Trends and changes in the industry
Major restructuring is on the agenda
A large number of trends and changes in the industry have, in past years, led to major restructuring in companies operating in the logistics sector.
Workers sort packages in a DHL distribution center
On the one hand, the globalization of the economy has resulted in growth for the industry but, on the other hand, companies have also been forced to adapt to new market circumstances, develop new strategies and services and internationalize their operations.
Developments in logistics are influenced by:
Internationalization of markets
The globalization of markets has reduced the importance of national borders. Logistics companies in Baden-Württemberg have to be in a position to transport goods anywhere in the world by land, sea or air. They must do this on time and may also use subcontractors to some extent. This increases the demand for comprehensive transport services and for the integration of storage, transshipment, communication and planning services. At the same time, companies are under increasing pressure to optimize the quality and cost of their services and products. Logistical optimization of the material and information flows within a company provides significant potential for rationalization.
Global networks
In view of the increasing intensity of competition, the number of mergers and strategic worldwide alliances in the industry will continue to increase.
New areas of business
Logistics companies are increasing their range of services to cater for online marketplaces e.g. some logistics companies operate their own marketplaces or e-shops. The range of services on offer will continue to increase due to the individual requirements and needs of customers. According to a survey which was conducted in August 2006, 68% of companies had increased the range of services they offer over the preceding twelve months. The variety of services on offer will continue to increase in the future. Almost 80% of companies stated that they were expecting to further increase their range of services in the coming twelve months.
Continuous development of services offered by companies
Outsourcing
More and more commercial and industrial companies are concentrating on their core competencies. This means that logistics companies are taking on new activities such as the packaging of goods or the financing and operation of supply warehouses. The companies of the transport and logistics sector are convinced that outsourcing of logistical services will continue to increase. According to an SCI\/Logistics Barometer survey, around three quarters of the companies surveyed believe that Germany is on the threshold of a new outsourcing boom. Surveys of companies which ship goods came to similar results.
Development of niche markets
Companies will increasingly offer specialized services e.g. return transport of used electronic equipment due to new EU directives or the tuning of guitars and musical instruments.
E-Commerce
Young workers plan processes on a PC
Whether it be Business to Business (B2B) or Business to Consumer (B2C), online trading continues to grow quickly. This does however create new challenges for logistics companies, especially with respect to the final stage of distribution to the customer. The ever decreasing size of consignments and the speed of the Internet are just two of the challenges facing logistics companies. At the same time, online trading also represents an opportunity for logistics companies because the logistics of this type of business are generally more complicated than for conventional retail trading.
One-Stop-Shopping
New customers of logistics companies generally want to obtain as many logistical services as possible from one supplier.