Stumbling economy a driving force behind third-party logistics
During difficult economic times, many companies review their logistics solutions and outsource their warehousing operations to a third-party specialist in order to concentrate on their core business and decrease capital tie-up. This creates opportunities for third-party logistics companies, but competition in this industry is tough. Both large and small actors are entering the market, although the financial crisis is more of a problem for third-party logistics companies that currently need to invest to boost their warehousing capacity.
In 2009, Green Cargo Logistics reported a 15 percent growth in sales. However, the market as a whole lost 2-3 percent during the same period. New entrants to the third-party logistics market are primarily the Nordic postal companies: Posten Logistik (Posten Norden), Bring Logistik (Norway Post) and Itella Logistik (the Finnish postal organisation). The postal companies have significantly invested in warehouse logistics and can be expected to move aggressively within certain package-intensive distribution solutions.
Growing third-party logistics
Growth in Green Cargo's third-party logistics operations, 2007-2009
Growth measured in net sales, SEK million.
Green Cargo's national transports are an approved Good Environmental Choice