By Shane de Beer – Sales and marketing manager at TNT Express
Logistics is about moving goods as fast and as efficiently as possible on a cost versus value basis. It is about looking at the best possible way to move goods in line with the specific needs of the customer and the items that need moving around. The choice of mode of transport can also depend on how vital the part that is needed is to a company’s production line. To reduce costs and increase efficiencies to meet increasing customer expectations, logistics companies are finding smarter ways to move components and finished goods from source to destination. For example, increasing volumes of goods are being shipped to Dubai by sea and transported by air from there to Europe because it is cheaper to do so.Fuel costs are lower in Dubai and the time zones between there and Europe are favourable and allow almost next day delivery.
Some global organisations are setting up hubs in Dubai and the United Arab Emirates for similar reasons. A knock-on effect of globalisation, changing trade routes and increasing customer demands is that the gap between the roles of express delivery companies and freight companies is closing as an increasing number of customers are looking for a single entity that can provide both of these services. As a result logistics providers in both camps are having to change their business models and their vehicle fleets to accommodate changing customer expectations.