The Logistics of Distribution in China

Every country concerns itself to some extent with the efficient and equitable distribution of goods to its people. In order to unravel the logistics of physical distribution in China, it is critical to understand the political and economic context in which it is carried out. The policy of capitalist or mixed economy countries is to let manufacturers, wholesalers and retailers compete to provide the goods at the time, place and price desired by the customer. As a rule, neither government policy nor the distribution process is set up to ensure that people will get the particular goods for a set price or at a given location. Prices are a function of the relative power held by consumers, distribution channels and producers. Location is a function of customer demand. It is assumed that the discipline of the marketplace will keep the system operating with reasonable efficiency.