Why visibility in China is crucial to high-velocity supply chains

China is one of the world’s leading sources of goods, making it critical to the global supply chain. The sheer scale of its manufacturing output and export capabilities makes real-time visibility into supply chains originating from China not just beneficial but essential. This is especially true for high-velocity supply chains where timely, accurate information can make the difference between seamless operations and costly disruptions.

The Importance of Visibility in China

Critical Supply Chain Hub

  • Major Source of Goods: China is a vital node in global supply chains, accounting for 15% of global exports and 30% of global manufacturing share.
  • Widespread Dependence: A staggering 94% of Fortune 1000 companies have Tier 1 or Tier 2 suppliers based in China.

Given these figures, the ability to monitor goods in real-time as they move through the region is indispensable. It ensures that companies can respond swiftly to any delays, manage inventory effectively, and maintain customer satisfaction.

Challenges of Achieving Visibility in China

However, attaining this visibility is not without its challenges. China’s regulatory environment adds layers of complexity:

  • Data Security Law (DSL): Enacted in 2021, the DSL represents the most comprehensive overhaul of China’s data compliance regulations in a decade.

These regulatory hurdles make it imperative for companies to find solutions that not only provide visibility but also ensure full compliance with Chinese laws.

Enter project44: The Only Compliant Solution on the Market

project44 stands out as the only provider capable of delivering comprehensive, legal, and compliant visibility in China. Here’s how we achieve this:

 1. Regulatory Compliance

  • Lingang License: We secured a Lingang license permitting the cross-border transfer of logistics data from China. This crucial step was achieved through a thorough regulatory landscape analysis, conducted in collaboration with our investors from Goldman Sachs.
  • High Standards: By working closely with Chinese authorities, project44 ensures that we meet and exceed local compliance requirements, setting high standards for visibility.

 2. Advanced Security

  • Data Protection: Our platform employs advanced security techniques to ensure that all company data remains private and secure, mitigating the risks associated with data breaches and non-compliance.

 3. Product Infrastructure

  • Local Investments: We have partnered with Chinese tech leaders, including Baidu, to ensure compliance, speed, accuracy, and reliability. We’ve also delivered our Movement platform in China with its own infrastructure optimized for users in the region.
  • Low-Touch Integration: Our solution offers fast time to value with minimal implementation complexity.

 4. Extensive Network

  • Vehicle Connectivity: We have partnered with a local vendor, connecting us to 8 million vehicles, which covers approximately 73% of trucks on Chinese roads. This extensive network ensures unparalleled visibility and data accuracy.

 5. Local Expertise

  • Dedicated Team: Our investment in China includes a world-class team of engineers, customer success managers, and solutions architects in Shanghai. We also recently welcomed a new General Manager, Frank Tan, who brings over a decade of supply chain experience to ensure exceptional service and continued investment in the region. These team members are on the ground building and supporting the product and assisting customers in the region.

Our Proven Success

Thanks to our comprehensive strategy, project44 has already provided visibility for over half a million shipments annually for more than 10 multinational companies, including industry leaders like CEVA Logistics. This is in addition to the more than 1 billion annual shipments we provide visibility for globally for our more than 1,300 customers. Our recent launch of the Movement by project44™ platform in China, coupled with our partnership with Baidu, further solidifies our commitment to delivering top-tier visibility solutions in this critical market.

By choosing project44, companies can confidently navigate the nuances of China’s regulatory landscape while maintaining the real-time visibility essential for efficient, resilient, high-velocity supply chains.

Ready to learn more? Book a demo today.