World Trade - November 2008 - (Page 30)

COVER STORY Third, supply chain ﬁrms can target customer segments that are poised to beneﬁt from near-sourcing. Domestic raw materials and manufacturing, for instance, are likely to beneﬁt. Logistics providers to these domestic industrial segments could be winners. The bottom line is that near-sourcing will create major dislocations in the supply chain market. Some companies will make aggressive investments in growth. For instance, C.R. England’s acquisitions have the potential to reshape their business. Conversely, many other companies face the risk of rapid decline. After a growth period from 2002-2006, we are seeing a sudden reversal of fortune for many. Two thousand eight has brought the fastest rate of trucking bankruptcies in seven years. Will others succumb to the cataclysmic change brought about by near-sourcing? In sum, we may be at the precipice of a new era. The cheap fuel and long supply chains of the past 20 years may be over. In its place, the winners and losers of near-sourcing are yet to emerge. In the 1970s, deregulation enabled a few companies to thrive (e.g. Schneider and J.B. Hunt), while putting thousands of truckers out of business. In the 1990s, the shift to outsourcing enabled a few more companies to enjoy success (e.g. CH Rob- Smart leaders should consider adding services that respond to near-sourcing. Now is a great time for trucking and shipping companies to pursue opportunities in logistics. inson and Expeditors), while squeezing many of the small Mom-and-Pop operators. In this new age of near-sourcing, who will become the deﬁning leaders of this generation? As fuel prices soar, supply chains shorten, and the landscape changes, what will you do? Are you the category leader in your ﬁeld? More importantly, is what you do likely to be vital amidst the age of near-sourcing? What resources will you commit to ensure success? Are you a buyer or seller? Whatever your decisions, now is an ideal time to rethink your strategy. WT Benjamin Gordon is founder and Managing Director of BG Strategic Advisors, www.BGSA.com, and can be reached at Ben@BGSA.com. Karen Rutt is an Associate for BG Strategic Advisors. For reprints of this article, please contact Cindy Williams at williamsc@bnpmedia. com or 610-436-4220 ext. 8516. 30 WORLD TRADE NOVEMBER 2008 WTM08084PRIN.indd 1 7/16/08 9:35:00 AM http://www.rupertport.com http://www.rupertport.com http://www.BGSA.com

Table of Contents Feed for the Digital Edition of World Trade - November 2008

World Trade - November 2008 Contents Unexpected Responses to Unanticipated Change Reading the States of Risk in Today’s Global Economy Supply Chain Watch Tradewinds Failed Promise: Mexico and NAFTA, 15 Years Later The Short Tale Marrying Trade Finance and Transportation into a Single Transaction Trucking Gets a Double Whammy Are We Safe Yet? Logistics Resurrects the Rust Belt Keep on Compressing

World Trade - November 2008

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