Logistical implications of internationalisation

Internationalising logistics networks holds consequences for inventory, handling and transport policies. 

Centralising inventories across multiple countries can hold advantages in terms of inventory-holding costs and inventory levels that are especially relevant for high-value products. On the other hand, internationalisation may lead to product proliferation due to the need for localisation of products and the need to respond to specific local product/market opportunities. 

Primary drivers Labour shortage Labour costs and flexibility Market entrance Responsiveness to customer orders 

Shift of labour and investment towards European countries without labour shortage Newly industrialised countries, low labour cost countries Eastern Europe, China, Latin America Western Europe 

Transport routes Still significantly continental Increasingly intercontinental Adding additional destination regions Beginning to refocus on continental 

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Drivers and logistics implications of internationalisation the trade-off facing internationally operating businesses. 

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