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E-commerce in the Logistics Sector

Study for the Dutch Ministry of Transport, Public Works and Water Management Part of the Netherlands EBIP Contribution. E-commerce in the Logistics Sector. Questions:. What are the value-added characteristics of transport and logistics products and services?

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E-commerce in the Logistics Sector

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  1. Study for the Dutch Ministry of Transport, Public Works and Water Management Part of the Netherlands EBIP Contribution E-commerce in the Logistics Sector Dr. Richard Hawkins

  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? E-commerce in the Logistics Sector

  3. 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 E-commerce in the Logistics Sector

  4. Generic value chain Logistics solutions ORIGIN Process Management Processing Transport Storage and/or VAL DESTINATION E-commerce in the Logistics Sector

  5. Case study value chains – COMPAQ (European Distribution Centre) Logistics solutions ORIGIN Process Management Processing Transport Storage and/or VAL DESTINATION E-commerce in the Logistics Sector

  6. Case study value chains – VOS Logistics solutions ORIGIN Process Management Processing Transport Storage and/or VAL DESTINATION E-commerce in the Logistics Sector

  7. Case study value chains – VAN GEND & LOOS Logistics solutions ORIGIN Process Management Processing Transport Storage and/or VAL DESTINATION E-commerce in the Logistics Sector

  8. Case study value chains – RYDER EUROPE Logistics solutions ORIGIN Process Management Processing Transport Storage and/or VAL DESTINATION E-commerce in the Logistics Sector

  9. Case study value chains – DHL NETHERLANDS Logistics solutions ORIGIN Process Management Processing Transport Storage and/or VAL DESTINATION E-commerce in the Logistics Sector

  10. 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 E-commerce in the Logistics Sector

  11. Client profits too • Industry still cautious with e-commerce • No effects yet on transparency of markets • Shifts to higher value-added levels E-commerce in the Logistics Sector

  12. 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 E-commerce in the Logistics Sector

  13. E-commerce footprint in logistics LOGISTICS E-commerce in the Logistics Sector

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