In this Year of the Rat, DDS Logistics is setting out to conquer the ‘Middle Empire’. The company creates transport management and international commerce software and has recently opened a subsidiary in Hong Kong and a sales office in Shanghai. DDS Logistics intends to establish a presence at the crossroads of so many global supply chains that frequently involve sourcing departments in China.

At the same time the publisher plans to increase sales of its Sourcing International product from its DDS Shipper range, a Web portal bringing together sourcers and suppliers, which can also simulate logistics costs of products to be delivered.
China, workshop of the world ? More than 70% of companies that import from low cost countries procured goods from China in 2006, as against 48% from India and 47% from other Asian countries (source: eyeforprocurement 2006). A trend that is likely to strengthen in the years to come “as China has a huge potential for further development,” says Jérôme Bour, CED of DDS Logistics (photo, right). “More and more distributors and manufacturers are taking the plunge and sourcing goods from China. They open offices there to be on the spot and better manage their sourcing, logistics and associated transport issues. We need to be there too. Especially as all economic indicators are telling us the same thing: nowadays transport management systems (TMS), as with international commerce generally, inevitably require an investment in specialised software.”

Working ever-closer with current clients and getting to know chinese manufacturers They made it. DDS Logistics is now present in two of China’s most dynamic cities, with a subsidiary already set up in Hong Kong and a sales bureau opening in Shanghai in March. For Fabrice Lebret, who will be in charge of development in Asia for DDS, the objectives are two-fold: first, to work more closely with their French clients who mostly have offices in China (such as Carrefour, Total, Gefco, Conforama, CMA CGM Logistics and Packard Bell), and then to promote its professional software solutions to new shipping agents and transporters, as well as to Chinese manufacturers and western sourcing departments.

“It’s increasingly common for Chinese manufacturers to offer ‘all-in packages’ including the products, the logistics component and the transport to destination. This sort of service is particularly attractive to SMEs that may not have a sufficiently structured logistics department to import their own products. The Chinese manufacturers have a lot to gain by optimising this service. Our dedicated TMS software would help them select the most appropriate transporter for their requirements with the best quality/price ratio,” observes Jérôme Bour.

Image Fabrice Lebret

A module dedicated entirely to sourcing

To capture the attention of sourcing departments, DDS Logistics underlines the strengths of its module entirely dedicated to international sourcing issues. The module offers a highly innovative solution, bringing buyers and suppliers together on a Web portal where they can collaborate on a shared internet platform. The buyer posts a ‘call for tenders’ on the portal and the suppliers respond. Sourcing International helps buyers select the most appropriate suppliers, based on criteria of quality, cost, delivery times etc. It can also simulate the logistics costs for products delivered to destination. All cost parameters are incorporated. As a result, acquisition costs are reduced, as is the time spent finding and selecting products which, in certain cases, can be cut by over 50%, due to the automation and acceleration of the sourcing process.

Bureau de Shanghai Image Bureau de Hong Kong Image

“Product prices are becoming increasingly effected by logistics costs which can reach 28% of the cost of imported goods (source Accenture: February),” explains Jérôme Bour. “Identifying the best suppliers and logistics solutions, at the lowest cost, helps make businesses more competitive. They can keep control both of import margins and of the dates when the goods purchased will be available at their shops or factories.”

Local partnerships

To reinforce its development, DDS Logistics plans to establish partnerships with local integrators, storage providers and associations, such as the China Supply Chain Council, which promotes supply chain management across the country. DDS Logistics will attend numerous professional trade fairs. The SITL Asia event in December brought a hundred contacts with interested businesses. DDS Logistics intends to repeat this success in June at Transport Logistics China in Shanghai and again in November at the CILF (China International Logistics Fair) in Shenzhen.