DANX delivers spare parts to the entire Nordic region, the Baltics, and Poland – all in less than 12 hours. Thanks to our unique network of air transport, trucks and vans, we’re able to offer an extremely high-level service that saves both time and money.  

But we didn’t establish this enviable network by chance, far from it in fact. It was an intrinsic understanding of the Baltics supply chain that allowed us to leverage its strengths and bypass its limitations, in order to provide the best possible service to our customers.  

Sticking to what you know

It’s important to highlight that Baltic countries are quite distinct from one another. These nations have unique cultural ties: Estonia leans toward Finland, whereas Latvia has historical links to Russia, and Lithuania shares affinities with Poland. Even from a language point of view, there is no common language, with English proficiency varying greatly, and what binds them together is their geographical proximity and the borders they share. 

Still, Baltic countries tend to do business with one another, before considering anything further afield. And this is with good reason. Geographically it makes sense, of course, because less capital is spent on transport and logistics …but it goes a little further than that.  

These nations, while unique in their own right, are relatively small in terms of population when compared to urban regions around the world. To put the size of the Baltic countries in perspective, take Estonia. The most developed among them, Estonia has a population smaller than the Greater Stockholm area. This size distinction can have several implications for business and logistics in the region. 

Furthermore, Lithuania is a competitive export nation, and this hasn’t happened overnight. The gradual process of building trust and reputation has been hard-fought, and it is certainly paying dividends.  

Beyond the construction and furniture sectors for which the Baltics are known, their Off-Site Construction sub-sector has now surpassed even larger nations in its impact. Similarly, petroleum, solar, ICT, chemical, agriculture, lasers, electronics, and engineering have all been backed by huge Scandinavian (and foreign) investments in recent years. So, they’re very much on the rise (S&P Global Market Intelligence, 2023). 

Unlocking cost-efficiency advantages

When it comes to business operations, the Baltics can deliver an unrivalled benefit. The region offers significantly lower costs compared to Western European and Nordic countries. From labour to infrastructure, conducting business in the Baltics can be highly cost-effective. This financial advantage opens up exciting opportunities for companies looking to optimise their budgets whilst maintaining high quality and efficiency standards. 

An admirable work ethic

In the Baltics, strikes are rare, and the work ethic is extremely strong. That’s why so many foreign companies are drawn to the region, either setting up new branches, as in new offices or distribution centres, or choosing the region as their manufacturing base.  

A question of trust

Baltic firms understand that sensible investment is required to attain results, and 'shortermism' is not commonplace.  

Strategic alliances and working as a team on a transparent basis are par for the course in the Baltics – most would consider their colleagues and partners as both associates and friends. Reputation is everything, and there is a core focus on ethical business. 

The challenges

In the Baltics, the approach to logistics is quite distinctive of the region. Unlike the Nordics and Western Europe, in-night logistics is not common, and is not capitalised due to the region’s inexpensive labour force. This is a cultural factor, and it impacts how labour and distribution will be managed in the territory.  

The construction market in the Baltic States has faced challenges due to the Covid-19 pandemic, supply chain disruptions, and the Russian invasion of Ukraine. It will not have gone unnoticed by anyone that the Baltics have been adversely affected by the latter.  

All these factors have cumulated in increased construction and end-to-end supply chain costs across Estonia, Latvia, and Lithuania. The supply chain is still recovering from shortages, delays, lockdowns, and energy issues. However, a good supply chain and working with trusted partners can help to alleviate all these challenges. 

It has been much discussed that the bulk of global corporations intend to strengthen the resiliency of their industrial supply chains in the wake of the pandemic, and this makes sense. After all, diversifying your supply chain is a tried-and-tested way to achieve stability.  

Supply chains are now widely regarded as critical to business survival and growth, rather than simply an area where costs can be cut.  

A productive business advantage

In the Baltics, a robust work ethic is not only highly valued, but it also supports a dynamic and productive business environment. The prevailing attitude encourages cooperation, approachability, and eagerness, creating a more than favourable setup for critical logistics operations. The affordability of labour and infrastructure make the Baltics a prime choice for businesses seeking both excellence and economic advantage. 

Entering a trusted supply chain in the Baltics will require a combination of strategic planning, compliance, and commitment to deliver high standards and services. Therefore, building trust will be an ongoing process that will certainly lead to profitable partnerships. 

At DANX, we’ve cultivated extensive local partnerships over the years, enabling us to help your business flourish in this distinctive market. Our deep understanding of the region empowers us to design the best solutions to make the most of the Baltics’ unique logistics landscape. 

Once you’ve entered a trusted Baltics supply chain, you’ll not only experience exceptional logistics operational infrastructure advantages but also substantial business opportunities. 

Discover how you can optimise your involvement with the Baltics supply chain, get in touch – we’re very happy to help.