Presentation on theme: "Time-critical logistics opportunities in air cargo Frederik Luz CSO, Marketing & Sales time:matters Holding GmbH, Frankfurt, Germany."— Presentation transcript:
Time-critical logistics opportunities in air cargo Frederik Luz CSO, Marketing & Sales time:matters Holding GmbH, Frankfurt, Germany
Seite Frederik Luz, % 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 The experts for Courier-, Sameday- and Emergency Logistics. Company Profile USPs 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.
Page 3 25/01/ Frederik Luz, 2008 time:matters is the expert for international time-critical logistics solutions servicing logistics companies and selected industries Commercial Linehaul Transports on LH Emergency Transports (OBCs / Charter) FLEXIBILITY Planned / StandardizedAd-Hoc / Individualized SPEED Cargo / ExpressCourier / OBC / Charter Linehaul Services B2L - Integrators / Wholesaler Courier, Sameday & Emergency Logistics B2B – Industries (Automotive, Aviation, High-Tech etc.) Courier Terminal Sameday & International Courier Transport Services Logistics Solutions Critical Spare Parts Logistics Emergency Logistics Industry Specific Emergency Logistics Linehaul Services Courier, Sameday & Emergency Logistics Critical Spare Parts Logistics Industry Specific Emergency Logistics
Page 4 25/01/ Frederik Luz, 2008 Time-critical logistics is a growing niche market with attractive business potentials and sustainable competitive advantages. 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). Market Potential >2.500 mln EUR Market Growth >15 %
Seite Frederik Luz, 2008 Especially time-critical Spare-Parts Logistics drive the need for sophisticated air cargo solutions. Transportable StorableNot too heavy (< 50 kg) Not too largeExpensive/capital intensive to keep on stock in large numbers High costs incur due to downtimes Vulnerability constant need for servicing Replacement parts and incidents erratic and unpredictable Delivery After-Sales- Service as competitive advantage International / decentralized production Spare parts criteriaEquipment/Facility criteria
Seite Frederik Luz, 2008 The market for time-citical logistics is growing at more than 10% per year, thus at a higher rate than the air cargo market.
Seite Frederik Luz, 2008 Everyday business. 97% volume driven. Regular & predictable. Requires consolidation, standardized handling processes & networks. USPs: -Network coverage -Standardization Primary focus on cost structures. Who can do it? Time-critical logistics services require a high degree of flexibility & individuality as they often disturb standardized processes. 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) Standard Air CargoTime-critical special services
Page 8 25/01/ Frederik Luz, 2008 How? Speed, service, competence. Its 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
Seite Frederik Luz, 2008 Example: Less than 20 hours to ship fashion samples from Delhi to a show-room in Long-Island, incl. pick-up, customs & delivery.
Page 10 25/01/ Frederik Luz, 2008 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: 2-3 days!
Seite Frederik Luz, 2008 Strategic positioning CostsRevenues Strategy for cargo airlines: outsourcing time-critical logistics services & focusing on the core (volume) business. 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. Increase competitive advantage through service line extension. Focus on core business, partner for niches.
Seite Frederik Luz, Market trends lead to a growing demand for specialized time-critical logistics services. 2.The use of available capacity for time-critical spare-parts logistics offers a competitive advantage in customer service. 3.Increased flexibility & individualization increased complexity … option for air cargo carriers = outsourcing service offer to a specialist. Summary: Demand for High-Speed will not slow down … 3 Things to Remember: