Integrated Distribution Services Group (IDS): Redefining the Asia Distribution Landscape
2008 | Case No. GS59
As the middle classes of many Asian countries grow, we are beginning to see countries like China, Thailand, Malaysia, Singapore, Philippines, and Indonesia becoming emerging markets for many consumer goods. Markets for higher end, branded products in sports, health care and pharmaceutical sectors are growing. Yet, for global brand owners, distribution into the different countries in Asia is a big challenge. The logistics problems, the fragmented nature of the market, the cultural and organizational barriers, and the lack of deep knowledge in logistics and distribution, make it difficult for many brands to penetrate the Asian market. IDS, a publicly traded company that is part of the Li and Fung company, turned such challenges into an opportunity. By investing in information technology, infrastructures, people and processes, the company has been wildly successful in being a value-chain logistics integrator for many brand owners. This case describes the journey of IDS and how it became a leader in distribution and logistics in Asia.
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