For a country’s economy, the transportation sector is often viewed as an important barometer of growth. As more goods are consumed within a country, the transportation sector must grow accordingly in order to accommodate the transport of additional goods. And as the wheels of commerce turn with ever greater speed, so does the volume of passenger traffic. As a corollary, the location of manufacturing facilities and distribution centres can have a major impact on the growth of a country’s transportation sector and transportation infrastructure. The relative location of these manufacturing facilities and distribution centres can dictate whether the country becomes a hub within a logistics network or a spoke in the wheel, serving in effect as a transit corridor. Such matters are of particular importance to emerging economies where transport and logistics infrastructure is in process of rapid development.
Logistic service providers are confronted with clients who wish to source out of low-cost countries or access these new markets. They need to ensure that they can help their clients meet their objectives, understand the emerging markets environment, and expand their competencies and resources.
These companies are at a crossroads in their development and have numerous strategic questions before them. Should they expand or try new niches? Should they acquire? Should they aim for a stock-exchange float? Should they allow themselves to be acquired? Should they forge an alliance? Should they invest in new technology? Should they aim to optimise their cost base to counteract the trend towards smaller margins? How can they differentiate themselves from their competition by convincing customers that they add value to their business?
How PricewaterhouseCoopers can help you
PwC has developed a methodology that can help Logistic Service Providers to enhance their value proposition to clients, looking at the steps a company wishing to source products out of low cost countries need to consider.
Whatever challenges your company faces, today or tomorrow, PricewaterhouseCoopers is ably placed to assist. Our transaction support, performance improvement and crisis management specialists combined with our industry professionals in transportation & logistics provide you with the experience and knowledge you need to help you operate successfully in emerging markets.
