News & background
6TH EDITION OF 3PL SUBWAY MAP EUROPE LOGISTICS COMPANIES face increasing competition
Logistics service providers in Europe appear to be struggling to benefit from the current economic growth and e-commerce boom. Increasing complexity and rising customer demands are both driving the need for investment in IT and automation. This sixth edition of Supply Chain Movement’s 3PL Subway Map Europe fea- tures a number of new fourth-party logistics (4PL) service provid- ers who manage the logistics activities for their customers (‘ship- pers’) without having their own trucks and warehouses. Mean- while, logistics start-ups and scale-ups are behind a growing number of platforms that enable shippers themselves to effi- ciently manage their own transport needs online.
By Martijn Lofvers
Logistics service providers are under increasing pressure world- wide. Their customers expect ever-shorter delivery times with- out higher costs, driven by rising consumer expectations and Amazon’s progressive service approach that includes free ship- ping and same-day deliveries. Notably, the revenue of European logistics service providers has hardly grown at all, according to figures by the US consultancy firm Armstrong & Associates. In fact, their total revenue declined by 0.6% between 2010 and 2016, compared with 3.8% growth in North America. Despite the buoyant economy, numerous logistics service pro- viders in Europe are still enduring low margins due to the short- age – and hence high wage costs – of drivers and the growing complexity of fast e-commerce deliveries. As a result, the Dutch firm Nedcargo recently felt compelled to impose a one-off ‘buoy- ancy surcharge’ of 10% per inbound pallet, which it explained in a nationwide press release. Similarly, the German logistics com- pany Trans-o-flex has publicly announced a fundamental 5.5% price increase for 2019. According to the company’s director, it is a widely held misconception that investing in IT reduces costs. In fact, it is much more likely to improve service.
4PLs and start-ups
Most large logistics service providers are continuously expand- ing their services and the sectors they serve, leading to decreas- ing differentiation between the companies on the 3PL Subway Map Europe.
A small number of suppliers are 4PLs, orchestrating their cus- tomers’
entire 8 logistics activities without having their own
assets. A handful of 4PLs have been added to this year’s subway map because of the growth in this area, namely 4Flow, 3T Logis- tics, Log4 Chem, Kloepfel 4PL Solutions and E-llis. The familiar big names in logistics claim to be able to offer the same level of orchestration and logistics control towers, but they are not inde- pendent because they have their own warehouses and trucks that need to be filled.
DOWNLOAD THE 3PL SUBWAY MAP EUROPE 2018
The 3PL Subway Map Europe 2018, enclosed with this magazine, is also available for download at
www.supplychainmovement.com/category/visuals
Penn State University’s Annual Third-Party Logistics Study reveals that 11% of companies outsource logistics orchestration to 4PLs. Strikingly, 28% intend to bring their logistics activities back in- house, which is a slight increase on last year.
Besides that, logistics service providers are facing extra competi- tion in the shape of small start-ups and more established scale- ups. In ocean freight forwarding, the scale-ups Xeneta (DK) and Freighthub (D) are rapidly gaining ground and have recently been joined by a few more new start-ups such as Shypple (NL) and Transporteca (DK). The scale-ups Sendcloud (NL) and Cubyn (FR) are specialized in first-mile parcel pick-ups for online stores. The Swiss start-up LuckaBox, winner of the European Supply Chain Start-up Contest 2018, handles deliveries of online orders for existing retailers with the support of local, ‘green’ couriers in Swit- zerland and Austria.
Own start-ups Various well-known logistics service
providers are now also
launching their own start-ups. Since early 2017, Deutsche Post DHL has been competing against the scale-ups Everoad (F), Insta- freight (D), Fretlink (F), OnTruck (ES) and Sennder (D) and the start-up Cargonexx (D) through its own independent start-up Saloodo, a digital marketplace for European freight in 17 coun- tries.
