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
• 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
 Globalised production
 Global supply chain
 Liberalisation of transport
 Outsourcing logistics

Transnational companies require transnational

transport networks

Slide 2
 Integration of production

“Around a third of world trade takes place

within transnationals, between subsidiaries of
the same corporation based in different
countries.”

Eliminating World Poverty: UK Government White Paper on

International Development, December 2000

Slide 5
 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)
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Example: Toyota moves
Toyota and it’s more than 8
suppliers million parts and
accessories every
 Frequent deliveries
month!
 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)

Slide 7
 Deregulation of transport
“Logistics applications never really took off
until air transportation was deregulated in
1977 and motor and rail deregulation in
1980”.

“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.
Slide 9
 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

“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

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 “in contrast to “Distribution and logistics
other costs power our world economy
dock labour and the trucking industry
rates have today…is providing
climbed tremendous value at low
astronomically” cost”

Michael Belzer, Associate Director at

CAC-CGM executive
the University of Michigan Trucking
Industry Programme

Slide 12
 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

 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