Summary:
International logistics has become one of the key sectors in the current world economic environment, due to the importance of this activity in the movements of international economic globalization (foreign trade), new technologies (Internet) and support for industrial activity (just-in-time logistics), which means that an adequate international logistics infrastructure is an essential element for the positioning of any country in the international economic panorama. Following Professor Porter's scheme, we analyze the competitive advantages and disadvantages of Spanish international logistics, with special mention of its interrelation with Latin America.
Introduction.
The study of current international logistics movements is revealed as one of the most important elements for understanding the international economic situation and the insertion of the various countries in this new globalized world economy.
The importance of this study lies in the essentially strategic nature of logistics flows in the ordering of the national and international business fabric; The strategic nature of this sector can be seen in the points mentioned below:
- The logistics sector accounts for an important percentage of the gross domestic product1 of national economic activity, which implies that everything related to its management, regulation and promotion will have a direct impact on the overall economic situation of any country. It stands as one of the most important factors in the creation of national wealth, which requires as a basic element the implementation of an efficient and rational international logistics system that facilitates commercial exchanges with abroad and helps increase their competitiveness. The logistics sector is located within what we could call tertiary activities, acting as a support for the other large economic sector, the industrial,This implies that the achievement of an internationally competitive industrial sector also requires the essential support of a logistics sector that must respond to the needs of the national industrial apparatus; All of this is explained in terms of the importance that industrial activities associated with just-in-time logistics and comprehensive logistics providers have acquired in recent decades. The logistics sector is, without a doubt, the natural way to implement practice of new marketing systems, through the innovative economy of products offered on the Internet, which implies that a fast, safe and efficient logistics infrastructure is necessary for this new marketing system to reach such a dimension that it can be an authentic revolution in the international economic structure.Economic globalization through relocation, expansion of large multinational groups or large areas of economic integration, gives rise to the need for new logistics concepts that can meet the requirements of this new economic globalization scenario.
In this context of strategic importance of international logistics, the idea arises of establishing the possible competitive advantages or disadvantages at the national level in order to establish what the current perspectives and future approaches are around this sector.
The importance of understanding the competitive situation of a certain country on an international scale in this sector has an essentially strategic nature, since, as we have seen previously, said positioning will affect many other variables (industry, trade, international marketing, new technologies, economic globalization).
The idea of the competitive advantage of nations arises as a result of Professor Porter's study, which defines a series of sectors in which a given country may have more or less visible competitive advantage over other countries.
The concept of the “competitive advantage” of a certain country compared to the rest of the world in an economic sector is very interesting since it helps to explain the strengths and weaknesses of each country in the international economic context, which acquires special relevance in this case as it deals with the study of an economic sector whose strategic importance brings with it implications that go far beyond mere sectoral analysis.
1. General Characteristics of the Sector in Spain.
The study of the competitive advantages and disadvantages of Spain in the context of current international logistics is part of the recent movements of mergers, acquisitions, etc., which have occurred on an international scale and which have produced a radical change in the logistics landscape international, while it has introduced Spain as a key market in this new distribution of powers in international logistics.
The study of the possible competitive advantages and disadvantages of the Spanish logistics market in the field of international logistics activity acquires special relevance as it is a medium-sized economy, integrated into the largest commercial block on the planet, whose business fabric has undergone a “revolutionary and historical ”in the last twenty years, which gives it a series of features
specific that can serve as a reference both for those countries with more developed and established economies and for those other countries belonging to more disadvantaged areas which are trying to modernize and join the large international economic flows.
In general terms, it can be stated that the main features of international logistics in Spain today are characterized by the following points.
- High degree of concentration: There is a small number of companies that represent more than eighty percent of the market turnover. Unequal distribution: In addition to the concentration process, there is an unequal distribution of the market among logistics operators due to the existence of large international logistics conglomerates (Deutsche Post) whose leadership implies a situation of clear competitive privilege. Denationalization: This is a sector that has a high presence of foreign multinational companies that account for a large part of the turnover; at the same time, national logistics operators have great difficulty in being able to maintain their independence due to their smaller size and lack of a solid international support network.Growth rate: The Spanish international logistics sector, like the rest of the economy, has been enjoying high growth rates in recent years, which has favored the extension of networks and has made the entry of foreign operators more desirable. through various formulas of cooperation, purchase or merger. Market size: The Spanish logistics market is currently ranked fifth in the European logistics markets, although it is true that Spanish companies in the sector are not up to this importance, due to the denationalization process that we were doing. referenced above.
