Interest in Chinese pallet pooling driven by current maco economy and national policies.
China Merchants Loscam, the leading pooling service provider in Asia Pacific, was invited to address the Pallet Pooling Promotion Conference, held in Beijing on 9 May 2014 jointly by the Ministry of Commerce and CCFA (China Chain Store & Franchise Association). Hundreds of retailers, manufactures and service providers attended this conference, which was the first nation-wide pallet pooling promotion event ever held in China, aiming to promote pallet pooling and standardization in China’s retail industry. As the officials from the Ministry of Commerce pointed out at the conference, a national pallet pooling system is bound to increase supply chain efficiency and lower national logistics costs.
Mr. Zhengnan Dai, the General Manager of Loscam Greater China, expressed during his speech, “Driven by current macro economy and nation policies, China retail industry has begun to realize the importance of pallet pooling. In recent years, leading retailers have cooperated with Loscam in numerous pooling projects.”
According to Mr. Dai, Loscam launched an incentive plan of rent concession in 2013 to expedite the promotion of pooling between suppliers and retailers, which helped to encourage a number of pooling implementation successfully. Meanwhile, Mr. Dai admitted there are still some challenges in pooling in China, and the key solution is to build up an integrated and corporative supply chain, which will be able to fully maximize the benefits brought about by pallet pooling.
Mr. Sirin Limpaitoon, Regional Director of Loscam Southeast Asia, also shared Loscam’s success experiences of pallet pooling in Southeast Asia. He pointed out that Southeast Asia had experienced the similar problems and challenges as in China in pallet pooling development, but eventually Southeast Asia succeeded. Mr. Sirin was confident that China’s pooling system is sure to grow successfully through contributions and efforts of all stakeholders in the industry.