Major Trends in the Logistics Industry
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1 Major Trends in the Logistics Industry SiB Kongress Bremen, 26 June 2003 Prof. Dr. Borislav Bjelicic
2 Agenda Seite 2 1. Supply chain management trends 2. Trends in the demand for logistics services 3. Trends in the supply of logistics services
3 Agenda Seite 3 1. Supply chain management trends 2. Trends in the demand for logistics services 3. Trends in the supply of logistics services
4 Logistics costs Seite 4 Source: BVL: Trends und Strategien in der Logistik, September 2002
5 The impact of logistics Seite 5 Inventories and gross value added in Germany Gross value added Inventories
6 From logistics to supply chain management Seite 6 Tier 4+ Tier 3 Tier 2 Tier 1 Suppliers Retailer End consumer OEM
7 From logistics to supply chain management Seite 7 Tier 4+ Tier 3 Tier 2 Tier 1 Suppliers Retailer End consumer OEM Procurement Production Distribution
8 From logistics to supply chain management Seite 8 Tier 4+ Tier 3 Tier 2 Tier 1 Suppliers Retailer End consumer OEM Procurement Production Distribution
9 Logistics in a global company Seite 9
10 From logistics to supply chain management Seite 10 Tier 4+ Tier 3 Tier 2 Tier 1 Suppliers Retailer End consumer OEM
11 Global supply chain networks Seite 11 Tier 4+ Tier 3 Tier 2 Tier 1 Suppliers Retailer End consumer OEM
12 CSCM - Collaborative Supply Chain Management Seite 12 Planning Execution Supplier Customer Quelle: Busch, Dangelmaier, Langemann: Collaborative Supply Chain Management, 2002
13 Information flows in supply chain management Seite 13 Tier 4+ Tier 3 Tier 2 Tier 1 Suppliers Retailer End consumer OEM Information flows
14 Degree of integration with first-tier tier partners Seite 14 Source: SULOGTRA Project Supply Chain Management Logistics and their effects on transport
15 Degree of integration with second-tier partners Seite 15 Source: SULOGTRA Project Supply Chain Management Logistics and their effects on transport
16 E Business development Seite 16
17 E Business applications Seite 17 Source: Drucker Research, Glass Magazine January 2002
18 E Markets Seite 18 Source: Chris Nokkentveld: Collaborative Processes in esupply networks
19 E Markets Seite 19 There are over 1,000 emarkets in the world today, but only a handful has the investment backing of the world's biggest companies.
20 The emergence of ehubs Seite 20 ehub
21 An adaptive IT architecture ties the applications and portals together Procurement Cash Mgmt Services CRM/ PRM Reporting Legacy Databases & Warehouse Company IT Infrastructure Enterprise Application Integration Traffic Monitoring PD Mgmt CAD / CAM ERP / MRP Product Catalog / Content Mgmt Supply Chain Management Transport Management Warehouse Management B2B/Web Server Single Sign-on Global Portal Employee Portal External Portal Services Firewall HTML XML EDI Distributor 1 HTML EDI XML Internet HTTP XML Reseller Distributor 2 HTML EDI XML HTTP XML Exchange HTML EDI XML Distributor 3 Supplier Partner Seite 21 An An adaptable adaptable standards-based standards-based architecture architecture enables enables plug plug & play play applications, applications, security, security, and and connectivity connectivity to to employees, employees, customers, customers, suppliers, suppliers, & partners partners Source: Cap Gemini Ernst & Young October 2002
22 OEM portals (e. g. automotive industry) Seite 22
23 Co-operative operative portals (e. g. automotive industry) Seite 23
24 Co-operative operative portals (e. g. automotive industry) Seite 24 OEM Platforms Tier 1- suppliers Tier 2-, 3-, n- suppliers
25 Current e-hub e structure in the automotive industry Seite 25 Source: Howard, Vidgen, Powell, Graves: Are Hubs the centre of things? E-procurement in the automotive industry, June 2002
26 Co-operative operative portals (e. g. chemical industry) Seite 26
27 Co-operative operative portals (e. g. chemical industry) Seite 27
28 Future: hub to hub connections Seite 28 Quelle: Rhodia
29 Future: Hub to Hub connections (including the logistics service providers) Seite 29 Source: Chris Nokkentveld: Collaborative Processes in esupply networks
30 Agenda Seite Supply chain management trends 2. Trends in the demand for logistics services 3. Trends in the supply of logistics services
