The challenge of internationalization of logistics services
July 26, 2010
Decision of internationalising logistics services is usually motivated by one or more of these four reasons:
- The opportunity to expand the channels of sale with the opening of new markets.
- The relocation of industry, seeking more affordable labor and better tax conditions.
- The need to improve the competitiveness of the company.
- Growth and diversification strategies.
Let's review each of these four reasons and its implications.
Expansion of sales channels
A natural tendency of logistic services is to go beyond the borders of the country where the company has emerged to meet the needs of its customers in different countries in which they operate.
This expansion of sales channels usually starts in the closest to the initial markets: for example, the European market is the area of natural extension of the business of enterprises in countries of the European Union, given that the goods can move freely throughout the territory of this political and economic unity. At the same time, the world market goes liberalizing and increase the logistics needs of emerging countries, both to receive goods and raw materials and to export their production to neighbouring countries.
At the time that expand the channels for the sale of companies, increases the demand of the customers about the quality of logistics services. Behind was the era in which it was assumed that a truck or a freight would when I had to get: companies require strict observance of transit times and even information in real time on where is your cargo.
Relocation of industry and market liberalization
The globalization of markets and the capital has changed the landscape of the global industry. The search for more competitive labour and tax advantages in emerging countries, together with the improvement of transport systems, is running out with the traditional manufacture close to sales channels. The products are manufactured today thousands of miles away from where they are marketed and require complex logistics of distribution to arrive when it is up to the point of sale.
To meet these challenges, the logistics sector has experienced a revolution that has led him to become involved in new areas. Currently, the logistics service starts even before the product is manufactured. For example, receives the status of the stock or the evolution of sales to production environments, to optimize the operation of the factories.
Improve the competitiveness
The highly competitive global environment requires logistics companies to innovate to anticipate the needs of its customers.
Factors such as the deficit of trade balance, fair competition or unfair competition increasing pressure on the statements of income of logistics companies. The companies in the sector has proven to be able to deal with the first two aspects in various ways, but it is only possible to curb unfair competition by reinforcing controls and defining Community rules and the world to limit these mismatches.
Training is one of the most valuable aspects to increase the capacity of reaction and anticipation to the competence of the enterprises of the logistics industry. But to remain competitive and maintain controlled costs, they should be able to design competitive strategies involving all areas and members of the company.
Growth and diversification
Strategies to internationalize a logistics services company are diverse. The distribution network can be created through the own expansion of the structure of the company, the acquisition of other companies, franchising or establishing alliances.
Moldtrans decided many years ago by the Alliance system with business specialists in each geographical area. This model allows us to have professionals who know their market, which facilitates the relationships with clients and brings confidence. The success of this system lies in the possibility of combining systems for the sale of each company, to carry out joint commercial campaigns in the countries or areas of each Member of the network. For example, in Moldtrans sale we make in Spain of Turkey services in charge of trade accompanied by his Turkish colleagues Spaniards; This collaboration provides a real competitive advantage.
As part of its strategy of internationalization, Moldtrans opened years ago the market Spanish setting up a home network, through the Alliance with correspondents deployed locally, according to the general policy of the group. This opening of the national market allows to expand the internationalization of the company and offer a service door to door from anywhere in the world.
Knowledge and information as key to growth
The success of the internationalization of an enterprise through knowledge of its customers and their products. Only in this way is possible to anticipate their needs and develop services and products that are sensitive to the expansion plan was raised by a company.
It is essential to control the distribution network and the information derived from it. Good communication with the partners of the company is not only to be able to understand with a good command of languages. As partners of our company, it is essential that we get a good line professional, in a way that, together, we establish and pursue the same objectives.