Presentation at the European Commission Logistics 2030 Conference on the topic of "Towards more effective, collaborative and flexible service in freight transport Logistics - Challenges and ideas from an LSP perspective".

1. Presented by
Logistics in 2030
8 November 2013
Towards more effective, collaborative and flexible
services in freight transport logistics
Jaco Voorspuij, DHL
Challenges and ideas from an LSP perspective

2. Logistics in 2030 - Brussels, 8 November 2013, Page 2
Introduction Jaco Voorspuij
• APICS Certified Supply Chain Professional (CSCP)
• Approximately 25 years of experience in all aspects of Logistics
Over 17 years Warehousing, Transportation (Air, Road, Express, Ocean) and
Supply Chain Management
as well as circa 7 years in Production & Manufacturing.
• Currently working with the DHL Supply Chain Division (Europe).
• Responsible for the design of Integrated IT Solutions to support complex
integrated Logistics services (including warehousing and transportation
services).
• Responsible for (and supported) many dozens of warehousing and
transportation management systems implementations of about a dozen different
WMS and TMS providers.
• Co-chair global GS1 Transport & Logistics Leadership Team.
• Program Leader iCargo demonstrator involving DHL.

3. Logistics in 2030 - Brussels, 8 November 2013, Page 3
Characteristics and trends in current Logistics Chains
• Fragmentation of Logistics Chains.
Huge numbers of small and medium size (subcontracted) players involved
especially in Road environments
• Lack of Visibility and Control across the Logistics.
• Logistics Industry on the whole is very low tech.
• Confusion among participants over logistics terminology, identification of objects
and entities.
• Increasing need to collaborate among Logistic Services Clients and Logistic
Services Providers (LSP).
• Laws and Regulations complicating Logistics execution process.
E.g. Customs paperwork to be produced at source whilst shipments will be
consolidated (and restacked) on international/intercontinental lanes.
• Reporting Regulations inconsistencies across Europe (e.g. specific CO2
reporting France).

4. Logistics in 2030 - Brussels, 8 November 2013, Page 4
Why is Visibility so difficult to achieve?
• In NL alone more than 5000 Transport companies.
Many of those are routinely subcontracted by several larger LSP or LSC.
• Small and Medium Enterprises in Transport generally have simple (or no) IT systems.
• The transaction volumes (and margins) generally too low to support systems integration
(using common current approaches) especially where each of their Clients demands
specific integration.
• On-board technology is often limited to mobile phone (sometimes not even a smart one).
• Labels (with lots of Human Readable info) still drive the majority of (largely manual)
processes.
• Heavy reliance on “signed” paperwork in processes among Logistics partners.
(sometimes driven by laws and regulations).
• Lack of awareness and/or understanding of available technologies to deal with the above
limitations of current Logistics Networks.
• Solution Service Providers have been slow stepping up to the plate to address the above
issues/challenges.
Use of non-proprietary standards and Solutions/Services across LSC and LSP
would help improve the case for SME’s to invest (a little) in Applications
and systems to provide the currently lacking (real-time) Visibility information.

5. Logistics in 2030 - Brussels, 8 November 2013, Page 5
Some relevant recent research on fragmentation and
how non-proprietary standards help deal with that.
Leaders: Top 20% Performers Followers: Bottom 80%
Only 1 in 25 (4%) IN ERROR on outbound Deliveries to
Customers
Every 1 in 9 (11%) IN ERROR on outbound deliveries to
Customers.
Only 1 in 17 (6%) IN ERROR on inbound Orders
received from Suppliers
Every 1 in 8 (13%) IN ERROR on inbound Orders received
from Suppliers.
1 in 3 (33%) has reduced year-on-year landed per unit
cost in 2012
Less than 1 in 5 (18%) has decreased total landed per unit
cost in 2012
1 in 2 (50%) work with five or more LSP. Only 1 in 4 (25%) work with five or more LSP
Only 1 in 5 (20%) does NOT manage to find, within
reasonable time, and access OUTBOUND supply chain
data needed for decision making.
More than 1 in 2 (57%) does NOT manage to find, within
reasonable time, and access OUTBOUND supply chain data
needed for decision making.
Only 1 in 15 (7%) does NOT have online visibility into
INBOUND in-transit shipment status.
1 in 3 (69%) does NOT have online visibility into INBOUND
in-transit shipment status.
ALL LEADERS (100%) are compliant to GS1 standards
and track at the item level.
Only 1 in 4 (25%) are both compliant to GS1 standards and
track at the item level.
6 in 7 (85%) of survey respondents plan to increase their current
level of end-to-end Supply Chain Visibility.
Based on Aberdeen Group Survey; May 2013
149 MNC with international Supply Chains respondents (Logistics Services Clients)
Use of standardisation clearly pays off for LSC
LSC will require LSP to adopt these (or lose their business)

