Transport and Logistics Services Industry Study report No. 05/2008 This report was prepared by Consultrans on behalf of the European commission
Enterprise & Industry Directorate General, in the context of the"Sectoral e -Business Watch"programme.
European commission, DG Enterprise & Industry E-mail: entr-innov-ict-ebiz@ec. europa. eu info@ebusiness-watch. org
The European commission, Enterprise & Industry Directorate General, launched the Sectoral e -Business Watch (Sebw) to study
and assess the impact of ICT on enterprises, industries and the economy in general across different sectors of the economy in the enlarged European union, EEA
and Accession countries. Sebw continues the successful work of the E-business W@tch which since January 2002, has analysed e-business developments and impacts in manufacturing
www. europa. eu. int/comm/enterprise/ict/policy/watch/index. htm, www. ebusiness-watch. org
transport and logistics services industry. The study describes how companies use ICT for conducting business,
The findings are based on an international survey of enterprises on their ICT use, case studies and an econometric analysis of the ICT impact on productivity growth in the sector
issues, the services of a professional should be obtained Acknowledgements This report was prepared by Altran Group & Consultrans on behalf of the European commission
Enterprise & Industry Directorate General. It is part of a deliverable in the context of the Sectoral e
Enterprise & Industry Directorate-General D4"ICT for competitiveness and innovation "entr-innov-ict-ebiz@ec. europa. eu
3. 6. 1 Companies receiving orders from customers online...77 3. 6. 2 e-Ticketing:
-cations of information and communication technology (ICT) and e-business activity in the transport and logistics services industry (TLS
The study shows how companies in this sector use ICT for managing their business processes internally and in exchange with suppliers and
customers. It identifies related opportunities and drivers as well as possible barriers for ICT adoption and digital integration and assesses
the impact of ICT deployment on firms and on the industry as a whole. Possible implications for policy actions are indicated
enterprises form the sector on their ICT usage conducted by the Sebw in September 2007
Industrial Classification of Economic activities within the European Communitiesâ€, known by the acronym NACE and originally published by
a successful economy: they play a major role in national economies and are significant contri -butors at both the national and local level
Transport and logistics underpin the economy enabling the movement of goods, services and people as efficiently as possible.
The transport sector in Europe plays a significant role in its economic development. It currently generates
7%of European Union†s gross domestic product (GDP) and accounts for around 5%of
policy for transport services is to find solutions for freight and passengers that are economi
growth, fuel economy, the reduction of emissions, safe and healthy lifestyles and social inclusion (see Section 2. 3
transport and logistics services ICT can have a significant influence on the mobility of people and goods. ICT is also a
demand for transport in spatial and temporal terms. Technological trends will meet the demand for comfort, safety and speed through
advances in ICT in the field of telematics. This covers systems for traffic and transport
they used Voice-over-IP services. It can be expected, in general, that usage will increase
The demand for e-skills and ICT practitioners Only 8%of all enterprises actually employ ICT
practitioners (most of the small companies cannot do so. The percentage is higher among medium (33%)and large companies (66
had outsourced ICT services to external service providers in the past 12 months prior to the interview (see Section 3. 2). Nevertheless
companies to embrace opportunities to substitute paper-based and manual processes by electronic exchanges, thus optimising the
customers to order and receive their ticket online. In freight transport and logistics, e -commerce includes initiating,
business is exactly to provide these services to other industries. Thus, logistics companies are not only users of e-business themselves, but, in
a way, provider of e-services. In all cases, e -commerce is in this sector closely linked with
the opportunity to reduce administrative costs and, at the same time, offer a higher level of service to travellers (see Section 3. 6. 2
customers online. There is practically no difference between companies from the various size-bands in this respect.
firms, 30-35%said that they allowed customers to order services online. This appears to be
E-business in the transport & logistics industry 8 quite a high figure at first sight. However, a majority of close to 95%of those companies
+Accept orders from customers online Use a CRM system *figures for TLS total (EU-7) weighted by employment
transport services companies According to the survey, US companies from the TLS industries are equipped slightly better
that enterprises in Europe and in the US have reached a similar status E-business adoption in EU vs.
dynamics and market competition. The analysis used data from the EU KLEMS Productivity and Growth Accounts2 (macro-data) as well as from
capital investment and productivity growth (see Section 4. 1), the results indicate that an instantaneous impact of ICT capital investment
on total factor productivity growth does not take place in this sector. This is not in line with the
-creased investment in ICT capital Regressions based on the micro-data from the E-business Survey 2007 aimed to explore links
adoption and complementary investments in skills enhance innovation, which is positively associated with turnover growth
the transport and logistics services (TLS) sector. 3 It describes how companies in this sector use information and communications technology (ICT) for managing their business
impact of ICT for firm performance in a context of global competition. It identifies related
opportunities for companies, drivers and possible barriers for ICT adoption and digital integration. Conclusions point at possible implications for policy
enterprises from the TLS industries. It is the first time the Sectoral E-business Watch conducts a study on this sector;
innovation and ICT-related policies and in sectoral economic policy) and representatives of the transport and logistics industry (notably firm managers, decision-makers in
services. Chapter 3 describes the current state-of-play in e-business in this industry focusing on specific ICT-related issues that were found to be particularly relevant to this
This chapter has been developed mainly by economists from DIW Berlin, who used econometric statistical methods to explore how ICT capital and e
-business activity are linked with firm and industry characteristics and influence those Chapter 5 presents company case studies. These have been selected as practical
of electronic business practices in different sectors across the European economy. It represents the continued effort of the European commission, DG Enterprise and Industry
to support policy in the fields of ICT and e-business, which started with"E-business W@tch"in late 2001
In ICT-related fields, DG Enterprise and Industry has a twofold mission:""to enhance the
European enterprises in general.""The services of the Sebw are expected to contribute to these goals in the logistics and transport sector.
This mission can be broken down into the following main objectives to assess the impact of ICT with regard to productivity and growth on enterprises
industries and the economy in general to highlight barriers for ICT uptake, i e. issues that are hindering a faster and/or
more effective use of ICT by enterprises in Europe to assess the role of ICT as an enabler of organisational changes and business
process innovation in the sector to identify and discuss policy challenges stemming from the observed develop
to engage in dialogue with stakeholders from industry and policy institutions providing a forum for debating relevant issues
decision-making, in particular in the fields of innovation, competition and structural policy Policy context The original E-business W@tch programme was rooted in the eeurope Action Plans of
the aim of increasing the competitiveness of European enterprises and raising productivity and growth through investment in information and communication
technologies, human resources (notably e-skills) and new business models"."4 The i2010 policy, a follow-up to eeurope, also stresses the critical role of ICT for
productivity and innovation, stating that"†the adoption and skilful application of ICT is one of the largest contributors to productivity and growth throughout the economy
4"eeurope 2005: An information society for all"."Communication from the Commission COM (2002) 263 final, 28 may 2002, section 3. 1. 2
E-business in the transport & logistics industry 12 leading to business innovations in key sectors"(p. 6). 5 This Communication anticipates"a
new era of e-business solutions",based on integrated ICT systems and tools, which will lead to an increase business use of ICT.
economy. Policy-makers in this area will require thorough analysis of ICT uptake based on accurate and detailed information on the most recent developments.
enterprises if the Lisbon targets of competitiveness are to be realised European companies, under the pressure of their main international
competitors, need to find new opportunities to reduce costs and improve performance, internally and in relation to trading partners.
In 2005, taking globalisation and intense international competition into consideration, the European commission launched a new industrial policy7 with the aim to create better
The Sebw is one of the policy instruments used by DG Enterprise and Industry to
"Communication from the Commission, COM (2005) 229 final 6"Working Together for Growth and Jobs:
a New Start for the Lisbon Strategy",Communication COM (2005) 24, Brussels, 02.02.2005 http://europa. eu. int/growthandjobs/pdf/COM2005 024 EN. pdf
"Communication from the Commission, COM (2005) 474 final, 5. 10.2005 E-business in the transport & logistics industry
the eskills Forum, a task force established in 2003 to assess the demand and supply of ICT and e-business skills and to develop policy recommendations
-business studies on about 25 sectors9 of the European economy, annual comprehensive synthesis reports about the state-of-play in e-business in the European union, statistical
5 Transport and logistics services 60,63 (parts thereof --6 Banking 65.1 2003 7 RFID adoption and implications (several sectors
notably by enabling electronic data exchanges between a company and its customers suppliers, service providers and business partners.
This study examines the use of information and communication technology (ICT) in European businesses. ICT is an umbrella term that encompasses a wide array of
systems, devices and services used for data processing (the information side of ICT) as well as telecommunications equipment and services for data transmission and
communication (the communication side. The European Information technology Observatory (2007) structures the ICT market into four segments with an estimated total
market value of about â 670 billion in 2007 (Exhibit 1. 2-1 Exhibit 1. 2-1:
Market segment Products/services included (examples Market value for EU (2007 EITO estimate ICT equipment Computer hardware, end-user communications
equipment (such as mobile phones), office equipment such as copiers) and data communications and network equipment (such as switching and routing
IT services Consulting, implementation and operations management â 140 billion Carrier services Fixed voice telephone and data services, mobile
telephone services, cable TV â 293 billion Source: EITO 2007 In its widest sense,'e-business'refers to the application of these technologies in business
economy'†started in 2001, the former internet hype was replaced suddenly by a widespread disappointment with e-business strategies.
data exchanges between businesses and their suppliers and customers, fostered by progress in the definition
momentum as a topic for enterprise strategy both for large multinationals and SMES "Measurement of e-business is of particular interest to policy makers
economy, has been a strong driver for ICT adoption. Firms are constantly searching for opportunities to cut costs and ICT holds great promise in this respect as it increases the
efficiency of a firm†s business processes, both internally and between trading partners in the value chain.
services. These last sectors are considered widely key to improve competitiveness in the current phase of development of European economies.
