1. ICT and the goods transport and logistics system STELLA workshop ICT, Innovation and the Transport System Arlington, VA. 15 –17 January 2002 Michel Savy professor University Paris-Val de Marne and Ecole Nationale des Ponts et Chaussées director Observatory of Transport Policies and Strategies in Europe

2. STELLA workshop2 Presentation plan n 1. Introduction: goods transport as a STELLA issue n 2. IT, goods transport and logistics process n 3. IT, organisation and market of goods transport and logistics industry n 4. Conclusions (very short)

3. STELLA workshop3 1. Introduction: goods transport as a STELLA issue  goods transport is a substantial part of transport system  goods transport and passenger transport interfere, notably for the use of infrastructure, particularly in metropolitan areas  goods transport is a massive consumer and provider of IT  IT plays a major role in present restructuring of this industry  structures and practices are not the same on both sides of Atlantic, whereas all large firms try to develop global intercontinental networks

4. STELLA workshop4 2. IT, Goods transport and logistics process n IT is a transverse technology n 2.1. Goods transport network: a cross-section multi-layer "vertical" approach n 2.2. Goods transport network: a "horizontal" approach n 2.3. From transport to logistics

5. STELLA workshop5 2.1. Goods transport network: a cross- section multi-layer "vertical" approach n Networks and IT: a generic approach IT as a new, additional layer: "infostructure"

6. STELLA workshop6 2.1. Goods transport network: a cross- section multi-layer "vertical" approach (2) n IT is not an intermediate layer, but a transverse link between all layers, necessary to all interfaces

7. STELLA workshop7 2.2. Goods transport network: a "horizontal" approach n Double network: physical and informational flows

8. STELLA workshop8 2.3. From transport to logistics  transport  handling  warehousing  packaging  physical distribution n plus, possibly:  inventory management  quality control  post manufacturing  maintenance  purchasing  etc.

9. STELLA workshop9 2.3. Logistics: Fields of Responsibility

10. STELLA workshop10 2.3. Logistics Cost Split

11. STELLA workshop11 2.3. Flows: - information and data transmission (upstream) - goods transport (downstream)

12. STELLA workshop12 2.3. Logistics expense and outsourcing in Europe

13. STELLA workshop13 2.3. Fields and Degree of Outsourcing in Logistics

14. STELLA workshop14 3. IT, organisation and market of goods transport and logistics industry n 3.1. IT in organisation of transport groups n 3.2. IT and e-logistics n 3.3. IT and the limits of the firm

15. STELLA workshop15 3.1. IT as an additional department or branch

16. STELLA workshop16 3.1. IT as a transverse function

17. STELLA workshop17 3.2. IT and e-logistics n Segmentation of market n Virtual transactions are not the problem, real issue is physical distribution  cost  lead-time  reliability  B2C (delivery at home, at precise times, problems of no consignee, mistakes, payment, etc.)

18. STELLA workshop18 3.2. E-logistics network n Outsourcing or integrated distribution ?  dedicated e-logistics network  additional use of existing network  competition between newcomers and existing distributors n Vertical integration

19. STELLA workshop19 3.3. Subcontracting in the transport industry

20. STELLA workshop20 3.3. IT and the limits of the firm n Notion of mega, extended firm  extension of networks  diversification  spatial coverage, up to continental and global  including regular subcontractors  joint ventures  alliances n Integration or "bi-polarisation" ?  coherent single structure  division of labour:  organisation, marketing firm, controlling IT system, non asset (4PL)  operating firms, subcontractors

21. STELLA workshop21 n Industry and market structures are not the same in Europe and America 4. Conclusions

22. STELLA workshop22 4. Conclusions n Freight transport and logistics are involved in a sharp and massive change, where IT is a central element n Those emerging issues have still to be confirmed n Euro-American comparison research programs would be desirable...