CooLogistics, London July 1, 2008 Mats Enqvist, LCL
– ”Closing the gap between producers and retailers” –
Closing the gap ME June 2008
”Closing the gap” • Definition of terms • “Closing the gap” • World trends • LCL today - positioning LCL as LLP • Some conclusions and remarks
LLP? 3PL? 4PL? • • •
•
LLP = lead logistics provider The operator is not tied to any specific carrier and does not employ its own transport equipment. Acting as a supply chain partner who takes responsibility for assembling and managing the resources, capabilities and technology of its organization with those of complimentary service providers. Utilising a lead logistics partner solution places responsibility and accountability of the management, performance, cost and development of supply chain functions, transactions, systems and logistics suppliers under the umbrella of a single partner.
LLP – success criteria
• Carrier independent • Mode independent • Focused on perishables • Trade independent – global
Closing the gap
In perspective...
The gap in 1988... • • • • • • • •
Producer Cooperative Export board Panelist Importer Wholesaler Retailer Consumer
The gap 2008: • • • •
Producer LLP Retailer/category manager Consumer
Closing the gap • This trend has been driven by leading retailers • Perishable logistics is now where many dry commodities were already 1988 (market driven supply, drip feeding, lean inventory, JIT etc) • Now and before this trend is built on logistic expertise and the management of information • The consumer has come out on top
Closing the gap between producers and retailers
Closing the gap between producers and consumers
Closing the gap
How to do it?
Align with Current trends
Closing the gap OSP/majo 3 Sep 2007
Aligning with World Trends
• Be environmentally conscious
Aligning with World Trends • Less air and trucking, more sea and rail
Aligning with World Trends B R I C T Surface Area
Population
BRICT
39,259,515 km²
2,84 billion
World
148,939,063 km²
6.6 billion
Main Seaborne Imports of Reefer Commodities
West / Eastern Europe 31%
North America 19% Middle East 6%
Far East / SE Asia 32%
Aligning with World Trends • Abundance of varieties sourced from many more places
Aligning with World Trends • Fish/seafood farming will be booming
Aligning with World Trends •Regional Sourcing will change
Aligning with World Trends
• Export / import ’windows’ will narrow
Closing the gap
LCL today
Closing the gap the LCL way a) Bringing producer & retailers together through unique logistic solutions b) Knowing our customer’s business and making them competitive c) Remaining expert in our niche, keeping a passion for perishables d) Independent logistics integrator, LLP, free with respect to carrier and transport mode e) Out-sourcing or procuring non-strategic and in-source strategic services or hard-ware f) Forging alliances/partnerships with service providers in the sea, land, air covering the entire supply chain – share value g) Offering simplicity + transparency, supplying instant information to customer and partners through IT solutions
Conclusions for LCL as LLP 1. The gap is closing - logistics is the bridge! 2. Key #1 is understanding your customer’s business and being alert to market and consumer trends 3. Key #2 is adding value to partners and service providers. 4. LCL is positioned to close gaps between producers and retailers world wide and is confident LLPs will be instrumental in that process
Some final remarks:
• To shippers and retailers: Do not see the LLP as an unnecessary intermediary between yourself and the carrier. Let the LLP challenge your present logistic solutions! • To carriers: Do not look at the LLP as a competitor. To close the gap and bring the customer on board may call for an expert partner who can bring more volume and business in the mutual interest of the carrier and the LLP
Some final remarks:
• To today’s audience: Thank you for listening and remember....
An empty shelf today cannot be filled tomorrow