Competing in mature markets requires not only optimised cost structures, maximal efficiency, and products or services
of excellent quality but also the ability to communicate effectively and cooperate with business partners and potential customers
A definition of e-business As part of this maturing process, electronic business has progressed from a specific to a
transactions, i e. exchanges between a company and its suppliers or customers. These can be other companies('B2b'†business-to-business), consumers('B2c'†business-to
goods or services, whether between businesses, households, individuals, governments and other public or private organisations, conducted over computer-mediated
The goods and services are ordered over those networks, but the payment and the ultimate delivery of the goods or service may be conducted on-or offline"(OECD
suppliers or customers which are conducted electronically. Participants can be other companies('B2b'†business-to-business), consumers
the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other
environment). ) The OECD WPIIS12 proposes a definition of e-business as"automated business processes (both intra-and inter-firm) over computer mediated networks"(OECD
when the'new economy'bubble burst in 2001, it had the merit of pointing towards the role of ICT in cooperations between enterprises and the
increasing digital integration of supply chains. These developments go beyond simple point-to-point exchanges between two companies
processes, not only between a company and its direct suppliers and customers, but also aiming at a full vertical integration of the entire supply chain (Tier 1, Tier 2, Tier n
Applying the concept to the transport & logistics services industry The conceptual framework outlined is mostly applicable to e-business in the transport and
logistics services industry. However, as this broad sector covers diverse segments such as freight transport and passenger transport, the focus of ICT usage and e-business
logistics services is the vary nature of the business activity; ICT are used mainly to support the management of complex logistical processes (e g. for fleet control in larger
passenger services are a key issue in this sector, notably the online provision of tickets Although the key applications differ between the various sub-sectors, all basic goals of e
regard to employment, competitiveness, economic growth, transport safety efficiency and possible cost reductions (distribution costs), technological innovation and for entering into new markets
transport communications or warehouse management systems Policy implications: Do the findings on these research questions above have
implications for policy, for example in the fields of economic, competition, industrial or innovation policy? do related ICT developments call for adaptations of the
Eurostat Community survey on ICT usage in enterprises (2006: Results of the Eurostat survey are used as a source for the analysis of ICT adoption in
Accounts include measures of economic growth, productivity, employment creation, capital formation and technological change at the industry level for 25 EU
national statistical institutes (e g. investment series), but also from a variety of national sources, in cases where no international database or statistics from the
European Federation for Transport and Environment European Logistics Association European Freight and Logistics Leaders Club
services 16 For more information about the database, see: EU-KLEMS Growth and Productivity Accounts
percentages of enterprises with a certain activity. This constitutes the first and most basic step in data presentation.
The transport and logistics services sector has not been covered by earlier sector studies of E-business Watch.
The availability of high quality transport and logistics services is of paramount importance for growth and competitiveness of the European economy
Strengthening the competitiveness of European transport companies is therefore a leverage European and national policy makers could use to enhance the economy in
general. While the transport industry services other sectors, ICT and e-business have a crucial importance for the competitiveness of European transport companies themselves
Using e-business technologies, European transport and logistics companies can improve their productivity, create an integrated approach linking transport modes in innovative
thus, improve the quality of their services. This has an impact on the European economic development as a whole
survey among decision-makers in European enterprises from the transport and logistics industry about the ICT use of their company.
49.4 60.24 Freight transport by road and removal services 52 63 Warehousing and support activities for transportation
â€oegeneral Industrial Classification of Economic activities within the European Communities†known by the acronym NACE and originally published by Eurostat in 1970.
Transport and logistics are key components of a successful economy, and governments worldwide seek to increase competitiveness through new or replacement infrastructure
The transport and logistics sector plays a major role in nationals†economy and is a significant contributor at both the national and local level.
It underpins the economy enabling the movement of goods, services and people as efficiently as possible.
The transport sector in Europe plays a significant role in its economic development. It currently generates 7%of European union gross domestic product (GDP) and for around
was broadly in line with economic growth, which was 2. 3%on average in the same period. The fast growth of freight transport †driven to a large extent by economic
growth is mainly due to changes in the European economy and its system of production In the last 20 years, we have moved from a †stock†to a †flow†economy.
The abolition of frontiers within the Community has resulted in the establishment of a †justin-time†or
manufacturing scale economies, and rationalisation of production facilities have also increased freight movements The expected increase in road freight of 38%until 2010 will far outstrip the existing and
growth, fuel economy, the reduction of emissions, safe and healthy lifestyles and social inclusion 18 Although a major contributor to growth, transport also involves a cost to society.
and marginal costs for transport efficiency. Fifth framework †Transport RTD. November 2003 www. its. leeds. ac. uk/unite
Road transport services account for 1. 6%of the EU GDP and give jobs to 4. 3 million people. 20 The whole economy and society depends heavily on efficient road
transport: 44%of the goods are moved by trucks21 (compared with 41%for short sea shipping, 10%for rail
door-to-door and justin-time services, undoubtedly contributed to the strong sustained growth of road transport
However, the disadvantage of this situation rely in its harmful effects on the environment road construction, land use for parking, emissions etc.
environment and public concerns without compromising the competitiveness of the transport system and of the economy
2. 2. 2 Rail transport Rail is a contrast: a mixture of ancient and modern.
the other, antediluvian freight services and decrepit suburban lines at saturation point with commuters jammed into crowded trains
Communication from the Commission to the Council and the European Parliament on monitoring development of the rail market
the total transport demand in 2010 is expected to be 40%higher than in 1998.26 The facts
and projections of the sector are shown in Exhibit 2. 2-1. The rail stakeholders, who
but if rail cannot offer its customers a cost-effective alternative service, it will never be able to make a real contribution to the expected increasing
demands for European transport 2. 2. 3 Maritime transport High quality waterborne transport is less costly and more environmentally friendly than
that provide door-to-door services which can match or better those offered by road-only journeys
During the last decades the information and communication technologies (ICT) did also influence this transport mode significantly resulting in the realisation and implementation
of so-called River Information Services (RIS: information services to support traffic and transport management in inland navigation.
Based on the EU RIS Directive 28 COM (2006) 336 final. Communication from the Commission to the Council, the European
Parliament, the European Economic and Social Committee and the Committee of the Regions Freight Transport Logistics in Europe †the key to sustainable mobility
River Information Services can provide benefits both for public authorities and for commercial enterprises in the transport and logistics sector (shippers, carriers
The availability of high quality transport and logistics services is of a crucial importance for the competitiveness of the European economy.
Co-modality32 and high efficiency in the transport system are also indispensable for Europe to manage the increasing flows of
a communication from the EC outlined the main problems faced by the organisation and operation of the European Transport system:
on harmonised river information services (RIS) on inland waterways in the Community 32 †Co-modality†means the efficient use of transport modes operating on their own or in multimodal
Communication from the Commission to the Council, the European parliament, the European Economic and Social Committee and the Committee of the
Following consultation with stakeholders, the European commission has presented an Action Plan for Freight Logistics in 2007.
research and the use of information and communication technologies (ICT), infrastructure planning, service performance, and multimodal supply chains. 35 The main ideas of the
34 COM (2006) 314 final-Communication: Keep Europe moving-Sustainable mobility for our continent: Mid-term review of the European commission's 2001 Transport White paper (Energy
protect the environment; ensure energy security promote minimum labour standards for the sector; protect passengers and citizens
of the system and the integration of transport services are advanced not as as they could
Transport and environment: on the way to a new common transport policy. TERM 2006: indicators tracking transport and environment in the European union
37 Tostmann S.,(2004) Trends in European Transportation †Challenges and Opportunities for the Supply Chain, Business Briefing:
Global Purchasing & Supply Chain Strategy 38 Karel Vinck (2007. ERTMS Project, Annual Activity Report of Coordinator, Brussels
Communication from the Commission to the Council, the European Parliament, the European Economic and†ibid
Furthermore, when optimising their supply chains, enterprises in the EU increasingly recognise that there are competitive alternatives to road freight.
carriers provide comprehensive logistics services integrating more modes, because this provides them competitive cost advantages.
support to commercial operators setting up services which focus on modes other than road. Marco polo funds may be used to support the initial operation of new services
although these should become self funding once established, as well as encouraging cooperation amongst different operators in the freight logistics sector.
Transport is also the fastest growing demand sector in New Member States (NMS), with its share in final energy demand in these
the economy and the daily lives of citizens, and because of its impacts on oil supply
shippers buy multifunctional logistics services from external service providers (such as third-party logistics providers. In recent years, this co-operation between shippers and
Transport and environment: on the way to a new common†ibid 47 Freight Transport Logistics in Europe †the key to sustainable mobility†ibid
challenge for future urban transport systems is to meet the demand for accessibility for people, while at the same time minimising the impact on the environment.
