The decentralization of the economy increases the stress of logistics
Large companies will choose to outsource technology platforms and functions before hiring more managers, as indicated from Drewry.
Mergers and acquisitions of large and small, the largest supply needs of developing countries, or increased exports of these because of the decentralization of the economy, among other circumstances, increase the complexity of logistics in any of its phases.
This situation motivates therefore increase the stress they are subjected professionals responsible for managing the logistics of manufacturers and retailers.
According to the consultancy Drewry, manage traffic flows and choose the best logistics solutions has become particularly difficult during the past five years, and will be increasingly difficult in a globalized economy where the economic recession of recent years has changed game rules.
Without going any further, countries like Chad, Uzbekistan, Nigeria and Mongolia have experienced increases of more than 20% in production in just five years, while manufacturing in China, the power that has grown in recent years, has increased in this period 12%.
The change in production is causing outbreaks that shipping in an economic context marked by budgetary and revenue declines limitations, have seen increased demand in countries where it had little presence.
Meanwhile, directors of logistics operations or large companies often have hundreds of routes in their hands to manage, while working with a large amount of data and an average of 20 operators and shipping companies that provide their services.
To this great amount of work that adds only two decades ago, a large multinational would have a staff of about 30 people responsible for these operations, staff has been reduced considerably in recent years and, quite possibly will not increase in the future.
From Drewry they argue that instead of increasing the staff of experts, companies will choose technologies integrated support to optimize logistics management and outsource many of these activities, but always preserving the overall strategy of management and contracting suppliers.