The task of logistics providers in 2012
How will the logistics market look in ten years? Schenker AG CEO Hâkan Larsson introduced some hypotheses at the Swedish “Logistik Transport” fair in Gothenburg in mid-May by looking back from the future. On the occasion of an opening seminar entitled “Looking back from the future — A ten-year retrospective”, he presented his view of developments in the first decade of the century, almost like looking into a rear-view mirror.
“Road-based transport steadily increased in the years up to 2012. It has been predominant for the past ten years, but it has become more expensive as a means of transportation,” said Hâkan Làrsson. “Politically motivated investments in railroad structure have been insufficient, the competitive edge of rail transport has not improved. A new rail structure is on its way, but European railroads are still not standardised. At the same time short-range sea feeder traffic has increased between Europe’s larger ports.”
Alternative fuels
Although vehicles are better engineered and environmental requirements are more stringent, this technical progress has not been fast enough to calm opposition from environmentalists. “And the White Paper of 2001 has not been im
plemented yet,” he continued.
“Alternative fuels are now available according to special needs, e. g., for distribution within the big cities. Railroads are regarded as the most environmentally suitable means of transport. Increasing congestion causes serious problems in the big cities. A new type of distributor is needed, a “big city specialist”. At the same time, municipal initiatives aim at focusing and organising distribution within the cities. As a consequence of urbanisation and due to shortages of some categories of goods, deliveries to rural areas have become more expensive.
The demand for shorter lead times has led to later pick-ups, more frequent and faster distribution. Cycles are now from 8 hours to 24 hours/7 days. The
share of faster means of transportation has increased. Larger production sites require their suppliers to be located nearby. And quality is no longer an issue, it is just a must,” he said firmly.
New competitors
“By then logistics providers are more exposed and have undertaken greater commercial risks,” he continued. “More than ever, efficient use of IT has become a critical factor in a company’s success. There is even larger demand for outsourcing solutions. Industry and trade need more and larger time-definite deliveries. Fewer but more efficient niche-players have their position in the market. The large global logistics providers have continued to grow. While some of the established actors have
specialised in unique demands, integrators, distributors, 3PLs and 4PLs have entered the market as new competitors.
In Sweden, a smaller amount of industrial goods is transported within the country. Production has been relocated to low-wage countries. And larger companies have outsourced their non-competitive critical functions,” said Hâkan Larsson as he concluded his look back from the future.
With annual sales of EUR 6.1 billion, nearly 32,000 employees and about
1,000 offices around the world, Schenker is one of the world’s leading providers of integrated logistics services, offering land transport, air- and seafreight and comprehensive logistics solutions and global SCM from a single source.
