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1 1 GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 2 ADAM SMITH IS ALIVE: THE RATIONALE OF INTERNATIONAL TRADE With International Trade Increased competition. Increased competition. Economies of scale. Economies of scale. Specialization. Specialization. Lower prices. Lower prices. Interdependencies. Interdependencies. Without International Trade Small national markets. Small national markets. Limited economies of scale. Limited economies of scale. High prices and near High prices and near monopoly. monopoly. Limited product diversity. Limited product diversity. Different standards. Different standards. Country 1 Country 3 Country 2 Country 4
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 3 MARITIME LOGISTICS ARE A CORNER STONE IN INTERNATIONAL TRADE
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 4 Manufacturing Base Core Base Distribution Logistics Marketing / RetailR&D DISCONNECTING PRODUCTION AND DISTRIBUTION IS THE KEY DRIVER OF INTERNATIONAL STEEL TRADE
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 5 Industrial Pole Flows of rolled steels Flows of raw materials INCREASING INTERDEPENDENCE OF WORLD ECONOMIC REGIONS CHANGES IN GLOBAL STEEL TRADE: After 1970 Developed Countries Emerging Countries Before 1970 Developed Countries Emerging Countries
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 6 INTERNATIONAL STEEL TRADE StageNatureFunction Until the 1970sImmobile factors of production Cope with scarcity Late 20 th centuryMobility of factors of production Promote economic efficiency Early 21 st centuryGlobal production networks Added value within commodity chains GLOBAL ENVIRONMENT IS CHANGING
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 7 THE GLOBAL TRADE ENVIRONMENT IS CHANGING: FROM BULK POINT-POINT-TO-POINT TOWARDS COMMODITY CHAINS
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 8 ECONOMIC INTEGRATION IS A STRONG ENABLER FOR FREE TRADE OPERATED COMMODITY CHAINS
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 9 Transaction costs SUPPLY CHAINS IN INTERNATIONAL STEEL TRADE: OPTIMIZING THE FOUR TEES Tariff and non-tariff costs Transport costs Time costs
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 10 FREIGHT COSTS ARE A TOP ISSUE IN TOTAL IMPORT COSTS FREIGHT COSTS FOR IMPORTS IN WORLD TRADE (% OF TOTAL COSTS)
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 11 SHARE OF CONTAINERIZED CARGO IN GLOBAL TRADE, 1980-2000 SINCE 1980, CONTAINERS HAVE GAINED TOP MARKET SHARE
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 12 INTERNATIONAL STEEL TRADE TRIGGERS INTERNATIONAL STEEL TRANSPORT CHAINS AB Origin Destination International Steel Trade Trade barrier Rail Steel Transport Chain MaritimeRoad Transshipment AB Producer Processor Customs
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 13 Consumers ProducersDistributors CollectorsRecyclers Forward Channel Reverse Channel Suppliers FORWARD AND REVERSE STEEL INTERMEDIATION TO COME ?
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 14 Gateway Inland Terminal DistributionCenter Corridor Customer “Last Mile” Segment GLOBAL HINTERLAND REGIONALLOCAL Shipping Network Capacity Frequency MassificationAtomization ARE IMPACTED BY THE “LAST MILE” IN PHYSICAL DISTRIBUTION STEEL DISTRIBUTION BUSINESS MODELS
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 15 MARKET MODEL STEELMAKER MODEL HIGHVOLUMESLONGRUNSECONOMIES OF SCALE DISTRIBUTION, SERVICE AND SUPPLY CHAINS SMALLERORDERS ADDITIONALPROCESSING INCREASINGCOMPLEXITY SHORTERLEADTIMES SERVICE AND VALUE RAPIDRESPONSE DELIVERY REQ FLEXIBILITY BETWEEN STEEL PRODUCERS AND STEEL CONSUMING INDUSTRIES DISTRIBUTION IS THE INTELLIGENT MATCHMAKER
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 16 CONSEQUENTLY DIFFERENT BUSINESS MODELS WILL ALSO ASK FOR A DIFFERENTIATION REGARDING THE DEFINITION OF STRATEGIC MARKET POSITIONING OPERATIVE BUSINESS PROCESSES FINANCIAL INVESTMENTS IN ASSETS AND KNOW HOW STRATEGIC MARKET POSITIONING OPERATIVE BUSINESS PROCESSES FINANCIAL INVESTMENTS IN ASSETS AND KNOW HOW PROXIMITY BUSINESS FOCUSED ON SERVING REGIONAL / LOCAL MARKETS PROXIMITY BUSINESS FOCUSED ON SERVING REGIONAL / LOCAL MARKETS SUPPLY CHAIN BUSINESS FOCUSED ON INTEGRATING INTO VALUE ADDED NETWORKS SUPPLY CHAIN BUSINESS FOCUSED ON INTEGRATING INTO VALUE ADDED NETWORKS MARKET SUPPLY BUSINESS FOCUSED ON MATERIAL SOURCING AND HANDLING MARKET SUPPLY BUSINESS FOCUSED ON MATERIAL SOURCING AND HANDLING MARKET FUNCTIONALITIES AFFECT BUSINESS MODELS
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 17 PST1PST2PST4PST3 P 3P 2P 1 CST1 CST2 OUTBOUND INTERNAL INBOUND A Specialised Central Stocks feeding Proximity Stocks B Full Range Central Stocks linked to Dispatching Points C Specialised Central Stocks linked to Dispatching Points P 3P 2P 1 DP1DP2DP20DP8 CST1 CST2.. P 3P 2P 1 DP1DP2DP20DP8 CST1 CST2.. ALTERNATIVE BUSINESS MODELS REQUIRE ALTERNATIVE LOGISTIC MODELS....