31 Trends in the demand for logistics services Seite Shippers expect better logistics know how 2. Shippers expect a broad range of logistics services (incl. IT support) 3. Shippers expect better geographical coverage from logistics service providers 4. Shippers generally reduce the number of service suppliers
32 The role of logistics providers Seite 32 Source: BVL: Trends und Strategien in der Logistik, September 2002
33 What services are typically outsourced? Seite 33 Source: Cap Gemini Ernst & Young; Georgia Institute of Technology; Ryder System: Third Party Logistics Study 2002
34 What services are typically outsourced? (contd( contd.) Seite 34 Source: Cap Gemini Ernst & Young; Georgia Institute of Technology; Ryder System: Third Party Logistics Study 2002
35 Areas for improvement Seite 35 Source: Cap Gemini Ernst & Young; Georgia Institute of Technology; Ryder System: Third Party Logistics Study 2002
36 Average number of major logistics service providers Seite 36...is being reduced dramatically Office Equipment Electronic Automotive Components 20 5 Health Care 5 2 Fashion & Sports 8 4 Consumer Electronics 5 3 Other Industries Source: B. Radstaak / Holland International Distribution Council
37 Agenda Seite Supply chain management trends 2. Trends in the demand for logistics services 3. Trends in the supply of logistics services
38 Major trends on the supply side Seite Logistics service providers must improve their logistics knowledge base (human capital!) 2. The management of information flows is getting more important 3. Logistics service providers are forced to expand their networks and / or their range of services 4. Company growth is increasingly based on mergers and acquisitions 5. Small and medium sized companies can also become logistics service providers increasingly through co-operations
39 Logistics service provider categories Seite 39
40 Alternative developments of 4PL-providers Seite 40
41 Seite 41 Company Profile: Vector SCM (Supply Chain Management) is a joint venture between CNF Inc., the $6-billion management company of global supply chain services, and General Motors Corp. (GM).The company is GM s lead logistics service provider worldwide, acting as a global 4th party logistics company. Type of Ownership: A subsidiary of CNF Inc., Vector SCM is structured as a limited liability company that is jointly owned by CNF and GM. Services: Vector SCM provides global logistics and supply chain management services through the integration of technology and physical infrastructure to enable end-to-end visibility for material and finished products as they move through the supply chain. Quelle:
42 Changing company structure in the logistics service industry Seite 42 Large Companies Medium-sized Companies Small Companies
43 The leading logistics service providers in Europe Seite 43 Exel Tibbet & Britten Wincanton (P&O Trans European) Hays Chr. Salvesen TDG DSV Ziegler ABX Geodis Gefco CAT SDV TPG Thiel Panalpina Kühne & Nagel DPWN (DHL/Danzas/ASG/AEI/Airborne) DB (Schenker) Dachser (Graveleau) Fiege Hellmann
44 Co-operations operations a strategic option for small and medium-sized companies 1976 DPD Deutscher Paketdienst 1966 Confern 1950 Transthermos German Parcel Paket Logistik Global Sky Express Logistic System Plus Logistik Service Pinguin Frischfracht System Zentrale DTL Deutsche Textil Logistik UTS Umzugs- u. Transportsysteme 1984 Gemid Ges. mittelständischer 1982 Dienstleistungsbetriebe IDS Interessengemeinschaft der Spediteure 1981 Log-Sped CODIS Consumer Goods Distribution System Cotrans Logistik Night Star Express Cargo Line Ges. f. Stückgut CTL Cargo Trans Logistik Sped. Ges. ILS Ges. f. Osteuropaverkehre FGU Flüssiggas Union Online System Logistik FORTRAS Forschungs- u. Entwicklungsgesellschaft Chemlog Nalog LOGiG 1999 Slots International Logistic Network (ILN) Air Cargo Experts Challenge Future MLT Markenartikel Logistik Team Spedition 2000 XXL VTL Vernetzte Transport Logistik 24 plus Systemverkehre Cargo Concept Spedition 2000 German Airfreight Partners LINK Logistics Int. Network DIALOG Distribution und Logistik ECON Ges. f. Osteuropa Logistik VMS Verteilen mit System Fashionnet Eurocool Logistics StaR System Transport auf Rädern Bike Logistik XXL System Logistik Seite 44 ASS Arbeitsgemeinschaft Sammelgutspedition IGLU System Alliance
45 Major Trends in the Logistics Industry Thank you very much for your attention!
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