Tırport Chairman Arslan: 'We Should Be Designing and Managing Global Businesses in a World of 100 Trillion Dollars'

Tirport President Arslan We Should Be Designing and Managing a Trillion-Dollar Global Business
Tırport President Arslan 'We Should Be Designing and Managing Global Businesses in a $100 Trillion World'

While the world population was 1970 billion in 3,6, it doubled to reach 50 billion in the following 7,8 years. While the population only doubled, the economic size increased more than 2 times in the same period. The size of the world economy in 27 was only $1970 trillion and reached $3,4 trillion by the end of 2021. According to IMF expectations, despite the global recession, the global size will exceed 94 trillion dollars by the end of 2022.

Underlining the importance of managing and organizing power in the globalizing production and supply chain, Tırport Chairman of the Board Dr. Akin Arslan said:

“In the rapidly globalizing world for the last 40 years, instead of the concept of "domestic and national production"; it became important to be the manager of that power, to be the employer, to be the organizer. The concept of the company that owns the “Brand”, “Know How” and “Business” has come to the fore and continues to emerge. Who shares the wealth of their income, who is working for whom and which brand is the main issue. As companies in Turkey, we need to design global businesses and be among the business managers and employers in the global market. Now, having a global business does not necessarily mean owning a factory. Today, thousands of software, artificial intelligence, data and analytics companies in the world are now suppliers of leading brands. In summary, as Turkey, we must design and manage global businesses in a $100 trillion world.” said.

Globalization is possible by designing products and services that will serve the global market.

Stating that globalization is possible by designing products and services that will serve the global market with a global perspective, Tırport President Dr. Akin Arslan said:

“Marketplaces such as Amazon, Alibaba, eBay, and Aliexpress are shaping the new world. Global new generation Marketplaces such as Uber, Flexe, AirBnb, Convoy, Booking operate in hundreds of countries. Most of us don't even know which country's business anymore. Walmart, which has the largest number of employees and the largest turnover in the world, is looking for ways to compete with Amazon. According to Statica's data, Walmart made the world's largest turnover in 2021 with 573 billion dollars. It is followed by Amazon with 470 billion dollars. Saudi Aramco is in third place with $401 billion. Apple, the most valuable company in the world, was only able to generate a turnover of 2021 billion dollars in 366. Despite its lower turnover than the others, with a value of $ 2,4 trillion, Apple makes it the most valuable company in the world. As Turkey, we must take out dozens of unicorns from Turkey by using our position in this geography that connects Asia, Europe and Africa, correctly and on time. We need to rapidly increase the number of examples such as Trendyol, Getir, Hepsiburada, Getir, Peak Games, Dream Games, Insider in Turkey that have achieved this and crossed the threshold of unicorns, some of which are even decacorn. As Tirport, we know these facts very well and work hard. There is no production without logistics. The goods you cannot send to your customer are not yours. With our intermodel solutions integrating land, sea, air and railways and our artificial-intelligence supported LTL optimizations, we are a part of more than 30 million truck owners living in this geography. We aim to be the number one employer and reach a global turnover of over 1,5 billion dollars per year in 5 years.” he said.

The supply processes of global companies have also become global.

With the rapid increase in the world population, there has been a tremendous increase in production in the last 50 years. With the opening of China's closed doors to the west, cheap labor, raw materials and cheap energy costs have brought world production to China and South Asian countries, especially since the beginning of the 90's. According to the data of 2021; China alone has come to produce 30% of the total production in the world. When other South Asian countries are included, this rate reaches almost 45%. Big brands now work with thousands of different suppliers around the world.

To give a few examples;

  • Boeing and Airbus, the world's two largest passenger aircraft manufacturers, have more than 2 first-tier suppliers in over 80 countries.
  • The world's most expensive and advanced fighter aircraft, the F-35, produced by Lockheed Martin of the USA, has more than 11 suppliers in 1.500 countries. What is striking is that 120/150 of the suppliers of this aircraft, worth approximately 1-3 million dollars, are now software suppliers.
  • Global automobile production, which was up to 2018 million annually in 97, declined to 2020 million in 78 due to the pandemic and supply problems, and closed 2021 with 80 million. Toyota, the world's largest automaker, produced about 9,2 million cars last year. It is followed by VW with 8,9 million units.
  • While a Toyota car with a conventional internal combustion engine consists of 30 stand-alone parts, a Tesla Model 3 with an electric motor has only 10 thousand parts. This is actually a revolution. More than 10 licensed parts are produced by 300 suppliers from more than 2.000 countries for Tesla's Model S. 75% of these parts are produced in the USA, Canada and Mexico.
  • Renault has 17 suppliers and Volvo has 3.500 suppliers in 7650 countries. Audi has 14 thousand, Daimler Benz has 60 thousand, BMW has 70 thousand suppliers in 12 countries, VW has more than 40 thousand. Toyota supports 50 thousand suppliers from over 60 countries.
  • An internal combustion engine has over 200 moving parts, while an electric motor has only 17 moving parts. An amazing experience for engineering.
  • Apple has 334 suppliers, including 131 in China, 73 in Japan, 36 in the US, 34 in Taiwan, 108 in South Korea and 716 in other countries. .
  • Global electronics giants Samsung have 2.500 suppliers and LG has 700 suppliers. Bosch has 80 thousand suppliers in 23 countries and Arçelik has more than 60 suppliers in 2.000 countries.

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