Transport & Logistics

The transport and logistics sector is living in a dangerous world. Exposed and vulnerable to fluctuating economic conditions. In recent years the industry has felt the pressure from receding markets and rising oil prices.

This puts heavy demands on transport company ability to control costs and puts asset-heavy sectors like shipping, aviation and land transport under particular pressure. At the same time the globalisation and integration of supply chains has led to an increased demand for flexibility, precision and lower prices.

Spice that up with the demands for lower CO2 emissions and more safety - and the sector has plenty of challenges.

The transport and logistics sector can benefit from learning from other industries, especially when it comes to Lean, innovation, technology and operational strategy.

Lean

There are several successful examples of how the principles behind the production industry’s process excellence can be transferred to the transport and logistics sector. Focus is on value delivered to the clients, the elimination of waste, and on service delivery with narrow quality tolerances.

Innovation

The transport industry is ancient. For thousands of years there were only few and gradual changes. But in the last 50 years in particular, possibilities for innovation have grown substantially in tune with globalisation, new technologies and new business models. The winners are the companies that are able to shake traditions and redefine the segments they operate in – or invent new segments. The process of generation, acceptance and implementation of new ideas must be worked into the structure of the company’s daily work and culture. That is not easy for many transport companies.

Technology and operational strategy

A consequence of globalisation and the integrated supply chains of clients is the need for transparency, integration and the co-ordination of common processes with clients and suppliers. This puts heavy demands on the IT capabilities of the transport and logistics companies.

Despite innovation, transportation is basically a commodity. That’s why pricing and thus also cost is a central competitive factor. Technology plays an increasingly more dominant role in controlling and minimizing costs, including route planning, receivables management and fuel optimization.

  • Contact

    Contact Lars Leth if you’re about to start a project within transport & logistics or you just wish to know more.

    Lars Leth, Managing Partner
    lars.leth@ergoconsulting.dk
    +45 5143 4895

  • Cases

    Cases within transport & logistics

    The problems for the global shipping line in implementing a new IT-platform were becoming critical for the business.
    Read the case

    The container shipping industry’s ability to deliver cargo on time was 40% on average. Rethinking was necessary.
    Read the case

    More cases