COMPANIES should focus on building their competitive advantages in their core business to be ahead of competition, DHL International (Hong Kong) general manager Lee Wai-tong says.
He said they should be adaptable to change as it was the only way to survive in the competitive marketplace.
'Traditional structures, practices and business relationships are being challenged by the advent of new skills, new markets and improvements in communications technology,' he said.
Mr Lee, who was speaking at a seminar on competitive sourcing and distribution for the textiles and clothing industries organised by the Hong Kong Productivity Council, said logistics was an important discipline in marketing.
This was a vital extension of production flexibility, he said, adding that the availability of logistics would be an immediate source of savings.
A recent study of 1,450 companies suggested a 1 per cent cut in logistics costs would give a 10 per cent rise in sales, whereas a 30 per cent cut in inventory would result in a 10 per cent cut in storage and working capital. This would result in a 33.5 per cent increase in return of investment, the study said.
