Emerging Markets Present Opportunities and Challenges


Supply chain leaders hold the key to success or failure for businesses that want to capitalize on the $30 trillion opportunity presented by emerging markets according to a report by research firm Gartner Inc.

The importance of supply chain management in emerging countries is reiterated in the findings of a global survey of business leaders for Deloitte Consulting’s Business Trends 2014 report:

• 44% of respondents consider accessing the right supply chain capabilities extremely or very challenging in emerging markets

• 30% of respondents rate accessing the right supply chain capabilities as extremely or very challenging in developed markets

One reason for the emphasis on supply chain management, specifically distribution and logistics, is the growing consumer class in some countries that have traditionally been considered low-cost export platforms, says Darin Buelow, principal, strategy and operations, for Deloitte Consulting LLP. As China and Brazil’s economies have grown, their domestic markets have grown, which expands opportunities within the country. In China, particularly, the past focus on manufacturing to export goods means a lack of warehouses and transportation services to distribute goods to the local market. “This represents opportunities for warehouse, trucking and material handling companies.”

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By Sheryl Jackson