HK Economic Journal
2 Feb 2004
Modern Terminals to introduce v-logistics to provide value added services
Although Virtual Logistics has not been widely employed in Asia, Modern Terminals, Hong Kong' No.2 biggest Container Terminals, has as early as 2000 invested in a company named V-Logic to provide virtual logistics services. V-Logic which is now four years old is engaged in providing services such as Information On-line, Warehouse Management, Packaging, Invoice Printing and (if required) labeling merchandise with a Bar Code.
Mr. Peter Levesque, CEO of V-Logic, told the press that v-logistics is not popular in Asia mainly because the use of internet is still in the developing stage and the cost of labor in the Mainland is comparatively low. Factories and trading companies can easily employ a large number of persons to cope with any logistics problems. However, he said, v-logistics has great potential and companies like V-Logic will have a more and more important role to play as factories in China are now spending 90% of their time on logistics. Many factories have already contracted out this part of their work to logistics companies.
What worry customers with Information On-line is the security problem. Mr. Robin Cheung, Managing Director of V-Logic said that security is not a big problem. He said that the company's computer system is designed and security measures are in place to allow only authorized persons to have access to confidential data such as credit card numbers.
Mr. Levesque said that v-logistics is a more flexible and well managed system than JIT. With v-logistics management, goods belong to different companies are all bar coded and particulars up-loaded to the computer system. Warehouse keepers can retrieve goods stored separately in an area of several thousand square feet within a very short period of time with the use of a hand held scanner. This cannot be done when goods are stored in an old fashion warehouse.
Mr. Robin Cheung said that the use of computers is not to replace manpower. The company employs a lot of staff to handle and maintain information and give support to customers. The company has 15 customers in 2002 and 40 last year.
