1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192 
Globalisation of the supply chain means Eastern Promise for 3PLs
Page 22
If you've noticed an error in this article please click here to report it so we can fix it.
Third-party logistics companies (3PLs) with the geographic scope to meet their customers requirements vvill benefit as the world economy continues to grow
Research conducted by Datamonitor shows that the proportion of logistics spending outsourced to third parties within Europe is set to rise by 2010.
However, while specialised logistics companies have enjoyed an increasingly prominent role in recent years, their future success will depend on how they deal with changes in the industry. One of these changes is technology (CM 20 July); another is the globalisation of the supply chain. 0 End-user supply chains have lengthened in recent years due to cost and demand. Driving the former are the relatively high wages paid in Western Europe. This is leading an increasing number of companies to set up factories in low-pay countries for example, automotive companies are moving to the Czech Republic and Poland.
China has also had a significant impact on the global sourcing of goods, and will continue to do so due to its low cost of production.
The second factor stretching supply chains is demand. Growth in the global economy has sparked an increase in consumer demand in many countries, particularly in Eastern Europe and the Far East the latter propelled by the growth of the Chinese economy.
Both of these factors have influenced the pattern of global trade routes, as well as the volumes travelling along them.
These factors have had a direct effect on the demands placed on third-party logistics players (3PLs), as companies have increasingly required service providers with the geographic scope to support their businesses.
Furthermore, forecasts for the global economy indicate that the Far East and Eastern Europe are set to continue growing in at least the short to medium term. However, this will create a double-edged sword for 3PLs. On the one hand it will create significant opportunities for them in assisting companies either to set up or strengthen their presence in a particular country or region. On the other hand, it will not be easy for a 3PL if it does not already have the necessary network in place, so customers might drift towards companies that already have the necessary expertise, To combat this, logistics players will need to speak to their customers now in order understand their potential requirements. They will also need to develop their infrastructure to cope with these demands if they are to retain those clients in the long term.