Feature / 12 May 2024

Steps in sustainability earn GAC China pioneer status

Green logistics practices, emissions tracking, eco-friendly materials, waste reduction, intelligent route planning and the phasing out of carbon-fueled vehicles are all key ingredients in the recipe for success that has seen GAC China named a Sustainability Pioneer by one of its top customers.

ZF Asia Pacific, part of the global ZF Group which supplies advanced mobility products and systems for passenger cars, commercial vehicles and industrial technology, presented GAC China with the award at their 2024 Supplier Partner Conference in Rizhao which was attended by 118 suppliers, underscoring the significance of this achievement.

ZF Group presents GAC China with Sustainability Pioneer Award 1712302107952

The partnership had weathered the storm of Covid-19 by implanting GAC staff during the Shanghai lockdown period to provide uninterrupted supply chain management to ZF. There are now ten GAC implanted staff at eight ZF China plants.

“This award from ZF is a testament to our efforts in aligning business excellence with environmental responsibility,” says Simon Xu, GAC China’s Managing Director.

“It's a call to action – a reminder of our journey ahead."

Service, solutions and resilience
GAC China started working with the ZF Group in 2015, dealing with more than 40 plants worldwide and providing a gamut of supply chain solutions including ocean transportation, air transportation, rail transportation, road transportation, warehousing and order management service.

In line with ZF’s goal to improve the sustainability of their business, GAC has embarked on a journey – the first steps of which has earned it recognition from the Group as a pioneer. Those steps included:

  • electric and hybrid vehicles for distribution to reduce carbon emissions and noise pollution
  • green packaging materials to reduce waste, landfill volumes and recycling costs, as well as cutting energy consumption and carbon emissions
  • monthly emission tracking reports
  • intelligent logistics management to optimise delivery routes and reduce vehicle mileage, fuel consumption and carbon emissions, whilst sharing resources, boosting efficiency and reducing energy waste
  • electric forklifts replacing their traditional diesel equivalents at GAC’s warehouses
  • a consolidation distribution centre which has made outstanding contributions to ZF’s cost savings
  • online tracking and trace systems for order management

There have, however, been some roadblocks along the way. Rising costs, increasing regulations, the need to adjust the supply structure and the growing role of data and digitalisation in the sector all presented challenges.

Digital transformation is driving smart logistics, making it a key selling point for logistics providers in a highly competitive market.

"At GAC China, we’re committed to navigating the challenges and opportunities inherent in automotive logistics,” adds Simon. “We will continue to explore new niche product & markets and increase our efforts on sustainability.”

Changing landscape
Through industrial agglomeration, rural revitalisation and coordinated regional development, China’s state and local governments have adjusted the logistics landscape. Partners to leading industry players like ZF must embrace the challenges and opportunities and, in doing so, improve the resilience and security of the industrial chain and supply chain.

Simon Xu

GAC China has proved itself equal to that challenge – as evidenced by its Sustainability Pioneer Award from ZF - and to more that lie ahead. And based on that experience, they are now rolling out its added sustainability services to other customers.

Aerial top view green electric vehicle car driving straight forest road ev car electric

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