FocuS Executive
courage a multinational way of doing busi-
ness among our employees, but obviously
we do have some different cultural nuances.
The most sensitive part of managing the
team is the importance of business titles.
You definitely cannot underestimate the
importance and power they have here. It is
also important that job titles are meaningful
and are supported by a clear scope of work
that colleagues and customers understand. I
think that there is an internal culture where
the contribution that each employee makes
James McAdam, President Joseph lee, Managing Director to the team is respected and valued at every
APL Logistics Greater China, APL Logistics level.
How will APL Logistics address the an-
Harnessing the
ticipated surge in domestic demand?
M: It is an interesting change. The past role
of China has been completely focused on
Domestic Surge
export-driven industries. But what we’ve
seen with the economic downturn and the
stimulus package is that logistics companies
like us need to not only support the export
James McAdam and Joseph lee talk with Monica liau about future
business, but also help our export clients
plans that are afoot for China.
develop business models to get their goods
into Chinese markets. We have nearly two
How has APL been able to get due to the reliance on demand from global million square feet of warehousing and dis-
over the obstacles posed by the econom- markets. On a positive note, the amount of tribution capacity here for our consolidation
ic downturn? stimulus money that is being spent on in- services, but everything is positioned close
McAdam: Honestly, we saw this downturn frastructure is definitely opening up new to the coast. Industries have not only been
coming as early as the summer of 2008, so avenues that follow the migration of facto- migrating from south to north, but are also
we started taking steps in the third and fourth ries out west. This movement is definitely a moving further west. We work on the basic
quarter of that year. Obviously it was a more long-term business opportunity. premise that we go where our customers go.
severe downturn than even we expected This means that more of our supply chain
with the extreme slowdown of demand in What have been some of the challenges entry points need to move west as well. We
Asia. China in particular was down into the of organizing a network of Chinese of- have been enhancing our vendor logistics
double digits. This was unprecedented but fices? services as well as our first-mile land-based
because of our forecast, we were able to get M: From an international organizational transportation and milk run services. Our
in line and be prepared to support slowing point of view, the process of setting up, or- two joint ventures in the west have become
top line growth with sustained cost manage- ganizing and running our company networks incubators for developing best practices and
ment initiatives. here is no different from our strategies in supply chain practices.
other places. We currently have nearly 600
How about the China stimulus package, employees in Greater China, and the overall So, where do you see APL Logistics’ big-
any help there? structure is quite similar to what we employ gest potential for growth?
M: We’ve definitely seen a direct impact in other markets, although here we partici- M: Historically, I would have said Europe
from the stimulus package in terms of do- pate in two domestically owned joint ven- or the US, but today the most impressive
mestic consumption. For example, there has tures, CMAL and Lenovo through Legend growth is greater China and Asia, which is
been an upturn in China’s domestic auto- Holdings, which is branded by APLL-Zhiq- currently the world’s biggest market. In our
motive sales which has been demonstrated in. This is a Beijing-based firm that focuses view, the trade within the Asian countries
by the increase in logistics business that our on the Chinese markets as they relate to our will begin to accelerate and expand, so for
joint venture, CMAL in Chongqing has been business. Our involvement in these two JV’s multinational companies like ourselves, this
doing with Chang’An motors. is obviously an enormous advantage for us is where our companies need to be. We have
Lee: However, the stimulus package has in the domestic market. a firm foothold in the region and can build
not provided a quick fix for China’s exports L: From the managing point of view, we en- out from these strategic points.
50 MARCH/APRIL 2010 www.supplychains.com
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