<strong>China: STMA Issues Opinions to Strengthen Planning for Building Logistics Systems</strong>

The State Tobacco Monopoly Administration (STMA) – the regulator of China's tobacco industry – issued on February 28 the Opinions on the Work of Provincial-Level China Tobacco Regional Corporations to Execute Planning for the Construction of Modern Logistics Systems.

This set of opinions is intended to practically do a good job of executing planning for the construction of modern logistics systems for the tobacco industry, give full play to the leading role of the planning for the construction of modern logistics systems, and promote both the quality and level of the construction of modern logistics systems by tobacco manufacturing enterprises in China.

On major tasks of work of executing the planning for the construction of modern logistics systems by tobacco manufacturing enterprises, the opinions emphasizes that it is imperative to improve the systems for logistics organization; to establish logistics centers in enterprises that will be centrally responsible for planning, executing, overseeing, managing and controlling logistics businesses; to rationally set up relevant business posts at logistics centers; to set up relevant institutions or posts in subordinate cigarette factories; and to actively explore specific models, operation mechanisms and realization routes for practicing the operation of logistics centers as entities.

The opinions urges acceleration of reform of logistics businesses by integrating logistics resources and businesses of enterprises into logistics centers to realize centralized and unified management and operation; and redesigning of logistics business processes and sustained optimization of the distribution of resources, to give full play to the advantages of centralized and unified management of logistics resources and businesses.

The opinions also urges optimization of the structure of logistics networks of the tobacco industry and scientific establishment and continued optimization of the structure of logistics of networks of enterprises; increase of the rate of self-possession of logistics facilities; promotion of automation of logistics facilities; and exploration for the establishment of "central warehouses" for logistics of enterprises. Enditem