1
Comparative logistics capabilities between
Europe and Asia
Jan C. Fransoo
Technische Universiteit Eindhoven
/department of technology management
2
Asia comparison
• learnings across developing regions: Chinese coastal
zones with Central-Europe, Chinese inland zones
with Eastern Europe, what are good policies for
national/provincial governments to boost
development
• role of industrial and logistics parks
both: governments as "client" or "problem-owner"
rather than industry as such
• best practices of companies
• study on ports with Chung-Yee Lee, HKUST
/department of technology management
3
Supply Chain Management and the
Transportation Infrastructure in Europe
Jan C. Fransoo
Technische Universiteit Eindhoven
/department of technology management
4
Position of CE (not: CEE)?
• CE as a source
• CE as a postponement center
• CE as a market
in all scenarios: component sourcing from Far East
/department of technology management
5
Transportation perspective in Europe
/department of technology management
6
European Commission (2001)
• White paper: European
Transport Policy in 2010
• Congestion:
– 10% of road network: 7,500
km
– 20% of rail network: 16,000
km
– Costs: 0.5% of GDP (1.0%
by 2010)
– Forecast 50% increase of
goods traffic by road in 2010
/department of technology management
7
Use of transport modes (EU-15; Gtkm)
1400
1200
1000
800
1980
2001
600
400
200
0
Road
Rail
/department of technology management
River
Sea
Pipeline
8
Road
• Road carries 44% of freight
• (and also 79% of passenger transport)
• Each day 10 hectares are covered by road
infrastructure
• Car fleet expands by 3 million cars every year
/department of technology management
9
Rail
• From 1970 to 1998: from 21% to
8% freight marketshare
• Average speeds of international
rail freight: 18km/h
• 600 km of track closed every year
• EU: investments to stimulate rail
• Industry: no confidence in rail
(strikes, no single operator,
unreliable, …)
/department of technology management
10
Water
• Growth in short sea shipping
matches road growth
– Administrative (customs)
difficulties largely resolved
– Huge growth potential
• Inland waterways largely unused
– 9% of freight in
Rhine/Main/Danube network
– 1 barge = 110 trucks
• Slower modes require smarter
networks: joint operations of sea
and inland terminals
/department of technology management
11
/department of technology management
12
Research questions & opportunities (1)
• Operation of joint terminals network as single virtual
terminal
–
–
–
–
dynamic inventory positioning in network
inventory allocation and reallocation while in transit
queuing effects at terminals
service concepts
• How independent are SC structures from
transportation infrastructures, or does road always
provide the option to execute any sc structure? What
about other sectors than electronics?
/department of technology management
13
Research questions & opportunities (2)
• Industrial / logistics parks strategy strongly dependent on role:
– source: manufacturing and capability driven, must be reachable
for components in efficient way, taxes; industrial parks and
logistics parks can develop separately; example: Philips campus
in Poland
– postponement center: closer to market, more supply chain /
logistics driven, likely to be positioned aligned with terminals in
network,; industrial parks (postponement center) and logistics
parks aligned. Customization in Prague
– market: supply chain design very strongly based on
transportation network and shifting center of gravity within
Europe. Network role of Constanta – Vienna axis
/department of technology management
14
Research questions and opportunities (3)
• your input
/department of technology management