European cities increasingly face problems caused by transport and traffic. The question of how to
solutions for public transport-in terms of comfort, quality, security and environment †is illustrated by Värmlandstrafik AB case study,
transport infrastructures, technologies and services in many European cities. 48 In collective transport, the use of ITS ensures a better management of operations and new
services (fleet management, traveller information systems, ticketing systems, etc. The case study on real-time passenger information system at Trafikanten, Norway confirms
environments also creates a number of challenges for citizens. A holistic vision at the local level would be needed to consider all urban logistics together as a single logistics
49 COM (2004) 0060 final Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions
-Towards a thematic strategy on the urban environment E-business in the transport & logistics industry
and provide new quality services for mobility of people and goods. For instance, the railroads, have fortified RFID with even
and new communications platforms (e g. XML. Using e-business technologies, European transport and logistics companies can improve their productivity,
services The emergence of new technological solutions, such as the Galileo satellite navigation system50 and European Rail Traffic Management System (ERTMS) are creating major
-or space-based communication. Tracking and tracing of cargo in all E-business in the transport & logistics industry
new opportunities that could constitute components of an integrated approach towards intelligent logistics. Much of today†s applications of information technologies and
covers standardisation of information, communication and control systems in the field of urban and rural surface transportation, including intermodal and multimodal aspects of
emergency services and commercial services in the ITS field modes is a prerequisite for efficient logistics.
affecting the demand for transport in spatial and temporal terms. Technological trends will meet the demand for comfort, safety and speed through advances in ICT and telematics
traffic and transport management systems, travel information and reservation systems vehicle guidance systems, mobility cards
influence on the transport sector and the economy as a whole Exhibit 3. 1. 1 EC activities towards ICT for Clean and Efficient Mobility
Cooperation of stakeholders Cooperative Vehicle based systems Engine control Eco-driving style ††â€
concrete and achievable goals for the environment for the different regional authorities Road safety remains a major concern.
communication technologies can contribute significantly to improving road safety enabling the development of sophisticated safety systems that improve road usersâ€
deliver customers'goods more accurately and efficiently Firms need to be able to manage information effectively,
Through the intensive use of ICT (acquisition, communication, and identification technologies) in logistics, the information flows, efficiently used by firms,
Communication Technologies in Promoting Competitive Advantages of the Firm, University of Beira Interior, Munich Personal Repec Archive
value for customers, the information and communication systems convert data into information, in order to facilitate managerial decision making.
examples of current practice and the related opportunities and challenges. However where needed, the Sebw survey results are linked to the drivers and impacts of ICT
issues discussed have been selected in coordination and agreement with DG Enterprise and Industry and with industry federations as particularly relevant and topical
opportunities to creatively use the Internet has brought many implications to the organisations core business processes to generate enormous benefits in terms of
performance as well as provide greater value-added products and services. The use of ICT by European enterprises has grown steadily from 2003 to 2005 for several
technologies. Even internet access, reaching saturation, still increased by 2 percentage points, from 89%to 91%(Exhibit 3. 1-2). 57
Percentages of enterprises adopting several technologies (2005) †EU25 57 Reis F. The internet and other computer networks and their use by European enterprises to do
ebusiness, Statistics in focus, Industry, Trade and Services, 28/2006 E-business in the transport & logistics industry
39 Over the last few years firms operating in the transport and logistics sector have made
demand by using traditional services in conjunction with growing information-based services. Firms can automate existing processes
and dramatically reduce cycle times throughout the supply chain. They can enhance communication, collaboration, and
cooperation between knowledge teams (including virtual teams) using intranet technologies as well as between the organisation and members of its external constituent
customers, led warehousing companies to strive to become more than simply storage facilities. They are transforming themselves into"third-party logistics providers"or"3pls
"that provide a wide array of services and functions. In addition to packing and staging pallets, contemporary warehousing facilities offer light manufacturing, call centres
and logistics patterns of enterprises adopting several ICT technologies (as a percentage of the total number of enterprises with 10 or
more persons employed) is quite similar to the overall percentage of enterprises in EU 25
including all sectors Exhibit 3. 1-3: Enterprises use of ICT (2005)( as a percentage of the total number of
enterprises with 10 or more persons employed Internal Computer Network Intranet Online purchases business model
Online sales business model External integration of business processes *Transport & Logistics 59 29 21 12 13
Eurostat, Community survey on ICT usage and e-commerce in enterprises E-business in the transport & logistics industry
of information via the Internet and to secure transactions online with customers. Modern information systems and technology offer opportunities for fast and safe sharing.
Key findings regarding use of and access to ICT in the TLS are summarised below
services. The prominence of the internet among all computer networks is evident because of its size in terms of the number of persons and enterprises it connects and its
worldwide scope. Internet access is therefore fundamental for enterprises to start benefiting from the Information Society.
For most EU Member States internet adoption is approaching saturation point. Overall, for the EU, by 2005,91%of enterprises with 10 or
more persons employed had internet access. 58 In line with this tendency, in the present study, nearly all companies (97%)which use computers in the TLS sector said that they
services (TLS Companies with internet access â€<144 kbit/s â€<144 kbit/s †2 Mbit/s â€>2 Mbit/s
The use of computer networks internally in the enterprise is believed to yield potential gains in efficiency and productivity.
streamlines and boosts the efficiency of the enterprise. A computer network is composed of multiple connected computers that communicate over a wired or wireless (Local Area
The size and scalability of any computer network are determined both by the physical medium of communication and by the software controlling the communication (i e.,
, the protocols). ) An Intranet is a specific application of the internal computer network which serves as a communication tool within the enterprise,
and an Extranet can be viewed as part of a company's Intranet that is extended to users outside the company.
services offer features and services that are not available with a traditional phone, or are
services over broadband Internet access services, in which subscribers make and receive calls as they would over the PSTN.
used to using such as call waiting, CALLER ID, unified messaging, directory services and vertical-specific applications. In addition, Voip is a standard,
used Voice-over-IP services (see Exhibit 3. 1-7). Yet, the results vary between different
With a diffusion rate of 13%,micro enterprises are behind the level of usage of large companies, where 26%reported using Voice-over-IP services
Curiously, the reported usage of this technology by the medium-sized firms is lower than
that from the micro enterprises. It can be expected, in general, that usage will increase rapidly over the next few years;
citizens, so has the demand for ICT-related skills. Improving e-business skills, especially among SMES, has been identified as a relevant concern for policy in several E-business
dynamic knowledge-based economy in the world, capable of sustainable economic growth, with more and better jobs and greater social cohesionâ€) 61 are to be achieved. 62
success for enterprises and individuals in a knowledge-based economy. The development of human capital, research and adaptation of new knowledge and skills is
the source of growth in the competitiveness of the economy, labour force and in the quality of life.
As it will be presented later (Chapter 4), capital-intensive investment is only profitable in the TLS sector only if the workforce has the skills
and capacities to make effective use of the ICT capital stock. e-business and ICT skills (e-skills) are thus
products and services, especially in the TLS sector. e-business applications is increasing the demand for individuals with creativity and higher-level conceptual skills that will
enable enterprises to increase productivity and harness ICT to produce greater economic value. The econometric analysis presented in this report using the EU KLEMS database
shows that in the transport and logistics industries, high-skilled labour is more important than either medium-or low-skilled labour for productivity increases (see Section 4. 1
To a large extent the demand comes from SMES, which often face substantial difficulties in attracting qualified ICT and e-business professionals in competition with larger players
which absorb most of the available expertise 3. 2. 1 Demand for ICT skills and skills development
Employment of"ICT practitioners "The e-Skill Forum, established by the EC in March 2003, defined, in the one hand, ICT
http://ec. europa. eu/enterprise/ict/policy/doc/e-skills-forum-2004-09-fsr. pdf
Demand for ICT skills and skills development Transport & logistics sector (TLS Companies employing ICT
ICT services Companies saying that e -business developments have a significant impact on skills requirements
to develop new products and services Again, large companies in the sector are thus in a better position to conduct
The total demand for ICT practitioners in Europe has been estimated roughly at about 0. 23 million persons per year including replacement demand. 65 The sectoral survey
on e-business in 2006 reported that enterprises are anticipating skills shortfalls for ICT practitioners, particularly in ICT strategy, security and new business solutions. 66
Employers are now less likely to see training just as a cost but also as an investment
While 33%of micro enterprises with up to 9 employees confirmed this asseveration, it is true for 61%of large-sized firms (see Exhibit 3. 2-1
In a knowledge economy driven by rapid technical change, investments in high-skilled labour, training and skill-formation become more important than investments in ICT.
The intelligence and skills of ICT users determines the positive or negative impact that ICT
investments may have on the success of the TLS business (see Section 4. 1 In terms of policy implications it has to
3. 2. 2 Outsourcing of ICT services and ICT investments Outsourcing Outsourcing is considered a useful way to provide immediate ICT and e-business skills
and processes that a company needs with very little investment of time, money and training.
breed of outsourcing services are being introduced to managing high-volume Web sites and their interactivity. For these companies, outsourcing is an organisational innovation
whether they had outsourced any of their ICT services which had previously been conducted in-house, to external service providers in 2007
outsourced some services in 2007, whereby medium and larger companies generally tend to outsource more of their services (66%)than smaller-sized ones (43%)(see
Exhibit 3. 2-1). Interestingly, this share is higher for medium companies (72%)compared to large-sized firms (66%.
%The small share of micro and small CE enterprises saying that they employ ICT practitioners can be explained by the fact that it seems to be more
economic for smaller companies to outsource ICT services (e g. desktop management or web hosting) than to employ their own ICT practitioners.
