/department of technology management 1 Comparative logistics capabilities between Europe and Asia Jan C. Fransoo Technische Universiteit Eindhoven

/department of technology management 2 Asia comparison learnings across developing regions: Chinese coastal zones with Central-Europe, Chinese inland zones with Eastern Europe, what are good policies for national/provincial governments to boost development role of industrial and logistics parks both: governments as "client" or "problem-owner" rather than industry as such best practices of companies study on ports with Chung-Yee Lee, HKUST

/department of technology management 3 Supply Chain Management and the Transportation Infrastructure in Europe Jan C. Fransoo Technische Universiteit Eindhoven

/department of technology management 4 Position of CE (not: CEE)? CE as a source CE as a postponement center CE as a market in all scenarios: component sourcing from Far East

/department of technology management 5 Transportation perspective in Europe

/department of technology management 6 European Commission (2001) White paper: European Transport Policy in 2010 Congestion: –10% of road network: 7,500 km –20% of rail network: 16,000 km –Costs: 0.5% of GDP (1.0% by 2010) –Forecast 50% increase of goods traffic by road in 2010

/department of technology management 7 Use of transport modes (EU-15; Gtkm)

/department of technology management 8 Road Road carries 44% of freight (and also 79% of passenger transport) Each day 10 hectares are covered by road infrastructure Car fleet expands by 3 million cars every year

/department of technology management 9 Rail From 1970 to 1998: from 21% to 8% freight marketshare Average speeds of international rail freight: 18km/h 600 km of track closed every year EU: investments to stimulate rail Industry: no confidence in rail (strikes, no single operator, unreliable, …)

/department of technology management 10 Water Growth in short sea shipping matches road growth –Administrative (customs) difficulties largely resolved –Huge growth potential Inland waterways largely unused –9% of freight in Rhine/Main/Danube network –1 barge = 110 trucks Slower modes require smarter networks: joint operations of sea and inland terminals

/department of technology management 11

/department of technology management 12 Research questions & opportunities (1) Operation of joint terminals network as single virtual terminal –dynamic inventory positioning in network –inventory allocation and reallocation while in transit –queuing effects at terminals –service concepts How independent are SC structures from transportation infrastructures, or does road always provide the option to execute any sc structure? What about other sectors than electronics?

/department of technology management 13 Research questions & opportunities (2) Industrial / logistics parks strategy strongly dependent on role: –source: manufacturing and capability driven, must be reachable for components in efficient way, taxes; industrial parks and logistics parks can develop separately; example: Philips campus in Poland –postponement center: closer to market, more supply chain / logistics driven, likely to be positioned aligned with terminals in network,; industrial parks (postponement center) and logistics parks aligned. Customization in Prague –market: supply chain design very strongly based on transportation network and shifting center of gravity within Europe. Network role of Constanta – Vienna axis

/department of technology management 14 Research questions and opportunities (3) your input