28 March 2018
Logistics play a crucialrole in today’s economy. Improved trade logistics infrastructure such as roads& highways, ports, railways, airports including dry ports, warehousinginfrastructure and labs & testing facilities are necessary for sustainable andbalanced economic development of all parts of the country. Logistics is themanagement of transporting goods from the point of origin to the point ofconsumption in order to meet customer’s requirements. In short, logistics isall about transporting the right product, to the right customer, in the rightcondition & quantity and at the right place, at the right time and at theright cost.
The success of any businessor economy of the country in global markets is also depending on the importanceof trade logistics solutions. Let’s discuss 7 contemporary trends that can beidentified regarding the importance of logistics in global industry.
·Generationof Demand
The demand of any product isimproved significantly from increased mobility, unobstructed movement ofproducts & services and access to better logistics infrastructure. This isbecause enhanced trade and logistics infrastructure create place, time and formutilities for the customers & users. Both customers and users can beserviced at any time and at any place. Thus, improved international logisticsinfrastructure helps in increasing the overall sales of the company’s products.
·CostReduction in Doing Business
Improved logisticalinfrastructure helps in keeping cost of business at the lower side astransportation of products from one place to another becomes almostuninterrupted due to better ports, railway network, roads and civil aviationinfrastructure.
For example, Due to betterroad connectivity in China, a truck can travel 1,300 km into this country inabout 74 hours. And the same distance, which is equivalent to distance between Delhi-Kolkata,is covered in about 144 hours in India. This delay not only extends tradecycle, but the quality of certain goods get poor and fetches lower prices inmarkets.
·TappingClients in the World
Improved global logisticsservices from top logistics companies and better transportation are importantfor the movement of goods and services from one region to another. This helpscompanies to have a tap on the customers in every nook and corner of the world.
For example, Indian industryhas many potential fields such as electronics, engineering, chip designing,auto components, etc. It can contribute to the world’s markets only if thecountry has improved trade logistics infrastructure and networking systems;otherwise the business opportunities can be outpaced by the nation’s rivalsfrom other developed countries.
Hence, any country needs tohave quality logistics infrastructure to tap clients all over the world.
·EnsuringRapid Economic Growth
In the development processof any country, growth in the economy plays a vital role. This is possible fromthe expansion in trade & logistics infrastructure that create demand ineconomic system for products such as iron & steel, cement and manpower.
For example, India has tomake its logistical infrastructure better, which will not only grow its economybut also help its companies to accomplish a sustained superior performance ininternational markets through enhanced trade supply chain process.
·BridgingGap between Demand and Supply
How to bridge gaps betweendemand and supply of a product? This is one of the major challenges that anycompany faces in international markets at all levels from sourcing of rawmaterials to work in progress to distribution to customers. So, bettertransporting goods from one place to another and timely supply of products tomeet the demand will fill the gap between demand and supply of a product.
For example, China with maineconomic clusters on the east coast results to transporting commodities atfar-away regions in the western and remote northern parts of the country. Thiscreates the problem of demand and supply in the country’s economic system.Better connectivity from road, rail network, airstrips and sea helps companiesto distribute their resources between places where there are abundant resourcesand where there are scare.
·StrategicInfrastructure for Global Integration
Trade logisticinfrastructure and transportation play an important role in conditions thataffect regional, national and international economic entities of companies inaccessing global markets.
For example, Nepali carpetexporters transport their goods towards the Nepal border by trucks that areunloaded for customs clearance at Birgunj in India. The products are againloaded on Indian trucks to move towards Kolkata by road transport. The shipmentis then unloaded again for loading on ship and transhipped to Singapore.
·EnsuringCritical Supplies on Time
An efficient logisticssystem in international trade operations helps companies in making timelysupply of products to their international buyers. Due to complex functionalityof logistic system and long distance involved between two countries, theproblem of safety, care and timing of shipment often cause nightmares tosuppliers, particularly in case of perishable & high value products andgoods with expiry date restrictions. Such products include newspapers, flowersand marine products.
Howto Find the Right Logistics Companies?
There are few reliablemarket research companies like ExportGenius providing import export customs data. They provide information onshipments including importer & exporter, manufacturer, etc. They alsoprovide information about international logistics companies that cater withquality transportation services. So, whenever you ship your product from oneplace to another, you must choose the right logistic company. Best logisticscompanies can also use global trade data to get new customers after knowing whois importing or exporting largely from which ports.
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