Studies Extras

Overview of the results of the Market study on data exchange in the automotive industry of the BVL Focus Group Automotive, conducted by BVL, TU Munich and 4flow.

The detailed study report will be published in May 2024. Whitepapers from the study partners on the three focus trends have been published to accompany the study and are available for download at www.bvl-trends.de.

Urban logistics 2030 in Germany - Stronger together: Keep the Wild West scenario at bay with cooperation

Together, BVL International and Roland Berger will take a look at the future of urban logistics in German cities. While in the urban ecosystem, keywords such as "autonomous driving" or "ride pooling" are the main headlines in urban mobility, urban logistics is currently much less frequently dealt with. However, the increase in inner-city flows of goods and the partly complex requirements of various interest groups (cities, logistics providers, retailers and citizens) are clashing more and more. This is being exacerbated by trends such as urbanisation, the triumph of e-commerce including new customer demands and the increasing demands of retail in the urban environments as well as noise and exhaust emission requirements.

Based on the assessments by experts from business, public administration and scientists, critical uncertainties were identified. These were assigned to two main dimensions: Regulation of urban logistics by the cities and cooperation between the players within the city. Along these two dimensions a thought model with four scenarios was developed:

1.       The Wild West: Logistics providers in increasing numbers compete to win customers by coming up with innovative delivery concepts. Since commercial logistics is not a highly regulated field, innovative providers have no difficulty in entering the market.

2.       Regulated diversity: The city defines and monitors a regulatory framework to manage urban logistics traffic more efficiently and reduce the volume of traffic on the roads. Strong competition between providers precludes cooperation and prevents the introduction of standards.

3.       City-wide platform: All urban delivery capacities run on a single platform operated either by the city or privately on the basis of a license. The platform pools the flow of goods across all providers and uses decentralized warehouses to optimize last mile deliveries.

4.       Coexistence of giants: A small number of large, competing platforms emerge that dominate urban logistics. With rising user numbers and an increased volume of deliveries, the platforms are able to pool logistics traffic more efficiently.

While the outlined scenarios illustrate the long-term perspective, we believe it's important to start laying the groundwork now in order to shape the urban logistics of 2030. It should be the shared aim of both city authorities and businesses to avoid a Wild West scenario, because abandoning all concept of network efficiency will bring a huge increase in urban traffic volumes coupled with further obstruction of the flow of traffic.

Some ways in which this could be done include taking steps within the city to create and approve a regulatory framework for urban logistics (regulated diversity), introducing integrated management of logistics traffic (city-wide platform) or promoting consolidation around a few platforms (coexistence of giants). In the interests of at least avoiding any further deterioration of quality of life in our growing cities, all stakeholders need to engage in or step up the dialogue.

In the era of digitisation, cost pressure, individualisation and complexity are still the main external factors that pose a challenge to today's companies and force them to draw up strategic responses. The most important endogenous trends that the companies themselves need to move forward with are the digitisation of business processes and the greater transparency of supply chains. The key driver for all players, however – and this development is relatively new – is the end customer, whose preferences are making themselves noticeable not just in the trading sector but also in industry and services, and in a way that plays a key role in the competitive arena. In turn, the answer to many of the expectations of the end customer is digitisation.

Just under three in four study respondents describe the opportunities arising for their company as a result of the digital transformation as very good or good. At the same time, more than one in two companies want to hold back their own projects until proven solutions are available. One in three respondents point to the high or very high risks associated with digitisation. The reasons for this could be the required investments in tangible assets, a lack of personnel or the major need for action in the area of qualification in order to prepare employees for new processes, ways of thinking and business models. According to the study, the focus is both on promoting IT skills and on a culture of experimentation and learning.

For the company as a whole, this means that the digital transformation will become part and parcel of the corporate strategy. The precondition for this is that transparency is assured along the entire vale added chain, and this is an issue that many companies still need to address. The desired data are often not available, interfaces are not defined, or the quality of data is inadequate. Almost 80 percent of study participants say a transparent supply chain is relevant or very relevant to the success of companies. In this vein, transport or incoming goods data are already widely and systematically shared today – but this is not the case with inventory data, demand forecasts or data on material flow disruptions. In other words, data protection considerations are not the only obstacle to the sharing of data.

The aim of the study was to investigate the digital transformation with regard to current trends and relevant strategies for logistics and supply chain management. Particular attention was focused on opportunities resulting from digital transformation in these areas. To carry out the study, the authors defined four
central topics: 

• innovative technology concepts
• changes in value chains
• changed competence requirements and
• new and adapted business models

Download Summary on Logistics in Retail and Wholesale>>

The opportunities presented by retail logistics to influence a company’s success across all segments are called success factors in “Logistics in Retail and Wholesale – Structures, Success Factors, and Trends”. These success factors are associated with the areas of logistics staff; information technology (IT) and logistics equipment; supply chain management; and logistics networks and service providers.

Authors:

Stephan Seeck
Wendelin Groß
Marco Bötel
Maja Herrmannsdörfer

Market Sizes, Market Segments and Market Leaders in the European Logistics Industry.

