Problems and new solutions in logistics:Central Loco Workshop
NIKODÉMUS Antaldeputy head of department
Ministry of Economy and Transport
2007. February 22.Stefania Palace
E.g. lower barriers to FDI:
•New players•Increased comoetition•Market seeking FDI
E.g. increased market based
resource allocation:•Efficiency seeking FDI•Specialisation by foreign affiliates
E.g. transport innvation:
•Asset seeking FDI•New players•New FDI location opportunities
E.g. ICT innovations:•Cross-border technology alliences•International off-shoring•Facilitates FDI by SMEs
Drivers
Policyfactors
Technolgyfactors
DimensionsWidth Depth
•Greenfield investment•International M&A
•Inter-firm trading transactions•Strategic alliences•Partnership•Non-equity joint venture
Organisational modes for cross-border production and investment
Modes
Cross.border
insourcing
Cross-borderoutsourcing
FDI
Arms-length
trading
Focuses of development as the basis of Hungarian Focuses of development as the basis of Hungarian competitivenesscompetitiveness
Exploit „Hungaricums”
Hungary specific factors:
• Natural resources
• Geographic location
• Strong talent base
• Services
• Logistics
• R&D etc.
Successful industries attracting FDI
Focal points of development
• Education, ‘life long learning’
• Utilisation of knowledge in economy
• Business incubation
• Biotech
Combine general CEE advantage with country specifics
IT- and information needs of 4 PL providers (II)
Infrastructure
ERP/SCM/SCEM
Integration layer
eBusiness Solution
Logistics Services
2PLs
Client‘sIn-house logistics
3PLs
LLPs
Financial Services
Bank
Trade Account
Insurance
Credit
ProcurementChannels
Partners
2nd tier Suppliers
1st tier Suppliers
3rd tier Suppliers
SalesChannels
Reseller/Retailer
Vendor Managed Inventory (VMI)
Distributor
Customer Service
Operations/ FulfillmentChannels
Inventory
(light) Assembly Consolidation/
Configuration
Returns
Product Support
4PLPlatform
Terminals and freight villages
Integrative 4PL services (Component 2.3)
Multi-layered collaborative business model is necessary to meet the new challenges of the transport and logistics industry, as well as to
ensure a durable competitiveness of Central Europe
After sales
Integrated Supply Chain management (SC design and integration of goods, information and finance)
Integrated IT management (Integration of market softwares, scalability and flexibility, web-based, open standards)
Integrated solutions and services
Consolidation Intermodalterminals
Manufacturers& raw materials
Export/Importactivities
Global freightmanagement
Warehousing and Distribution
Primary movements
Distributioncenters
Secondary movements
Transport solutions
Distribution solutions
Value addedServices (packaging…)
Productionmanagement
Fulfilment & procurement
eProcurement
1. Macro-regional network effects
- Pan-European corridors (Increasing importance of IV, V corridor)
- V. corridor : Far-East >> Russia, Ucraine >> South Europe - VII. corridor : Danube river- Importance of the Ports of Adria and Easter Europe (Coper,
Constanta)
Global Trade flows tendencies / restructuring of continental transport
The shifting ‘blue banana’ – EDCs
Source: Cushman & Wakefield, Healey & Baker – EDCs (2004)
The shifting ‘blue banana’ – Automotive production
Core Automotive axis and periphery
Concentration of automotive suppliers
Core domain of automotive production in Europe
Main producers (OEM)
Strong growth of periphery
High density of supplier industry
LeipzigDresden
Budapest
Bratislava
Györ
Wien
Wolfsburg
Hamburg
Nord-Italien
BeneluxRuhr-Gebiet
Rhein-Main
Main-Neckar
Sochaux
Lyon
Graz
Eisenach Chemnitz
LiverpoolManchester
Birmingham
South England
Wales
North England
Catalonia
Valencia
CastilleMadrid
Basque country
Région parisienne
Tours - Orléans
Ouest
South PolandŽilinaBohemia
BerlinPoznan Warzawa
WroclawGlivice
Esztergom
Nürnberg-
MünchenOÖ-
Cluster
0 200 km
Map: Dr. Olivier Podevins
European Distribution Centers shifting eastwards
4
333
21
Concentration of EDCs‘
Existing EDCs‘
Main locations of EDCs in Europe
1. East and South Netherlands (Limburg, Brabant)
2. East and South Belgium (Antwerp, Limburg, Wallonie)
3. North and East France (Nord-Pas-de Calais, Lorraine, Lyon)
4. Oresund (for Scandinavia)5. Helsinki (for Russia and Baltics)
5
Main locations of EDCs in the future
1. Netherlands2. Belgium 3. Germany4. Central EuropeMap: Dr. Olivier Podevins
Country Consolidation Center
Nordics
Solectron is a leading global provider of
electronics manufacturing and integrated
supply chain services for customers, such as
DELL; IBM, Sun, Microsoft, Motorola…)
Supply Chain Solution:
Manufacturing in low cost locations
(Asia, Romania)
Pick up at customer or retailer
(potential split of destinations)
Country consolidation
European consolidation for transport to
repair facility
Repair
De-consolidation to regional warehouse
Management of swap stocks in regional
warehouses
Delivery at customer or retailer
(potential delivery of multiple sources)
Solectron‘s supply chain solution for EMEA
Optional Country Consolidation Center
Regional Warehouse/Country consolidation center
Repair facility
European Consolidation Center/Regional warehouse
Retailers
Defective units flow
Repairedunits flow
UK
Western Europe
Map: Dr. Olivier Podevins
Main structure of European logistics on longer term
BSR: Baltic Sea Region
New „blue banana“
Intermodal connections „North-South“
BLSR: Black Sea Region
„New Central Europe“
Continental inter-connections
Euro-Asian inter-connections
Map: Dr. Olivier Podevins
Gazdasági és Közlekedési Minisztérium
Dr. Nikodémus Antal főosztályvezető-helyettesInnovációs Főosztály
H-1055 Budapest, Honvéd utca 13-15.Tel: (36 1) 374-2906 Fax: (36 1) 374-2878
E-mail: [email protected] Internet: www.gkm.hu
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