etf seminar - what is logistics

8/12/2019 ETF Seminar - What is Logistics

1/35

Logistics: what is it?

ETF Seminar:How to recruit and organise in the logistics sector?

Run, Sweden 8-11 February 2009

Paula Hamilton, [email protected]


2/35

What is Logistics?

The work of logisticsLogistics in Central and Eastern Europe

Main Actors in Logistics (in the region)Gearing up to strengthen our unions


3/35

Logistics

The work required to move and positioninventory throughout the supply chainwhich serves to link and synchronise theoverall supply chain as a continuousprocess and is essential for supply chain

connectivity. (Bowersox et al, 2007)


4/35

LogisticsLogistics is a subset of and occurs within thebroader framework of supply chains.

Logistics activities occur within and between allcompanies active within supply chains.The rise of logistics is driving restructuring acrossthe whole transport sector

The new logistics industry plays a vital role in theglobal economy.


5/35

Physical Flows, Nodes andNetworks


6/35

Global Gateways: Container and Air Cargo

CONTAINER PORT AIR CARGO TERMINAL


7/35

Information and CommunicationFlows

Enable faster and more consistentcommunication within organisations andbetween corporate actors in supply chains

Enhances effective communication betweenlogistics information systems and their physical

operating environments


8/35

ICT and Logistics

Customers demanding real timeinformation

Used to reduce inventory, labourrequirements and riskImprove timing/speed

Increase reliabilityIncrease transparency in supply chains


9/35

ICT Systems

Supply Chain Information Systems (SCIS)are responsible for linking all logisticsactivities into an integrated process

These have four major components:Enterprise Resource Planning systemsCommunication systemsExecution systemsPlanning systems


10/35

Information and CommunicationTechnologies

Types of ICT used

Bar coding and scanningGlobal data synchronisationThe InternetSatellite technologyImage processingExtensible markup language


11/35

The work of logistics

Order Processing

Inventory

Transport

Warehousing, Materials Handling and Packaging

Facility Network Design


12/35

Order Processing

Order preparationOrder transmittal

Order entryOrder fillingOrder status reporting

Key customer interface


13/35

Inventory

Raw materialsWork in process

Finished goodsSupplies


14/35


15/35

Facility Network Design

A facility network is the number, size andgeographical relationship of facilities used toperform logistical operations.

Include manufacturing plants, warehouses, cross-docks, ports and retail outlets.Facility network design determines the number andlocation of all types of facilities used to performlogistics workFacility networks are in a constant state of flux


16/35

Transport

These are the operations which geographicallymove and position inventoryInclude road, rail, water, air and pipeline

Is the largest element of logistics costsReduces inventory, storage and materials handlingTransports role is becoming increasingly important

in supply chains


17/35


18/35

Barriers Between ModesDisappearing

Deutsche Post World NetPrivatizing German Postal ServiceDHLDanzasAirborne ExpressExel: #1 US Wareho us e Co.

NOL/APLSingapore BasedSteamsh ip LineTermin al Operator#3 US Wh ou se Co. ,Rail = Lin er Trains


19/35

Logistics in Central and EasternEurope

Fundamental changes in the logistics market in recentyearsProduction near sourcing in CEE Growing consumer marketsLarge LSPs new models to serve clientsFew indigenous international companies operating on aglobal scalePattern in most CEE countries = strong local logisticspresence serving the needs of small business + largeTNC providers providing services for the internationalincomers Possible restructuring with some CEE based companies

grouping themselves together to provide services acrossthe region


20/35

CEE: Contract LogisticsMarket Size and Growth

2007 grew to 991m, a growth rate of 24%Highest growth rate in the Slovak Republic(39%)Baltic States also experiencing strong growth,helped by proximity to Russian market2011 market forecast = 1956m (18.56%)


21/35
http://www.gscintell.com/figures_graph.php?section=2978&attach=1


22/35

CEE: Express and Parcels

Still major differences between CEE and WEmarkets but likely to change as shippers demandspecialist levels of service and pricing

Growth is not homogeneous across the region,Baltic States and Slovenia show above averagegrowth

