Executive Briefings

Distribution Models, Logistics Management Changing in Emerging Nations

Logistics in emerging markets have long centered around the movement of large quantities of manufactured goods or commodities between businesses. But rising consumption driven by a growing middle class is set to change that, according to new research reports.

Distribution Models, Logistics Management Changing in Emerging Nations

The development of consumer markets in Asia, Africa and Latin America are changing distribution channels, Transport Intelligence Ltd. and Kewill, a logistics management software provider, said in a report. They predicted that by 2020, 1.8 billion people will be in a "consuming class," spending $30tr, up from $12tr today.

The shift will require logistics firms to focus on parcel delivery to consumers in developing countries, which has traditionally taken a backseat to exports or the movement of raw materials and parts through global supply chains. Parcel shipments from businesses to consumers will grow nearly 14 percent a year in the next five years in the Asia-Pacific region, outstripping growth in North America and Western Europe, consulting firm Accenture said in a report.

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The development of consumer markets in Asia, Africa and Latin America are changing distribution channels, Transport Intelligence Ltd. and Kewill, a logistics management software provider, said in a report. They predicted that by 2020, 1.8 billion people will be in a "consuming class," spending $30tr, up from $12tr today.

The shift will require logistics firms to focus on parcel delivery to consumers in developing countries, which has traditionally taken a backseat to exports or the movement of raw materials and parts through global supply chains. Parcel shipments from businesses to consumers will grow nearly 14 percent a year in the next five years in the Asia-Pacific region, outstripping growth in North America and Western Europe, consulting firm Accenture said in a report.

Read Full Article

Distribution Models, Logistics Management Changing in Emerging Nations