ROAD TRANSPORT (LTL, TFL) EXPRESS
3PL SUBWAY 2018
www.supplychainmovement.com CITY & SUBWAY ARCHITECT: MARTIJN LOFVERS (SUPPLY CHAIN MEDIA) © 2018 4Flow Penske Bring Freja Itella Nordic Area Wincanton Davies Turner British Isle
Lineage Logistics (formerly Partner Logistics)
JFHillebrand (Meerendonk)
XPO Logistics
(Norbert Dentressangle, Menlo logistics)
HSF Logistics
Kloosterboer Samskip
Food District Arefpee River Kintetsu Docdata Hermes ID Logistics Logwin Teneso Decoexsa Shopping Mall
Dachser (Azkar)
Barge terminal Iberian Corner Dachser Ambroggio NedCargo (formerly Van Uden) Transport Riwo KLG Europe Hellmann LKW Walter Central & Eastern Europe Waberer’s STS Logistics
Neovia Logistics
Panopa
Gebrüder Weiss
Ziegler
Raben Group
Logistics JCL Ekol Logistics Den Hartogh Vos Logistics
Imperials Logistics
Seacon VCK Logistics Chemicals Area (APL Logistics) Harbour Quarter Asian
Hitachi Transport Sytem
Damco Lean Gefco (IJS Global)
FedEx (TNT)
TNT
Logistics Library
DPD
Shippers Sea
Innight
Nippon Express Pantos Logistics
Agility Cycleon Electronics Recycling Strip Tender Bay
Asian Quarter Northside
Trend Park
Andersen 4PL Memorial
Fiege Ferry Downtown Logistics 3T De Rijke syncreon ModusLink FM Logistics Hospital Medical Area UPS
BDP International
H.Essers
LGI Logistics Rhenus
Yusen Logistics (NYK)
4PLCentral Station
Kloepfel
Jan de Rijk Logistics
4PL Solutions SCM International Airport Ewals
Mainfreight (Wim Bosman)
Central station Jabil Flextronics Phoenix Group Alloga OnProcess Accenture E-llis
E-FULFILMENT INTERMODAL (AIR, SEA, RAIL) FREIGHT FORWARDING & CUSTOMS CLEARANCE WAREHOUSING & VAL SUPPLY CHAIN ORCHESTRATION (4PL) FOOD (COLD CHAIN) CONSUMER PACKAGED GOODS & RETAIL CHEMICAL LOGISTICS HIGHTECH, ELECTRONICS & TELECOM HEALTHCARE & PHARMACEUTICALS AUTOMOTIVE & MANUFACTURING SPARE PARTS LOGISTICS INTERCOMPANY PEDESTRIAN TUNNEL
TOP 10 GLOBAL 3PL’s 2017 Gross Logistics Revenue (USD Millions)* 1 DHL SUPPLY CHAIN
2 KUEHNE+NAGEL 3 DB SCHENKER 4 NIPPON EXPRESS 5 C.H. ROBINSON
SOURCE: ARMSTRONG & ASSOCIATES (2017)
27,598 22,574 18,560 16,720 14,869
SUBWAY MUSICIANS (ANALYSTS) 6 DVS 7 XPO LOGISTICS 10 CEVA LOGISTICS
11,374 9,506
8 UPS SUPPLY CHAIN SOLUTIONS 7,981 9 SINOTRANS
7,046 6,994
ARMSTRONG & ASSOCIATES CAPGEMIINI & GEORGIATECH CSCMP EYEFORTRANSPORT FRAUNHOFER GARTNER PWC
SUPPLY CHAIN MEDIA TRANSPORT INTELLIGENCE
e-Logistics Control
Rail & Barge terminal
Log4 Chem
Ferrymasters P&O Logistics BLG Schenker DB
Arvato SCM Solutions
Ceva DSV DSV (UTi)
Bolleré Logistics
Geodis (formerly SDV) Kuehne+Nagel DHL CH Robinson Expeditors Panalpina
SUPPLY CHAIN MOVEMENT, No.31, Q4 2018
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