ICT services to external service providers (only 24%of sectoral firms, see Exhibit 3. 2-1
ICT expenditure and investments There is consensus that EU faster growth during the last decade has been related to
higher investments in ICT. The highest performing countries have been those that have been more innovative in ICT products
and services and more active in adopting such innovations in other sectors of the economy, in particular in the service sectors. 69
Although this asseveration is true in general, it has to be pointed out that ICT investments does not lead to productivity growth at firm-level by itself (it depends on how the
technology is used actually in business processes to innovate work processes and business routines with support of ICT.
Complementary investments in human capital organisational changes and working practices, combined with ICT investments will have
an impact on firm performance About 30%of all firms planned to further increase their ICT budgets in 2008,
69 Strohmeier R. Speech) ICT and innovation in a globalised economy, YES event, European Parliament, Brussels, 24 november 2006
investment behaviour in the TLS sector appears, in general, more intensive than in other sectors studied:
%Exhibit 3. 2-5 ICT budgets and investments Companies expecting that their ICT budget will †in the forthcoming financial period
made investments in ICT hardware or networks during the past 12 months Weighting:%%of empl
era of technologies such as XML services, the Internet and the World wide web, EDI is still the data format used by the vast majority of electronic commerce transactions in the
size-bands in%of enterprises Source: Sectoral E-business Watch Survey 2007 Figures related to the TLS sector shows
and quality of service to customers. The impact of these limits and difficulties are steadily
both opportunities and challenges for the TLS sector: opportunities to improve service 71 ebxml: electronic business using extensible Markup language
72 See www. ebxml. org 73 For detailed information about the background and adoption of XML and ebxml, see e
requirements and capabilities and new marketplaces with particular demands. Managing the supply chain †all the firms and processes involved in producing
the information readily accessible to customers or supply chain partners. Transportation or logistics services companies, providing real-time information in a customized way,
can become an integral part of their customers'supply chains, creating the opportunity to secure long-term business by embedding their processes in those of their customers and
adding value beyond traditional transportation and logistics offerings. 74 E-business technology enables logistics and supply chain managers to meet these demands by
integrating systems, collaborating within and across firms, and sharing information throughout the supply chain, enabling supply chain participants to plan and synchronize
their processes Interoperability refers to the"ability of two or more systems to exchange data, and to
mutually use the information that has been exchanged.""75 Especially the interoperability of systems became an important factor within this area
related services in the EU and EFTA€. 78 The objective for the project is to make a
services, an Interoperability Framework can be defined as the overarching set of policies standards and guidelines which describe the way in which organisations have agreed,
information, mapping and routing, navigation and other related services anywhere in Europe has been tested successfully pilot at five European
Existing travel and transport information services often lack data outside a limited range of general facts.
information services Participants in the IST-funded IM@GINE-IT project (www. imagineit-eu. com
services for multimodal forms of transport. That the participants have largely achieved their aims is a credit to the cooperation between the various
By communicating with Web-based services hosting the relevant information, the IM@GINE IT device offers an integrated route
80 INTEROP-VLAB is the"European virtual laboratory for Enterprise Interoperability",INTEROP -VLAB is stemming from the Network of Excellence INTEROP-Noe (Interoperability Research for
Networked Enterprise Applications and Software, FP6 508011), coordinated by University Bordeaux 1 with 47 partners and more than 300 researchers
81 ATHENA Advanced Technologies for Interoperability of Heterogeneous Enterprise Networks and their Applications-Is integrated an Project sponsored by the European commission in
codes of a software project as well as a permanent communication between all participants. This makes the interface specifications, the system architecture and the data
investment, because they are genuinely excellent software products and the support is acceptable. In comparison with proprietary software OSS is more inexpensive in acqui
Software in micro and small enterprises which constitute the vast majority of TLS companies Exhibit 3. 3-3:
Figures for size-bands are in%of enterprises from the size-band Questionnaire reference: A13a, A13b and A13c
and other important services, as well as assuring quality in the performance of their functions Subscriber and Relying Party Costs:
competitiveness of the Information and Communication Technologies (ICT) sector in the EU Final Report. http://ec. europa. eu/enterprise/ict/policy/doc/2006-11-20-flossimpact. pdf
88 Bloor R. 2005. Open source: Revenge of the Nerds, IT DIRECTOR 89 Wikipedia, http://en. wikipedia. org/wiki/Digital signature
The current business environment requires that companies cut inventory and operational costs, and optimise supply chain management (SCM.
into innovative and cost-effective solutions that attract customers. One such measure is the use of RFID.
and provide new quality services for mobility of people and goods Using RFID, companies can track
and environment, the European Commission has launched a wide-ranging public consultation on the policy issues and
economic growth. In the transport industry, RFID systems have the inherent capacity to assist in vehicle identification, tracking
opportunities for public transport companies and strengthen their competitiveness in the transport market. 93 Several large European enterprises, including technology companies and service
providers, are at the forefront of bringing RFDI solutions to the market and many small
-and medium-sized enterprises have introduced successfully this technology. Current trends and forecasts indicate that the RFID market will grow fast in the next 10 years
variety of operational conditions, environments and applications, enterprises that commit to the RFID journey are
as to lower implementation risks and consequently maximize investment returns. As an example, while the European commission, ETSI, industry associations and commercial
entities such as EPCGLOBAL and GS1, together with local governments, large enterprises and technology vendors, continue to drive progresses towards the attainment of a global
77%)said that they use RFID technologies to manage goods, products and services in -house.
More and more the Internet is becoming a major part of the corporate environment and driving decisions. The new capabilities to use the Internet to supply large amounts of
move from isolated information systems toward an integrated environment in every business organisation. Current opinion holds that Internet-based supply chain integration
with upstream suppliers and downstream customers-"e-integration"-is superior to traditional ways of doing business
technical challenges of interoperability, communication and process management while delivering a secure, scalable and reliable solution suitable for running a company†s most
A DMS system allows an enterprise and its users to create a document or capture a hard copy in electronic form,
DMS may be needed in enterprises that capture and store a large number of documents such as invoices, sales orders, photographs, phone
the term ERP originated in the manufacturing environment, today's use of the term ERP
are cross-functional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system.
Outsourcing of ICT services could be a viable alternative to buying ones own system Thus, this is then one of the main challenges for further expanding B2b e-business
to the ERP environment requires a considerable amount of effort for change management. This step constitutes the single most important and most difficult step for
industry reported the use of software solutions or internet-based services for e -procurement (see Exhibit 3. 4-1). This shows that there is a gap between the percentage
processes (all the way from ordering to the receipt of goods/services) is probably not in advanced state in these cases.
%SCM software can help companies from the TLS industry to match supply and demand through integrated and collaborative interaction tools.
in the TLS industry 6%of enterprises representing about 21%of employment say they have an SCM system.
processes across enterprise boundaries, so that multiple enterprises can cooperate closely to achieve shared business objectives
From the early successes of internal application integration and the business drivers of the Internet economy to companies to more tightly integrate their processes, the next
wave of business communication centres around cross-enterprise application integration collaborative workflows, and sophisticated business process dialogs.
Unfortunately many of the earlier successful technologies have been found to be lacking across company boundaries.
and will be able to call on reliable and reusable tools and services. In short, they will become â€oebreeding environments†for sustainable virtual organisations (VOS.
providing opportunities for shared learning, transfer of technical knowledge and resource exchange 3. 4. 3 Deployment of e-invoicing
Communications of the ACM 43 (11), 107-112 95 Porter, M. 1980. Competitive Strategy. New york. The Free Press
of collaborative enterprises E-business in the transport & logistics industry 65 has legal implications to both transacting parties. e-invoicing is mediated a computer
as this application promises enterprises a fast return on investment, also for SMES. Currently, 25%of firms accounting for about
33%of employment in the TLS industry say they send e-invoices, and about 46%receive
solution that allows automating the exchange of documents between customers partners, and suppliers regardless of source, format, and destination.
drastically reducing different categories of transaction and communication costs. In that respect, the potential merit of various electronic procurement forms, such as electronic
coming from suppliers or customers. To measure the impact of those pressures the Sebw survey has asked firms in the TLS sector
from customers/suppliers that their ICT solutions should be applied. As shown in Exhibit 3. 5-1, 12%of firms have declared the existence of those pressures,
pressure is coming from customers (12 %In many cases, suppliers become a barrier to firms trying to put in place an ICT solution
from suppliers and customers, respectively, that they implement new ICT solutions According to Thompson (2004), when relationship investment are indispensable or
specific assets are procured, firms will create networks in which suppliers and buyers form closed business relationships.
direct with customers. It is in direct contact with suppliers, the benefits spill over to the
Pressure from customers/suppliers to adopt e-business E-business pressure from costumers: companies †ebusiness pressure from
customers that they adapt their ICT solutions to their requirements 6 11 36 6 5
"data for size-bands in%of enterprises. Base: all companies E-business in the transport & logistics industry
so it follows that the processes and services which support this trade, such as logistics and warehousing, is also moving online
or services online <5%5-10%11-25%26-50%>50 %Weighting %of empl %of
The e-services project launched by Fret SNCF in 2006 is part of this new strategy
services over the Internet for a simpler, faster and more reliable exchange of information with the customer.
