1. Time-critical logistics opportunities in air cargo
Frederik Luz
CSO, Marketing & Sales
time:matters Holding GmbH, Frankfurt, Germany

2. The experts for Courier-, Sameday- and Emergency Logistics.
Company Profile
Specialist for time-critical logistics.
Founded in ‘02 by Lufthansa Cargo, since ’07 owned by Mgmt / Buchanan Capital (51%) & Lufthansa Cargo (49%)
Revenue CAGR >25% since foundation.
USPs
100% focus on speed & special customer solutions
Exclusive & preferred access to carrier networks (Lufthansa, Swiss World Cargo, >300 partners worldwide)
International top customers, including big four integrators and many major logistics players / 3PLs
Proprietary IT-solution developed for time-critical solutions
Ownership structure enables high flexibility, customer orientation & focus on growth

3. Courier, Sameday & Emergency Logistics
time:matters is the expert for international time-critical logistics solutions servicing logistics companies and selected industries
Linehaul Services
B2L - Integrators / Wholesaler
Courier, Sameday & Emergency Logistics
B2B – Industries (Automotive, Aviation, High-Tech etc.)
Transport Services
Logistics Solutions
Critical Spare
Parts Logistics
Courier, Sameday &
Emergency Logistics
Critical Spare
Parts Logistics
Industry Specific
Emergency Logistics
Industry Specific
Emergency Logistics
Linehaul
Services
Emergency Logistics
Courier Terminal
Sameday &
International Courier
Emergency Transports
(OBCs / Charter)
Commercial Linehaul
Transports on LH
FLEXIBILITY
Planned / Standardized
Ad-Hoc / Individualized
Cargo / Express
SPEED
Courier / OBC / Charter

4. Time-critical logistics is a growing niche market with attractive business potentials and sustainable competitive advantages.
Market Potential
>2.500 mln EUR
Market Growth
>15 %
Fragmented & emerging market.
Industry trends as drivers of growth:
Shorter cycles, lead & service times = demand for speed.
Lean production & centralization of warehouses = exposure to shortage risks.
Outsourcing of niche services / spare parts logistics & search for one-stop-sourcing.
Differentiation through after-sales-services; integration of sameday into distribution.
Emerging markets (Eastern EU, China, India).

5. Spare parts criteria Equipment/Facility criteria
Especially time-critical Spare-Parts Logistics drive the need for sophisticated air cargo solutions.
Spare parts criteria
Equipment/Facility criteria
High costs incur due to downtimes
Transportable
International / decentralized production
Storable
Not too heavy
(< 50 kg)
“Vulnerability”—constant need for servicing
Delivery
Not too large
Expensive/capital intensive to keep on stock in large numbers
After-Sales-Service as competitive advantage
Replacement parts and incidents erratic and unpredictable

6. The market for time-citical logistics is growing at more than 10% per year, thus at a higher rate than the air cargo market.

7. Time-critical special services
Who can do it? Time-critical logistics services require a high degree of flexibility & individuality as they often disturb standardized processes.
Standard Air Cargo
Time-critical special services
Everyday business.
97% volume driven.
Regular & predictable.
Requires consolidation, standardized handling processes & networks.
USPs:
Network coverage
Standardization
Primary focus on cost structures.
Exception business
3% of the orders … often require 30% of the capacities.
(Often) unpredictable.
Need for special solutions and ad-hoc processes; no consol.
USPs:
Verified experience
Reliability / trust
Primary focus on solutions (service)

8. How. Speed, service, competence
How? Speed, service, competence. It’s the people, the network and the processes that make the difference!
Point-to-point transportation & individualized pick-up / delivery:
No consolidation, no hub & spoke
Immediate, direct, customized
No delays, no waiting, no complexity for customers
NFO with special capacity guarantees and separate loading
Worldwide destinations to all major industrial centers
Last in – first out; no mixture with freight / luggage
Tailored processes & complete monitoring
Transportation & routing based on customers‘ problems / needs
Continuous pro-active progress & interface checks
Personal responsibility, reachability & commitment
Highly skilled & motivated service team
Extensive know-how & experience in doing specials
24/7/365 - any time
<30 minutes reaction time
Fact-Sheet

9. Example: Less than 20 hours to ship fashion samples from Delhi to a show-room in Long-Island, incl. pick-up, customs & delivery.

10. Example: InteraDent Zahntechnik AG Lübeck, Germany to Manila and return
Part of InteraDent´s production of dental impressions is manufactured in Manila / Phillipines. Between pickup and delivery of the impressions is only a time range of 7 to 10 days – 4 days are needed for production. To reduce the cycle time, InteraDent trusts in time:matters.
Hamburg – Manila in less than 15 hrs, 5 times a week.
07:00 pm: Shipment is delivered at Hamburg Airport
08:05 pm: Flight to Frankfurt with LH027
09:15 pm: Arrival in Frankfurt
10:45 pm: Flight to Manila with LH788
Next day:
08:05 pm: Arrival in Manila
09:05 pm: Shipment is available for the customer
Transportation time: approx. 15 hrs.
Time advantage: days!
Fact-Sheet

11. Strategic positioning
Strategy for cargo airlines: outsourcing time-critical logistics services & focusing on the core (volume) business.
Revenues
Costs
Optimized usage of available capacities.
Meet basic & specific customer needs.
Service offer & competence for standard & special services.
Premium services leverage existing customer base.
Improvement of customer retention.
Transfer risk & fixed costs (no own system, labor, mgmt. & admin).
Organizational streamlining & reduction of complexity = greater efficiency.
Optimize (internal) service layers.
Bargaining power & production flexibility.
Strategic positioning
Increase competitive advantage through service line extension.
Focus on core business, partner for niches.

12. Summary: Demand for High-Speed will not slow down …
3 Things to Remember:
Market trends lead to a growing demand for specialized time-critical logistics services.
The use of available capacity for time-critical spare-parts logistics offers a competitive advantage in customer service.
Increased flexibility & individualization  increased complexity … option for air cargo carriers = outsourcing service offer to a specialist.

13. Thank you for your attention