Results (
Spanish) 1:
[Copy]Copied!
The size of the TPL industry is difficult to estimate for several reasons:Many TPL providers are part of a larger company and do not publish individual data on their revenues.Government statistics are not available since TPL is not yet recognized as a separate industry.Many TPL providers subcontract part of their activities to lower level providers, so there is a risk of counting revenues or activities twice.There is still a lot of confusion about terminology; in fact any self respecting transportation company these days tends to bill itself as a logistics company or even as a supply chain partner. Despite these difficulties, we have made two alternative attempts to derive estimates of the size of the TPL industry.The first estimate is based on the size of the Dutch transportation and distribution sector, which is according to government statistics, DFL 25 billion(8%of the NetherladsGDP). A quarter of this is outsourced (DFL 6.3 billion) and using trucks as a cut off between transportation and logistics companies(12) yields and estimate of the Dutch TPL sector of DFL 600 million (US300 million) in1995. If we apply the Dutch ratios to Europe, using the European GDP as a starting point, we obtain an estimate of the European TPL market size of US 7.3 billion. This estimate is probably too high, because of the prominent position of the transportation and distribution sector and the large export volumes in the Netherlands, in comparison to other European countries.A lower bound on the market size is obtained by considering the number of the European Distribution Centers and the activities carried out there in outsourced EDCs, EDCs in which the activities are carried out under the responsibility of a logistics service provider are outstanding examples of TPL. After all, the warehousing, and EDCs are usually characterized by close cooperation between a shipper and a provider.The total number of outsourced EDCs is currently approximately 660, with average personnel size of about 30 FTEs per EDCs according to recent numbers of the Holland International Distribution Council . Consequently there are 20000 people working in outsourced EDCs in Northem Europe. This leads to an estimateof US 1.5 billion of warehousing activities, and using the same estimate for transportation activities, to an estimate of 3 billion for the total revenues realized by TPL providers in outsourced EDCs. Other activities and regions have to be added, for example outsourced transportation and warehousing activities in the English retail sector, which are estimated to be 2 billion and ultimately we obtain a lower bound in the US 5 billion range.It should be noted that both estimates are substantially lower than a widely quoted estimate for the size of the TPL industry in the United States, whereas the total logistics expenditure in the two continents is roughly the same. The cass estimate is obtained in two ways, a top down way based on the total amount spent in the United States on logistics and a outsourcing percentage 6% and a bottom up, way based on estimates of the revenues of all US based TPL providers. Cass thus estimates the total revenues in TPL in the United States in 1996 to be US $25 billion and a US $25 billion estimate for Europe could therefore be expected as well [15]. However, the outsourcing percentage in the United States might be higher than in Europe; also, we believe the Cass estimates to be too high, because situations in which only transportation activities are outsourced (which do not correspond to our definition of Third-Party Logistics) are included in the estimates.Summarizing, we conclude that TPL in Europe has grown into a substantial industry, whose size is in the US $5 to 7 billion range. Moreover, it is expected that the industry will continue to grow substantially in the coming years [16]. Our survey participants, who are experiencing annual growth rates of more than 40% over the period 1995-1998, confirm this. This average is even higher than other studies show, which might be due to the fact that in the survey we explicitly asked for growth in logistics and not in company sales.Some interesting questions that arise next are: - who are the major industry players?- In what stage of development is the industry?- Is a strategic segmentation already emerging?- Which segments are growing fastest and which are most profitable?- How do TPL players add value and which players are best positioned to do so?The next sections try to answer the above questions.TPL PROVIDERSFrom the survey and a further analysis of international logistics service providers, it appears that there are three waves of entrants into the TPL market. The first wave dates back to the 1980s or even earlier with the emergence of what we would nowadays call traditional logistics service providers. We refer to companies such as ASG in Sweden, Exel in the UK and Frans Maas in the Netherlands. Usually the TPL-activities of these companies have emerged from a traditionally strong position in either transportation or warehousing (e.g. UK retail industry).The second wave dates from the early 1990s when a number of network players, mainly parcel and express companies such as DHL, TNT and UPS, started their TPL activities. DHL started logistics activities in 1992. UPS Worldwide Logistics was started in 1994. FedEx renewed its interest in logistics with its recent acquisition of Caliber Logistics. Usually the TPL activities of these companies are based on their world wide air express networks and their experience with expedited freight.The third wave dates fron the late 1990s. Currently and in the very near future, we will see a number of players entering the TPL market from unexpected areas, such as information technology, management consultancy and financial services. These new players will probably work together with players from the first and second waves. In most cases several shippers and providers are involved (17). We mention a few examples: 1)IBM, has a stake in Hi-Tech Logistics, a UK-based company specializing in offering logistics solutions to high-tech companies with a turnover of GBP 35 million in 1995 (the other joint-venture partner is a traditional service provider, Tibbett & Britten), and IBM Global Services is involved in an alliance with Ryder and Andersen Consulting.2) In September 1996, Microsoft introduced its Value Chain Initiative, an alliance of Microsoft and other companies to develop "integrated solutions designed to redefine transportation logistics the length and breadth of the supply chain", based on a combination of PC and Internet technologies [18].3)Andersen Consulting and New Holland have established a joint venture called New Holland Logistics, which aims at providing world-class logistics solutions and services to New Holland. It is also involved in the alliance with Ryder and IBM.4) GE Capital Services has a majority stake in a joint venture with the Penske Corporation called Penske Truck Leasing Co. Its European subsidiary, Penske Logistics Europe, has as its stated objective to become a market leader in Europe whitin five years Chemical producers are one of the target sectors for Penske.5) Geo Logistics was formed by an investment firm that merged the three first wave TPL providers, Bekins, LEP and Matrix in 1997; and added a strong consulting group that develops concepts, information systems and implementation plans to improve clients supply chains.
Whereas the first and second wave entrants base their strength on traditional logistics activities such as transportation, warehousing or running a schedule network, these new players build on very different skills such as a IT, consultancy or financial skills. In other words, there is a gradual shift from asset based to skill or systems based players.
Being translated, please wait..
