Emerging markets have gradually become attractive grounds for new and developing businesses. This is because they offer new customers and wealth opportunities. If you’re a business owner going into this space, one important thing to have in place is a robust logistics network.
As a business owner looking to expand their reach, having efficient and capable logistics is necessary for success. In this article, you will learn what it means to build a robust logistics network and detailed steps on how to build one for your business.
What is a Logistics Network? A logistics network is a system for distributing products and services from the manufacturer to the final consumer. It involves planning, implementing, and controlling the efficient distribution of goods. It is also concerned with the warehousing stage to ensure proper product storage.
How to Build a Strong Logistics Network in Emerging Markets: Your business must have a strong supply chain network to enter an emerging market. This section provides steps for doing so.
Understand the Landscape of Emerging Markets
Just like any market type, it is necessary to understand how an emerging market works before entering. This means researching consumer preferences, local conditions, and the regulations present in that market. Understanding the market will help you make better decisions on the type of product you have that will thrive and prepare you for packaging style, logistics strategies, and the best pricing strategy to implement in the market. When it comes to logistics, understanding the market helps you determine the best transportation mode for distributing your products.
Assess Available Infrastructure and Resources
Once you understand how an emerging market works, the next step is to assess the available infrastructure and resources. This assessment includes evaluating current transportation networks, warehousing facilities, technology, and human resources to build a proper distribution network. Assessing the transportation network means checking out how the roads, the seaport, and other transport systems work. This helps determine how many vehicle types you will need for your logistics operation.
It is also important to know the warehousing facilities available, their size, and where they are located to help you decide how many goods you can import and store. Since technology is important in modern logistics, you should also learn how to maximize the available technological resources in the market to boost your logistics operation. More importantly, human resources assessment helps with employment and workforce planning for your logistics operation in the market. It is important to know the knowledge gap of the individuals in the area and how well they will help your logistics operation run smoothly.
Leverage Technology and Innovation
Building an effective logistics system in an emerging market is no easy task. Therefore, leveraging technology will ensure smooth operations. Technology such as cloud computing, big data, robotics, and Artificial Intelligence can help you manage your logistics operation efficiently and minimize costs. Inventory automationis known for improving inventory management. It helps analyze how many goods are left in stock, which prevents disruption in operation if a particular product is no longer available. Implementing technology will also improve communication and collaboration with local partners, improving your business visibility in the market.
Build a Skilled Workforce
A skilled workforce is crucial; it makes building a robust supply chain network in emerging markets less tasking. To do this, you must put all the required things in place to get an efficient, effective, and knowledgeable workforce. The process starts with analyzing the current skill level of the local workforce. This helps differentiate your staff’s expertise level. After that, you want to implement adequate training depending on each staff member’s level of expertise. With proper training, you can increase the local workforce’s knowledge of how best to run the logistics operations. Once a business workforce is well-trained, they can be sure of not just operational efficiency but the overall growth and success of logistics operations in an emerging market.
Implement Compliance and Risk Management Systems
If you plan on building an efficient distribution network for your business in emerging markets, it is important to have functional compliance and risk management systems. Start by familiarizing yourself with the regulatory environment, including trade laws, environmental standards, and customs restrictions. You should also develop detailed policies and procedures, update them regularly, and make them accessible to all staff members that need to have access to it.
The best way to implement compliance in your logistics operations is to initiate internal audits and regular staff training to ensure that they follow the regulations. With risk systems in place, businesses can easily pinpoint faults in operation, which means a risk management system in your logistics operation will help prevent and reduce errors and inefficiency. Monitor new hazards and regulatory changes regularly to stay proactive. Adaptability is key to long-term success in emerging markets, as it protects logistics operations from interruptions and legal challenges.
Why is it Important to Build a Robust Logistics Network?
Customer Satisfaction: With a robust logistics network, businesses can exceed customer satisfaction. By understanding and analyzing the emerging market, it will be easier to develop a logistics strategy to make deliveries fast, safe, and reliable. Delays and disruptions will be mitigated, thereby ensuring an efficient distribution of products to customers.
Reduced Cost: A strong logistics system will help your business save costs. Analysis and assessment will help you determine the best routes, the best technology to implement, and the best warehouse storage systems to reduce waste.
Easy Adaptation to Changes: With a strong and functional logistics system, it is easy to adapt to market changes, fix disruptions in your supply chain, and improve customer satisfaction.
As a business owner already handling a lot in your business, the task of creating a strong and big distribution network in an emerging market can be difficult. This is why entrusting the task to a reliable third-party logistics partner is the best. A trusted 3PL already has all the necessary expertise to make your business logistics seamless.
GIG Logistics is a logistics partner you can trust to help you build a robust logistics network in emerging markets. They have the expertise, and they are a tech-driven company that will help you manage your logistics operation with tech-driven solutions. Choose GIG Logistics to handle your shipping needs today.
Ben Anetoh: GIGL – Building a robust logistics network in emerging markets
