Logistics challenges in developing countries from the perspective of multinational corporation
Date of Issue2008
School of Mechanical and Aerospace Engineering
High production cost and saturated local market have forced companies to venture beyond local manufacturing and market base. Developing countries in Asia-Pacific are the main target in recent years at they promise low-cost manufacturing and vast market opportunity coupled with growing consumer purchasing power. However, despite all the promised success, operating in developing countries is challenging particularly in distribution and movement of goods for both market oriented and production oriented firms. Ability to move inventory and provide customer service at the optimal cost is vital to guarantee survival and maintain competitiveness. How a company builds their logistics competence and the availability of competent logistics service providers to overcome the impact of logistical challenges on the supply chain will be the success factor when venturing into a developing country. This project attempts to study logistical challenges in Asia Pacific developing countries to indentify and discuss logistics challenges comprehensively in four major categories: infrastructure, human resource, culture, government. Then analyze the impact t of these challenges on the supply chain performance of the company. Finally a conceptual framework of logistical management in developing countries id developed based on the understanding gained throughout the study.
DRNTU::Engineering::Industrial engineering::Engineering logistics