GAC China: Automotive Logistic to See Double-Digit Growth For The Next 10 Years

An interview with Claus Schensema - Managing Director of GAC Forwarding & Shipping (Shanghai) Ltd

Q: Firstly, could you give us a brief introduction to GAC, specifically what your core business are?

A: GAC is a privately owned shipping, marine and freight services group established in 1956 and head quartered in Dubai, UAE. GAC’s core business is specified as marine, shipping logistics and solutions. Each of these core business areas provide integrated services to global and local companies requiring door-door, ship-ship service from owners’ protective agency, over tailor-made air, ocean, distribution and warehousing solutions, events management to ships spare deliveries. In China, GAC has set itself apart from its competitors focusing on niche products namely automotive, O&G and tooling.

Q: What do you think of the current situation and future trends in the automotive logistic industry in China?

A: GAC is as its profile states and as winner of the recent Gasgoo awards as best automotive logistics provider is very bullish on the automotive industry in China. GAC set up a specific business area named GAC Automotive Logistics (GAL) to focus on key clients i.e. tier-two suppliers to the automotive manufacturers. GAC China sees this industry delivering double digit growth for the next 10 years and is investing in additional resources to upgrade its current profile.

Q: How many clients does GAC have that operate in the automotive industry? What services do you provide your customers with and what do you think is the key in maintaining a good and sustainable relationship with a variety of clients?

A: We have a multi level client base in this sector from global giants to specific suppliers from chassis to air bags and braking components. The services provided are seamless from tracking and purchase order managmenet, JIT services over turn key projects and delivery of assembly lines from dis assembly/re assembly to testing and re commissioning of the line. CRM with our clients through implants interaction with all staff at the client from purchasing, logistics and management is one of GAC’s core values. We believe in long-term sustainability of the client/logistics provider relationship and this can only be done through having GAC live and breath the client’s supply chain needs and believing in 1st class services on each and every delivery.

Q: Compared with your competitors, what are GAC’s advantages?

A: To be frank, we do not spend a lot of time analyzing what our competitors’ are doing. Our focus is our clients’ needs and creating solutions for their ever increasing demands for lead time reductions and fitting in to their overall purchasing process. Our key advantage as recognized by our clients is discretion, reliability and delivering what was agreed to, time and again.

Q: What steps has GAC taken to improve supply chain efficiency?

A: Setting up of a dedicated automotive logistics team (GAL) that has negotiated global air and ocean deals, securing space, rates for fixed periods avoiding cost fluctuataions for our clients. Listening to the clients and engaging them with out of the box solutions. Cruical for our clients is lead times and these we have taken to new measurement frontiers by locking in carriers, airlines and our offices worldwide into being one place of logistics excellence.

Q: How do you evaluate GAC’s development in the past 20 years?What development plans do you have for the next five years? How about your strategy on China market?

A:  GAC as a group in the past 20 years has developed into a truly global organisation and yet has retained its Swedish roots and personalized attention to clients and staff alike. In China our next 5 years are seen with an expansion into western China setting up beach heads before our clients demand solutions there. We see ourselves as innovators and ahead of the logistics curve