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 18 Shuttle Freight Liner Freight Consolidate Freight Milk-Run-Freight.... LEADING TO ALTERNATIVE FREIGHTING STRATEGIES
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 19 ISSUES AT STAKE Reduce logistics costs Improve customer service Synergies by clustering freight volumes Reduce idle return freights Think in larger economic spaces As is-Situation Legend Production Harbour Producer A Producer B Producer A+B Producer C Optimising freights Legend Production Harbour Hub OPTIMISATION OF THE FREIGHTING NET IS A KEY ISSUE IN STEEL DISTRIBUTION
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 20 Optimising Customer Boundaries OPTIMISED FREIGHTS LEADS TO NEW CUSTOMER BOUNDARIES AND TO NEW CHALLENGES IN THE SALES ORGANISATION Optimising freights Legend Production Harbour Hub
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 21 THE ULTIMATE LOGISTIC & FINANCIAL CHALLENGE ADDED VALUE POTENTIALS ALL ALONG THE SUPPLY CHAIN CONSUMPTION PRODUCTION CAPITAL EMPLOYED DISTRIBUTION ADDED VALUE = OPTIMISATION OF STOCKS AND THEIR TURNOVER THROUGH A SINGLE LOGISTIC NETWORK OF ALL STAKEHOLDERS LOGISTICS CAPITAL BECOMES MORE IMPORTANT THAN STEEL CAPITAL BECOMES MORE IMPORTANT THAN STEEL
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 22 ACTUAL VALUE CHAIN GET-THE-PRODUCT-OUT ORIENTED ONE WAY BUSINESS DEVELOPMENT MISSING OPPORTUNITIES OF RESOURCES SHARING UNUSED SYNERGY POTENTIALS MISSING BUSINESS OPPORTUNITIES IN SEARCH OF A NEW GLOBAL STEEL + METALS DISTRIBUTION PARADIGMA, INNOVATIVE DISTRIBUTORS ARE DEVELOPPING ADVANCED VALUE NETWORKING BUSINESS MODELS AND WILL CLEARLY CHALLENGE REGIONAL HEROES FINALLY AN OUTLOOK.... OPTIMISE CUSTOMER PROCESSES PRESENCE IN ALL WORLD MARKETS TO SUPPORT THE WORLD FACTORY AND DELOCALISING INDUSTRIES FUTURE VALUE NETWORKING MARKET AND SEGMENT BASED VALUE NETWORK ORIENTATION CAPITALISING ON LINKING ALL RELATED VALUE CHAINS OF CUSTOMERS, DISTRIBUTORS, PROCESSORS AND PRODUCERS FOR EFFICIENT LOGISTICS OPTIMISE CUSTOMER PROCESSES PRESENCE IN ALL WORLD MARKETS TO SUPPORT THE WORLD FACTORY AND DELOCALISING INDUSTRIES OPTIMISE CUSTOMER PROCESSES PRESENCE IN ALL WORLD MARKETS TO SUPPORT THE WORLD FACTORY AND DELOCALISING INDUSTRIES.... NEW CHALLENGES EVEN FOR OLD HEROES Metal One promises to become the customer's most capable partner
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THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL THE ROLE OF STEEL TRADE & STEEL LOGISTICS IN BUSINESS MODELS FOR STEEL DISTRIBUTION GEORGES KIRPS, VICE PRESIDENT EUROMETAL 23 TO OPTIMISE CUSTOMER PROCESSES - WORLD-WIDE CUSTOMER BASE VALU E UNIQUE SERVICE PROPOSAL UNIQUE SERVICE PROPOSAL SUPPLY CHAIN MGT TECHNICAL SUPPORT FINANCING & IT NETWORK SUPPLY CHAIN MGT TECHNICAL SUPPORT FINANCING & IT NETWORK LOGISTICS - FREIGHTING STOCKING - PROCESSING - TRANSFORMATION SOURCING - TRADING LOGISTICS - FREIGHTING STOCKING - PROCESSING - TRANSFORMATION SOURCING - TRADING COST SAVING LEADS TO BETTER PRODUCTIVITY COST SAVING LEADS TO BETTER PRODUCTIVITY IMPROVE MARKETING&SALES IMPROVE MARKETING&SALES HIGH VALUE ADDED PRODUCTS HIGH VALUE ADDED PRODUCTS DEVELOP NEW CUSTOMER BUSINESS MODELS DEVELOP NEW CUSTOMER BUSINESS MODELS Metal One promises to become the customer's most capable partner A STRATEGIC OPTION! A STRATEGIC OPTION! STEEL AND METALS INTERMEDIATING VALUE NETWORK
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