4. Logistics Network Congress Hannover 2006

Transcription

1 4. Logistics Network Congress Hannover 2006 Umsetzungsstrategien und Konzepte erfolgreicher Logistikansiedlungen CE v5.9 von Roland Hennebach Vice President ProLogis Germany

2 space in Europe; meeting tomorrow s demand Questions to be answered Which macro economic trends have the most significant impact on supply chains? How are supply and distribution networks changing? Which requirements will be put on warehouse space? Study set-up 200+ companies participated in a web-based survey; 15 focus interviews were conducted Even split of the respondents companies between shippers and Logistics Service Providers (LSP s) What is the outlook for the near future regarding warehousing?

3 The study translates macro trends and supply chain developments into distribution networks and warehouse requirements Macro trends and supply chain developments Distribution network changes functions Outlook for the future locations requirements

4 Emerging markets and increasing service requirements are the most important macro economic drivers from a supply chain perspective Macro trends of significant influence on supply chains Emerging markets in Asia, Eastern Europe Increasing demand for better service Shorter product life cycle Increasing cost of fuel New technology developments (RFID) Growing assortment of products and services, mass customisation Safety and security regulations becoming more strict 27% 36% 44% 36% 48% 49% 51% 44% 52% 49% 61% 70% 69% 81% 0% 20% 40% 60% 80% 100% Percent of respondents Supply chain trends of significant influence on distribution centres functions and processes Increasing importance of narrow delivery time windows Growing Asian and CEE sourcing Reduction of the allowed customer lead-time Increasing usage of recent IT developments (RFID) Increasing inbound volumes Growing requirements for specific warehouses Increasing variation in transport modes Increasing usage of containers for transportation of goods 19% 27% 26% 24% 21% 33% 39% 37% 49% 33% 51% 64% 70% 68% 64% 63% 0% 20% 40% 60% 80% 100% Percent of respondents = Shippers = LSP After a period of cost cutting the supply chain becomes a strategic service weapon

5 The study translates macro trends and supply chain developments into distribution networks and warehouse requirements Macro trends and supply chain developments Distribution network changes functions Outlook for the future locations requirements

6 Pan-European distribution networks are consolidated and expanded at the same time Expected distribution network changes: shippers Expected distribution network changes: logistics service providers Further consolidation 64% Opening of new facilities in CEE 72% Changes in network Outsourcing to pan-continental 3PL / 4PL Increase size of existing warehouses Large scope changes in used transport mode Changes to network 38% 32% 26% 26% 17% Consolidation of warehouses Further development of inter-modal transport Increasing size of current facilities Large scope changes in used transport mode 49% 45% 40% 40% Decentralisation 10% Reduction of number of hubs / depots in Europe 38% 0% 20% 40% 60% 80% 0% 20% 40% 60% 80% Percent of respondents Percent of respondents New network structures are required to deliver high service over a large area

7 Regional distribution structure emerge to cover the expanded European region RDC ELC RDC RDC RDC RDC RDC Timeline Local distribution structure Centralised distribution structure Growing importance of regional distribution

8 Preferred countries for opening DC s are Czech Republic and Poland Country of Potential DC location Western Europe Country of Potential DC Location CEE Netherlands '''''''''''''''''''''G''''e''''''''''r''''45an''''''''''''''6' '''S''''''''''''p''''''''''''''''a''''i''n''''''''''''''''''''' '''''''''''''''B''''''''e''''''''lg''''''''i''''u''''45''' '''''''''F''r''a''''''''n''c''''''e''' '''U''''''''''''''''''''''''''''K''''''''''''' Czech 23 Republic '''''''''''Po''l''''''''a''''''''''''''n''''''28''''''''''''''' '10u''n''g''a''''''r''''''''''''''''''''''''''''''''''''''6''''' 13 '''''''''''''''''R''''u''''''''''''''''''50''''''''''''''50ia''' 13 '''''''S''''''''''''''l''''ova''''''''''''''k''''''i''''a''''' '''''''''''''U''k''''''''''''''''r''''a''in''''''''e''''' '''''''''''''Tu''''''''r''k''''e''''''''''''''''''''6''''''''' '''''''''''''''''I''''''''''''''''''a''''l''''''''''''6''''' 9 9 '''''''''''''''''R''''''''''''''''''''o''''''''''45''''''a''nia' Number of respondents Number of respondents = Shippers = LSP LSP s lead the way into a second wave of CEE Countries: Hungary, Russia and Slovakia

9 locations are selected based on availability of transport and distance to market Important factors for DC location Availability of transport infrastructure Distance to market Cost of warehousing space Availability of labour Labour costs Proximity to supply (shippers) / client's sites (LSP's) Proximity to port(s) Proximity to inter-modal hub 71% 83% 68% 73% 42% 53% 40% 56% 37% 51% 31% 35% 21% 37% 16% 41% 0% 20% 40% 60% 80% 100% Percent of respondents = Currently = Expected in 3 year When selecting a warehouse location for the future the shift in transport modes needs to be anticipated

