Emerging markets still offer logistics opportunities

Although the global logistics industry struggling, spreading apprehension throughout the entire transport logistics industry, transport logistics executives that there are still many opportunities in emerging markets.

Speaking at the three-day conference organised by Transport Intelligence (Ti), Christopher Logan, Agility’s chief strategy marketing officer, warned that along with the opportunities, there would also be challenges, however.

“In order to tap these (emerging market) opportunities, service providers need local innovation and high calibre management expertise,” he said in his presentation.

He pointed out that as the emerging China economy was slowing down, the government had unveiled a US$586 billion stimulus package to revive the country and therefore, the mainland domestic market is expected to be a new source of growth.

Another similar larger emerging economy, India also offered opportunities as it had a fast growing middle class, he said, adding that low value manufacturing industries were relocating to smaller markets to take advantage of lower labourand land costs.

Redesigning networks
Sundarrajan Bhyravan, Regional Logistics Manager, Asia AMET Logistics Excellence Team at Unilever, who was speaking on the topic “Distribution strategies in Asia Pacific”, said his company worked with third party logistics providers (3PLs) to lower costs using external benchmarks.

“Through dynamic design and execution of distribution networks, we customize the network for our customers,” he said, adding that his company worked with 3PLs through collaboration and transparency.