International Business Booms

Whilst some markets are slowing down in the UK and Europe as a result of the recession, the effect hasn’t been as great in all countries beyond Europe.  Over the last 12 months the level of International activity for THE LOGISTICS BUSINESS has increased with projects in Japan, Russia, Poland, India and Brazil in addition to the usual European Projects.

Whilst many of these countries are not totally unaffected by the recession there are still some fast growing economies in developing nations and rapidly expanding businesses.  As these companies’ business levels are growing, so are the number of international markets they serve and their share of those markets.  Also, as a result of the recession in the developed countries in the West, many markets have become more competitive creating opportunities for growth for manufacturers and service providers who have the infrastructure in place to offer quality goods and services at competitive prices.  As the new economies become more sophisticated they are able to offer more services as product customisation and new product development, which can be of great interest to Western customers.

Part of the work THE LOGISTICS BUSINESS is undertaking is to develop our clients supply chains to serve the European markets.  Starting with the reasons that European customers buy their products in these new markets, which could be quality, availability, price etc. we have developed their supply chains taking into account, lead times, inventory levels, infrastructure and service levels required in each country and market.  Work has included the identification of optimum shipping routes and ports, onward road and rail transport, numbers and types of facilities, down to the design, layout and technology used in each facility.

A further area where we assist International clients is to use our knowledge of the development of supply chains in Europe and the West.  In many developing counties we see parallels to our markets perhaps 30 years ago with many small retailers purchasing through local wholesale markets and using small owner/operator type transport businesses running one or two small trucks.  If the UK and Europe could have looked ahead 30 years to understand how the market would develop, a lot of time and cost would have been saved.  The use of large distribution centers, the dominance of articulated road vehicles for bulk transport, the move to imported goods and the development of markets that offer a wide variety of products in self service stores or delivered to your door are just a few developments over this time period.

Working with our International clients we are able to define the status of their domestic markets and draw parallels with European development taking account of economic growth and infrastructure with the country.

Whilst this article started discussing the status of the recession in the UK and Europe it can end with a positive aspect of this.  As European currencies, including the pound, have dropped in value against many International currencies, the cost of using UK consultants on International projects is now reduced.  As the more optimistic market forecasters are predicting, when there are changes in the markets it’s a great time to identify and develop opportunities.

Recent International projects include strategic studies to develop supply chains in emerging markets, benchmarking and optimisation of warehouses and transport including sea, road and rail and development of the infrastructure and facilities required for an overseas manufacturer to gain market share throughout Europe.