Problems and new solutions in logistics: Central Loco Workshop

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Problems and new solutions in logisticsCentral
Loco Workshop

• NIKODÉMUS Antal
• deputy head of department
• Ministry of Economy and Transport
• 2007. February 22.
• Stefania Palace

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Dimensions
Depth
Width
Drivers
E.g. lower barriers to FDI New players Increased comoetition Market seeking FDI E.g. increased market based resource allocation Efficiency seeking FDI Specialisation by foreign affiliates
E.g. transport innvation Asset seeking FDI New players New FDI location opportunities E.g. ICT innovations Cross-border technology alliences International off-shoring Facilitates FDI by SMEs
Policy factors
Technolgy factors
3
Organisational modes for cross-border production
and investment
Modes
Greenfield investment International MA
Inter-firm trading transactions Strategic alliences Partnership Non-equity joint venture
Cross.border insourcing
FDI
Cross-border outsourcing
Arms-length trading
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Focuses of development as the basis of Hungarian
competitiveness
Combine general CEE advantage with country
specifics

• Focal points of development
• Education, life long learning
• Utilisation of knowledge in economy
• Business incubation
• Biotech

Successful industries attracting FDI

• Exploit Hungaricums
• Hungary specific factors
• Natural resources
• Geographic location
• Strong talent base

• Services
• Logistics
• RD
• etc.

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IT- and information needs of 4 PL providers (II)
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Integrative 4PL services (Component 2.3)
Multi-layered collaborative business model is
necessary to meet the new challenges of the
transport and logistics industry, as well as to
ensure a durable competitiveness of Central Europe
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Global Trade flows tendencies / restructuring of
continental transport

• 1. Macro-regional network effects
• Pan-European corridors (Increasing importance of
  IV, V corridor)
• V. corridor Far-East gtgt Russia, Ucraine gtgt
  South Europe
• VII. corridor Danube river
• Importance of the Ports of Adria and Easter
  Europe (Coper, Constanta)

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The shifting blue banana EDCs
Source Cushman Wakefield, Healey Baker
EDCs (2004)
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The shifting blue banana Automotive production
Core domain of automotive production in Europe
North England
High density of supplier industry
Liverpool Manchester
Hamburg
Warzawa
Poznan
Concentration of automotive suppliers
Wolfsburg
Birmingham
Berlin
Ruhr- Gebiet
Benelux
Wroclaw
Leipzig Dresden
Wales
Eisenach
Glivice
South England
Main producers (OEM)
Chemnitz
Rhein-Main
South Poland
Bohemia
Žilina
Nürnberg - München
Core Automotive axis and periphery
Région parisienne
Bratislava
Ouest
Wien
Main-Neckar
Esztergom
Graz
OÖ- Cluster
Tours - Orléans
Budapest
Györ
Sochaux
Strong growth of periphery
Lyon
Nord-Italien
Basque country
0
200 km
Catalonia
Castille Madrid
Valencia
Map Dr. Olivier Podevins
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European Distribution Centers shifting eastwards
Concentration of EDCs
Main locations of EDCs in Europe

1. East and South Netherlands (Limburg, Brabant)
2. East and South Belgium (Antwerp, Limburg,
   Wallonie)
3. North and East France (Nord-Pas-de Calais,
   Lorraine, Lyon)
4. Oresund (for Scandinavia)
5. Helsinki (for Russia and Baltics)

Existing EDCs
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4
1
2
3
3
Main locations of EDCs in the future
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1. Netherlands
2. Belgium
3. Germany
4. Central Europe

Map Dr. Olivier Podevins
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Solectrons supply chain solution for EMEA

• Solectron is a leading global provider of
  electronics manufacturing and integrated supply
  chain services for customers, such as DELL IBM,
  Sun, Microsoft, Motorola)
• Supply Chain Solution
• Manufacturing in low cost locations
• (Asia, Romania)
• Pick up at customer or retailer
• (potential split of destinations)
• Country consolidation
• European consolidation for transport to
• repair facility
• Repair
• De-consolidation to regional warehouse
• Management of swap stocks in regional
• warehouses
• Delivery at customer or retailer
• (potential delivery of multiple sources)

European Consolidation Center/Regional warehouse
Country Consolidation Center
Optional Country Consolidation Center
Nordics
Regional Warehouse/ Country consolidation center
Repair facility
UK
Retailers
Defective units flow
Western Europe
Repaired units flow
Map Dr. Olivier Podevins
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Main structure of European logistics on longer
term
Map Dr. Olivier Podevins
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Köszönöm a figyelmet!

• Gazdasági és Közlekedési Minisztérium
• Dr. Nikodémus Antal foosztályvezeto-helyettes
• Innovációs Foosztály
• H-1055 Budapest, Honvéd utca 13-15.
• Tel [phone] Fax [phone]
• E-mail nikodemus_at_gkm.gov.hu
• Internet www.gkm.hu