The â€oeclic Services Fret SNCF€ portal went live in July 2007, providing four major e-services to customers allowing them to directly order transport services on
the Internet (Commande@RESAFRET), follow transport progression in real time Info@RESAFRET), transmit their transport documents (e-LV)
The â€oeclic Services Fret SNCF€ portal was developed using PHP and Dot Net languages. Security is guaranteed via SSL encryption of information and via a
economy. Because every activity involves the creation, processing, and communication of information, ICT has a pervasive influence on the supply chain.
Supply chain integration can refer to internal and external integration. In an internal integration perspective, ERP systems are recognised often as essential ICT for supporting the
customers and suppliers. The IOIS concept can be considered an overall term for a group of technologies that support information sharing across organisational boundaries as e
To meet customer demand for seamless, comprehensive and reliable information on which to base business decisions today, companies must integrate data from the many
customers and own business partners and vendors, and also with the customers other vendors and even with own competitors is the key to help smooth workflow. SCM
encompasses the planning and management of all activities involved in sourcing procurement, conversion, and logistics management activities.
intermediaries, third-party service providers, and customers. Thus, one of the main areas of interest that has emerged in recent years concerns the effects of ICT on SCM.
Marketing, responding to customer demand, communicates with several distributors and retailers, and attempts to satisfy this demand.
Shared information between supply chain partners can only be leveraged fully through process integration At this time supply chain management has moved from low level and highly fragmented
set of administrative and overhead operations†to a strategic enterprise initiative by a systemic integration of the following components
The two areas, intra-enterprise integration (mainly represented by ERP and inter-enterprise integration (mainly represented by SCM) present a low rate of
adoption in the TLS sector and have similar features (6%of enterprises say they have an
SCM system and the same percent say they have an ERP system. In certain way, they
however provides the opportunity to expand the advantages of optimisation and integration to the entire supply chain through the creation of a collaborative,
environment The use of applications and practices supporting the electronic exchange of information between companies occurs simultaneously with close relations with business partners
This provides support to the hypothesis that close relationships facilitate investments in specific technologies. Collaborative practices and ICT applications, in turn, further
while only 13%of micro enterprises reported using a WMS, 69%of large TLS companies said that they use this
competition †as shown by case studies on AIT (France) and N c Cammack & Son (UK) †to adopt
and logistics services (for all kind of goods) located near Lyon, in France. AIT, employing 42 people, faces huge competitors precisely like Geodis
environment (see Section 5. 2 These cases were selected in order to illustrate how two different sized firms can
successfully coexist in a market where the competition is very aggressive. The first case study focuses on a company that operates in 120 countries
-national transport services throughout Southern Europe (AIT has generated, employing 42 people, a turnover of about â 8, 5 million in 2006)- has evolved into a competitor for
environment substantially. Allen et al identifies the changes in the supply chain management practices that have a growing impact on city traffic and on the related urban
environment. These are: 102 An increase in the intensity of daily and weekly deliveries A bigger proportion of larger and heavier vehicles appearing on the streets, driven
The demand by retailers for smaller, more frequent deliveries to premises generates additional traffic. In addition the out-sourcing of logistics services by companies to sub
-contractors adds to the numbers of commercial vehicles accessing the city and may militate against the most efficient consolidation of loads
trends are taking place against a background of a growing public demand for more sustainable urban living and a more acceptable quality of life.
of deliveries in urban areas. 104 Intelligent Transport Systems and Services (ITS) are potential means to help in solving all five key challenges identified for European owns
activities, including the communication with customers, offering products for sale, and developing new marketing strategies. 107 E-business leads to a fundamental shift in the
structure and services of transportation and logistics businesses. Firms are transporting more online purchased goods
business plans and identities that becoming an integrated part of their electronic business customers†supply chain. The role of the order and its delivery is evolving to one that
customers, studies have shown that online shoppers check the status of their package an average of seven times from the moment the â€oebuy†button is clicked until the package
value-added services such as automated track and tracing systems, monitoring of document processing, security and non-repudiation.
status of the transport over a Web interface to customers. Although some customers are very satisfied with the solution,
the case also contains lessons to be learned about the different obstacles that a small company had to overcome to implement such a solution
3. 6. 1 Companies receiving orders from customers online 30%of all firms active in the TLS industry said that they enabled customers to order
products online. There is practically no difference between companies from the various size-bands in this respect (see Exhibit 3. 6-1). However, a majority of close to a half of
those companies that enable customers to order online say that these orders account for only up to 5%of their total orders received.
of orders from customers online Transport & Logistics Sector Companies whose customers can order goods
or services online <5%5-10%11-25%26-50%>50 %Weighting%of empl %of
firms %of empl %of firms %of empl %of firms %of empl %of firms %of empl
load so that customers can be kept precisely informed about their shipments. An aspect to be taken into account is roaming costs.
or free for their customers Trafikanten Trafikanten is the joint information provider for the three public transport authorities in the
communication and service improvement, lower travel times and increased planning efficiency for the Public transport Authorities and operators (see Section 5. 11
with the opportunity to reduce administrative costs and, at the same time, provide a higher level of service to travellers
services of multiple public transport companies. The OV-chipkaart system will ensure that all transactions generated by the use of the public transport
relationships with customers, including the capture, storage and analysis of customer vendor, partner, and internal process information CRM is not just a technology, but rather
a comprehensive approach to an organisation's philosophy in dealing with its customers This includes policies and processes, front-of-house customer service, employee training
Collaborative-direct communication with customers that does not include a company†s sales or service representative (self service.
in order to segment customers or to design and execution of targeted marketing campaigns to optimise marketing effectiveness
22%)and large enterprises (26 %In other industries studied last year by the E-business W@tch, CRM is
telecommunication services (48 %and in the tourism industry (23 %Exhibit 3. 6-1: Percentage of firms with a CRM
technologies have a significant influence on competition in the TLS sector. The hypothesis that increasing rivalry in the market is an important driver for the adoption of
adoption compared to competition: about one fifth of the companies considered a high future ICT impact on management, marketing and customer services
large enterprises. Curiously, environmental protection and transport safety were considered by micro-sized firms more relevant as large-sized firms did
and should be read as"enterprises comprising â€%of firms in the sector (s)".Figures for size-bands are in%of enterprises from the size-band
Source: Sectoral E-business Watch (Survey 2007 E-business in the transport & logistics industry 84 3. 7. 2 Barriers to e-business adoption
customers/suppliers are prepared not (65%.%This explanation was given by 65%of micro and 63%of the small companies in this sector but also by a more significant share of
firms and should be read as"enterprises comprising â€%of firms in the sector (s)".Figures for size-bands
are in%of enterprises from the size-band Source: Sectoral E-business Watch (Survey 2007 E-business in the transport & logistics industry
On the contrary, the Logistics services sector has a relatively bigger percentage of firms in the high internet usage by employees cluster.
Logistics services 1. Low 2. Medium 3. High The next chart (Exhibit 3. 8-5) analyses the relationship between the clusters and the
enterprises (not shown in Exhibit 3. 7-5) are quite relevant too: more than a half of micro
enterprise represent a barrier to ICT uptake. Small enterprises have fewer needs but they usually also have less resources to put into ICT †they employ fewer ICT practitioners
and have less financial resources than their larger counterparts. Examples are the low adoption of ERP systems and advanced e-procurement solutions adopted by micro and
According to the survey data, large TLS enterprises are currently increasing focus on ICT issues, as they have started introducing more advanced ICT solutions such as e
-gies and services among firms in the economy at large is a striking example of the
and the composition of the demand for labour. For this study, an extended Structure †Conduct †Performance (SCP
number and size of supplying firms as well as the number and preferences of customers and their size in case of businesses.
109 EU-KLEMS is a database on measures of economic growth, productivity, employment creation capital formation and technological change at the industry level for all European union member
composition and the demand for labour, most importantly with regard to knowledge and skills. All these characteristics determine the level of competition in the industry
These industry structure components influence a firm†s conduct. The conduct aspects most important here are production strategies, particularly with regard to inter-firm
collaboration, as well as investments in ICT and in ICT-enabled innovation Finally, a firm†s performance is assumed to be the outcome of its conduct.
influence the demand for labour and its composition. It may also further shape the relationships with suppliers and customers, for example with regard to collaboration
intensity. Thus, in the following discussion it is assumed that firm performance may have a feedback effect on both firm conduct and industry structure,
competition (market structure implications) and implications for outsourcing decisions 4. 1 ICT and productivity growth
analyse to what extent ICT-capital investments have effects on productivity growth (as compared to other factors) in the transportation and logistics sector.
profits ICT enabled innovation Section 4. 1 Structure Conduct Performance Market/firm characteristics ICT adoption
profits ICT enabled innovation Section 4. 1 E-business in the transport & logistics industry 96
ICT-capital investment and total factor productivity growth For the study of ICT impacts on firm-level productivity, two considerations are essential
ICT investment does not lead to productivity growth at firm-level by itself. It depends on how the technology is actually
Thus, only if ICT investment is combined with complementary investment in working practices, human capital, and firm restructuring will
it have an impact on performance (cf. Brynjolfsson and Hitt, 2000 The case study on ALSA, a Spanish road passenger transport company, confirms the
These complementary investments and organisational changes are highly sector-and firm-specific; therefore, returns to ICT investments vary strongly across organisations
Pilat, 2005. Second, it has to be considered that outsourcing is an organisational innovation which can change firm-level productivity (Erber,
contribution of ICT-capital investment to productivity growth. It is assumed that it has become a key component of total factor productivity (TFP) growth (see Hypothesis
ICT-capital investment has become a key component in value added and productivity growth in the transportation and logistics sector, while other capital
inputs summarised as non-ICT-capital have diminished in their respective importance However, there are complementarities between other factor inputs
which are imperfectly incorporated in the traditional other factors included in productivity measurement and growth accounting, such as labour and intermediate inputs.