Authors: Straube, F., Oezgen, A., Ouyeder, O.

International Cooperation Partners: Prof. Dr. Paulo Fernando Fleury da Silva e Souza (Brazil), Prof. Dr. Jiazhen Huo and Prof. Dr. Sidong Zhang (China), Prof. Dr. Victor Sergeev (Russia), Prof. Dr. Mehmet Tanyas (Turkey), Rick D. Blasgen (MBA) and Prof. Dr. Thomas W. Speh (USA)

Key Findings:

1. Through intensive cooperation and development with suppliers and logistics service providers as well as sustainable procurement strategies Top Performers are achieving their cost and performance objectives far better than the average in this representative sample.

2. Top Performer companies could be identified in every country, several industries and among medium sized and large enterprises; they follow all very similar strategies.

3. There is not one single country with best practice performance for emerging market sourcing. The key for successful sourcing is the pursuing of differentiated country- and industry-sector-specific objectives.

4. Since 2007 study there are no significant improvements in problems that buying companies are facing in Emerging Markets. Meanwhile Top Performers are moving far ahead from the average.

5. A successful supplier management strategy, characterized by closer cooperation and development of suppliers’ competencies, leads to cost reduction, higher product quality as well as increased service levels.

6. Establishment of a two-step supplier development approach consisting claiming and fostering supports a successful supplier management.

7. Implementation of information and communication technologies has not achieved a satisfying level in collaboration with suppliers.

8. Regarding high sophisticated services logistics service providers have high potentials to incorporate into Emerging Markets sourcing processes. Top Performers are outsourcing significantly more to LSP.

9. Sustainable Sourcing is important to the surveyed companies. It is structured in economical, social and environmental and as a holistic approach an important lever to collaboration and success.

10. The implementation of environmental methods as part of sustainable procurement is in an early stage, and this step is primarily taken by Top Performer companies. They follow up this topic and achieve by this effort better cost and performance levels.

11. Following a top-down approach in order to position sustainable procurement as a corporate strategy is important.

Introduction

• The importance of International Procurement is continuously increasing. This trend is supported particularly by the economic development in Emerging Markets such as Eastern Europe, Asia and South America. Procurement values (in Euro) indicated by surveyed companies are supporting the increasing trend in markets such as China (averaged 20%) and Eastern Europe (averaged 17%).

• The 2010 study found that companies have stabilized in current Emerging Markets, and that large-scale translocation from one region to another is not one of the highest priorities.

• Study results show that companies are pursuing more than one objective in the Emerging Markets and they are taking the opportunity to benefit from local-to-local as well as local-to-global production.

• Sustainable procurement encompassing economical, environmental and social aspects is increasing in importance due to its impact on successful Emerging Markets sourcing. Purchasing and procurement managers are adopting sustainability in their procurement processes because of growing importance of climate change and limited resources. The conducted study contributes to procurement managers to learn from the best practices of the Top Performers of this study.

Market Sizes, Market Segments and Market Leaders in the European Logistics Industry.

Market Sizes, Market Segments and Market Leaders in the European Logistics Industry.

The study analyses general conditions and identifies patterns of action for successful procurement operations in emerging markets.

Content:

Today, companies are facing greater competitive pressure than ever before, and they need to gear their value added networks towards the international market and continuously optimise these networks. The emerging markets in Europe and Asia are playing an increasingly important role, particularly in connection with the ongoing optimisation of the supplier portfolio with the aim of generating cost benefits. Not all companies achieve the goals they set out to achieve in emerging markets; above all, they are often unable to cut costs to the desired degree. This is the starting point for the study "International Procurement in Emerging Markets"; the study analyses general conditions and identifies patterns of action for successful procurement operations in emerging markets.

Tremendous prosperity and growth: Russia is booming. International enterprises are entering markets with high expectations of prosperity. However, growth and a globally-oriented business culture pose extraordinary challenges to companies and their management – especially in times of change. This study on supply chains in Russia and their dynamic nature provides a deeper insight into industries, strategies, and logistics structures in Russia.

An economy in transition: The Russian economy is still adapting to the new political system which changed radically in the early 1990’s. Tremendous efforts have been made to ease legislation, especially customs regulation. Russia’s gross domestic product (GDP) was US$ 766 billion in 2005 and was growing at rates of six to seven percent over the last years. The economy is comprised of black, white, and grey markets, whereby the latter accounts for 90 % of all electronics sold in Russia.

Competitive industries: There are indications that the high-tech/electronics, automotive and service industries are at the starting point of long-term growth. These industries are in an “early” or “infant” growth stage. This situation is a logical consequence of the rising income levels. As could be expected, the oil & gas industry is already in a “mature” stage. All other industries expect a growing demand, but especially the pharmaceuticals market will grow tremendously over the next few years.

The supply of logistics: The supply side of the Russian logistics market is strongly fragmented and a market leader has not yet established itself among the numerous logistics service providers. The logistics market is characterized by a low level of service and a low degree of experience, knowledge, and professionalism. In addition, poor reliability is a result of Russia’s highly underdeveloped infrastructure. New players are entering the market and strategic alliances with regional companies are being established, but no one company offers all logistics services out of one hand. Most providers have not undertaken the necessary investments. The Russian logistics market requires a 100 % commitment.

