Competitivity is more than just reducing costs. Businesses can optimize their expenses to create more efficient logistics operations that are capable of contributing to international trade success. In today’s hyperconnected world, where many of the factors that determine competitiveness are commoditized and become a standard, adding value is the only way to remain competitive. Jorge Zuñiga Blanco is a veteran businessman and expert on global trade, and explains how logistics competitivity impacts global trade.
How can we make ourselves more competitive if we share fuel prices and workers’ wages? The answer lies in adding value, understanding the needs and context of loads, creativity, and prioritizing communication excellence. Innovation is also possible when there’s competition.
Zuñiga explains, “It is necessary to define logistics in order to contextualize the relationship between logistics, foreign trade and logistics. It’s the process of implementing and controlling efficiency over the flow of goods from one place or another.” As an example, if you think of an importing, exporting, and/or manufacturing company, the board is the brain and logistics the heart. Logistics is about making things happen.
Logistics’ relationship to foreign trade is important. If logistics can be dynamic, competitive and efficient, it will impact international trade multipliers in operations. This will create new forms of trade, just like what is happening with eCommerce. A website can be used by a rural producer to offer its products to the most important centers of consumption like Shanghai and Dubai.
International trade is heavily dependent on international logistics competitiveness. A strong logistics agent can greatly impact the dynamics of international trade in a positive or detrimental way. For both the company whose operations are dependent on a functioning supply chain and the customer, logistics competitiveness is crucial. A more traceable, reliable, and faster logistics system is becoming an important differentiation element and essential added value.
Without a proper negotiation of tariffs and good logistics coordination, even the most successful business can be destroyed. It is an integral and essential relationship. The development of infrastructure and logistic services plays a crucial role in international trade operations.
It is essential to consider the entire logistics operation when assessing the competitiveness of international trade operations. This means that you must consider the entire logistic flow, including the movement of goods from one place to the next, as well as customs and procedures that are involved in making the operation concrete. This is where the greatest vulnerability lies.
The management of logistics operations, in addition to global infrastructures and conditions, is a way to increase value and competitiveness in international trade. Zuñiga adds, “The supply chain is the foundation of any company and that logistics is becoming a key differentiator for both the customer and the consumer.”
The management of operations used to be a summation of carrying out company activities. We began to incorporate concepts like process optimization and cost saving. It is not just about optimizing while maintaining high quality to save money, but it is all about doing so every time. Logistics adds more value to the product/service.
It is vital to have transparent and secure logistics processes. These are essential attributes that shippers and customers value highly. When it comes to logistics operations management, there are three main points: reviewing costs as a routine exercise; strengthening relationships and cohesion with strategic suppliers; and the analysis of unitarization cargo: how to transport more merchandise at the same logistics cost.
Consumers expect immediate results in a globalized world. Improvements in traffic management, shorter transport times for materials, and better communication management are key factors that can add value to customers and increase their competitiveness. This is to demonstrate, sincerely, and energize information so that it can be easily accessed by everyone in an agile, easy-to-read manner.