2. Competitive disadvantages.
In the first place we are going to refer to the “competitive disadvantages” of this Spanish economic sector in the international context, thus we separate ourselves a bit from the more traditional studies that focus exclusively on the positive aspects of competitive advantages, ignoring or granting scarce pay attention to the negative elements of competitive disadvantage.
One of the first competitive disadvantages to be pointed out in the Spanish logistics sector is the absence of a postal operator that acts as a catalyst for the logistics sector at an international level; It is a fact verified in the current international logistics reality that the large international logistics groups of today have appeared associated with the process of diversification and expansion of the activities of the national postal groups, such is the case of Deutsche Post in Germany, TPG in the Netherlands, or La Poste in France;
In all these cases, these groups of national postal services have acted as dynamic nuclei of logistics activity, taking advantage of the intrinsic advantages of the original monopolies in their respective national markets, and have managed to create true international conglomerates that respond to the expectations of current economic globalization..
In the case of Spain, the Correos group has been characterized by a discreet level of services that has favored the emergence of private operators, but which has not reacted efficiently to the new competitive environment until very recently.
The Correos de España group has attempted a solo adventure to create a logistics operator with international ambitions, through the Chronoexpress group, however the results obtained in recent exercises indicate a lack of competitive strength that is reflected in a situation of chronic deficit which seems to predestine this company towards an inevitable suspension of payments.
The other great disadvantage of Spanish logistics in the international context is the absence of a true Spanish logistics project with a regional dimension (European Union).
The current international logistics sector is defined by the existence of large regional operators that obtain their strength through the acquisition or alliances at a global level, due to this being a sector where geographical expansion on an international scale is its own reason for being; In the Spanish case, the presence of multinational companies in the sector has been oriented towards the purchase of Spanish national companies (Deutsche Post and Guipuzcoana, La Poste and Seur), but there have been no real movements of association with a European dimension, the original idea of the merger between the groups of national Post Offices of France, Italy and Spain with the aim of creating a logistics operator in Southern Europe with enough weight to serve as a counterweight to the logistical preponderance of Northern Europe, and at the same time to make it possible to configure that area of Southern Europe as a logistics area of true international projection.
In close association with the previous paragraph, we see how Spanish logistics companies are characterized by a reduced dimension2 in relation to their more direct European competitors, which implies the lack of access to all the advantages inherent to achieving greater economies of scale, and to the negotiating weakness to achieve distribution agreements in foreign countries;
All of this explains the difficulty for Spanish logistics operators to maintain real organizational independence, which prompts them to acquire these groups by large foreign multinationals, as Deutsche Post buys Guipuzcoana, or the entry of La Poste into Seur's shareholding.
In relation to the two previous points, and already limited to a merely practical aspect, one of the limitations or weaknesses of the international logistics sector in
Spain is the absence of an airport hub with sufficient presence to act as a reference center on an international regional scale. Nowadays, one of the phenomena that mark the strategic importance of the international logistics of a certain country is the having within its territory a hub or merchandise connection center that acts as a point of passage for merchandise belonging to a wide area. geographic location, the function of these hubs is not so much to be the point of origin or destination of the merchandise of the country in which they are located, but rather to serve as a connection, consolidation or redirection center for merchandise from a large number of countries with greater or lesser less geographic proximity.
In the international context, we see how there are certain airports that perform this function (Miami-Latin America, Brussels-Europe, East Midlands-United States, Singapore-Asia) which represent a clear revitalizing element of the international logistics activity of the countries where They are located due to the substantial increase in their international merchandise traffic.
An intrinsic limitation to the Spanish economic system itself with respect to international logistics is the composition of Spain's foreign trade with the rest of the world3, this trade shows us that we are facing an eminently merchandise importer country, This means that the national domestic market generates fewer needs for international logistics, compared to those mainly exporting countries such as Germany and France whose dynamic export sector generates in itself the possibility of developing much more extensive international logistics structures.
Apart from the weakness of the Spanish export sector, there is another element that results in the problems of Spanish logistics to achieve an international dimension according to the importance of the country, and this is the lack of "logistics culture" existing in the Spanish business circles with Regarding the comprehensive management of international logistics flows, this implies that there is a greater tendency to abandon part of these logistics procedures as they are not considered as a strategic part of the business process4, which implies a smaller size of the Spanish logistics market and a lack of competitiveness of Spanish companies in the sector.
3. Competitive Advantages.
The analysis of the competitive advantages of the international logistics sector in Spain is not intended to describe the formulas for business "success" in Spain in this sector, since the current situation of the sector in our country is in a state of configuration and evolution, but to make a list of the existing potential in our country to become an international benchmark in this economic activity.
The first great national competitive advantage of Spain in the field of international logistics is associated with a fact as simple as its own geographical location.
