1. 1 Logistics Flanders Value added logistics and Trends

2. 2 Summary  Assets of Flanders  Some major trends  Evolution  Flanders Institute for Logistics

3. 3 Assets of Flanders  Central location: more than 60% of the European buying power lies within a radius of 300 miles. Source: FFIO

4. 4 Assets of Flanders  Integrated transportation infrastructure for multimodal transport; perfect accessibility: a gateway for Europe Source: FFIO

5. 5 Assets of Flanders  Ports with high productivity and comparatively low handling cost.  Central role of Brussels Airport. Source: FFIOSource: Hinterland Antwerpen

6. 6 Assets of Flanders  Positive social-economic context  Availability of multilingual, skilled workers. « …the world's highest ratios of GDP to persons employed, one of the highest rates of labor productivity per employee per hour and, again, one of the highest rates of productivity in both services and industry by GDP per employee “ (World Competitiveness Yearbook 1998)” Source: FFIOSource: Business Mobility International

7. 7 Assets of Flanders  Low cost of warehousing and distribution.  Decrease of industrialization in ’90 in favour of increase in transport and distribution activities.  Presence of local and global logistic service providers.  Presence of approximately 180 European distribution centres (EDC).  Fiscal rulings 53 20 18 33 40 14 53 20 18 33 40 14 Source: EDC study 2002, Flemish Government

8. 8 Assets of Flanders  Shares of EDCs per sector in Flanders Source: EDC study 2002, Flemish Government

9. 9 Assets of Flanders  Origin of EDCs in Flanders Source: EDC study 2002, Flemish Government

10. 10 Evolution of outsourcing 1990 199520002005 Flow of goods Flow of information FOCUS Cost per pallet Gain sharing REVENUE 2PL 3PL 4PL Operational Tactical Strategic

11. 11 Evolution of activities/services Source: KPMG survey 2000

12. 12 Value added activities/services  Added value on the flow of goods  Picking, packing and other warehousing activities  Requirements: resources  Low margin  Added value on the flow of information  Customs management, forwarding, transportation mode selection, inventory management, repair service, contact centres, postponed manufacturing, final assembly, billing, e-fulfilment, network optimisation,…  Requirements: ICT and knowledge  Higher margin

13. 13 Some major trends  SCM and logistics: at strategic level, include competitive advantages  Logistic service providers: 2PL  3PL  4PL  Operational activities  know-how  Tenders and cost minimization  win-win contracts  Cost per pallet  gain sharing  Collaborative networks: vertical collaboration among 3PL’s

14. 14 Some innovative trends  EDC  ELC  Flow of information is more important than flow of goods  Contact centres, repair services, inventory management,…  Information junction  Increased complexity of distribution networks Source: Ploos van Amstel, 1998 Production EDC RDC Direct Customer Decreasing transported volume Full truck load Distribution of small partial loads

15. 15 Some innovative trends  Consolidation centres: horizontal and vertical collaborations  1 central platform, most often dedicated to the type of goods (food, non-food,…)  Important cost saving (e.g. full truckloads,…) Consolidation centre Supplier ASupplier B Point of sales Retailer X Point of sales Retailer Y Community of logistic carriers Community of retailers Community of suppliers

16. 16 Flanders’ competitive advantages  « Gateway to Europe »  Ideal location for ELC’s: in the centre of the European buying power  Increased focus on knowledge on top of high operational productivity  Innovation to guarantee a competitive advantage on logistics services

17. 17 Flanders Institute for Logistics A knowledge platform aimed at achieving a sustainable re-inforcement of the competitive advantage of the logistics sector in Flanders through knowledge creation, gathering and sharing, promotion and guidance.

18. 18 Mission and Objectives Mission Statement: A sustainable re-inforcement of the competitive advantage of the logistics sector in Flanders through knowledge creation, gathering and sharing, promotion and guidance. Objectives: 1.Help to improve the performance of the companies. 2.Promotion of Flanders as “gateway for Europe”. 3.Networking

19. 19 Key Tasks Primary Tasks Knowledge transfer Knowledge creation, gathering and sharing Assistance Networking Promotion Matching of supply and demand with regard to education and training. Conferences, seminars, workshops. Matching of supply and demand with regard to education and training. Conferences, seminars, workshops. Bringing vision, expertise, knowledge and innovation to the logistics sector through strategic workgroups. Conceptual and technological innovation for logistics Becoming an institute with a solid international recognition in logistics and supply chain management. Team of researchers and strong patnerships with other knowledge centres Bringing vision, expertise, knowledge and innovation to the logistics sector through strategic workgroups. Conceptual and technological innovation for logistics Becoming an institute with a solid international recognition in logistics and supply chain management. Team of researchers and strong patnerships with other knowledge centres Assisting companies involved in knowledge projects. Benchmarking. Assistance to foreign investors Assisting companies involved in knowledge projects. Benchmarking. Assistance to foreign investors International recognition Services for its members Platform function International recognition Services for its members Platform function Attracting logistics operations Promotion of Flanders. Dedicated assistance and guidance in logistics to foreign investors. Integration in the network of Flanders Investment and Trade. Attracting logistics operations Promotion of Flanders. Dedicated assistance and guidance in logistics to foreign investors. Integration in the network of Flanders Investment and Trade. Secundary Tasks

20. 20 Knowledge creation Academic knowledge Expertise in companies Vision and trends Emerging problems Innovative technology Experts in academia and companies Logistics sector in Flanders Companies Dedicated knowledge creation Spin-off companies Dedicated knowledge creation Innovative concepts VIL Generic knowledge creation VIL experts

21. 21 Some topics  Inland shipping with pallets for fast moving consumer goods  Intelligent and re-usable RF tags  Collaborative networks  A generic balanced scorecard for the logistics service provider and the set-up of a monthly updated benchmarking database for Flanders  Logistic knowlegde base Innovation to guarantee Flanders a competitive advantage on logistics services

22. 22 Vlaams Instituut voor de Logistiek Flanders Institute for Logistics Jordaenskaai 25 B-2000 Antwerpen (Belgium) Tel: + 32 3 229 05 00 Fax: + 32 3 229 05 10 www.vil.be