Characteristics of the supply chain in Central Europe

According to the Polish Development Fund, exports of goods and services in the last year were 4.8% higher than in 2022 and were at the highest level on record^[1]. This result translated into a positive trade balance which amounted to PLN 45.1 billion according to Statistics Poland^[2]. This good result was driven in part by the growing trade in Central Europe, between countries such as Poland, Hungary, the Czech Republic, and Slovakia. The growing scale of Central European trade requires the development of efficient logistics solutions, such as those that have already been implemented by FM Logistic for years.

Carriers are aware of the growing importance of transport in Central Europe and are making every effort to optimise routes and meet customer needs. The same is true of FM Logistic, which is developing its distribution centres in Central Europe, especially in countries such as Poland, Hungary, the Czech Republic, and Slovakia. One of the solutions available is cross-border shipping with transshipment in the intermediary country. This allows a shipment sent, for example, from Poland to Hungary to be delivered in two stages, with transshipment in Slovakia. However, the information and control of the goods is at all times in the hands of the sending country. In the case of high vehicle fleet occupancy, this solution helps to reduce the driver’s working time without affecting the time of delivery. Thanks to good fleet management, selecting the optimal routes, and making use of the infrastructure between Central European countries, shipments can be delivered in as little as 48 hours after the order is accepted.

Fast and efficient delivery is extremely important for manufacturers and distributors. However, customers also require carriers to adapt to their specific needs. This applies, for example, to shopping malls, where goods only have to be delivered within strictly defined hours or at night. This is the kind of need that FM Logistic meets with its central European supply chain serving primarily customers in sectors such as FMCG, fashion, or the toy industry.

Transporting goods to shopping malls is a particular challenge that requires careful planning of delivery times. It is necessary to estimate journey times as precisely as possible and to choose a suitable route, taking warehouse operations into account. Shopping malls also have their own guidelines regarding the specifications for the forklifts that move around their premises. In some cases, forklifts are prohibited and there is a need to unload the goods manually.

For manufacturers, it is important that the carrier adapts to constantly changing market conditions while providing a high level of customer service. Communication remains one of the key issues in international transport. “At FM Logistic, we hire people who are fluent in the languages of the countries where we operate, so that they can communicate with the drivers and the customer.This ensures that all parties are well informed of all details relating to the delivery and its current stage,” explains Adrian Gradowski. This is further facilitated by a dedicated application that allows to track shipments and keep copies of invoices and documents in one place, so that the manufacturer has everything under control.

In the region including Poland, Hungary, the Czech Republic, and Slovakia, the largest transport volume originates from Poland. However, trade is growing between all of the countries mentioned, and may also increase in the other directions in the region in the coming years. Market signals indicate that there could be as much as a 20% increase in trade in Central Europe. Handling this traffic will require even more investment in efficient logistics. This means further development of the infrastructure, but also being flexible enough to adapt to new market needs. From the logistics point of view, these challenges are best met by operators such as FM Logistic, which has been developing its route network in the region for years.

^[1] Polish Development Fund, Poland’s Foreign Trade Compendium – March 2024, https://pfr.pl/artykul/kompendium-handlu-zagranicznego-polski-marzec-2024-r

^[2] Statistics Poland, Foreign trade turnover of goods in total and by countries in 2023, https://stat.gov.pl/en/topics/prices-trade/trade/foreign-trade-turnover-of-goods-in-total-and-by-countries-in-2023,2,16.html