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February 12, 2019Interesting Facts About Global Logistics
The History
The concept of global logistics came about during WWII. The American military forces during WWII ensured that all the food and supplies made it to troops in various locations in a specified amount of time using logistics concepts that are still utilized today.
Current Global Logistics Economy
The industry has grown at a consistent pace of 4-5% for several years while accounting for approximately 10% of global GDP (signifies the importance of global logistics as an industry). Also, the market share of global logistics exceeds $4 trillion, according to industry experts. In budding economies such as China and India, growth of global logistics is robust due to the exceptional need for the transportation of resources necessary for their development.
The Future
The key strategies for the growth global logistic industries includes the resurgence of economies in the growing economies which can act as future market opportunities, the creation of special economic zones (SEZs), and dedicated freight corridors that would improve the efficiency of logistics supply channels.
Potential Threats
Excessive competition, price awareness and higher accountability rules, and the reality of logistics as a high risk low margin business. The volatile and delicate international goods exchange laws also limit the market and operation opportunities for this precarious industry.
The Multiple Roles of Global Logistics Providers
May perceive the role of shipping companies as being exclusively about the movement of goods from one place to another, but realistically there are several other duties that a logistics company performs. The roles are:
- Aggregator. We must compare prices and alternatives to recommend the most effective and economic mode of transportation to our customers.
- Resolver. We reduce the burden on shippers to comply with international laws and policies.
- Tracker. We are accountable for the seamless transfer of goods through enacting follow-ups at different stages about the status of delivery.