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Why custom logistics solutions are the key to success in China
Get in touchIn China, the difference between thriving and surviving in the supply chain is highly dependent on one key element, customisation. The unique challenges within the Chinese logistics market has rendered traditional logistics templates all-but obsolete.
These challenges mean that off-the-shelf logistics solutions are often incapable of managing the required velocity, granular control, and complex local reporting that companies now need to be successful within China.
Relying on a ‘one-size-fits-all’ system is now considered an active business risk and if your system isn’t purpose-built for the intricacies of the local market, you are exposing yourself to the risk of operational failure and regulatory penalties.
In this article, we’ll unpack the core failures of generic systems and explore the three non-negotiable pillars for achieving sustainable success and full compliance in China’s complex logistics environment.
The challenges in China’s logistics
China’s eCommerce market reached an estimated CNY 15.4 trillion ($2.2 trillion) in 2023, and is projected to expand at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2028, according to U.S. International Trade Administration.
This is promoted by huge online retail days, such as the 24-hour holiday ‘Singles’ Day’ which saw sales across major platforms in China in 2024 hit approximately 1.44 trillion yuan (US $197 billion), a 26.6% increase from the prior year, according to Syntun data. Events like this, that create explosive growth, coupled with consumer expectation for immediate gratification, turns logistics from a supporting function into the primary determinant for businesses looking to get ahead in the Chinese market.
Alongside this, the regulatory environment is undergoing a systematic overhaul. Key policy documents in the State Taxation Administration of 2025 signal an end to informal export practices, mandating a direct and verifiable link between the manufacturer and the exporter. This new focus on real-name, data-driven tax supervision, effective from October 2025, demands a level of data transparency and auditability that older or off-the-shelf logistics systems may not be able to provide.
Why aren’t off-the-shelf logistics solutions enough?
In this highly regulated environment, relying on global supply chain templates could lead to operational failure and regulatory non-compliance. Custom digital systems, built with local expertise and knowledge become a non-negotiable solution for sustainable growth in China in logistics and supply chain.
Generic, off-the-shelf Warehouse Management Systems (WMS) and Transport Management Systems (TMS), designed for broad international supply chain norms, invariably fall short in the nuanced Chinese environment.
Their lack of flexibility prevents them from adapting to the specific regulatory reporting requirements, the unique SKU proliferation driven by fragmented eCommerce platforms, and the highly specific workflow demands of Chinese operational practice.
A successful Chinese operation requires a level of precise process control and customised reporting to maintain both efficiency and compliance. This can be illustrated by two examples of bespoke solutions that Unipart has deployed for our partners in China:
The UPWARD WMS: To support the complex spare parts supply chain for premium automotive clients, we created a specialised, agile WMS solution. The solution was developed locally in China, offering a rapid, low-cost solution for a range of customers across automotive. This system was engineered to manage the intricate processes of high-value parts, guaranteeing granular inventory traceability and the ability to integrate advanced security features, a crucial requirement in the high-stakes automotive sector.
Bespoke WMS for luxury automotive: For a luxury automotive brand operating a vast dealership network in China, the challenge was to establish a dedicated warehouse while achieving rapid process optimisation. By building a dedicated WMS locally in just 50 days, the operation successfully streamlined inbound and outbound processes, improved transportation management, and reduced inventory discrepancies by over 75%.
Both these successes were achieved by creating a system tuned for the local requirement. The clear lesson is that success hinges on systems that can be meticulously tailored to manage every variable, where experience has shown that generic software cannot provide this level of functional fidelity.
Driving on-the-ground efficiency
The move towards custom systems also powers a critical requirement of Chinese logistics: on-the-ground efficiency delivered through mobile and integrated technologies.
The Chinese labour market and the density of urban logistics networks make mobile-first technology a necessity for maximising productivity and accuracy. The warehouse and transport workers are the front line of data capture, and their tools must be intuitive and instantly connected.
Bespoke solutions that use powerful, custom-built mobile applications and Personal Digital Assistants (PDAs) to digitise every point of contact in the supply chain are key to success in this market. These could include:
- Inbound and outbound scanning where all inventory movements are immediately recorded through PDA and mobile apps, eliminating the latency and error inherent in paper-based processes. This provides real-time stock visibility, a prerequisite for high-speed eCommerce fulfilment.
- The use of apps for digital goods inspections streamlines processes like Proof of Inspection Report (PIR) generation. This shifts critical documentation from manual forms to an instantaneous digital workflow, ensuring immediate compliance auditing and significantly reducing processing time.
- For vehicle and parts movements, mobile-enabled in-transit tracking provides continuous, precise location and status data, allowing for proactive intervention and accurate ETA calculations, which is vital for demanding Just-In-Time (JIT) operations.
As technology leaders seek to optimise human worker value through a cohesive blend of intelligent technology and workforce analytics in the Chinese labour market, this digital enablement is key to retention and maximised output.
Seamless integration via APIs
A custom system’s greatest architectural strength is its ability to communicate seamlessly with the client’s Enterprise Resource Planning (ERP) systems, local government platforms, and other third-party logistics partners. This is achieved through well-documented, reliable Application Programming Interfaces (APIs).
API-driven integration is rapidly becoming the standard for creating a unified and efficient freight ecosystem. This integration delivers two stand-out benefits:
- Reduction of manual errors and latency: By enabling systems to share data seamlessly, the need for human data transcription, which is the primary source of delays, is eliminated. The real-time flow of data ensures that stock levels, order statuses, and shipment details are always accurate across all platforms.
- Enabling advanced features: Integration is the foundation for functionality. For example, in the case of the Scania parts operation, seamless integration was essential for the deployment of anti-faked labels. This critical feature ensures the authenticity of high-value parts, protecting the client’s brand reputation and providing a verifiable chain of custody, which is increasingly paramount under tightening data and security regulations.
And, as China continues to refine its cybersecurity and data compliance governance, with new requirements for cross-border data transfer and compliance audits, a custom, API-first architecture becomes the most robust defence against non-compliance, ensuring data flow is both efficient and legally sound.
Partnering for digital transformation in China
The Chinese logistics and supply chain market is accelerating, and regulatory scrutiny is intensifying.
Success in this challenging environment will come for businesses that embrace digital transformation by implementing custom, purpose-built systems. These solutions provide the necessary control, compliance, and velocity to thrive.
As a supply chain performance improvement partner with decades of local expertise within China and Asia Pacific, we can engineer an operational architecture that is tuned to the intricacies of the Chinese market. We transform a complex compliance and logistical challenge into success for businesses.
