Key Country Trends
- Argentina — An increasing level of sophistication of logistics service provision is largely customer driven, as demands for greater visibility of products, reverse logistics solutions and/or value-added services more often than not originate from retailers or manufacturers, with logistics service providers reacting to these needs.
- Brazil — Brazilian supply chains continue to be hampered by costs that are significantly higher relative to other countries, but growth potential can be seen in integrated supply chain requirement and greater levels of supply chain collaboration (such as shared user warehousing or even distribution). Transport infrastructure continues to suffer from poor management, but the award of global sporting events in the country (World Cup 2014 and Olympics 2016) will finally provide the stimulus to improve conditions.
- Canada — In order to survive, traditional trucking companies are expanding their expertise to encompass a wider spectrum of services. This is not only driven by increasing customer sophistication in their supply chain operations, but also by the competitive forces that exist between service providers and the consolidation of a fragmented service sector.
- Mexico — The relatively high nature of logistics costs will eventually lead many manufacturers and retailers to outsource their supply chain activities as they seek opportunities for cost reduction. While automotive and consumer-retail markets lead the way, there is room for significant improvement in service provision across other industry sectors.
- United States — As the region's most developed and mature logistics market, the challenges faced by 3PLs in the U.S. are somewhat different to those in South America. Among those analyzed in Analytiqa's report, there are fears that at a basic level, the logistics sector will experience a severe skills shortage as the industry struggles to attract the level and quantity of talent to meet its growth objectives.
A Matter of Definitions