Growing demand for logistics services: The demand side of the Russian logistics market is also characterized by a lack of professionalism. The criteria for selecting a logistics service provider are changing. Customers have switched their focus from lowest possible prices for services to reliability and quality. Nevertheless, the price factor will remain significant over the next few years. In the long-term, centers of logistics activity might shift eastwards from Moscow to Nizhniy Novgorod and Yekaterinburg. Furthermore, customers will try to minimize the number of logistics service providers – today, 74 % deal with more than seven different providers. The demand for professional logistics services will grow in the future.

Challenges for the logistics industry: As a result of the market shift from cost-driven to quality-driven in the near future, the strategies for logistics service providers will include: more flexibility, quicker handling, better price stability, higher transparency and increased professionalism, in order to meet the challenges.

Performance relies on strategy: Top performing companies in Russia will primarily follow innovative or prospective- oriented business strategies and effective-oriented supply chain strategies. The business and supply chain strategies of top performing companies in Russia should be compatible. Companies doing business in Russia require reliable and professional external partners in order to pursue their strategic orientation and to fulfill their goals. Consequently, executives in Russia show willingness to switch to the most promising external partners to achieve their business objectives.

Dynamic supply chains: The transition process caused supply chains to become more dynamic, reflecting the unstable but also highly promising market. Joint ventures with foreign partners, co-operations, small enterprises, and jointstock companies are now completing the portfolio of enterprise ownership. The new supply chains are a mixture of novel elements combined with old hierarchical arrangements of existing relationships and organizations.

Distribution strategies: One reason for changing supply chains are new distribution strategies, which are determined by (1) increasing customer service expectations; (2) extended market coverage; (3) direct channel structures; (4) long-term channel relationships; and (5) growing profitability, stabilization, and rationalization. Different distribution strategies may be chosen for different regions. Distribution networks establish trustful and stable relationships and will provide the basis for flexibility and commitment, hence better customer service.

Supply chain constraints: The distribution strategy determines the optimal design of a distribution network, as a trade-off between customer service and cost. This includes the identification and selection of distribution partners, the determination of optimal warehouse locations, the configuration of efficient information flows, etc. Four potential sources of constraints include (1) the existing distribution structure; (2) the geography and infrastructure: (3) the power and control system, and (4) the amount of available capital. A flexible configuration of supply chains in Russia enables companies to easily adapt to changes in the institutional environment, leading to a better fulfillment of customer service demands and a competitive advantage for the company.

Emerging supply chains: Clearly, a firm’s supply chain develops over time. In Russia, companies pursue different business strategies and manage their strategic relations with other network members according to these strategies. Different strategic orientations can lead to different supply chain structures. The Russian business environment has a specific impact on how the supply chain structures are set up.

Reliable strategic partnerships: Managers should explicitly define the characteristics and requirements of any strategic partnership. Precise procedures and rules should be established so that predictability, control and consistency of output increase. Furthermore, managers should invest considerably in resource exchange since this is a prerequisite for mutual trust and commitment and therefore essential for high performance.

Informal structures in business: Traditionally, Russia is a country with relatively weak formal institutions; more importance is given to informal constraints, e.g. personal relationships. As a result, Russian companies rely upon a network-based strategy of growth, based on personal trust and informal agreements among managers. These are important considerations for managers when forming business relationships and designing their supply chains in Russia.

Results of the fifth quinquennial European logistics study "Excellence in Logistics 2003/2004"

The current ELA/A.T. Kearney study as the fifth in a series of European Logistics Studies provides benchmarks characterizing relevant logistics trends. These can help our readers design their supply chain processes and structures.

An instruction for readers on how to transform capabilities and resources into positional competitive advantages such as lower relative cost positions or superior customer value through differentiation.

2004 ELA European Logistics Association / A.T. Kearney Management Consultants

In cooperation with the BVL - Bundesvereinigung Logistik and the Technical University Berlin (TU Berlin).
Publisher: DVV Media Group | Deutscher Verkehrs-Verlag

Table of Contents:

- Management Summary
- International Procurement
- General Development
- Supplier Relationship Management
- E-Procurement
- Change-Management, Controlling and Risk Management
- Strategies in International Procurement

Is traffic in German cities coming to a standstill? Do we need a 30 km/h speed limit for more liveable inner cities? And what role does the often-maligned goods traffic play?

BVL.digital und HERE Technologies sind diesen und weiteren Fragen auf den Grund gegangen. Wir haben mehr als 58 Mrd. Verkehrsdatenpunkte aus 10 Großstädten über die vergangenen drei Jahre ausgewertet, das BVL-Netzwerk befragt und Experten interviewt, um ein umfassendes Bild von der Lage sowie potentiellen Maßnahmen für eine Beschleunigung des innerstädtischen Verkehrs zu erhalten.

You can find the results of the survey here.