HOW START-UPS DIGITALIZE LOGISTICS OLIVER WYMAN POINT-OF-VIEW

Transcription

1 HOW START-UPS DIGITALIZE LOGISTICS OLIVER WYMAN POINT-OF-VIEW JULY 2017 SEBASTIAN SCHAMBACH

2 Logistics industry sector in Germany World s largest 3PLs 1 DHL Supply Chain 29 BN 2 Kühne + Nagel 21 BN 3 DB Schenker 17 BN 4 Nippon Express 16 BN 5 Sinotrans 7 BN 6 Expeditors 7 BN 7 Dachser 6 BN 8 Panalpina 6 BN Hellmann 4 BN Logwin 1 BN > 250 BN vs. < 300 MM Logistics revenues in Germany in 2016 Investments in DACH Logistics Startups over last decade 1

3 The start-up landscape shows five major clusters in which entrepreneurs have focused their efforts Start-up clusters according to semantic analysis of their activities (colored by clusters; sized by degree of similarity with others) Alternative vehicle technologies Internet of Things (incl. Augmented Reality, AI, machine learning) Warehousing solutions & storage management (incl. storage providers) Robotics & Self- Driving Trucks (incl. automated solutions) Software Solutions (incl. Blockchain) Online Platforms Asset Management Robotics and Self-Driving Trucks Online/Mobile based solutions for truck drivers Support service solutions (incl. shipping and tracking) Freight transportation marketplaces On-demand delivery platforms GPS tracking & Fleet Management Shipping Execution and Tracking Data and Analytics Solutions Note: Semantic algorithm looks for key words in activities description and create links based on similar language. Connections represent similar language, high density represents highly similar language, central nodes and clusters are core to the overall network / peripheral nodes and clusters represent niches on the topic Source: Crunchbase, Capital IQ, Quid, Oliver Wyman analysis 2

4 Scalable and asset light business model dominate the recent company creations, while innovative physical products show longer development cycles Number of start-ups created per category 1 Global, Online Platforms Shipping Execution and Tracking Robotics & Self-Driving Trucks Data & Analytics Solutions for Transportation and Logistics Asset Management /year 1. Data filtered by size of investment received depending on maturity of company (e.g. > $2.5 MM for companies older than 2015) Source: Crunchbase, Capital IQ, Oliver Wyman analysis 3

5 The operative start-up landscape in the DACH region mostly confirms global founding trends absolute number of startups remains below US / APAC >40 Start-ups Data & Analytics Solutions 21% 24% Online Platforms Asset Management 19% 31% 5% Robotics & Self-Driving Trucks Shipping Execution and Tracking 4

6 The logistics industry is facing digital disruption along its entire value chain and increasingly competes with start-ups in innovative and asset light steps of the chain VIRTUAL MANAGEMENT OF SUPPLY CHAIN (4PL) PAYMENT SOLUTIONS / BLOCKCHAIN Manufacturing & SCM Freight Forwarding & Brokerage Ocean/Air Warehouse & Contract Logistics Trucking Last Mile Delivery Predictive sales and capacity mgmt. Volume forecasting and Revenue Mgmt. Physical transportation Warehouse ownership Physical trucking Delivery services Automated purchasing Price / freight rates comparison Origin/destination handling Labor provision Fleet management Automated solutions (drones, robotics) Variant configurator Real-time price information Shipment tracking Automation and robotics Telematics Connectivity / tracking services Artificial Intelligence, Machine learning Freight matching and market places AI, machine learning, M2M Alternative vehicle technology Crowd-sourced delivery Augmented Reality Next generation manufacturing Document management Augmented Reality Self-driving solutions Connectivity / tracking services SCM (cloud) software Colored = Start-up focus Source: Oliver Wyman analysis 5

7 LOGISTIC FIRMS Digitally integrating into clients supply chain and production processes Optimizing own operations and processes (e.g. warehouse robotics 1 ) Illustrative excerpt / Not exhaustive Established logistics players face new competition for attractive start-up players Tech Giants, Mobility Providers and Venture Capitalists with increasing emphasis TECH GIANTS Creating next generation logistics, e.g. in last mile delivery (Amazon, Alibaba 2 ) Applying big data analytics, artificial intelligence and machine learning in logistics (Google, SAP, etc.) MOBILITY PROVIDER Intelligently connecting passenger and cargo transport Developing autonomous driving solution Defining integrated trucking solutions / platforms VCs Tapping into fastest growing, disrupt-able areas of logistics Identifying scalable, asset-light business models, e.g. Freight Forwarding 1. Robotics includes drones, driverless technologies, augmenting reality, warehousing robots 2. Investments into Dehlivery and xpressbees are planned by Alibaba Source: Oliver Wyman analysis 6

8 When developing an interaction approach with entrepreneurs/ start-ups, logistics managers face four main options to carefully prioritize LEARN Scout emerging ideas, technologies and market segments enhancing the core business Establish connections with the innovation community, get direct access to entrepreneurs, inventors and innovators PARTNER Provide material and financial support across development stages Influence early-stages development decisions through close collaboration Set up efficient control mechanisms without interfering with entrepreneurial spirit INVEST Rethink traditional profit models learn from successful venture capitalists Build growth strategy jointly with start-ups through majority participation Protect disruptive innovations through commercial partnerships/incubations COLLABO- RATE Build processes and culture to foster collaboration with external innovation structures Ensure acceptance in legacy organization and build innovation culture 7

9