Global alliance of small- to mid-sized logistics firms will share resources to compete with larger companies.
BDP International (BDP) is forming a new global alliance of small- to mid-sized firms to challenge the dominance of the large multi-national logistics and transport companies. The new unit will be based in Singapore.
Richard J. Bolte Jr., president and CEO of BDP International, explained the move is in response to market demand for more intensive customer service, following an unprecedented period of consolidation in the logistics industry which has seen its largest players acquire many smaller firms.
“The logistics and transport industry is fiercely competitive,” said Bolte. “Survival, let alone success in the twenty-first century, is being driven by better service, more technology, more sales coverage, more aggressive pricing, more global presence and more knowledge.
“The multi-national logistics companies believe bigger is better,” he continued. “We at BDP and our partners have a different view, namely that personal relationships and intimate understanding of our clients are more important than sheer size.”
A unit of Singapore-based BDP Global Services Pte. Ltd., BDP Global Network
Services will invite professional logistics firms from around the world to join.
The members themselves will form a leadership team to set direction for the organization. Two tiers of fee-based membership will be offered, in part to cover marketing of the brand and its international reach in member countries.
The benefits to member firms include world-class technology, sales and marketing support in priority trade routes, competitive transportation products, established operations in the world’s leading and emerging markets, expertise in trade and security compliance, finance and legal issues, strong client relationships, global integration and shared administrative services.
“Many logistics firms have only two options, to be swallowed up by a multi national megalith and lose their identity completely, or to gradually lose their competitiveness due to an inability to compete with the economies of scale offered by the volume leaders,” Bolte went on to explain. With the launch of BDP Global Network Services, independent logistics firms now have a real alternative.
“Together, a relatively small number of carefully selected firms can effectively compete with the spending power and reach of the multi-nationals. Our membership-based program will enable quality firms to be part of a truly global organization without compromising client service.
“We chose Singapore as the base for this exciting initiative,” said Bolte. “It’s a world-class logistics hub, well situated to benefit from Asia’s manufacturing and consumption boom. It also offers an exceptionally competitive business environment as well as a skilled workforce.”
Tim Frear, director of BDP Global Network Services, concluded, “It is our aim to make the BDP Global Network the industry’s most prestigious, mid-market logistics affiliation, representing a select group of BDP and private third-party providers with operations in more than 120 countries. It is a unique, business model that will reduce business complexity for partner members and provide access to the shared assets and geographic presence of a respected global brand.”