Although it can be affirmed that for other types of economic activities the geographical position of Spain has a completely peripheral character with respect to the central nucleus of the economic centers of Europe, however in the international logistics plane the geographical factor acquires a more dimension global, encompassing much broader geographic connections (Latin America, North Africa), and it can be stated that in a certain way the transfer of the Union's center of rotation
Europe further to the East favors in a certain way that strategic position of Spain with respect to the external trade flows of that important economic bloc, and it is in this context where Spain should acquire special relevance in the future to become one of the centers of redistribution of the foreign trade of the European Union with respect to the rest of the world.
It is important to point out that, in a timid way, there are companies that are beginning to position Spain as the center of distribution and transit of their merchandise to the external markets of the European Union, this can be seen in the case of DHL as regards to merchandise destined for Latin America, or in the case of TNT on its merchandise destined for Latin America and North Africa.
The second extremely important factor to design a differentiating competitive advantage for Spain in the international logistics plane is the special relationship that exists between our country and the Latin American area, which is perhaps the best future asset for the Spanish international logistics market.
The “Latin American” competitive advantage has several nuances that only enhance its strength and that can be stated as follows:
1) The first section of the special relationship between Spain and Latin America would be associated with the previous paragraph related to the geographical dimension; today just as it happened at the time of the discovery of America, The Iberian Peninsula is the geographical “outpost” and natural extension of the European continent towards the American continent, which is why it would be logical for this geographical area of the Iberian Peninsula, and in this case Spain, to also become the point of departure and arrival of the main means of transporting goods that arise between these two economic spaces, emulating the role played by Florida as the exit and entry point for logistics flows between the United States and Latin America.
It is to be hoped that the recent agreements between Mercosur and the European Union and the subsequent regional agreements that may occur between the two shores of the Atlantic will be able to promote and stimulate trade links that are still not very important and increase the demands for more efficient and coordinated logistics routes between both parties.
2) The second point related to the strategic value of Latin America for the future international logistics project of Spain is the massive presence of Spanish multinationals in Latin American countries, this directly affects a proportional increase in present and future logistics exchanges and in the creation of networks of regional interests.
It is true that the most prominent Spanish companies in the area are characterized by engaging in activities that generate transport of goods reduced in proportion to the size of the companies (Telefónica, Repsol, Endesa), but it is no less true that the presence of these companies has originated a drag effect of other multiple smaller Spanish companies with a significant impact on logistics movements between Spain and Latin America. It would be impossible to deny that since Spain is the first country in the Union
European by volume of investment in Latin America, while Spanish companies present in the Latin American market have become determining agents of important strategic sectors of these Latin American economies, all this will at a given moment imply an inevitable and proportional increase in the importance of Spain in logistics relations between Europe and Latin America.
3) The third aspect related to the “Latin American factor” and international logistics in Spain refers to the creation of a specific “Latin American logistics market” within Spain.
The presence of an increasingly important number of Latin American immigrants in our country, together with the presence of Spanish companies in Latin America mentioned in the previous paragraph, has led to the appearance of a series of specialized logistics products aimed at customers with relationship, business or personal, with Latin America, Thus we can see that a leading company in the market like DHL, which accounts for more than half of shipments abroad in its specific transport sector, has designed a series of high added value logistics products that have the Latin American market as a personalized destination (America First, Mexico WPX); All of this marks a trend towards specialization, an improvement in connections, document processing, new market lines, which strengthens and enhances the future positioning of Spain in relation to international logistics movements with origin or destination in Latin America.
4) The next positive factor, in relation to Latin America, for Spanish international logistics is the business development of Spanish logistics companies in Latin America.
As we have mentioned when defining competitive disadvantages, Spanish logistics companies are characterized by a small size and lack of international structure, which represents a significant burden compared to the large multinationals in the sector, however in recent years For years it has been appreciated that within the process of geographical distribution of Spanish logistics companies there has been an expansion of the Spanish logistics model to certain Latin American countries, above all through the two leading Spanish companies in the sector, MRW and Seur; This fact implies the development of local logistics networks in Latin American markets, still incipient and underdeveloped markets in this field, which may mean, as has happened in other economic sectors such as banking, energy, textiles, etc.
that in the near future these already established networks could play a key role in the design of the large global networks of international multinational transport, thus reinforcing the still low weight of the Spanish companies in the sector in the international context.
5) The last section, which is no less important, referring to the relationship between Spain and Latin America in the logistics field would be the merely cultural aspect; Despite the fact that international logistics is characterized by a widespread use of the English language, the cultural harmony between Spain and Latin America is still noteworthy.
based on a shared common history, which is important when facilitating business transactions, especially in a sector like this which is characterized by a high rate of information transmission between all the points associated with these logistics traffic.
