Despite trade tensions and other shocks to the international system, global trade has held steady — something experienced logistics partners can help you take advantage of.
In 2016, the results of the Brexit referendum in the UK and the election of Donald Trump in the US were seen by some as rebukes of globalization. According to experts, public opinion toward globalization had effectively turned, marking a new and uncertain era for international trade.
However, despite this interpretation of events, a new report shows that globalization hasn’t suffered as a result of these events. To the contrary, the recently released DHL Global Connectedness Index (GCI) indicates that globalization has hit an all-time high. The report shows that 2017 saw marked growth in international trade and development, even with the events of the preceding year.
For enterprises with international business and e-commerce retailers with an eye on the global economy, this is good news. While the international shipping and logistics landscape is still as complicated as it’s ever been, investing in relationships with experienced integrated logistics providers can help.
Understanding the Report
The GCI report, now in its fifth edition, measures trade, capital, information, and populations in order to map out the state of globalization. This edition — the first since Brexit and the 2016 Presidential election — assesses information from across 169 countries and territories.
Despite these events, the report found that not only did the flows of trade, capital, information, and people across national borders increase but that they increased significantly for the first time since the economic downturn of 2007/2008. These changes were in large part due to broad, sustained economic growth, although it is worth noting that this report doesn’t capture the fallout from the implementation of US tariffs.
The GCI also notes that Europe and North America lead the pack in most globally connected regions. Additionally, it found that there is still a lot of room for additional growth when it comes to globalization. In fact, only 20% of economic output is exported, meaning there are existing opportunities for businesses interested in developing international consumer bases.
Where Integrated Logistics Fits In
If you’re one of the businesses interested in taking advantage of international sales opportunities, integrated logistics can help. Through integrated logistics, parts of your supply chain that may have been siloed in the past are streamlined. This process helps businesses manage complex, global supply chains more easily by boosting end-to-end visibility and putting decision-makers in the driver’s seat.
For example, transportation, warehouse, and order management systems (TMS, WMS, and OMS, respectively) take advantage of new technology such as the Internet of Things (IoT) in order to collect and analyze data from across your operation. This can help supply chain managers spot issues before they cause widespread disruption, whether that includes rerouting fleet vehicles to avoid extreme weather or making alternative plans if suppliers run out of vital inventory.
How Experienced Logistics Partners Can Help
For large organizations, making the capital expenditures necessary to create in-house integrated logistics solutions may be possible, but the same can’t be said for smaller and mid-sized businesses. While they may clearly understand the benefits of this kind of program, handling every aspect of the process can be a challenge. By seeking out an integrated logistics services provider (ISP), however, these operations can compete in the global economy with much larger enterprises.
With more than two decades of excellence in the shipping and logistics space, Primary Freight has the resources you and your team need to truly benefit from an integrated logistics program. From cutting-edge software to industry-wide relationships with trusted shipping partners, our award-winning team knows what’s necessary to make integrated logistics work for you.
Whether you’re looking for support in your air freight or ocean freight operation or you need a more comprehensive integrated logistics consultation, don’t hesitate to reach out today. With Primary Freight, you’ll have an ISP that’s as invested in your company’s success as you are.
If you’d like to learn more about how award-winning shipping and logistics services from Primary Freight, contact us today at (800)-635-0013.