Schenker, BAX merge China-based logistics operations into 'One Schenker'
Jeff Berman, Senior Editor -- Logistics Management, 6/13/2007
HONG KONG—Deutsche Bahn subsidiaries Schenker and BAX Global recently announced they have integrated into a single entity in Hong Kong and Macau, entitled “One Schenker.”
Andrew Jillings, CEO and Schenker and BAX in China said in a press release that this news marks another milestone in China’s integration process. He added that both the Schenker and BAX teams are successfully overcoming the merger challenges as they focus on becoming, what he described as, the “premier logistics provider in China.”
In terms of what this merger will mean for shippers, BAX spokeswoman Marie Connell told Logistics Management that the main benefits are: a result of the companies combined presence, which include economies of scale; an enhanced global network with local expertise; access to dense distribution networks in the U.S. and Europe—with complementary synergies in the Asia-Pacific region; and single-source control.
“[Reducing] costs and being efficient can also be achieved by shippers through this integration,” said Connell.
She cited Kyocera, a supplier of telecommunications equipment, semiconductor packages, and electronic components, as an example of a long-term customer of BAX for airfreight services—and last year turned to BAX for warehouse management system (WMS) systems—as a shipper that will benefit from this new relationship.
“A dedicated BAX/Schenker operation in Hong Kong is streamlining Kyocera’s shipments of phones produced in mainland China direct to their customers, bypassing the need for U.S. warehousing and distribution hubs,” said Connell. “By using BAX/Schenker, Kyocera is significantly reducing transit times and warehousing costs, thus increasing the efficiency of the Kyocera supply chain.”
She added that in Hong Kong and Macau Schenker offers standard company-wide services,including: air freight; ocean freight; land transportation; logistics; fairs & exhibitions; global sports events; and supply chain management. And in select areas, including Hong Kong and Macau, the company offers relocation services and a travel agency for business and leisure.
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