The following competitive advantage, outside the Latin American context, arises precisely from one of the intrinsic weaknesses of the Spanish economy in the international logistics environment, that is, its clearly importing nature; As we stated, the accentuated imbalance of the Spanish trade balance in benefit of a high volume of imports resulted in the lower possibilities of development of the international logistics sector in Spain, however, nowadays new mechanisms and products have emerged to reverse the flows of payment of logistics services, causing the collection of contracted logistics services to revert in the country of the importing client; In this new framework, we see that there is a wide business possibility for Spanish logistics companies as they manage to make the importing companies of the country aware of the advantages of controlling the logistics process and by achieving large turnover volumes that result in better contractual advantages.
The next point linked to the competitive advantages of Spain in the international logistics scene is a compilation of all the previous advantages specified in a specific project that can give Spain a true international dimension in the field of global logistics, this project would be the creation of airport infrastructures in accordance with the new Spanish economic reality and that would allow the creation of this great distribution Hub in southern Europe.
In this section arises the current expansion works of Madrid-Barajas 5 whose ultimate objective is to face a spectacular growth in the traffic of goods and travelers that has been taking place in recent years; These works will allow the availability of sufficient space, infrastructure and technologies in a short period of time to be able to choose to absorb a high percentage of goods that move in the southern part of the European Union and from the European Union to other external destinations (Latin America, North Africa).
Apart from the star infrastructure project for the future reorientation of the Spanish positioning in the international logistics sector, we must also highlight a complementary project that can have a decisive impact on this new framework of European logistics, this is the creation in Zaragoza of the largest land logistics area that exists today in the entire European Union, this project whose dimensions are double that of its most immediate rival centers in
Germany or France will make possible the creation of a logistics center that responds to the new needs of the global market of the European Union, at the same time that it can act as a nucleus of attraction for important multinationals that see in this privileged location a possible settlement for their activities on an international level; Thus, the Madrid-air transport, Zaragoza-land transport axis is mutually reinforcing and shows unbeatable expectations, once both projects have been completed and are fully operational within a period of approximately two years.
Another important aspect to highlight as a competitive advantage for Spain in this sector is the orientation established by the Spanish government in the field of transport, where, realizing the strategic value within the national economy as a whole, it has decided to establish common standards of action, the PETRA 6 plan whose basic guidelines are geared towards achieving integrated transport networks with cooperation formulas that avoid an uncompetitive business smallholding in such a globalized sector.
As Porter points out, the regulation of the state in a certain economic activity is fundamental for the competitive configuration in the international order, since a balance must be achieved between a regulation that favors the free competition of the companies present in the sector, but that at the same time, it can indicate some basic rules that promote the efficiency, rationalization and dynamization of said economic activity.
The last notable competitive advantage linked to the Spanish logistics companies present in this sector is the high degree of profitability of national companies in relation to foreign multinationals, this indicates an efficient operation that allows us to hope that at some point a Spanish logistics group You can create a project with an international dimension in association with a national or foreign partner. This competitive advantage is strongly linked to the fact that in the face of the growing denationalization of international logistics in our country, this has not been an obstacle to maintaining the national domestic logistics market in the hands of Spanish companies, which implies that it has been possible to keep intact the stronghold of the domestic market,which provides an added competitive advantage to position itself in the future.
4. Conclusions.
The current panorama of international logistics shows a clear change in the competitive advantage of countries in this sector, and it can be said that there has been a transfer of the main axis of international logistics activity from the United States to Europe, as a result of the higher rate of international trade, European single market, etc., in this context Spain has greater advantages for being a logistics decision center on a planetary scale.
Spanish international logistics shows certain signs of weakness and little development at an international level that can only be overcome through the establishment of solid and balanced alliances with the large international logistics operators.
At present, the Spanish economy still shows a certain inability to create its own international logistics project, lacking a business group, unlike what has happened in other sectors (banking, telecommunications, energy), which acts as an engine for form a multinational logistics company in Spain with true international projection.
The future potential of Spain as an international logistics center appears closely linked to the Latin American economic reality, all factors (geographical, cultural, economic, domestic market) show us that, once again, the positioning of Spain in a global world depends on the degree development or promotion of our special relationship with Latin America.
The analysis of the international logistics sector in Spain shows us the importance of geographical location in the development of a given economic sector, and how geographical position stands as a key element in the new context of a globalized economy without borders and with a need criticizes to establish territorial links of connection throughout the planet.
