Developing value added service of cold chain logistics between China and Korea

Abstract

Purpose

The purpose of this paper is to elaborate value-added service of cold chain logistics between China and Korea. The covering strategy for developing the cold chain value-added service between the two countries is proposed.

Design/methodology/approach

The author expounds the driving power for developing cold chain logistics between the two countries basing on the trade data of agricultural exports and imports, the tariff liberalization agreement of China–Korea FTA and the short distance between the two countries. It analyzes the value-added service of cold chain logistics with exemplary cases from four aspects (customized service, integrated service, consultation/solution and strategic alliance service), and its value-added mechanism for the enhancement of core competences of the entire cold chain. Then, by considering the drawbacks of the current cold chain logistics practices, between the two countries, the author proposes certain measures for fostering the cold chain value-added services between them.

Findings

There are apparent mutual benefits in developing cold chain value-added service between the two countries, but there exists some shortcomings which impede the sound development of the cold chain logistics, such as low circulation rate and insufficient cold chain facility in China, shortage of integrated and compatible information platform between the two countries, few integrated cold chain service and strategic alliance service and occurrence of some trade frictions.

Originality/value

The enforcement of China–Korea FTA will greatly reduce the tariff and increase the import and export volumes between the two countries; with the proximity between them, development of cold chain logistics between the two countries holds tremendous potential. This paper thoroughly discusses the mechanism of the value-added service of the cold chain logistics, and brings into focus the development of the value-added service in the two countries.

Citation

Wang, S. (2018), "Developing value added service of cold chain logistics between China and Korea", Journal of Korea Trade, Vol. 22 No. 3, pp. 247-264. https://doi.org/10.1108/JKT-03-2018-0016