Didier Keters director sector head ut.tran.log - ing -3-pl industry trends
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Transcript of Didier Keters director sector head ut.tran.log - ing -3-pl industry trends
3PL Industry trends
Observations from a banker.
Didier Keters, Sector Head Utilities, Transport & Logistics – May 29th 2012
Vlerick Alumni – Meet the Industry
• ING Commercial banking & Transport & Logistics• Logistics
– Scope– Value chain– 3PL – Landscape
• Trends in Logistics– Globalisation– Supply chain integration– Know your customer– Technology– Sustainability– Real Estate– Financing
• Concluding remarks
Agenda.
9/24/11 2
ING Commercial bnaking & Transport & Logistics
Corporate FInance
Event FInance
LendingServices
FinancialMarkets Transaction
Services
ClientClient
AssistantRSM
AccountManager
RelationshipManager
SeniorBanker
International Branch Network & Local Account Management
Executive Involved
Research
• Corporate clients in Brussels
• Mid-Corp team in ports of Antwerp & Zeebrugge
Fixed assets
Equity
LT Debt
Creditors
ST Debt
Stock
Debtors
Cash
Corporate balance sheet
SH
OR
T T
ER
MLO
NG
TE
RM
Analysing the balance sheet in a structured manner
Financing Flow
InvestmentFlow
The unified approach is aimed at creating an integral view on the company’s balance sheet and operational processes to provide (integrated) solutions that allow our cl ients to realise their ambition.
• Improving operational process will have a positive effect on the (visibility of) invested capital within working capital• Efficient working capital will have as effect that less bank lines are needed• Creates a better view on the company’s risk• Scenario planning can help to clarify what type of funding is required for financing growth and how growing or
downsizing your business affects the balance sheet.
Relationships
…
Logistics: Scope
1PL
Purchasing Transportation
2PL
Outsourced Operationalactivities (transport &
warehousing) on a contractual basis
3PL
Operational activities extended with tactical activities : controlling,
inventory management, ICT = Value Added Services
4PL
Shipper outsources supply chain, incl. flow of goods and
information = controlling & planning of operational, tactical and strategic
activities
• Value Added Logistics (‘VAL’) = added value to the flow of goods
o Picking, packing and other warehousing activities (inventory management, repair service)
o Postponed manufacturing and final assembly
• Value added Services (‘VAS’) = added value to the flow of information
o customs management, forwarding, transportation mode selection, contact centres, billing, network optimisation, inventory management
• Mixed VAL-VAS : reverse logistics, advanced inventory management (e.g. country specific kitting, lease service provider, mass customisation, etc.)
In accordance with extended complexity of the role of the Logistical Service Provider, price structure varies:
• Activity based pricing: operational services (price per handled pallet etc.)
• Open book: full transparent costing between the two parties
• Management fee: lump sum for all logistics activities performed
• Cost plus: reward based on cost + %-margin
• Gain Sharing: determination of reference cost by both parties (e.g. current shippint cost prior to outsourcing). Gains realised due to partnershiop will be compared to the reference cost and will be split between shipper and logistics service provider, which encompasses an incentive for both paties.
Logistics – value chain
Logistics: landscape
Note: Size of bubble based on turnoverSource: Company accounts, ING estimates
K&N
Focused mainly on CL Combined CL and FM Focused mainly on FM
0% 20% 40% 60% 80% 100%
100% CL 100% FM
NorbertNipponExpress
0% 20% 40% 60% 80% 100%
100% CL 100% FM
DHL
Geographicspread
100% focusin singleregion
Even balanceacross three or
more regions
% business focused on FM vs CL
DSV
DB Schenker
CEVA
GeodisKTN
28
28
30
60
100
220
0 25 50 75 100 125 150 175 200 225 250
Ceva
KTN
DB Schenker
DSV
Kuehne&Nagel
DHL
No. of countries
Source: Company reports
Logistics - landscape
0%
1%
2%
3%
4%
5%
6%
DH
L
DS
V
K+N
Cev
a
EBIT margin
Source: Eestimations & company reprots
Market share
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
DH
L
DS
V
Kue
hne&
Nag
el
Cev
a
The logistics landscape
Logistics: Belgian Landscape
Storage surface
1.650
677 650 647
425340 330 330 300 270 261 225
147 110
0
200
400
600
800
1.000
1.200
1.400
1.600
1.800
1.000 m²
KTN
Essers
Tabak Natie
Sea Invest
Molenberg Natie
DB Schenker
Euroports
De Rijke Oplslg
DHL
DSV
K+N
Nova Natie Logistics
Ceva
ND
Trends: Globalisation
Trends: Globalisation
• Following clients• X-sell
– Freight management– Transport– Contract logistics
• Global replication leveraging– Operational standards– Transfer of best practices
Trends: Supply chain integration
• Consolidation: 3PLs, Freight Forwarders and transporters move on the chain and take on more and more operations.
• Integrate logistics into the highest levels of corporate planning. Producers are including logistics in the strategic planning stages with an equal seat at the table with production and sales. As a result logistics can help to solve the friction between manufacturing (yield on assets) and sales (volume).
Trends: know your client
DHL Ceva K+N DSV KTN Essers
Energy ☺ ☺ ☺
Automotive ☺ ☺ ☺ ☺ ☺
Technology ☺ ☺ ☺ ☺ ☺
Consumer ☺ ☺ ☺ ☺ ☺
Retail ☺ ☺ ☺ ☺
Health Care ☺ ☺ ☺ ☺
Industrial ☺ ☺ ☺ ☺
Food ☺ ☺ ☺
Chemicals ☺ ☺
• Cies aim to work around sectors enabling them to get industry expertise and create added value securing long term relationships
• Will this lead to logistic companies actng as consultant?
Trends: Ever growing importance of Technology
• New ‘internet’ customers are arising looking for transparancy, speed, reliability, …– E-commerce
• IT is a differentiator to support client driven solutions– Increase supply chain visibility– Carbon footprint calculators– Risk management
Trends: Sustainability
• Global trade impacts global warming• Clients are looking to decrease ecological footprint• Cies are investing in green energy
– For own use– Increased profitability of real estate
Trends: Real Estate
• Location – Location - Location– Brussels – Antwerp = St-Tropez– Multimodal locations: Limburg is rising – inland
zones– Port of Antwerp: unseen capacity
• Concept:– Free height: 10/10.6 or 12 m– Storage/office space ratio 95/5 – Increased nr of quays increasing speed
• Sustainability– Low energy consumption
Trends: Real Estate
Trends: Financing
• Rent RE
• Hold RE combined with long term funding – Portfolio based solutions
• Bank debt• Debt capital markets solutions• Equity capital markets
– Asset based: • Lease
Concluding remarks
• Contract Logistics is driven by– Globalisation– Operational excellence based on IT capabilities &
client knowledge– Offering a green supply chain solution based on
good locations
Thanks for your attention
Didier Keters
[email protected] - +32 2 547 28 88
ING Commercial Banking – Corporate Clients