Although the terminology can sometimes sound dryly academic, everything from the success of our modern economies to the quality of the food we eat depends on efficient logistics and supply chain management (LSCM).
William Ng, managing director of UPS Hong Kong and Macau, says it is possible to define logistics in simple terms. 'Logistics is about getting things where they need to be, exactly when they need to be there, and doing it as efficiently as possible.'
However, with production and trade becoming increasingly international, this doesn't give a clear impression of the complexities involved. 'For instance, in the process of manufacturing for the high-tech industry, each product is developed using small components from different parts of the world.'
Professor Tan Chung-jen, CEO of the Hong Kong R&D Centre for Logistics and Supply Chain Management Enabling Technologies, draws a distinction between logistics and supply chain management. 'Supply chain management involves a total integration of the many business processes required. This involves not just logistics but also information flow; the way businesses deal with each other; how materials are sourced; how the goods are manufactured; how they are distributed efficiently; how the retailers place orders and deal with customers; and how the flow of money, loans and credit is managed.'
At a time of natural and man-made disasters, and worries about fake goods, Tan uses the example of food safety to highlight the importance of LSCM. 'From farm to supermarket you want to know where the food came from, who shipped it, is it safe or has it been contaminated.' The economic boom on the mainland has created huge opportunities for those working in the LSCM industry. 'You cannot just talk about the manufacturing boom,' Tan says. 'China is gradually becoming the leading retail market in the world.'
In the Pearl River Delta region in particular, UPS has seen a surge in its package and freight business.