In every country, the on-time movement of goods is a large and vital industry.  In both the business and consumer markets, there is increasing pressure on businesses to outsource these activities and on distribution companies to deliver items faster and cheaper, in ways that precisely reflect the features of the product and the needs of the customer.

The distribution of bulky, low-value items has become a highly-competitive activity.  Dominated by large American and European players, it is a market which has seen increasing consolidation; and as a result margin pressure.

At 3i, we have focussed on specialist/niche areas of the market where we can clearly see one or more distinguishing features:

• The products are high value or sensitive.  This makes distribution more important as an element of the product’s value chain and places high-quality, skilful operators at an advantage.
• Time is of the essence.  Where delayed delivery would cause the recipient significant loss or disadvantage, reliable distributors who meet their promises command a premium.
• Barriers to entry are high.  If transportation of products needs highly-specialised equipment or skills, new entrants find it harder to enter the market and drive down prices.

The most successful distributors build strong, ongoing relationships with their clients in which they become integral partners to the clients’ operations.  By understanding and adapting to clients’ needs, they can often negotiate sole distribution rights, providing stable revenue streams and a sound platform for expansion.