Business Agility: Logistics provider plans further dramatic growth in China

Logistics provider Agility has more than 32,000 employees and over 550 offices in 100 countries and regions around the world. A publicly traded company, with over $6 billion in annual revenue, it has three key operating units - global integrated logistics, defense and government services and investments.

The company said it offers customers truly personalized service and flexible supply chain solutions to meet their individual business needs, supported by a comprehensive warehouse network, transportation and freight management services.

With an existing large operation in China, Agility has recently detailed plans for further development of its network and products.

Earlier this year the company announced the appointment of James Gagne as its CEO for China. Gagne takes on the role in one of the company's fastest growing markets, which covers Chinese mainland, Hong Kong and Taiwan.

"We are delighted to have James on board as he brings 12 years of experience of working in China with a leading logistics services provider and he will be a key player as Agility continues to grow its business both organically and through strategic acquisitions," said Wolfgang Hollermann, CEO, Agility, Asia-Pacific.

"I am looking forward to the challenge of further building Agility's network and services in China and positioning the company as a leading logistics provider," said Gagne.

Agility plans to invest significant resources in China to reach more than $1 billion in revenue in the next three to five years. Human resources will take a significant portion, with its staff numbers projected to reach more than 3,000 in the next few years.

While growth in China will be mostly achieved organically, Agility says strategic acquisitions will help achieve its aim.

In 2007 it announced the acquisition of Guangzhou Runtong International Transportation Co Ltd, an ocean freight forwarder based in Guangdong. In recent weeks it announced an agreement for the purchase of Cosa Freight, a Shenzhen-based ocean freight forwarder that has proven expertise in multi-country consolidation and value-added services, such as transloading direct-to-store programs.

While China has been recently termed the "factory of the world", Gagne says many Chinese companies are going beyond that, listing on overseas stock exchanges and expanding to the Middle East, Africa, Eastern Europe and the United States.

Many multinationals increasingly view China as a market for their goods, not merely as a source of goods. They are even distributing their products to second and third-tier cities, which are increasingly becoming important markets through their rapid development.

Gagne added that managing the growth of organizations in China is "a different ball game" from other countries in hiring, training and developing staff.

"There is a dearth of talent in the logistics and supply chain market," he said. Agility is planning to position itself as the "employer of choice" in coming years to acquire the staff it needs in China.

Agility's Asia-Pacific operations, managed by Wolfgang Hollermann, have registered significant growth in recent years, with employees now numbering around 7,000.

(China Daily 06/16/2008 page15)