IBT Partners has specialised knowledge in the logistics sector and provides financial, business and technical consultancy services.

The logistics industry has specific challenges that need appropriate expertise. Our know-how helps you achieve your international business and trade development goals. We offer you sector-specific knowledge, as well as our contacts and opportunities for networking.

Our services and solutions are tailored to the needs of each of our customers, please see Government and Corporate for more detailed information.

Read more about logistics sector:

• Background
• Current challenges
• Opportunities

Logistics background information

The exponential growth of the logistics sector within the last few decades reflects globalisation and the establishment of new business models. These include increasing interest in outsourcing at both national and international levels, record growth of e-commerce and the importance of a partnership between manufacturer and logistics provider. Today, the necessity of a company-wide logistics strategy is recognised by senior management and logistics forms an integral part of the business plan¹.

Current challenges in the logistics sector

Logistics, by definition, is a highly cyclical industry and therefore was one of the first to feel the economic crisis, but also saw early recovery signs. The latest Annual State of Logistics Report² from June 2010 documents the decline in logistics activity in 2008 - 2009, when business logistics costs  fell from 9.3% to 7.7%. This 20.2% drop in demand for logistics affected all modes of transportation but notably trucking, rail, and ocean modes. Air cargo saw early recovery as of the end of 2009, followed by truck freight volumes and truck fleet utilisation rates.

The sector's recovery was accelerated by restructuring the distribution networks to increase efficiency and reduce mileage, supporting green investments in transportation, and improving real-time data flows to increase visibility. As of 2010, with the recovery of the sector, transportation costs rose reflecting undercapacity. Today the sector faces systemic fuel price increases, as well as the challenges of further regulations such as CSA 2010 and environmental restrictions².   

Opportunities in the logistics sector

In order to keep pace with developments in the logistics sector, it is important to have access to actual, accurate and complete information and in-depth expertise. This includes trends, sector's key success factors, advancements and innovations, supply and demand development, operational and financial risks, benchmarking, as well as regulations and opportunities for funds and grants. Some of logistics experts' predictions for trends include³: 

• "Software as a Service"

  → Expansion in the solution development and sale of low fee downloadable applications that users can implement themselves.

• B2B connectivity

  → B2B connectivity is becoming a vital factor in creating an end-to-end supply chain solution; therefore necessitating more partnerships.

• Social media in logistics processes

  → Examples include use of social media in 3PL*.

• Increase in transportation rates

  → Mainly due to rising oil prices and smaller capacity partly caused by regulations.

• Currency risks on supply chains

  → Monetary policies are increasingly important while managing global supply chains as a consequence of currency volatility.

• Mergers and acquisitions

  → Software and hardware vendors are predicted to cooperate at closer levels.

• GPS-style track and trace solutions conversion with routing and fleet maintenance solutions

  → After using historical data from GPS to make more accurate predictions on traffic congestion and thus better routing, the next step is to improve integration with real-time traffic data generated by a network of connected GPS drivers in cities. New entrants in this field are expected.  

• Business Intelligence capabilities embedded in logistics software

  → Improvements are necessary due to increasing demand for BI capabilities that provide real-time analytics.

• Robotics

  → Increased use of robotics especially in the warehouse, where their use is affecting all operations.

• Increased hiring for management positions in the logistics sector

• Shortage of drivers

  → Reduction in the number of drivers as a consequence of CSA 2010 regulations.

* 3PL - Third-party Logistics

1) IWLA. 2009. Industry background. Online at http://www.iwla.com/why/industry.aspx

2) CSCMP. 2010. 21st Annual State of Logistics Report. Penske

3) Gonzalez, A. 2010. Supply Chain and Logistics Predictions for 2011. Logistics Viewpoint. Online at http://logisticsviewpoints.com/2010/12/15/supply-chain-and-logistics-predictions-for-2011/

Contact us

If you would like to know more about our logistics sector expertise, please contact us at
logis@ibtpartners.com
for additional information.