The Third – Party Logistics (3PLs) in Emerging Markets

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THE THIRD – PARTY LOGISTICS (3PLS) IN EMERGING MARKETS

The cold storage industry in most developed countries has envolved from vertically integrated cold chains to true third-party logistics (3PLs) companies, focusing on providing logistics services as a core business focus.

However, in developing and emerging markets, the reverse is often true, with operators in the cold storage industry acting as their own best customer with the core focus of the business being fruit and vegetable trading, food processing or even QSR (quick service restaurant).

Indonesia as a maritime and archipelago country face to many problems regarding to follow the market trends. “Beside limited providing infrastructure, especially in fisheries port, Indonesia has to increase the competency of cold chain manpower and IOT & Fleet Management regarding to connect each ports”, said Yasni on Taiwan, New Southbound Cold Chain Seminar, December 10th in Taipei. “Digitalizing platform of fresh product’s market for small farmers (SMEs) will be useful to manage our national supply and demand”, Yasni added. Myanmar delegation talked about their aquaculture and 3PLs condition, Vietnam (represented by Transimex Corp) explained their capability (as a warehousing integrated estate) in providing customer’s needs.

Taiwan now, have some local and foreign companies building these large facilities using their own good IOT and Fleet Management system, integrated and connected to each stakeholders (from farm to fork). “As the cold chain matures, it begins to happen – the local market and exporters begin to concentrate on their core business and 3PLs start to play”, said the Chairman of Taiwan Trade. “As the markets expand, especially with regards to export, Taiwan Cold Chain Association (TCCA) has seen great progress in keeping the cold chain intact”, add TCCA Chairman.

This seminar was continued by seeing the Taiwan good cold chain facilities that has connected well and use the updated IOT and fleet management. Indonesia Cold Chain Association (ARPI) plans to response that event with hold the same event in Jakarta that can meet among each cold chain stakeholders.