The Russian Government has developed a comprehensive action plan to create new export and import logistic, with over RUR 4.5 tln to be invested in the construction of advanced transport infrastructure until 2030.
Additional measures should include developing all sectors of infrastructure for various means of transport (such as motor roads, railways, seaports and airports) to operate efficiently. If the manufacturer or distributor can choose a product delivery method, the cost and delivery time will be reduced due to each category of goods having its own characteristics. Special systems for consumer demand forecasting and supply chains planning will allow companies to calculate and select the best transportation mode. In addition, advanced infrastructure of various means of transport provides an opportunity to find new partners abroad on the most favorable terms for all participants in the process, and creates additional jobs.
According to a study by the Graduate School of Business of the National Research University – Higher School of Economics and the Coordination Council for Logistics, last year companies were looking for new suppliers in China (42%), Turkey (16%), and India (11%), many of them working in 3-4 directions in parallel. At the moment, this has proven to be the most advantageous strategy as these countries are Russia’s partners, with the established logistics allowing for proper product delivery mode. Yet, it is important to observe the developments outside the country and be prepared to instantly choose a different strategy in case external circumstances change.
Even amid quiet conditions, efforts should be taken to look for new directions of development, which will allow for prompt reorganization of logistics chains with minimal losses in case a crisis occurs. A company that looks ahead and has action plans for possible challenging situations will be able to overcome any turmoil as the supplier is more likely to be forgiven for a slight increase in cost and even worse quality of the goods rather than for a minor violation of deadlines.
Export and import operations with the EU may resume – yet, instead of making this a sole focus and expecting it to occur soon, we should take efforts to adjust the logistics chain while considering current opportunities.
By Yevgeny Nepeivoda, Managing Partner, Novo BI