Believed to be the first alliance of its kind in the world, BDP Global Network Services will be led by one of the world’s largest privately owned logistics firms, US-based BDP International.
As part of a strategy to break the dominance of the mega-forwarding companies, logistics firms from around the world will pool their strengths to compete with the spending power and reach of the multi-nationals.
BDP International said Singapore was chosen as the headquarters because it is a world-class logistics hub and offers an exceptionally competitive business environment as well as a skilled workforce.
The company said many logistics firms have only two options in an increasingly competitive environment: be swallowed up by a multi-national or gradually lose their competitiveness due to an inability to compete with the volume leaders.
With the launch of BDP Global Network Services, the company said independent logistics firms now have a real alternative.
Richard J. Bolte Jr, president and CEO of BDP International, said: “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. 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 organisation.
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.
“We chose Singapore as the base for this exciting initiative,” said Mr 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, said: “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.”