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Supply chain helps Xiamen cut cost, raise efficiency

ftz.xm.gov.cn|Updated: April 19, 2023

The well-developed comprehensive supply chain network in the Xiamen Area of China (Fujian) Pilot Free Trade Zone in East China's Fujian province has been credited with helping the zone reduce costs significantly while benefitting enterprises and people.

Among those that have benefited from this comprehensive network is supply chain solutions provider Xiamen Xiangyu Co Ltd, which had in 2013 set up its grain collection and storage branches in cities in Northeast China.


An aerial view of Xiangyu's storage base located in Northeast China. [Photo/WeChat ID: xiangyugufen]

Chen Xiuxian, senior manager of Xiangyu's operations management department, said that the multimodal freight network has slashed transportation time by five days and helped the company save 20 yuan ($2.91) per ton in related costs.

Lin Yuting, the person in charge of Xiamen’s supply chain network, said that the supply chain has allowed for resources to be more efficiently allocated, thus helping striking a balance between costs and profits.

Local foreign trade enterprises have also benefited from the supply chain as many have been transformed into comprehensive supply chain service providers.

Furthermore, the network also ensures the smooth operation of transportation infrastructure like subways and helps increase people's living standards by improving the connectivity between customers and suppliers.

Authorities of the zone are now planning to integrate the supply chain with finance, law and other functions to improve its impact.


Xiamen's modern supply chain association is unveiled at an innovation and application forum. [Photo/WeChat ID: gh_6233022b6145]