Emerging Markets

As shippers continue to pivot toward more emerging markets, supply chains need to be redesigned with economic diversification, sustainability and resilience in mind.

To better understand the unique challenges of entering emerging markets and the secret to successful supply chain management, Avetta interviewed three top procurement, health and safety, and sustainability leaders.

There’s renewed optimism for global trade with the pandemic waning and borders beginning to open. Because of this upbeat projection, companies are continuing to invest in emerging markets—and those regions are getting ready for increasing volumes.

Regardless of COVID-19 concerns, development continues to move forward as emerging markets continue to put a significant amount of investment into infrastructure of roads, railways and ports. Here’s a trip around some of the most active markets.

While trade tensions with China have already disrupted many U.S. supply chains, analysts suggest that a recalibration of shipping and sourcing destinations is long overdue. Emerging markets might finally live up to their potential and keep globalization on track.

Leading industry analysts observe that there’s a host of new technologies opening up fresh emerging market opportunities for U.S. shippers. How to properly harness these solutions and third-party partners now becomes the chief challenge. When Gartner released its annual “Supply Chain Top 25” report last May, it did more than simply identify global industry leaders and best practices.

AsiaInspection (AI), a global provider of quality control services for businesses importing from the Pacific Rim, maintains that logistics managers should pay more attention to risk…irrespective of region.

Some trade analysts say there may not be enough qualified IT professionals here to maintain manufacturing momentum.

According to Global Logistics 2017, a recent report released by the London think-tank, Transport Intelligence (Ti), the overall contract logistics market is estimated to have grown by 3.9% in real terms in 2016.

Logistics professionals continue to believe that supply chain risks vary by region. However, the shipping/sourcing relocation decisions are becoming even more complex as the resiliency and relative strength of the perceived emerging leaders continues to wane.

Scott Williams, Manager, Global Forwarding Marketing, UPS talks about the shift in manufacturing from coastal China to inland China and on to Southeast Asian countries like Vietnam and why they are likely to be one of the more impactful trends.

The Agility Emerging Markets Logistics Index uses three metrics to assess and rank 45 emerging markets countries. Size and Growth Attractiveness make up 50% of overall Index score. Compatibility and Connectedness each account for 25% of overall score.​

Saudi Arabia jumped to second place in this year’s Agility Emerging Markets Index, ahead of established BRIC nations Brazil, Russia and India, as they struggled with continuing poor infrastructure, corruption and conflict.

New hubs, new spokes, new industry leaders?

According to new accenture research, a small number of companies are enjoying returns of 20 percent or more on their emerging market investments. This month, I’ll provide an overview of that research and take a look at what these leading companies are doing to stoke emerging market growth.