Internet technology and logistics express services are its main driving forces, pushing innovations in retail e-commerce, auto industry, and manufacturing sectors, according to the accountant and consultancy firm.
Here are seven trends on how China's supply chains are likely to evolve in 2015, based on Deloitte's predictions.
1. E-commerce will transform logistics market
While creating crucial business opportunities, e-commerce platforms are a major threat to the livelihood of traditional logistics players, said Deloitte.
With e-commerce giants such as JD.com, Suning and Alibaba developing their own logistics platforms, leading express firms are also breaking boundaries by "eating their lunch" and picking up e-commerce-delivery packages.
2. E-commerce and M-commerce will cradle new business models
As O2O (online-to-offline) communities and intercity delivery system become full-fledged, the core issue for consumer product companies lies in managing inventories at a highly efficient manner, said Deloitte.
It expects the business participants to develop a smarter supply chain and gather data online to help their production and sales plans.
3. Cellphone manufacturers will face bankruptcy
The mobile device market has shifted its competition focus from just cellphone to the whole product ecosystem, said Deloitte, adding that mere improvement in the distribution efficiency is not enough.
As ordinary electronic devices only have an average life span of six months, telecommunication companies are under tremendous pressure, and must develop a more pointed way of managing their inventories and logistics, according to the report.
4. Healthcare industry's capacity will get better
Deloitte expects healthcare and life science companies to enhance their investment in setting up more regional distribution centers and adding cold chain delivery, in order to bring down costs to prepare for the next round of competition.
Quality control will serve a pivotal role, according to the report, as the market participants need to enhance their service scope with a reasonable cost level while upholding the overall quality.
5. Spare motor part inventory management to shift gear
Deloitte expects China's motor industry to face overcapacity issue in the next two to three years and the market will shift its focus on second-hand car sales and after-sales services.
According to the report, car manufacturers need to adapt their supply chains to be more demand-driven, and enhance their inventory management of spare parts.
6. Industrial manufacturing sector to remain sluggish
Dragged by the slowdown in property market, the industrial manufacturing sector will remain sluggish and will rely on financial leases and a global drive to tackle the over-capacity issue, said Deloitte.
It will be noteworthy as to whether China will promote its standing among the global supply chains, given that a better coordination will do good to the country's export, said the report.
7. Mergers among traditional manufacturers predicted
Traditional Chinese manufacturers are losing their original appeal, as labor costs increases. Deloitte expects strong market contenders to enhance their investments on automation and push up productivity.
High-quality production will be the key, said the report, adding that the Internet-driven reform could be a life or death challenge to the manufacturers, driving them to focus on innovation and customer services.
Source: China Daily by Dai Tian
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