Submitted By: Peter, Lindsay, James, and Ashley

After our last night in Guangzhou, where our group bid farewell to Lonnie Hodge and the delightful Chinese students of Zhongkai University, everyone found themselves being woken up by alarms and wake-up calls for our earliest morning yet. We knew we had a long day of travel ahead of us as we checked out of the White Swan Hotel, but today would hold more educational value than we could have possibly imagined. We would learn much not only from our intriguing firm visits in Shenzhen, but also from our (mis)adventures with Chinese transportation.

The bus ride to our main destination was relatively uneventful, as most of the students chose to catch up on their sleep. But after a two and a half hour ride, our bus finally rolled into Shenzhen, a fast-growing and bustling metropolis. Almost immediately, students could be heard commenting on our new surroundings and how different they were from those in Guangzhou. Shenzhen has a distinctly modern feel to it, which is fitting for a city whose population of 300,000 twenty years ago has grown nearly thirty-fold to its current size of 8 million people. Professor Carr spoke to the class on the way into town, citing Deng Xiaoping’s decision to designate Shenzhen as a Special Economic Zone (SEZ) as the primary catalyst for this incredible growth.

As everyone attempted to grasp the scope of such economic development, Professor Lancaster implored us to also consider the ecological consequences that come with such rampant growth. Shenzhen was once an expansive marsh, but there is little trace of this environment left. Such a rapid alteration of a region’s ecology undoubtedly increases the potential for more dire repercussions years down the road.

Our first stop in Shenzhen was the Wal-Mart Global Procurement Center. We arrived right on time and were treated to a wonderfully thorough presentation detailing the Wal-Mart philosophy and how it is applied in procurement operations. Amy Wong, from the Corporate People (Human Resources) department, explained the history and corporate culture of Wal-Mart to establish a foundation for understanding how the company handles its employees, customers, and suppliers. Her presentation was followed by that of Lotus Wong, a divisional merchandising manager, who continued by explaining Wal-Mart Global Procurement, its origins, and its mission. We learned that a whopping 76% of Wal-Mart’s sourced products come from China and that the company conducts ethical audits of every factory to ensure local laws are being followed. After Mr. Wong finished his section, Kenneth Chan, the general merchandising manager, delved into the nitty gritty details of how procurement is handled by various Wal-Mart teams. It was evident from this section of the presentation that the supply chain for retail products is getting very fast and suppliers are expected to catch up. Though maintaining high product quality is certainly a concern for Wal-Mart, that high quality must be delivered quickly and at the lowest possible cost. Efficiency and speed is the name of the game in the retail procurement world.

Following the presentation, our group was able to tour the Wal-Mart offices. The work environment was startlingly westernized in both layout and atmosphere. Casual attire prevailed and cubicles with colorful name tags filled each room. We were fascinated to see such a distinctly American work environment be embraced in a foreign country so wholeheartedly.

Following Wal-Mart, our group departed for the Port of Shenzhen and its most prolific terminal: Yantian. At Yantian, we were set to learn of the marvel that is Chinese transportation. However, en route, we were beleaguered by engine and air conditioning problems from our bus. The irony that the Chinese transport system had failed us did not elude the sweat soaked students.

After 30 minutes of driving in the Shenzhen heat without air conditioning, we arrived at Yantian. Their friendly staff was there to greet us with towels and coldwater. Yantian then provided us with a dazzling presentation about the wonders of the China supply chain. With government support and backing, Yantian was able to gain 50% market share in the Shenzhen port. Furthermore, because of 9/11 and the need for improved security, Yantian and its commitment to technology enticed suppliers and shippers away from other ports. This can be seen in the marked decline in exports that Hong Kong has seen in the last few years, while just a little down the road, Shenzhen is blossoming. Another reason Yantian is prospering is because of the long term view they have taken towards shipping. Realizing early on that mega ships were the wave of the future, Yantian invested heavily in the infrastructure necessary to service them. These Goliaths of the ocean can carry over 13,000 cargo units. Not even the Panama Canal can hold these ships.

The largest ship in the world was unloaded at Yantian in only 9 hours. This world record holding feat is a signpost of the increasing speed of the supply chain. Goods can be transported much faster, with more accuracy, and with better quality control. However, the massive discrepancy between intra and international transportation was made infinitely apparent in our experience at the Shenzhen airport. After a flight cancellation and a 3 hour delay for no apparent reason, we were on our way to Shanghai. To quote airport authorities, “Flight 1361 to Shanghai has been delayed due to delays.” In the time accumulated at the airport, the group got a little taste of home in the form of Big Macs. It will please readers to know that the food quality is on par with any McDonalds in the U.S., and the service, even better.

At the end of the day, we had seen much China has to offer in the way of supply chain management. Wal-Mart has a 97% on time delivery rate and Yantian is capable of handling whatever the shipping industry may throw at it. On the bus ride to Shanghai, we saw signs for the Maglev train: a harbinger of the future of transportation and Chinese efficiency.