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ICT and the goods transport and logistics system

ICT and the goods transport and logistics system. STELLA workshop ICT, Innovation and the Transport System Arlington, VA. 15 –17 January 2002 Michel Savy professor University Paris-Val de Marne and Ecole Nationale des Ponts et Chaussées director Observatory of Transport Policies

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ICT and the goods transport and logistics system

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  1. ICT and the goods transport and logistics system STELLA workshop ICT, Innovation and the Transport System Arlington, VA. 15 –17 January 2002 Michel Savy professor University Paris-Val de Marne and Ecole Nationale des Ponts et Chaussées director Observatory of Transport Policies and Strategies in Europe

  2. Presentation plan • 1. Introduction: goods transport as a STELLA issue • 2. IT, goods transport and logistics process • 3. IT, organisation and market of goods transport and logistics industry • 4. Conclusions (very short) STELLA workshop

  3. 1. Introduction: goods transport as a STELLA issue • goods transport is a substantial part of transport system • goods transport and passenger transport interfere, notably for the use of infrastructure, particularly in metropolitan areas • goods transport is a massive consumer and provider of IT • IT plays a major role in present restructuring of this industry • structures and practices are not the same on both sides of Atlantic, whereas all large firms try to develop global intercontinental networks STELLA workshop

  4. 2. IT, Goods transport and logistics process • IT is a transverse technology • 2.1. Goods transport network: a cross-section multi-layer "vertical" approach • 2.2. Goods transport network: a "horizontal" approach • 2.3. From transport to logistics STELLA workshop

  5. Networks and IT: a generic approach 2.1. Goods transport network: a cross-section multi-layer "vertical" approach IT as a new, additional layer: "infostructure" STELLA workshop

  6. IT is not an intermediate layer, but a transverse link between all layers, necessary to all interfaces 2.1. Goods transport network: a cross-section multi-layer "vertical" approach (2) STELLA workshop

  7. Double network: physical and informational flows 2.2. Goods transport network: a "horizontal" approach STELLA workshop

  8. 2.3. From transport to logistics • transport • handling • warehousing • packaging • physical distribution • plus, possibly: • inventory management • quality control • post manufacturing • maintenance • purchasing • etc. STELLA workshop

  9. 2.3. Logistics: Fields of Responsibility STELLA workshop

  10. 2.3. Logistics Cost Split STELLA workshop

  11. 2.3. Flows:- information and data transmission (upstream)- goods transport (downstream) STELLA workshop

  12. 2.3. Logistics expense and outsourcing in Europe STELLA workshop

  13. 2.3. Fields and Degree of Outsourcing in Logistics STELLA workshop

  14. 3. IT, organisation and market of goods transport and logistics industry • 3.1. IT in organisation of transport groups • 3.2. IT and e-logistics • 3.3. IT and the limits of the firm STELLA workshop

  15. 3.1. IT as an additional department or branch STELLA workshop

  16. 3.1. IT as a transverse function STELLA workshop

  17. 3.2. IT and e-logistics • Segmentation of market • Virtual transactions are not the problem, real issue is physical distribution • cost • lead-time • reliability • B2C (delivery at home, at precise times, problems of no consignee, mistakes, payment, etc.) STELLA workshop

  18. 3.2. E-logistics network • Outsourcing or integrated distribution ? • dedicated e-logistics network • additional use of existing network • competition between newcomers and existing distributors • Vertical integration STELLA workshop

  19. 3.3. Subcontracting in the transport industry STELLA workshop

  20. 3.3. IT and the limits of the firm • Notion of mega, extended firm • extension of networks • diversification • spatial coverage, up to continental and global • including regular subcontractors • joint ventures • alliances • Integration or "bi-polarisation" ? • coherent single structure • division of labour: • organisation, marketing firm, controlling IT system, non asset (4PL) • operating firms, subcontractors STELLA workshop

  21. Industry and market structures are not the same in Europe and America 4. Conclusions STELLA workshop

  22. Freight transport and logistics are involved in a sharp and massive change, where IT is a central element Those emerging issues have still to be confirmed Euro-American comparison research programs would be desirable... 4. Conclusions STELLA workshop

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