10 The need for an adaptive distribution network changes the way warehouse space is acquired Lease term vs. actual usage term % of respondents 60% 45% 40% 20% 0% 37% 32% 15% 19% 4% Companies interested in multi-user facility set-up Currently Preferred lease term = 1-3 years = 4-6 years = 7-10 years Longer Expected in a 3-year horizon 40% 56% 23% 26% Actual usage term 79% 85% 0% 20% 40% 60% 80% 100% Percent of respondents Remarks 53% of respondents chooses to lease warehouse space The actual usage term exceeds the lease term Shippers outsource logistics in order to be flexible Main reason for leasing is flexibility, mentioned by 94% of shippers LSP s use multi-users sites to reduce the impact of contract termination of individual contracts LSP s or shippers need to choose who owns the warehouse contract = Shippers = LSP More flexible ways of acquiring warehouse space need to be developed

11 The study translates macro trends and supply chain developments into distribution networks and warehouse requirements Macro trends and supply chain developments Distribution network changes functions Outlook for the future locations requirements

12 Distribution centers gradually change in function, establishing more value added services and cross-dock activities Processes to be expanded in distribution centres in a 3-year horizon. Floor space occupied by value added services area 'Cro''''''''''''51 ''-''''''''''''''28''''''oc''k' '''''''''''''7''''''''''''9''''''%''''''''''''''' '''''8''''''''''''''4''''''''''''''''''''''''''''%' 3% '''''>''''''''''2''''0''''''''''''''''''''''%''''''' 13% Value added services '''''''''''7''''''''''''5''''''''''''''''''''''%''''' 9% '''''''1''5''''''''-''''''''''''''''''2''0''''''%' '''''84''''''''''''''''''''''''''''''''''''''''''''''''''''%''' 21% '''''''''3''''1%''''''''''''''''''''''''''''''' '''''''''''''''''R''''''eu''''''''''''''r''n''51''''''''''''''' '''''''''''5''9''''''''''''''%''''''' '''''''''''1''0''-1''5''''''%''''' 29% 29% '''''2''''''''''''''''''''''''''''''''7''''''''''''%''''''''''' '''''''''So''''''''''''''''''''''''''r''a''''''''''''ge' '''''''''''''''''''''''''4''''''''''''''''''''''0''''''%''''' '''''''''''''''''''''''1''''2''''%''''''''''''''''''''''''''''' '''''''''''''''R''''''''''e''''p''''''''''''a''''i''''r''''''' '''4''0''''''''''''''''''''''%''' Percent of respondents '''''''''''''''''''''''''''0''''''''''''%''' '''''''''''''''''''5''''0''''''''%''''''' '''''''''''''''''''''''''''''10''''''''''0''''''''%' 29% '''''''''''''''''5''''''''''-1''''''''''0''''''''%''''''''''' 22% 29% '''<''''''''''''''''''5''''''''''%''''''''''''''''''''''''''''' 16% Percent of respondents '''''''''''''''''''''0''''''''''''''''''''''%''''''''''' '''''''''10%''''''''''''''''''''''''''''''''''''' '''''''''2''''''''''''''''0''''%''''''''''' '''''''''''3''''''''''''''''''''''''0''''%''''''''''''''''' 40% = Shippers = LSP = Currently = Expected in 3-year horizon Changing activities impact the warehouse building requirements

13 Main bottlenecks are insufficient space and number of doors Key bottlenecks in the distribution facilities Insufficient space of operating area 30% 32% Insufficient number of loading doors 24% 31% Insufficient level of security Insufficient sprinkler installation and fire protection 21% 21% 30% 35% Insufficient floor load capacity 20% 23% Insufficient clear height 19% 24% Insufficient quality of operating area 19% 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% Percent of respondents = Currently = Expected in 3-year horizon Fire protection and security will become a dominant issue in the future

14 The study translates macro trends and supply chain developments into distribution networks and warehouse requirements Macro trends and supply chain developments Distribution network changes functions Outlook for the future locations requirements

15 Outlook for the future Networks and warehouse space trends Distribution networks will be adjusted Continued consolidation of distribution facilities Emergence of regional distribution network structures requirements change gradually Currently developed warehouses fit the majority of the needs The value added services area poses additional requirements Growing importance for services provided onsite Security and sustainability are rising Insurance companies drive fire and security measures Measures for recovery are required Sustainability is not just an headquarters issue

16 Outlook for the future Meeting tomorrows demand requirements; focus on outside Location becomes more dominant than the building itself Connection to multi-modal transport need to be considered Flexible ways of matching warehouse space Time to market for warehouse space will be compressed space vendors that can offer flexibility in terms of location, space volume, function and costs will be the winners.

17 Example: ProLogis Park Hamburg

18 ProLogis Park Hamburg

19 ProLogis Park Hamburg

20 Example: ProLogis Park Munich-Airport

21 ProLogis Park Munich-Airport

22 ProLogis Park Munich-Airport

23 Thank you very much for your attention! ProLogis Germany Management GmbH Roland Hennebach Am Eifeltor Koeln Tel.: +49 (0) Mobil: +49 (0) CE v5.9