Innovation into logistics and trade

About Solution

logistics of international trade can be defined by three key processes: the movement of goods or services, the measurement of this movement, and the processing of what is being moved. Each one of these processes face significant limiting factors when carried out on an international scale due to various geographical barriers (such as seas, mountains, and simply long distances). Therefore, the landscape of international trade as we understand it today has been shaped by the innovations in logistics that have helped us navigate and overcome these limiting factors. This article will look at the three fundamental innovations that have transformed logistics and international trade: containeristion, information processing technologies, and fibre optic cables.

1. Containerisation – the beginning of a revolution

No innovation in business history is as important, yet simultaneously as undervalued, as containerisation. What was initially considered to be a minor innovation, containerisation turned out to be the single biggest driver of global imports and exports to date. When we look at the value of global exports (figure 1), we can see a direct link between the inaugural date of containerisation, 1956, and the explosion of global exporting activity.

0

Comments

Contact Us

If you have any questions