that total factor productivity growth jointly accelerates with higher investment in ICT -capital. This will be tested as a second hypothesis
together with increased investment in ICT-capital Another important factor that may influence the extent to which ICT enables productivity
growth is the complementarity between ICT capital and skills. A large body of literature on skill-bias in technical change supports the finding that technical change is biased
towards skilled workers, reducing demand for unskilled labour and increasing wage 111 TFP is a measure for disembodied technical change in a production process.
it has been labelled by some economists as a measure of ignorance. It is a residual between growth of an output indicator like gross
was one of the first economists who pointed out the significance of disembodied technical change for economic growth opposite to the classical view that in particular capital
accumulation, i e. embodied technical change is the key driver of growth E-business in the transport & logistics industry
advanced economies; unskilled jobs have long been declining in absolute terms in Europe and growing only slowly in the US,
thus, the application of ICT may increase the demand and wages for skilled labour and decrease the same for unskilled labour (†digital divideâ€.
analysis will therefore focus on the interdependence of ICT investments with skill requirements in the transport and logistics sector.
-capital and non-ICT-capital, working hours and labour quality by means of growth accounting
-capital investment on labour productivity growth (in terms of gross production value per total hours worked), based on an econometrically estimated stochastic production
land transport activities and related logistics services sector alone. 112 Hence our empirical analysis must focus on the more broadly defined sector â€oetransport and storage†(code
and related services can be employed as an argument in favour of looking at the data at a somewhat higher aggregation level than
112 NACE 1. 1 defines the transport and logistics services sector as inland transport, water
ICT capital is larger than that of non-ICT capital in some of the countries (4) but smaller
Overall, we find hardly any evidence that ICT capital has an overarching role to play in
a remarkable contribution of ICT capital of 1. 56%on average to total gross value added
four countries, changes in ICT capital are of even lesser importance Exhibit 4. 1-2:
Hours Worked Labour composition ICT Capital Non ICT Capital Total factor productivity Source: EUKLEMS database, GGDC;
Employment growth, transport and logistics services in EU-15 member countries, 1980-2004 annual average growth rates, various sub-periods
Average working hours per employee in transport intermediation services, EU-15 member countries, 1980-2004 (annual average growth rates, various sub-periods
capital, broken down into two different types of capital, and labour input measured in working hours, broken down into three different types of skills),
In contrast, physical ICT-capital investment does not have a significant impact on labour productivity.
2000) who found a high impact of ICT capital on U s. labour productivity growth. 118 Finally, no significant average annual rate of technical progress for the common
measured as ICT capital investments) contributes to growth of value added and productivity. The results indicate that ICT capital by itself is not the main element, but that
it rather requires complementary investments and organisational innovation Growth accounting for the transport sector in 10 EU Member States suggests that
changes in the ICT-capital stock have accounted only for minor shares of overall value added growth in this sector.
Changes in ICT and non-ICT capital have had about the same importance for value added growth
ICT-impact"which cannot be measured by means of the data on ICT-investment available in the database
They suggest that investments in training and skill-formation are at least equally important as investments in ICT capital
themselves in order to realise the optimal benefits. In other words, in a knowledge economy driven by rapid technical change,
the ability to empower the work force is a necessary complementary measure to ICT adoption. Without having the right skills in
place, costly investments bear the risk of becoming ineffective. Thus, revisiting the two initially specified working hypotheses (see 4. 1. 1),
P. 1 ICT-capital investment has become a key component in value added and productivity growth in
investment in ICT-capital No significant average annual rate of technical progress for the common production possibility frontier was found
technological change with ICT-capital as its complementary factor driving growth of the transport sector
accounting confirms that, on the whole, ICT-capital has played a positive role in this industry in all countries.
link between ICT-capital investments and labour productivity growth is probably much weaker. Rather, the share of high-skilled labour and the intermediate inputs intensity
supported a possible relationship between investments in ICT-capital and TFP growth Probably, this might be due to the time structure between investments in ICT-capital and
its impact on TFP. The standard approach in growth accounting typically assumes that TFP-growth instantaneously increases with increased investments in ICT-capital.
There might, however, be a time lag between the initial investment and implementation of new technology (and the respective organisational changes) and their actual impact on TFP
-E-business in the transport & logistics industry 105 growth. 119 This could partly explain why we could not find any strong relationship between
evidence the hypothesis that there is an instantaneous impact of ICT-capital investments on total factor productivity growth has to be rejected
-biased technological change with ICT-capital as the complementary factor driving productivity growth in the transportation sector
ICT investments in general and e-business applications in particular enable and drive process innovation. They are drivers,
The survey results show that 13%of enterprises (accounting for 25%of the workforce) in the TLS industry said that they had launched new or improved
profits ICT enabled innovation Section 4. 2. 2 Section 4. 2. 3 Structure Conduct Performance
profits ICT enabled innovation Section 4. 2. 2 Section 4. 2. 3 E-business in the transport & logistics industry
The most obvious example of investments in complementary assets include investments in software, training and organisational transformations that
accompany ICT investments. In other words, firms that combine high levels of ICT and high levels of worker skills have better firm innovation performance.
Thus, the following hypothesis can be formulated Hypothesis I. 1: Firms characterised by a higher share of employees with a university
enabled by information or communication technology. It takes a value of â€oe1†if any product
develop new products and services. This finding provides further evidence that the success of the ICT-driven innovative process depends on the availability and quality
collaboration enhance the innovation capabilities of companies by providing opportunities for shared learning, transfer of technical knowledge and resource exchange
for firms†innovativeness include creating communication infrastructures facilitating production networks or enabling partners to align the incentives of multiple players by
demonstrated clear payoffs from ICT investments (Chan, 2000, Kohli and Devaraj, 2003 In addition, the results vary depending on how performance
investments on productivity, but not on profits (Brynjolfsson and Hitt, 1996). Another study did not find positive effects of ICT capital on productivity,
while ICT labour positively contributed to output and profitability (Prasad and Harker, 1997 These somewhat ambiguous results of the impact of ICT on corporate performance can
be explained if one drops the assumption that there is a direct link between ICT investments and corporate performance.
The key to understanding the impacts of ICT on performance is to view ICT as an enabler of innovation (Koellinger 2005
relationships between departments within an enterprise. Organisational changes may relate to a rearrangement of functions, workflows and importance of departments and
technologies and intensive technological competition. In such industries the speed of adoption of new production processes plays a decisive role for remaining at the cutting
Hardware infrastructure, in contrast, is already a commodity that does not offer companies any potential to create a competitive advantage
This section explores to what extent the deployment of ICT is linked with competition in the market, the development of a company's share in this market, and firms'propensity
1. How do companies perceive the impact of ICT on competition 2. Does the intensity of competition, notably a perceived increase in the market rivalry
constitute an incentive to adopt ICT (as a tool to withstand competitive pressure e g. by cutting costs
profits ICT enabled innovation Sections 4. 3. 1, 4. 3. 3 Section 4. 3. 2
profits ICT enabled innovation Sections 4. 3. 1, 4. 3. 3 Section 4. 3. 2
as companies search for new opportunities to cut costs by improving process efficiency or develop new products.
competition by innovating. This can be done by securing a monopoly position, which might stem from a successful innovation protected from imitating by means of a patent, a
increasing market competition for the intensity of ICT adoption was confirmed. In other words, more intense competition forces companies to use innovative
technologies to cut costs and look for more innovative ways of conducting business Firm size is an advantage:
Historically, distance to market and transportation cost limited the number of customers a firm could reach.
directly to customers instead of depending on a network of retailers. This leads to the following hypothesis
organising economic activity (Coase 1937, and Williamson, 1985. Consequently, the expectations regarding the potential of ICT as technologies introducing innovative ways
Regarding the role of ICT capital in the transport and logistics sector, the economic analysis found the following evidence
between) ICT capital in terms of boosting labour productivity growth Little evidence for convergence of the EU Member Countries in terms of common
First, the growth accounting decomposition confirms that ICT capital played an important role for the majority of the countries studied (albeit not for all.
linkage between ICT investment and labour productivity may actually be much weaker than the evidence from more aggregate studies suggests.
