E-commerce%20in%20the%20Logistics%20Sector

1
E-commerce in the Logistics Sector

• Study for the Dutch Ministry of Transport, Public
  Works and Water Management
• Part of the Netherlands EBIP Contribution

2
Questions

• What are the value-added characteristics of
  transport and logistics products and services?
• What is the influence of electronic commerce on
  the value-added structure of the transport and
  logistics market?
• What are the consequences for public policy?

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Value-added characteristics

• Three hierarchical value chain tiers
• Processing
• Transport
• Storage and/or Value-added logistics (VAL)
• PLUS two vertical value chain tiers
• Process management services
• Logistics solutions

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Generic value chain
Logistics solutions
Process Management
ORIGIN
Processing
Transport
Storage and/or VAL
DESTINATION
5
Case study value chains COMPAQ (European
Distribution Centre)
Logistics solutions
Process Management
ORIGIN
Processing
Transport
Storage and/or VAL
DESTINATION
6
Case study value chains VOS
Logistics solutions
Process Management
ORIGIN
Processing
Transport
Storage and/or VAL
DESTINATION
7
Case study value chains VAN GEND LOOS
Logistics solutions
Process Management
ORIGIN
Processing
Transport
Storage and/or VAL
DESTINATION
8
Case study value chains RYDER EUROPE
Logistics solutions
Process Management
ORIGIN
Processing
Transport
Storage and/or VAL
DESTINATION
9
Case study value chains DHL NETHERLANDS
Logistics solutions
Process Management
ORIGIN
Processing
Transport
Storage and/or VAL
DESTINATION
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Influence of electronic commerce on the
value-added structure

• E-commerce not a strategic tool
• User driven change
• Few revenue effects
• E-commerce causes process innovation
• Effects mainly in increased internal process
  efficiency increased revenue retention

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• Client profits too
• Industry still cautious with e-commerce
• No effects yet on transparency of markets
• Shifts to higher value-added levels

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Consequences for public policy

• Possible market inequities and entry restrictions
• Smart logistics firms may move off-shore
• Need to look at shift of lower value-added
  functions to logistics users

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E-commerce footprint in logistics
LOGISTICS