1. t TNO Strategy, Technology and Policy Dr. Richard Hawkins E-commerce in the Logistics Sector Study for the Dutch Ministry of Transport, Public Works and Water Management Part of the Netherlands EBIP Contribution

2. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector2 Questions: What are the value-added characteristics of transport and logistics products and services? What is the influence of electronic commerce on the value- added structure of the transport and logistics market? What are the consequences for public policy?

3. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector3 Value-added characteristics Three hierarchical value chain tiers  Processing  Transport  Storage and/or Value-added logistics (VAL) PLUS two ‘vertical’ value chain tiers  Process management services  Logistics solutions

4. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector4 Generic value chain Logistics solutions Process Management ORIGIN Processing Transport Storage and/or VAL DESTINATION

5. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector5 Case study value chains – COMPAQ (European Distribution Centre) Logistics solutions Process Management ORIGIN Processing Transport Storage and/or VAL DESTINATION

6. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector6 Case study value chains – VOS Logistics solutions Process Management ORIGIN Processing Transport Storage and/or VAL DESTINATION

7. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector7 Case study value chains – VAN GEND & LOOS Logistics solutions Process Management ORIGIN Processing Transport Storage and/or VAL DESTINATION

8. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector8 Case study value chains – RYDER EUROPE Logistics solutions Process Management ORIGIN Processing Transport Storage and/or VAL DESTINATION

9. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector9 Case study value chains – DHL NETHERLANDS Logistics solutions Process Management ORIGIN Processing Transport Storage and/or VAL DESTINATION

10. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector10 Influence of electronic commerce on the value-added structure E-commerce not a strategic tool User driven change Few revenue effects E-commerce causes process innovation Effects mainly in increased internal process efficiency – increased revenue retention

11. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector11 Client profits too Industry still cautious with e-commerce No effects yet on transparency of markets Shifts to higher value-added levels

12. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector12 Consequences for public policy Possible market inequities and entry restrictions ‘Smart’ logistics firms may move off-shore Need to look at shift of lower value-added functions to logistics users

13. t TNO-STB, 25 October 2001 E-commerce in the Logistics Sector13 E-commerce footprint in logistics LOGISTICS