growth, an adequate use of human capital and strong total productivity growth, as well as the outsourcing of non-core activities may actually play a more important role
instantaneously rises with increased investment in ICT capital. This is in contrast to case studies, which indicate that often there are significant lag times in reaping the benefits
capital investment on total factor productivity growth does not take place, so that this hypothesis has to be rejected
First, increasing market competition is one of the driving forces behind ICT usage. In other words, more intense competition make
E-business in the transport & logistics industry 118 companies use innovative technologies in order to cut costs and look for more innovative
Close relationships facilitate investments in specific technologies. Third, the success of the ICT-driven innovative process depends on the availability and quality of
being faced to intense competition, structural changes of the market and resulting declining revenues, AIT, a supplier of
transport and logistic services located in France near Lyon decided to implement a new transport and warehouse
company in organising the multimodal transport for their customers and in managing its warehouse activities and on the other hand to
management for CEMAT and its customers 3. 4 Internal Process Integration 3. 4. 1 Use of software
Clic Services Fret SNCF: Improving customer service through the deployment of an e-service portal at Fret
comparatively low Information and Communication Technology ICT) culture managed to implement a successful and innovative e
orders from customers online Case study 9:''Truck Business'at N c. Cammack & Son United kingdom From its base in Colchester, UK, N c. Cammack & Son provides
transport, distribution and warehousing services to the UK and Europe. The key features of the ICT solution are the automation of
allowing customers to online view and monitor stock levels, keep pace with demand and check the order shipment status
quality of information in an environment of multiple and small supplier, as it is the case for Saima Avandero in Italy
Primary customers: Public Administrations and final users Year of foundation: 1942 Turnover in last financial year (â:
areas of the road passenger transport services including regular road passenger transport, interurban regular road passenger transport, urban
school bus services One of the main aspects of the market in which AISA operates is that in Spain the
operation of regular public passenger transport services by road is regulated by E-business in the transport & logistics industry
important factors like the vehicles characteristics, additional services, transport security etc. However future concessions are probably going to take into account also new ICT
figures, etc. for consolidation, settlement and result evaluation of services and operations. Without an automated and computerised information system it would be
impossible to generate this type of operation data to satisfy these client demands. AISA innovates to be prepared for these processes with suitable e-business solutions like the
Services Cash management Accounting systems Reporting systems Ticketing systems (sales The system has been customised to the company needs for reporting, accounting
AISA says that the system is highly profitable (investment vs. results. The total estimated cost of the system was about â 100,000.
services and operations The elimination of manual processes and duplications of work has improved greatly company operations, planning and decision making.
and logistic services located in France near Lyon with 60 %of its turnover generated on the international market.
people provides Euro-national transport services with pick-up trucks and distribution partners throughout Southern Europe including Italy, Spain, Portugal, Belgium
being faced to intense competition, structural changes of the market and resulting declining revenues, AIT decided to implement a new transport and warehouse
multimodal transport for their customers and in managing its warehouse activities and on the other hand to provide the company with detailed data analysis on the whole
Primary customers: Companies Year of foundation: 1998 Turnover in last financial year (â: 8 398 000 â
AIT is a supplier of complete logistics services for all kind of goods with its headquarters
services with pick-up trucks and distribution partners throughout Southern Europe including Italy, Spain, Portugal, Belgium, Switzerland and France. 60%of the annual
The competition is very aggressive in this market. AIT is facing huge competitors like Geodis or Schenker as well as very small companies.
declined, increased competition etc) and the loss of some key customers. To face this situation AIT had need a growing to analyse its Business activity in details in order to
customers taking into account the whole transport process. On the other hand AIT looked for a solution with a flexible and ergonomic interface to manage its warehouse activities
They are in direct contact with the customers and the transport companies that will be selected for the transport.
telemarketing) and quotations made for customers. This module also allows preparing all the elements of a future transport file (data directly usable if the customer accepts the
and the commercial services Future developments planned for the solution are to automate the integration of tracing
provide track and trace services to its customers in the future 5. 2. 3 Impact AIT is satisfied very with the implementation of the solution.
the quality of documentation and service provided to the customers The statistic module allows AIT to get all necessary information for the analysis of its
and trace information to its customers after the completion of automated integration of tracing information provided from the shipping companies affiliated to INTTRA
and enables the operation services to manage files with precision, while generating information that allow a clear analysis of the
SMES since the solution is managed by specialists in a controlled technical environment Another point that AIT would like to improve in the future is the creation of Business
Primary customers: Administration, final users and companies Year of foundation: 1728 Turnover in last financial year (â:
areas of the road passenger transport services, like regular road passenger transport E-business in the transport & logistics industry
regular special road passenger transport services ALSA also operates in urban and interurban passenger transport routes.
The regular passenger transport services in Spain are regulated normally by public authorities, so in this area the competition is for the market not in the market.
The main activity of ALSA is the operation of regular road passenger transport services (bus), this
type of operation normally in Spain requires administrative passenger transport concessions. In its different markets in Spain, ALSA has an approximate market share of
This resource planning system is similar to an ERP (Enterprise Resource Planning) system, but including resource planning as well as incidence
The system includes features that allow naming the different services controlling de execution of tasks
the communication with the bus is bidirectional. All these functions provide a centralised and real-time knowledge of the different operations to improve them,
improve the user experience with the transport services (convenience, comfort and economy The resource planning system has helped ALSA to reduce costs of â 4-5 million
estimate) due to improved control and planning of operations. This system has also increased the transport security
and services productivity, using the alarm controls and the intelligent incidence management and real-time analysis tools.
-ment in real-time, intelligent sensors the onboard vehicles, Wifi bus communication systems or digital tachographs) have a double positive impact for the company, as they
Interview with ALSA Development Director and ALSA Central Services Director Madrid, 2008 Websites: ALSA, http://www. alsa. es
company†s operational efficiency as well as services delivered to the customer. As part of this programme, CEMAT implemented an IT solution in 2007 with the aim to
document management for CEMAT and its customers. It also illustrates the difficulties end users faced during the adoption process
Primary customers: B2b (various sectors Most significant geographic market: Italy, Germany, France, Benelux countries Switzerland, Denmark
European customers. The European market (except Italy) represents 30%of CEMAT customers and 80%of the company†s revenues.
The most significant markets for CEMAT are Italy, Germany, France, Benelux, Switzerland and Denmark The competition in the combined market is very aggressive and a multitude of companies
is competing on this market. Companies are usually quite small and own some terminals in their home countries.
The role of information and communication technology in this market is very important. †If you want to be present in the future in this market,
quality of services and communication with customers, suppliers and partners Following an analysis of existing systems and current processes in place, the IT
Identify an IT solution to improve the service rendered to customers at the terminals CEMAT owns 21 terminals where an average of 500 trucks load
Drivers and customers had to wait until the end of the process before being able to leave the terminal.
on average, customers have to wait one to two hours before they are able to unload
CEMAT employees and the majority of CEMAT customers are glad about the new process. The recent implementation of the solution and the progressive adoption of the
new process (customers can use the old process until the end of October) does not yet
Decrease of the waiting time for customers (or their drivers) at the terminals thanks to the reduced check in/checkout process (the objective is to reduce the process
Elimination of the carrier cost to send the documents to the customers representing the average annual cost of 20 000 Euros
It is more difficult to change the working processes of the customers who have very
For some customers the usage of the new process is very easy since they have an IT culture
customers were involved in the project from the starting point, CEMAT today faces a cultural barrier to the adoption of the solution by some of their customers
Even if all customers generally have IT tools, they do not necessarily have the experience to use them.
Sending a fax to communicate an e-mail address to CEMAT illustrates quite well the IT approach of a company.
the solution has an important impact on some customers: the efficiency of the solution directly depends on the correct application of the process
The main issue faced by CEMAT today is that some of their customers have a very low
customers Therefore, CEMAT will put in place a dedicated team to prepare and support the customer in a better way for similar future projects.
This team will train the customers and support them in the usage of the new solution.
representative panel of customers in the pilot phase. CEMAT has involved only its biggest customer in the pilot phase.
was not representative for all CEMAT customers. It is therefore important to cover the diversity of customers when testing such a solution with customers
The main lesson learned from this case is need probably the to carefully measure the impact on the customer before implementing such a solution
support to its customers The benefits targeted by CEMAT are significant. They will enable the company to realise
Primary customers: Romanian rail passengers Most significant geographic market: Romania Main e-business applications studied: Information systems (e-ticketing and e-reservation
have been facing intense competition from road transport leading to a significant decrease in rail traffic.
Railways) aims to continuously improve its services by better adapting them to the needs of their customers.
CFR manages the fourth-largest railway network in Europe, in terms of volume of passengers and freight.
CFR CÄ lä tori, responsible for passenger services CFR Marfä, responsible for freight transport CFR Infrastructurä, responsible for managing the infrastructure of the Romanian
the customers by providing them with a consolidated system, to improve the sales process and to get relevant business and market data about the passenger railway
2003 a subsidiary of CRF which is in charge of delivering all IT services to the railway
operating services and reduced TCO (Total Cost of Ownership. In this respect, the solution is based on Hewlett-packard hardware, Oracle RDBMS software and Practical
million euros for the hardware including the services and 5 million euros for the application software and deployment
Web allowing customers to make an online reservation, to design home printed tickets as well as to equip train staff with mobile devices connected to the systems to sell and
Stakeholders of this project were the passenger railway company, the information technology company of CFR, CFR Infrastructurä,(managing the infrastructure on the
The feedback from CFR employees and CFR customers about the solution is very positive. The lack of data available before its implementation as well as its recent
customers: before the system was implemented people spent an average of 10 minutes to get a ticket,
reservations and of additional services like the ability to reserve a journey and pay at a
better adapt future services to passenger needs. Thanks to the statistics provided by the data warehouse, the company is now able to estimate the flow of passengers, better plan
couple of future services, like the deployment of a Web service for ticket reservation and
Future e-services can be deployed progressively with this platform to provide more and more advanced solutions to railway
goods, container and lorry transport on trains to business customers. In the context of increased competition due to the liberalisation of the rail freight market in 2003 in
France, FRET SNCF is mobilising the whole organisation to become more competitive and productive. One of the main strategic goals is to transform Fret SNCF into a
In order to improve customer service and communication, Fret SNCF has recently implemented an electronic (e-)portal (â€oeclic Services Fret SNCF€.
