Global Mobility Industry Update: The Geopolitics of Mobility

In an increasingly interconnected world, the global mobility industry finds itself at the crossroads of geopolitical events and technological advancements. Recent discussions with industry experts Marcel Mulderij and Pauline Collins from Voerman, and Amir Pintow from Benivo, shed light on the current challenges and innovations shaping the field.

Rising Costs: The Domino Effect of Global Events

Today's most pressing concern for the industry is the rising costs associated with relocations. Geopolitical events, such as the ongoing conflict in Ukraine and tensions in the Red Sea, have far-reaching consequences that ripple through the supply chain. Pauline Collins highlighted how seemingly unrelated events can impact the industry:"I learned during the Ukraine crisis that Ukraine is the biggest supplier of lumber in the world. So when the conflict started, suddenly, there was a shortage of timber. We couldn't make crates, paper was an issue." This shortage led to increased costs for materials essential to the relocation process.

Shipping Challenges: Navigating Troubled Waters

The Red Sea crisis has forced shipping companies to reroute vessels around the Cape of Good Hope, adding significant time and cost to shipments. Marcel Mulderij noted,"We see vessels that take a different route... They maybe change to larger air shipments, which, of course, also will raise the cost." Port strikes, particularly in Hamburg, have also contributed to delays and increased costs. These disruptions can lead to a cascade of issues, from extended temporary housing needs to capacity problems in the shipping industry.

Technological Advancements: Streamlining Processes

Despite these challenges, the industry is leveraging technology to improve efficiency and transparency. Marcel Mulderij added that Voerman is using container trackers to provide real-time visibility of shipments, allowing for better planning and communication with clients.

Cybersecurity: A Growing Concern

As the industry becomes more reliant on technology, cybersecurity has emerged as a critical issue. Amir Pintow emphasized Benivo's approach: "We only share specific information that is relevant to the vendor... We mask our emails... We do a lot of data security checks." This focus on data protection is becoming increasingly important as clients and partners demand higher standards of security in their relocation processes.

Adapting Policies and Managing Expectations

The volatility in the industry is prompting companies to review and adapt their relocation policies. Some are considering alternatives like extended business trips rather than full relocations. Others are reevaluating the necessity of certain services, such as air freight, in light of changing circumstances. Pauline Collins stressed the importance of managing expectations: "We have to think outside the box as well and look at different solutions... We're looking at, can we consolidate a number of employee shipments together, which is reducing the cost for the employer, and may not inconvenience the employee that much."

Staying Informed: The Importance of Industry Updates

To navigate these complex and rapidly changing conditions, staying informed is crucial. Voerman's monthly industry update, available through LinkedIn, has gained over a thousand subscribers, demonstrating the hunger for timely, relevant information in the sector. As Pauline Collins put it, "We're not breaking new ground, but what we're trying to do is identify what we're seeing in news cycles that will impact our readers... giving people the opportunity to understand that what we're seeing in the news is a direct impact on relocation services."

Leveraging Benivo's Business Supply Network

In the face of these industry-wide challenges, Benivo's robust business supply network and vendor partnerships offer significant advantages. Amir Pintow from Benivo highlighted how their approach helps address current industry pain points:

• Agile Partner Selection: Benivo carefully selects partners who can adapt to the rapidly changing global environment. As Amir explained, "We wanted to find a vendor which first of all, has a reputation for quality, and second that is in the forefront of technology, sustainability, and through them, what we want achieve together is to increase the employees' experience." This focus on quality and innovation ensures that Benivo's network can quickly respond to geopolitical shifts and market volatility.
• Technology-First Approach: Benivo's emphasis on technology aligns with the industry's move towards digital solutions. Their platform facilitates seamless communication between all parties involved in the relocation process. Marcel Mulderij noted, "Now working with Benivo, working with the platform, every communication goes via the platform. We're not sharing anything by email anymore." This centralized communication helps mitigate risks associated with data security and improves overall efficiency.
• Cost Management: In an era of rising costs, Benivo's network helps optimize expenses without compromising on service quality. By consolidating services and leveraging their partnerships, Benivo can often negotiate better rates and find cost-effective solutions for their clients.
• Enhanced Security Measures: Benivo's stringent cybersecurity protocols extend to their entire vendor network. Amir emphasized, "In part of the onboarding process... we do a lot of data security checks. We're being very, very selective of the type of organization that we work with." This thorough vetting process ensures that all partners in the network maintain high-security standards, protecting sensitive employee and corporate data.
• Flexibility and Customization: The diverse range of partners in Benivo's network allows for greater flexibility in tailoring relocation packages to meet specific client needs. This adaptability is crucial in a geopolitical landscape where one-size-fits-all solutions are increasingly inadequate.
• Continuous Improvement: Benivo's close relationships with its vendors foster an environment of continuous improvement. Regular feedback and performance reviews ensure that the entire network stays ahead of industry trends and challenges.

Looking Ahead

The global mobility industry faces a future marked by continued volatility and complexity. From geopolitical tensions to technological innovations, the landscape is constantly evolving. Companies that can adapt quickly, leverage new technologies, and maintain clear communication with clients and partners will be best positioned to navigate these challenges successfully.

As the industry continues to evolve, staying informed and agile will be key to success in the ever-changing world of global mobility.

Access the full recording from The View From The Top here. 

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