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Logistics and Supply Chains in Emerging Markets

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Logistics and Supply Chains in Emerging Markets

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Logistics firms are on the move in emerging markets in Asia, Africa, Latin America and the Middle East.

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Seasoned logistics service providers (LSPs) have moved in recent years from operations in developed but recession-hit economies to emerging global markets in Asia, Africa, Latin America and the Middle East. Logistics experts John Manners-Bell, Thomas Cullen and Cathy Roberson provide an overview and analysis of trends in logistics in emerging markets worldwide. They report on the strengths and weaknesses of nations’ individual infrastructures and logistics capabilities. The authors provide resources for logistics executives, including the Emerging Market Logistics Index, which classifies these markets according to their logistics and supply-chain value; the Market Size and Growth Attractiveness Sub-Index, and other valuable data and listings. getAbstract recommends their authoritative summary as a useful guide to global supply chain, procurement and logistics. It’s an informed behind-the-scenes visit to the industry that makes all the others possible.

Summary

Where the Action Is

In recent years, logistics service providers (LSPs) have watched markets deteriorate in North America, Europe and Japan. As trade lanes with long histories of profitability suffer weakening volumes, international LSPs are turning more attention to emerging markets. Often they enter these markets by buying local LSPs or setting up joint ventures with existing companies.

Emerging nations’ historic ties to Western consumer markets are starting to loosen due to their internal infrastructure development and rising middle class. The trend toward “near-sourcing” – locating manufacturing in a country closer to the consumer – boosts economies of emerging nations such as Turkey, with its proximity to Europe, and Mexico, which neighbors the US. Some emerging-market economies are among the world’s fastest-growing, although their expansion rates have cooled recently. The International Monetary Fund expects most emerging nations to experience a 6% annual economic growth rate from 2013 to 2018, surpassing the expansion rate of established economies.

In 1981, the World Bank’s International Finance Corporation first defined an “emerging market” as “a country...

About the Authors

John Manners-Bell is CEO of Transport Intelligence, which supplies market solutions to the global logistics industry. Thomas Cullen and Cathy Roberson are senior analysts at Ti, a global logistics market research firm.

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