Analog Modem34%
Others 1%
Source: MIC IT IS Project (Nov. 2002)
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
The Global Market Share of Taiwan’s Major Computer Networking Products
2.29.6 12.9
28.8
42.5
153.1
123.5
98.1
65.7
0.82.3
3.3
7
9.5
13.6
18.9
21.7
24.6
0
20
40
60
80
100
120
140
160
180
1999 2000 2001 2002 2003 2004 2005 2006 2007
0
5
10
15
20
25
30
Taiwan’s Mobil Phone Sales Prediction: 1999-2007Taiwan’s Mobil Phone Sales Prediction: 1999-2007
%
Million
Source: MIC IT IS Project (Nov. 2002)
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
16.1
0
11.1
57.5
3025.77
11.6
52
39
47.5
12.1
54
0
20
40
60
80
PDA Game Console Digital STB Thin Client
2001 2002 2003
%
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
The Global Market Share of Taiwan’s Major IA Products
Source: MIC (Dec. 2002)
Global SCM Market Scale Prediction (Year 2000-2005)Global SCM Market Scale Prediction (Year 2000-2005)
Market revenue($M USD)
53086658
8988
12494
16866
21083
0
5000
10000
15000
20000
25000
2000 2001 2002 2003 2004 2005year
Source: AMR Research & Survey Institute (2001)
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
YGR: 32%
Worldwide SCM Market Grow Rate Prediction(%)Worldwide SCM Market Grow Rate Prediction(%)
20002000 20012001 20022002 20032003 20042004 20052005
NorthNorth
AmericaAmerica2727 2323 3131 3434 3030 2121
EuropeEurope 4343 3333 4141 4545 4141 3030
Asia-Asia-PacificPacific 9797 4343 4545 4848 4343 2929
Central Central AmericaAmerica 4949 3535 4343 4646 4242 3131
OthersOthers 4949 3030 3737 4141 3737 2727
TotalTotal 3636 2828 3535 3939 3535 2525
Growth rateRegion
Source: AMR Research & Survey Institute (2001)
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
2.68 B USD
Taiwan’s ERP,SCM,CRM Market Revenue PredictionTaiwan’s ERP,SCM,CRM Market Revenue Prediction Year 2001-2003 Year 2001-2003
Source: MIC (2001)
6.13 7.5210.07
13.518.09
0.751.47
2.47
4.14
6.97
3.18
4.15
6.43
9.97
1.12
0
10
20
30
40
1999 2000 2001 2002 2003
ERP SCM CRM
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
Billion NTD
2001 2003 Year
Billion NTD
1.4
768%
68%
Global Logistics Trends and Business OpportunitiesGlobal Logistics Trends and Business Opportunities
Taiwan’s SCM Market Value EstimationTaiwan’s SCM Market Value Estimation Year 2001-2003 Year 2001-2003
Source: Supply Chain Management: Insight & Cases (ARC Consultants Ltd.)
ConclusionsConclusionsThe Smiling Curve of Taiwan’s Industrial Development
High-Tech Island Global Logistics Center
Knowledge-based Services
High Value-addedManufacturing Center
IR&DC GLC
Traditional Industries
Ad
ded
Valu
e
IndustryValueChain M
ark
et
Surv
ey
Innovati
on
R &
D
Desi
gn
Ass
em
bly
Logis
tics
Finance
Mark
eti
ng
Serv
ices
Bra
nd
High Added-valueLow Substitution
Man
ufa
cture
r
ConclusionsConclusions1. Taiwan’s niche services and local network plus international 3PL and 4 PL providers
E-BusinessManagement of all parties of the supply chain + e-Business
Supply-Chain ManagementManagement of the whole supply chain
Forwarding/Contract Logistics
Traditional transport & warehouse management
Producers’ own operation of logistics
5PL
2PL
1PL
4PL
3PL
Source: Revised from APL Logistics (2004).
customer retailer distributorLogisticsprovider
manufacturerrawmaterialsupplier
SupplerRelationshipsManagement
Supply Chain ManagementCustomerRelationship
sManagement
Goods flows (reverse goods flows)
Information flows
Money flows
ConclusionsConclusions2. Dynamic Value Chain Management
Source: Supply Chain Management: Insight & Cases (ARC Consultants Ltd. + i2 Technologies)
ConclusionsConclusions3.Possible areas of cooperation between Taiwan and Singapore
– The Twin Hub System for the Asia-Pacific Region
Training & Development
Professional networking
Information exchange
Logistics portal linkage
Council for Economic Planning and DevelopmentThe Executive Yuan, Taiwan, ROC