6. Logistics in 2030 - Brussels, 8 November 2013, Page 6
Why do we need to Collaborate in Logistics Networks?
 Customers Order with Manufacturers in higher frequencies and (much) lower quantities/volumes
=> Logistics Costs per Unit rising (beyond being sustainable).
 In addition Customers more and more often don’t want (or cannot) accommodate that each
Manufacturer Order is delivered separately (e.g. inner City sites/Retail outlets).
As a result Manufacturers will need to look into Logistics options that will allow bundling of their
Orders with Cargo from other Manufacturers to meet the challenges above.
 Despite claims from (large) LSP they cannot handle all types of Product and all types of Orders
equally well and efficiently.
Increasingly multiple LSP will have to collaborate in Supply Chain Networks for Manufacturers
to be able to meet all the (specific) needs of the various Shippers (Manufacturers).
 Over time the Logistic Network will made up of MULTIPLE Shippers and MULTIPLE LSP and
Cargo flows from multiple Shippers will bundled in (parts of) these Logistics Networks.
 More and more specialist (smaller) LSP would participate in these Logistics Network and also more
and more specialist (small) Manufacturers (Shippers) will join these inclusive Networks.
Clearly both of these trends require competitors (Shippers as well as LSP)
to collaborate in the Logistics Networks.
 Use of open standards will be imperative to enable such inclusive sustainable
Logistics Networks
e.g. GS1 System of Standards and eFreight & iCargo Ecosystem

7. Logistics in 2030 - Brussels, 8 November 2013, Page 7
Increasing need for role of
INDEPENDENT FACILITATOR in Logistics Networks
Production
Customer
Independent
Facilitator
Infeasible
for single
Logistic
Service
Provider
Infeasible
for single
Manufacturer
SHARED application hosted by independent (software) service provider
not proprietary to any Shipper or LSP.
Multi-Player inclusive Networks require all participants are confident they are operating within
a trustworthy environment.

8. Logistics in 2030 - Brussels, 8 November 2013, Page 8
Where would these Independent Facilitators (IF) play?
Data aggregation
Data
Standardization
(using Common Framework)
Dataconsolidation
Application layer
Application layer
Virtual representation
of real world logistics
entities & their
processes
Real world logistics
entities
Application layer
Service
Servic
e
Servic
e
Servic
e
Service
Collaboration
within business
communities
Independent Facilitator
could provide any
combination of Services
in Data Consolidation.
IF’s may also provide
Data Standardization
services (e.g. semantic
mapping and routing)
IF may also offer data
aggregation services
and solutions
(e.g. event repositories
linked to operational
systems “scans”)

9. Logistics in 2030 - Brussels, 8 November 2013, Page 9
What Services could Independent Facilitators provide?
• Regulatory Reporting Services that comply with a (wide) range of Reporting requirements
(regulatory or market driven) in a specific area (e.g. Green House Gas emissions).
• Applications/Services for Transport SME to report (in real time) status/event information
that is then distributed to involved parties. E.g. a generic Mobile Phone App for Collection /
Delivery confirmation that would distribute the Confirm Info to the Clients of the Transport SME (be they
other LSP or Shipper).
• Event repository services collecting “scans” of data carriers (e.g. label, barcode, RFID)
from devices capturing those scans (e.g. PDA, “portals”, scan devices etc) – Data
Aggregation. They could also make these events available to authorized interested parties
in standardized formats – Data Standardization.
• Logistics execution applications to be used in Multi-Player Collaborative Networks
(e.g. mixmovematch.com).
• Services would be based on established common framework of standards covering
everything from Identification of objects and entities, Capture of Information during
Logistics Execution and Sharing captured Information with authorized involved parties.
• Some commercial Solution Providers are already offering (or starting to offer) an Integrated
service portfolio based on a number of currently available non-proprietary standards.
E.g. BT, Zetes and Oracle providing services based on EPCIS Event standards

10. Logistics in 2030 - Brussels, 8 November 2013, Page 10
Some considerations for future developments
• Facilitators may be private companies; for some services (e.g. some registry and
authorization services) non-profit or public organizations may need to get
involved for reasons of market confidence or lack of commercial business case.
• Lots of good work has been done by many different standards organization.
For LSP (like DHL) dealing with a multitude of standards it is imperative that
these organizations collaborate i.e.
• Re-use each others good work more than they do now to ensure common standards
are more widely adopted and applied.
• Harmonize Data Dictionaries (Vocabularies) to reduce the confusion that is still quite
commonplace among participants in Logistics Networks.
• Many of the issues in Logistics originate from unnecessary complexity present at
the most basic levels of Identification (Numbers) and labels (data-carriers).
ID-numbers for the same object change frequently along the network.
Pallets/Cartons are constantly re-labeled (some times “driven” by regulations).
Industry Standards organizations and Government should work together to
eliminate the unnecessary complexity at those basic levels.
• Many technologies to solve parts of the Collaboration challenges already exist.
Future R&D should make sure these technologies are leveraged (no wheels re-invented).

11. Logistics in 2030 - Brussels, 8 November 2013, Page 11
Thank you for your attention
http://www.gs1.org/docs/visibility/Supply_Chain_Visibility_Aberdeen_Report.pdf