A recent survey from the folks at Jones Lang LaSalle’s (JLL) European Logistics and Industrial says that Turkey is being eyed by global logistics companies as the “it” location for managing operations in Europe, Middle East, Central Asia and North Africa.
In general, having a centralized location for global production lowers per-unit costs of goods and simultaneously reduces a company’s asset base by having fewer plants. While low-cost sourcing is an objective of many firms, they want to go global to increase revenue opportunities. Turkey’s location makes it promising for many emerging markets.
“A large number of global companies plan to set up their regional hubs in Istanbul in parallel with Turkey’s 2023 targets,” said Avi Alkas, the head of JLL Turkey in a press statement.
Consider the numbers: this vital sector is expected to reach 48 percent in the next five years, a figure which is based off responses from the survey.
So, which companies can expect to rely on Turkey’s location for such an endeavor? According to reports, we can expect to see Japanese companies like Yusen Logistics, which established its Turkish division in 2012, and Hitachi (News - Alert) Transport Systems, which acquired majority stakes in Turkish Mars Lojistik last year.
Turkey’s location is prime for serving as a bridge to what’s known as Eurasia, as it serves as a bridge between Turkey, Europe, Asia and the Middle East. Current logistics companies already offer services such as ocean vessel chartering, customs clearance and documentation, and logistics project management.
Economists have often believed that emerging markets will continue to grow faster than developed economies. A central location means a “one stop shop,” as well as access to a global network of carriers that can make all the difference in having a wider reach. In addition, logistics and supply chain management can help with continuous improvement. In today's global economy, it has become increasingly important to make logistics a central part of a company's business strategy.
An efficient supply chain can have a profound impact on a company's competitiveness and profitability.
Edited by Rory J. Thompson