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Logistics Industry Outlook
+ Case studies of Spire's work in Logistics
The swiftness and severity of the collapse in demand for global logistics during the current downturn has been unprecedented. Driven by weak demand and scarcity of credit, the Baltic Dry Index fell from record highs of 11,793 to 763 in half a year. In line with its traditionally cyclical nature, the outlook for logistics will remain lean in the near term. Meanwhile, the volatility of fuel prices remains a source of concern to operators.
In spite of, or partly because of the crisis, investments in technology to reduce inventories and shrinkage will continue. The potential for deploying RFID in the logistic sector is massive, with benefits apparent for every member in the supply chain.
Logistics outsourcing continues to evolve as companies seek to lower costs in this function by consolidating distribution centers world-wide and locating international procurement centers (IPCs) closer to low-cost suppliers of parts and raw materials. The logistics outsourcing industry has also seen the emergence of 4PL providers which integrate the service offerings of multiple 3PLs to provide greater integration and more competitive costs.
The steady growth of e-commerce has transformed the relationship between customers and retailers. The traditional supply chain which transports large volumes of goods to the retailer is being challenged by a new structure whereby large numbers of small parcels are being shipped directly to customer’s homes or offices, giving rise to new demands for logistics service providers.
The rapid and continued economic growth of emerging markets has led to a rise in prominence of several shipping ports including those in Shanghai, Shenzhen and Dubai. Currency and supply fluctuations may alter shipping routes as manufacturers seek raw material from non-traditional geographies.
In today's challenging environment, logistics players need to leverage technology and networks to offer greater integration at lower cost, while seeking revenues from resilient niches such as e-commerce to offset the decline in revenues from traditional verticals.
Spire’s logistics expertise
Spire has worked with manufacturing clients in the automotive and electronics sectors to implement strategic reviews of the supply chain function, including competitor benchmarking and distribution center site selection. We have also worked with vendors of equipment and software to the logistics industry.
Spire’s strategic alliance with Logicross, one of Japan’s leading supply chain management consultancies, enables us to provide in-depth consulting aimed at implementing substantial and quantifiable improvements to logistics processes for both manufacturers and logistics service providers alike.
Case Studies:
To request more information on our research and consulting services in the logistics industry, please contact either our country offices or email info@spireresearch.com.
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