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Transport Logistics. 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. Slide 2. Components of Globalisation.

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Transport Logistics

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Presentation Transcript
what is logistics
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

Slide 2

components of globalisation
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

Slide 3

the needs of global corporations
The needs of global corporations

Globalised production

Global supply chain

Liberalisation of transport

Outsourcing logistics

Transnational companies require transnational

transport networks

Slide 2

integration of production
Integration of production

“Around a third of world trade takes place

within transnationals, between subsidiaries of

the same corporation based in different


Eliminating World Poverty: UK Government White Paper on International Development, December 2000

Slide 5

complex global supply chains
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)

Slide 6

example toyota and it s suppliers
Example:Toyota and it’s suppliers

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)

Toyota moves more than 8 million parts and accessories every month!

Slide 7

deregulation of transport
Deregulation of transport

“Logistics applications never really took off

until air transportation was deregulated in

1977 and motor and rail deregulation in


“The ESC considers the inclusion of cargo

handling (in the EU ports directive) to be a

significant success for shippers…This success

has resulted from determined lobbying efforts”.

European Shippers’ Council, 2002

Slide 8

world bank imf wto gats eu trade blocks
markets are better at meeting needs than planning, and private companies are better at delivering goods and services than the public sector.World BankIMFWTOGATSEU & trade blocks

Slide 9

the players
The players

Forwarders and trucking companies (Kuhne and Nagel; Transplace)

Shipping companies (Maersk, P&O Nedlloyd, CAC-CGM)

Integrators (UPS, FedEx)

Postal Services (Deutsche Poste, TNT, La Poste)

Rail operators (Schenker, ABX)

Slide 10

creating seamless global transport networks
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

Slide 11

in contrast to other costs dock labour rates have climbed astronomically cac cgm executive
“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 today…is providing tremendous value at low cost”

Michael Belzer, Associate Director at the University of Michigan Trucking Industry Programme

Slide 12

logistics and developing countries
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

Slide 13

trade union responses
Trade Union Responses

International lobbying

Cross sectional approaches

Union links within global companies

Organisation of “new” workers

Strategic hubs

Slide 14

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

Slide 15