Presentation on theme: "Time-critical logistics opportunities in air cargo"— Presentation transcript:
1Time-critical logistics opportunities in air cargo Frederik LuzCSO, Marketing & Salestime:matters Holding GmbH, Frankfurt, Germany
2The experts for Courier-, Sameday- and Emergency Logistics. Company ProfileSpecialist 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.USPs100% focus on speed & special customer solutionsExclusive & preferred access to carrier networks (Lufthansa, Swiss World Cargo, >300 partners worldwide)International top customers, including big four integrators and many major logistics players / 3PLsProprietary IT-solution developed for time-critical solutionsOwnership structure enables high flexibility, customer orientation & focus on growth
3Courier, Sameday & Emergency Logistics time:matters is the expert for international time-critical logistics solutions servicing logistics companies and selected industriesLinehaul ServicesB2L - Integrators / WholesalerCourier, Sameday & Emergency LogisticsB2B – Industries (Automotive, Aviation, High-Tech etc.)Transport ServicesLogistics SolutionsCritical SpareParts LogisticsCourier, Sameday &Emergency LogisticsCritical SpareParts LogisticsIndustry SpecificEmergency LogisticsIndustry SpecificEmergency LogisticsLinehaulServicesEmergency LogisticsCourier TerminalSameday &International CourierEmergency Transports(OBCs / Charter)Commercial LinehaulTransports on LHFLEXIBILITYPlanned / StandardizedAd-Hoc / IndividualizedCargo / ExpressSPEEDCourier / OBC / Charter
4Time-critical logistics is a growing niche market with attractive business potentials and sustainable competitive advantages.Market Potential>2.500 mln EURMarket Growth>15 %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).
5Spare parts criteria Equipment/Facility criteria Especially time-critical Spare-Parts Logistics drive the need for sophisticated air cargo solutions.Spare parts criteriaEquipment/Facility criteriaHigh costs incur due to downtimesTransportableInternational / decentralized productionStorableNot too heavy(< 50 kg)“Vulnerability”—constant need for servicingDeliveryNot too largeExpensive/capital intensive to keep on stock in large numbersAfter-Sales-Service as competitive advantageReplacement parts and incidents erratic and unpredictable
6The market for time-citical logistics is growing at more than 10% per year, thus at a higher rate than the air cargo market.
7Time-critical special services Who can do it? Time-critical logistics services require a high degree of flexibility & individuality as they often disturb standardized processes.Standard Air CargoTime-critical special servicesEveryday business.97% volume driven.Regular & predictable.Requires consolidation, standardized handling processes & networks.USPs:Network coverageStandardizationPrimary focus on cost structures.Exception business3% of the orders … often require 30% of the capacities.(Often) unpredictable.Need for special solutions and ad-hoc processes; no consol.USPs:Verified experienceReliability / trustPrimary focus on solutions (service)
8How. Speed, service, competence How? Speed, service, competence. It’s the people, the network and the processes that make the difference!Point-to-point transportation & individualized pick-up / delivery:No consolidation, no hub & spokeImmediate, direct, customizedNo delays, no waiting, no complexity for customersNFO with special capacity guarantees and separate loadingWorldwide destinations to all major industrial centersLast in – first out; no mixture with freight / luggageTailored processes & complete monitoringTransportation & routing based on customers‘ problems / needsContinuous pro-active progress & interface checksPersonal responsibility, reachability & commitmentHighly skilled & motivated service teamExtensive know-how & experience in doing specials24/7/365 - any time<30 minutes reaction timeFact-Sheet
9Example: Less than 20 hours to ship fashion samples from Delhi to a show-room in Long-Island, incl. pick-up, customs & delivery.
10Example: 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 Airport08:05 pm: Flight to Frankfurt with LH02709:15 pm: Arrival in Frankfurt10:45 pm: Flight to Manila with LH788Next day:08:05 pm: Arrival in Manila09:05 pm: Shipment is available for the customerTransportation time: approx. 15 hrs.Time advantage: days!Fact-Sheet
11Strategic positioning Strategy for cargo airlines: outsourcing time-critical logistics services & focusing on the core (volume) business.RevenuesCostsOptimized 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.Strategic positioningIncrease competitive advantage through service line extension.Focus on core business, partner for niches.
12Summary: Demand for High-Speed will not slow down … 3 Things to Remember:Market trends lead to a growing demand for specialized time-critical logistics services.The use of available capacity for time-critical spare-parts logistics offers a competitive advantage in customer service.Increased flexibility & individualization increased complexity … option for air cargo carriers = outsourcing service offer to a specialist.