Expertise & Clear Advice

The general rate increase (GRI) for parcel and express shipments in Europe will this year be between 4% and 7% (4-6% domestic; 5-7 cross border). That is one of the results of the 6th edition of the Transport Monitor of BCI Global.

As there now is real light at the end of the Covid-19 pandemic tunnel, for many companies the key question is: what strategic supply chain and manufacturing footprint initiatives to take in order to prepare ourselves for the future and how to implement them?

For most companies clearly the time has come to take a longer-term perspective again and prepare the company for potential new disruptions in the future. BCI Global has defined 5 strategic initiatives that companies should adopt when preparing the manufacturing footprint for the future.

The US economy is ‘hot’. Fueled by the Covid-19 recovery with a forecasted economic growth of more than 5 per cent this year and the substantial investment packages of President Biden domestic and foreign companies are investing in new manufacturing plants. But labor market challenges are around the corner.

Currently, there is a serious storm or even a hurricane ongoing in the ocean freight industry. Rates are at an all-time high (BCI’s monitor shows an average of factor 4, with outliers of factor 10!), capacity is limited which is strengthened by the false container positioning and port congestion due to Covid-measures and high demand is counted in weeks instead of days. The reliability of ocean freight is all time low which pushes the need for end to end visibility even further.

Although the vast majority of multinational companies already has some sort of support model in place, the global Support Services market is still expected to mature and grow further with 4 billion USD until 2027. Companies are now focusing on process efficiency, added value, digitalization and innovation. Also, many companies are using their best service delivery models to also target emerging markets. What key trends are taking place in the Support Center market and what does this mean for the global right-shoring location strategies for Support Centers?