Transport Logistics

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Transport Logistics
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What is Logistics?

• The process of managing all activities required
• to strategically move raw materials, parts and
• finished goods from vendors, between enterprise
• facilities, and to customers.
• Council of Logistics Management

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Components of Globalisation

• Development of technology
• Increasing multinational investment
• Growth of international financial markets
• Expansion of international trade
• Global production
• Global labour market
• Increased dominance of international bodies

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The needs of global corporations

• Globalised production
• Global supply chain
• Liberalisation of transport
• Outsourcing logistics
• Transnational companies require transnational
• transport networks

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Integration of production

• Around a third of world trade takes place
• within transnationals, between subsidiaries of
• the same corporation based in different
• countries.
• Eliminating World Poverty UK Government White
  Paper on International Development, December 2000
  

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Complex global supply chains

• Stock, components and parts
• in the right place
• at the right time
• anywhere in the world
• door to door
• at low cost
• in the right condition

We need the right car at the right place at the
right moment in perfect condition. (Nissan
vice-president, Distribution Service)
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ExampleToyota and its suppliers
Toyota moves more than 8 million parts and
accessories every month!

• Frequent deliveries
• Hours (not days) lead time
• Rapid response capability (not from stocks)
• Delivery to assembly line at the right time in
  the right sequence without inspection
• Reliability (quality and timing)

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Deregulation of transport

• Logistics applications never really took off
• until air transportation was deregulated in
• 1977 and motor and rail deregulation in
• 1980.
• The ESC considers the inclusion of cargo
• handling (in the EU ports directive) to be a
• significant success for shippersThis success
• has resulted from determined lobbying efforts.
• European Shippers Council, 2002

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World BankIMFWTOGATSEU trade blocks

• markets are better at meeting needs than
  planning, and private companies are better at
  delivering goods and services than the public
  sector.

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The players

• Forwarders and trucking companies (Kuhne and
  Nagel Transplace)
• Shipping companies (Maersk, PO Nedlloyd,
  CAC-CGM)
• Integrators (UPS, FedEx)
• Postal Services (Deutsche Poste, TNT, La Poste)
• Rail operators (Schenker, ABX)

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Creating seamless global transport networks

• The market in future will no longer be a
• question of competition among transport
• operators but rather among transport chains.
• International Transport Journal, June 2002

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in contrast to other costs dock labour rates
have climbed astronomically CAC-CGM executive

• Distribution and logistics power our world
  economy and the trucking industry todayis
  providing tremendous value at low cost
• Michael Belzer, Associate Director at the
  University of Michigan Trucking Industry
  Programme

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Logistics and developing countries

• Mainly affects the industrialised countries
• Rapid change in transition countries
• External pressure for further liberalisation
• Rapid expansion to the rest of the world
• More exports of manufactured goods and more
  South-South and intra-regional trade
• Not all developing countries are participating

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Trade Union Responses

• International lobbying
• Cross sectional approaches
• Union links within global companies
• Organisation of new workers
• Strategic hubs

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Transport workers now occupy a new strategic
position in the global economy BBC
Newsnight August 2002
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