The stellar growth of the economies of countries in the Southeast Asian region, coupled with growing consumer markets, has resulted in the increase in the volume of goods being transported in the area. As a result, there is now a massive requirement for supply chain solutions that needs to be filled up immediately. This does not come without risks, however, because like most industries that face immense change, there is always an accompanying hazard. Then again, analysts see that opportunities in this sector outweigh whatever risk there is, which is why it is being forecasted that the region is now entering the golden age of the logistics industry.
Key Factors behind the Growing Requirement for Supply Chain Solutions
As previously mentioned the increase in the volume of goods being shifted around the region, and elsewhere, created a massive requirement for a stable supply chain solution. The generally robust economic growth of countries within the region has increased the purchasing power of consumers. Increasing urbanization in different member-countries within the region has also greatly contributed to this positive atmosphere. The participation of Southeast Asian nations in various international trades and investments are also seen as one of the driving forces behind this growing supply chain solutions requirement. E-commerce platforms also played a key role as this allowed both end-users and suppliers to facilitate the sale of a particular product in an efficient manner.
Opportunities Abound for Businesses
The entire scenario gave birth to dozens of opportunities for businesses, particularly in the field of supply chain solutions. In fact, even stable supply chain vendors themselves find the need to outsource their services, mainly due to the sheer volume of goods being shipped out and delivered. This means that individuals or corporations need not establish their own supply chain solutions company. They just have to partner with an established provider and earn a portion of the revenue collected by the logistics company. Even companies that do not deal directly with the logistics provider stand to benefit from all these. The ripple effect resulting from this situation will positively impact other businesses like gas stations, tire suppliers, and many more.
The Associated Risks
Normal risks associated with this industry include damage caused by improper handling, delays and non-performance, and inefficient inventory recording resulting in wrong deliveries or lost items. The more severe risks include theft and hijacking, as well as liability for loss of goods. These risks, however, can be minimized by the implementation of an efficient inventory recording system and hiring competent personnel to handle the goods, both inside and outside the storage area. As regards hijacking and theft, additional security procedures can be implemented and proper route mapping may also be done.
The logistics industry is a strategic enabler for economic development and growth. The industry has the ability to further improve an already efficient supply chain activity, as well as bring down transaction cost and time between manufacturers and end-users. As each nation in the Southeast Asian region develop their sets of comprehensive plans and proper implementation of strategies as regards the logistics industry, it greatly improves the industry further. Combined with the growing demand of consumers, it will not be long until the region enters its golden age.