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LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

July 31, 2011

Regional logistics companies to reap rewards of changing supply chain dynamics

Filed under: Logistics,Newsletter — admin @ 12:42 pm

One senior executive with a medium-sized forwarding company based in Hong Kong told The Container Shipping Manager in a recent interview that a growing number of multinational corporations (MNCs) are looking for regional solutions today rather than one big global supply chain solution.

The move is in keeping with a wider trend of management decentralisation that has even been taking place within some of the global transport solutions providers.

Global clothing and fashion retailers, like Marks & Spenser, have reportedly been doing the same, according to the report, which also said that regional freight forwarders and logistics companies are being seen as an increasingly attractive option for major multinational retailers, thanks to an apparent change in the way these global corporations are managing their supply chains.

The forwarding executive interviewed said, “I believe that the thinking now is that you cannot just have one service provider offering the same kind of service all over the world, because nobody offers the same level of service all over the world. One company may be strong in one area, while another is strong elsewhere.

“It’s no longer about finding one solution to provide services everywhere, it about finding the best in each region. I definitely see this as a trend,” he added.

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