Distribution to China: Outsourcing the dock worker

11.07.05 - How do you eliminate the expense of warehouses and dockworkers in America? Outsource it to China.
Yep, who would of thunk it? Ceo's involved with distribution and trucking were quoted in a report at MSNBC that would reduce or eliminate the need of warehouses and dockworkers here in the United States.
Chinese products that normally pass thru American warehouses before they are delivered to their final destination are now being prepared for direct delivery to the customer. The plan that has been put into action allows for the sorting, packaging and labeling of Chinese manufactured goods, in China.
As a result of this attempt by CEO's to reduce expenses, the dockworker has in affect been outsourced.
The MSNBC report quotes Bill Zollars, chief executive of Yellow Roadway as saying "You are skipping a couple of steps in the supply chain and doing it at a fraction of the cost."
Mr Zollars also stated "Yellow Roadway was planning to offer warehouse services for its US customers in China through a recently formed logistics joint-venture."
It was also pointed out in the report that UPS expects to have 50 warehouses in China by the end of this year and plans to open a further 10 next year.

Report Source:
http://msnbc.msn.com/id/9950069/