First Logistics & Distribution (FLD) expects its turnover for 2005 to rise by 10% to 39.6 million euros.
"In 2004 we reported turnover of 36 million euros, our highest so far. Thanks to increases in productivity, profits followed the same trend as turnover, even exceeding turnover to some extent," said Eric Carter, chairman and general executive manager of First Logistics & Distribution.
First Logistics & Distribution invested some 200,000 euros in 2004, a level the company is also forecasting for 2005. "We are a services company and do not need to devote really high amounts to annual investment. We invest only in the partial replacement of our fleet of cars and in improving existing technology," explained Carter.
"Ten years ago the Romanian distribution market was almost nonexistent, but now any supplier can find a distribution service to meet its needs, regardless of the type of distribution involved - be that national, regional or local".
The Romanian distribution market is currently being fought over by major companies like Interbrands Marketing and Distribution, Total Distribution Group and Aquila Part Prod Com, followed by a range of medium and small companies. Furthermore, some multinational companies operating on the Romanian consumer goods market also decided to set up their own distribution systems.
One such company is Procter & Gamble, which created its own distribution company as part of its policy to boost the efficiency of its operations the Romanian market.
Nestle Romania, however, decided to change its distribution system at the beginning of 2003 by giving up its system based on a single distributor in favour of creating a network of over 15 different companies.
"Romania''s joining the EU will not bring about major changes to the Romanian market for distribution companies. Admittedly, a number of international players may appear as a result. However, irrespective of whether Romania joins the EU, the rules of the game on the Romanian market are different from those of the ''old'' EU and they will have to learn those rules to stay in the game," explained Carter of FLD.
He says that on entering the Romanian market most multinational companies have resorted to independent distribution companies, which are less risky and make it easier to penetrate the market.
"Today, major companies such as Metro, Carrefour, Rewe Group and Cora have evolved to develop their own logistics and distribution systems to control the supplying of stores better," he said. lavinia.marin@zf.ro
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