Automotive is particularly important to the expresssector in Poland, Czech Republic, Slovakia andHungary

All major global express providers are wellpositioned in Poland and Czech Republic


23/35

CEE: Freight Forwarding

2007 grew to 2112m, a growth rate of21.3%2007 - Air forwarding grew to 637m, agrowth rate of 17%2007 Sea forwarding grew to 1475m, agrowth rate of 23.3%2011 freight forwarding market forecast is

3731m, a growth rate of 15.3%


24/35

CEE: Road

Source: Eurostat

By Type 2006 (m t km)


25/35

Logistics Actors in the Region

Include:

Manufacturers

Retailers

Local, regional and national Governments

The European Commission

AND Logistics Service Providers
http://www.thirdwayblog.com/wp-content/uploads/2006/07/walmart.jpeghttp://www.asb.org/~asborg00/osCommerce/catalog/images/Home_Depot_Logo.gifhttp://http//rds.yahoo.com/S=96062883/K=ikea/v=2/SID=e/TID=I016_80/l=IVS/SIG=13e5j7v95/EXP=1108210965/*-http://www.cool-man.org/graphics/events/Ikea_grand_opening/Ikea_grand_opening_108_0869.JPG


26/35

Ocean carriers Inland transport

Manufacturers

3PL

POWER

Wal -Mart is hard to do businesswith. I had a cardiac episode whilewas working for them.

- Former Exel manager of Wal-Mart DC
http://www.thirdwayblog.com/wp-content/uploads/2006/07/walmart.jpeghttp://www.asb.org/~asborg00/osCommerce/catalog/images/Home_Depot_Logo.gifhttp://http//rds.yahoo.com/S=96062883/K=ikea/v=2/SID=e/TID=I016_80/l=IVS/SIG=13e5j7v95/EXP=1108210965/*-http://www.cool-man.org/graphics/events/Ikea_grand_opening/Ikea_grand_opening_108_0869.JPG


27/35

Logistics Industry: Main Actors inthe Region

Deutsche BahnCEVADPWNDPD

DSVEwals Cargo CareFedExFiege LogisticsFM LogisticsGACGEFCO

GLSGeodis (SNCF)Kuehne and NagelM&M

AP Moller Maersk GroupNYK LogisticsPanalpinaTNTUPSUTi WorldwideWincanton


28/35

Logistics Industry: Main Actorspresent in all your home countries

Deutsche BahnDPWN

DSVGACKuehne and Nagel

M&MOthers (variable range of operations)


29/35

M&M: Militzer & MnchInternational Holding AG

Owned by TransInvest Holding AGHeadquartered in Switzerland

Operations divided into 6 regional groups A major partner in the System Allianceorganisation, a FedEx partnerProducts and Services include rail cargo, aircargo, sea cargo, groupage, customs service,warehousing and logistics


30/35

Source: Transinvest

M&M Organisation


31/35

M&M: Strategies for Growth

Build its network in Eastern EuropeFocus on developing its IT-aided processes

Become more active in new and developingmarkets with a focus on Central Asia andChina


32/35

GAC

Head office in DubaiPrivately owned

Operates in over 40 countries, with 250offices and over 7000 staffBusiness areas include shipping, logistics,marine and solutionsTarget markets include oil and gas, retail,automotive to dry bulk and cruise liners


33/35

GAC: Strategies for Growth

Aims to provide an integrated solution to itsclients logistical needs Expansionist strategy, particularly inemerging marketsTends to enter new markets via partnershipsfirst, then set up subsidiaryFour hub agency centres: London, Dubai,Singapore and Houston


34/35

Logistics revolution

Consolidator / freightforwarder, 3PL

Road transport

Manufacturer

Air freight

Ocean shipping

Port trucking

Warehouse: deconsolidator,

3PL, wholesaler, DC

Warehouse:deconsolidator,3PL, wholesaler, DC

Rail

Road transport

Road transport

Retailer

Small parcel delivery

Home


35/35

How to get started

Sector

CompaniesGeography/Market

Union Strength

etf seminar - what is logistics

Documents