Journal of Supply Chain Management Systems

Abstract

The study was conducted within the Zimbabwean Freight Forwarding Industry. The study sought to investigate the effects of globalization on Zimbabwean Freight Forwarding Companies. The main objective of the study was to make an investigation into the effects of globalization within the freight forwarding industry and find possible ways of manipulating the resultant opportunities and mitigating the negative effects of globalization to the industry. The study was motivated by; an increase in the amount of cross border trade in goods and services thereby allowing an increased flow of foreign currency, a rise in corruption activities due to increased trade relationships within the world economy, exploitation of labour, increased competition which led local industries to be taken over by foreign multinationals thereby posing serious threats on the Zimbabwean political environment and moreover the need to create the concept of out sourcing, customer support and insurance.

The study used only registered local freight forwarding agencies and a few of foreign-owned freight forwarders since their efforts are influenced by changes brought by globalisation. A descriptive research design was used for this study; convenience sampling was used to acquire respondents for this study. Questionnaires, field visits, documentary analysis and in-depth interviews were used for collecting data. The study found out that, globalization has resulted in; increased competition, high demand of goods from customers, increased need for capital investments to improve operations, insurmountable requirements by the government such as tracking devices for trucks and also congestion at ports and borders due to high traffic volumes. On the other hand, the study also found out that globalisation has led to creation of partnerships in trade, increased business activities, foreign investments in local exploration increase export forwarding, increased technological advancement, for example, Chirundu One-Stop Border Post and the advent of the Asycuda World for all customs operations. Moreover the study suggests measures that can be taken by freight forwarders in order to capitalise on or mitigate the effects of globalisation. The study also recommended that, in order to operate sustainably and to survive in a global village, the Zimbabwean Freight Forwarders should move along with the shift in trend in the freight forwarding industry, maintain and improve the company market position through differentiation.

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