Every value chain is only as strong as its weakest link. Anyone who allows the ‘risk’ factor to become the weakest link is creating a dangerous breaking point.
Think about it: what if?
What would happen if the toll costs on European roads were to be drastically increased within the next three years because the federal and state governments simply could no longer maintain these routes free of charge? Your logistical balance sheet could change drastically. You could still afford transportation from China to Hamburg. However, transportation from Hamburg to Munich could then quickly become significantly more expensive than the very long sea route and no longer pay off. And some transportation from Bulgaria, Romania or Russia to Germany by truck would also no longer be profitable compared to sourcing from China. More…