The Logistics Process

1
The Logistics Process

• The role of public authority

2
Contents

1. Different view of logistics
2. Key drivers of freight logistics
3. The structure of the Plan
4. Some analysis and results
5. A case study

3
Different Views of Logistics

• Input/Output view
• Supply chain view
• Geographic view
• Regional economy view

4
The I-O view
5
The supply chain view
6
The geographic view
7
The regional economy view
8
Trends

• The region is becoming integrated in large
  scale network economies (new markets conditions,
  reliance on global supply chains, relocation of
  production, declining of heavy industries).
• Growing tertiarisation of the economy (shift from
  manufacturing to services).
• External costs of the freight based economy
  (traffic generation, space consumption, flexible
  labor.
• Logistics efficiency vs. environmental impacts.
• More power of the consumer in the supply chain.

9
The freight has big changes

• There are many more products
• Products have higher value per pound
• There is increased product differentiation
• There has been an explosion of Stock Keeping
  Units (SKUs)
• .with impacts on transport and logistics
• Lower annual use and shipment size
• Users seek higher value-added transport
• Logistics networks need redesigning to be
  compatible

10
Supply chain integration

• Network restructuring
• Vertical and horizontal integration
• Strategic alliances
• Market rationalization
• Purchasing strategy
• E-commerce

11
Key drivers costs decrease, economicgrowth,
globalisation, individualisation
12
Freight growth changing flows

• Stronger growth than passenger traffic
• Stronger growth of international flows compared
  to national flows
• Explosive growth of Light Goods Vehicles
• Growth in the share of freight traffic on roads
• Growth of container turnover at ports

13
The regional dimension of logistics

• The role of FL
• Vital component of regional economic change.
• Driver and subject of technology, organisation
  and territory.
• Distribution does not equal job losses in the
  industry.
• Reorganization of distribution
• Convergence of logistics and intermodal transport
• Spatial shift of employment from center to
  periphery.
• Concentrations of logistics facilities

• The role of FL
• Vital component of regional economic change.
• Driver and subject of technology, organisation
  and territory.
• Distribution does not equal job losses in the
  industry.
• Reorganization of distribution
• Convergence of logistics and intermodal transport
• Spatial shift of employment from center to
  periphery.
• Concentrations of logistics facilities

14
Raising awareness

• Governments are increasingly aware of the
  importance of an efficient and effective FL
  sector in promoting and sustaining regional and
  national economic performance.
• The role that FL can play in environmental
  sustainability is also becoming more prominent
  given air quality and greenhouse gas implications
  of freight movements.

15
The responsibility of public policy

• Emerging regional knowledge on logistics
  (universities, research institutes, service
  providers).
• Investment, zoning, security and safety
  regulation.
• Shift from a modal to multi-modal surface
  transport policy.
• Increased environmental accountability.

16
The agenda is becoming more complex

• There is a growing gap between the modernization
  of the private sector logistics and the
  stagnation of the transport infrastructures,
  regulations and public sector processes.
• The strengthening of the public authorities and
  the coordination with other public and private
  stakeholders, are necessary to implement a
  logistics-for competitiveness agenda.

17
Regional objectives
18
Logistics performance approaches

• Macro with logistics costs as a of GDP.
• Micro with logistics performance based on firms
  surveys and logistics cost as a of sales value.
• Recent logistics performance index based on
  freight forwarders perception.

19
Trend of logistics costs (US GDP)
20
WB Logistics Performance Indicators

• Quality of transport and information technology
  infrastructure for logistics.
• Ease and affordability of arranging international
  shipments.
• Competence of the local logistics industry.
• Ability to track and trace international
  shipments.
• Domestic logistics costs
• Timeliness of shipments in reaching destination.
• Efficiency of the clearance process by customs
  and other border agencies.

21
LPI for UE countries
22
Quality of transport and information technology
infrastructure for logistics
23
Domestic logistics costs
24
Logistics and competitiveness