This solution allows customers to track orders, follow transport progression in real time, transmit their transport documents and consult their invoices
This case study demonstrates how a company with a comparatively low ICT culture managed to implement a successful and innovative e-business solution in a relatively
Primary customers: Fret SNCF serves only business clients, main sectors are combined chemistry, agriculture transport, large retail, automotive industry, iron and
e-Communication with customers Case contact person (s: Fabienne Girard and Franã§ois Rannoux Responsible for Service Offering and E Services at
Fret SNCF 5. 6. 1 Background and objectives Fret SNCF handles freight carriage for SNCF (Sociã tã Nationale des Chemins de Fer
companies, new opportunities and challenges are surfacing, driving them to lower cost and to increase their competitiveness
-oriented approach to an approach emphasising services and results. This transition should be achieved through a reorganisation of the production mode, working processes
The e-services project, launched by Fret SNCF in 2006 is part of this new strategy and
1. Catch up with competitors who offer e-services and additionally provide a couple of free services through an e-portal
2. Get a competitive advantage by providing innovative value adding services to match specific needs of specific customer segments (customers will have to pay for these
services 3. Increase productivity and turnover through automating internal business processes and getting accurate and correct information about transports
5. 6. 2 E-business activities Providing accurate information to customers is fundamental in the transport sector.
Fret SNCF therefore considered an investment in e-services to be of strategic importance While the company started some isolated e-services initiatives in 2005,
it decided to launch a 4-year programme for e-service development and deployment at the beginning
of 2006 The first phase of this programme was aimed at deploying a couple of â€oebasic services†allowing customers to track orders,
follow up their transports in real time, transfer their transport documents and consult their invoices. Here ICT is essential
because it gives customers anytime and in a convenient way through a Web interface the possibility to get
clear visibility on their transport status and provides a non stop shop for transport orders
a roadmap for future services to be developed before the end of 2009. The management accepted this roadmap in November 2006.
the portal and the first bundle of services took seven months. The â€oeclic Services Fret
SNCF€ portal went live in July 2007, providing four major e-services to customers allowing them to track orders,
follow transport progression in real time, transmit their transport documents and consult their invoices SNCF Fret invested approximately one million Euros in this first phase of the project.
-services. Maintenance cost for the portal is about 11000 Euros per month A big implementation challenge was to deal with the heterogeneous information systems
The â€oeclic Services Fret SNCF€ portal was developed using PHP and Dot net languages. Security is guaranteed via SSL encryption of information and via a
SNCF Fret customers can now log on to a Web platform that allows them to access the
four different services that carry the following functionalities â€oecommande@RESAFRET€ enables the customer to directly order transport
services on the internet. Each customer possesses a personalised online catalogue that details the respective transport terms negotiated.
â€oeinfo@RESAFRET€, allows to follow up orders in real-time and alerts customers and SNCF Fret if there are transport difficulties
customers For the ordering process, the customer consults the transport catalogue on the portal and
One weakness of the e-services solution is that the information provided to customers is
complete and correct. †The development of these services highlighted the poor quality of information available at Fret SNCF€ explains Franã§ois Rannoux
responsible for the development of e-services at Fret SNCF. The production mode E-business in the transport & logistics industry
and that are adapted to the necessary information provided through the e-services The development of e-services accompanies the reorganisation of the SNCF Fret and is
a driving force for improving data entry quality Today, the e-services portal is operational and the project team is working on the future
developments planned. The main deliverables planned for 2008 are as follows enlarge the portal to European customers by providing a multilingual portal with an
international service offering provide a GPS tracking solution for dangerous goods manage complaints provide a solution for detecting transport CO2 emissions
The e-services solution affects the whole company and its working processes: it requires a major transformation of processes and of working culture
With e-services, the management and correctness of the information is as important as the rail service itself.
communication and change management, good results have been achieved but it will take time until the new working modes will be adopted fully by the majority of employees
information on the customer adoption rate of these new services 5. 6. 4 Lessons learned from case study Fret SNCF
consider the quality of information provided through e-services. In summary, this project illustrates that three important points should be taken into account
Compliance of e-services to target customer needs is a key success factor and an investment in market analyses and
customer surveys of the solution is very important. The second point is that the quality of
The final key point is to consider the sales channel of e-services when planning such a
The sales persons at Fret SNCF manage the promotion of e-services. If they do
they will not promote it amongst their customers. Therefore, it is particularly important to completely involve the sales force in the project from the
Rannoux, responsible for e-services, 24/07/07 and 15/09/07 by phone Company internal newsletters and brochures
enables it to support its customers in their strategic, geographic, and technological developments, providing them with solutions tailored to optimising their physical and
Geodis offers a range of logistics services, adapted to the specific needs of a sector.
To support its warehouse management services, Geodis operates an integrated warehouse managing system for its overall 3, 000,000 mâ of warehouse space.
Primary customers: Companies in the Automotive, FMCG, Healthcare High tech, Industry, Luxury, Retail sectors Most significant geographic market:
continuing to expand into Eastern europe to partner their customers in these markets. In addition, they have a strong presence in Southeast asia
and shaped by rampant competition. Recent years have seen a number of major acquisitions leading to the creation of global groups.
-ation that is quick and always available thanks to a wide range of tools and services
integrating and exchanging information with customers and transporters. Today, the order is directly put into the customer system
logistics, customers and partners The warehouse management system of Geodis supports all the main processes of the
a confirmation is sent to the customers. The delivery is checked then and confirmed to the customer
and customers stay happy. This results in avoiding the very costly problem of losing existing customers to the competition.
The cost of acquiring a new customer is up to five times greater than maintaining an existing
enable the logistics provider to offer its customers'maximum flexibility. To this end, it is
management and associated services and improving customer satisfaction 5. 7. 5 References Research for this case study was conducted by Caren Hochheimer, Altran, on behalf of
Primary customers: Haulers, logistic companies, carriers Year of foundation: 1967 Turnover in last financial year (â:
change of the market environment due to railway liberalisation. Following the liberalisation, the market situation of intermodal traffic has changed:
Hupac prepared itself early on for fair competition: Ongoing extension of the network independence from the railways as well as investment in its own assets such as rolling
stock. Today, terminals and IT solutions remain the key success factors for the company†s growth
system for combined transport that enables customers to make reservations, track and trace goods, and verify traffic conditions. â€oee-booking†is a system
load so that customers can be kept precisely informed about their shipments Hupac is managing the transport of containers all over Europe by renting trains and
punctuality of transport to its customers, Hupac needs to be informed on how their trains run and where they are.
contractually pays penalties to its customers if the transport does not arrive on time at its
order to be able to inform its customers about any delay. Another need was to know what
and a GSM (Global System for Mobile communication card that sends the information to the Goal system managing the information sent to and
communication and training, the transition happened in a smooth way Thanks to the implementation of this solution, Hupac is now independent from the railway
better customer services thanks to the visibility that customers have today on their transport To summarise, Hupac was able to get the following benefits from the implementation of
customers The quality of the system is high: 98%of messages exchanged are received by the
solution runs with a Swiss communication card and as soon as the train is in a foreign
-communication infrastructure and operating in an international environment face the same issue. These cost factors should be taken into account
customers Another aspect to be taken into account and which seems to be quite â€oebasic†is the
and warehousing services to the UK and Europe. In 2002, competitive forces drove N c. Cammack & Son to adopt a truck business management solution.
at the firm allowing customers to online view and monitor stock levels, keep pace with
Primary customers: All Business sectors (50%food sector Year of foundation: 1919 Turnover in last financial year (â:
specialist offering its services across the United kingdom, Europe, and Eastern europe Under family control, the company developed from a domestic coal delivery provider to
offering services including transport, distribution, freight forwarding, express deliveries warehousing and handling to its approximately 500 customers.
Through careful investment and controlled growth, the company now has an annual turnover in excess of
6 Million euros. Assets include a property portfolio comprising of a 55,000 square feet operating facility, a 15,000 square feet warehouse and a heavy goods vehicle (HGV
N c. Cammack & Son believes that one of the reasons for its success is its investment in
collecting the different jobs sent by fax from the customers, putting them together into a
The third requirement was to give customers online access to the system allowing them to see their job status, history and invoices
schedules for separate customers, loads with jobs for different truck types, invoices (per job or for a list of jobs) and credit notes (with history.
Son†s customers to view their own stock records, print reports, plus monitor incoming and
an acceptance receipt to the customers. Once the job is accepted, the information is automatically transferred into the job diary
at N c. Cammack & Son can place customers â€oeon stop†in the †Truck Business†solution
which disables users from carrying out work for customers who have a bad credit record 5. 9. 3 Impact
trucks at any time allowing better communication and discussion for improving efficiency. Before the solution implementation everything was on one person†s desk
Customers are satisfied very with the services rendered. N c. Cammack & Son is gathering new customers through word of mouth promotion done by their current clients
Customers are impressed particularly by the quality and detail of information they can access online regarding their stock levels
or regarding the status of their jobs owing to the track and trace solution. The track and trace solution assigns a specific number to each
significant financial investments. Although N c. Cammack & Son initially did face resistance from their employees, the company achieved great results with the
enterprises exist providing the same features as the †Truck Business†solution Thanks to the usage of †Truck Businessâ€, N c. Cammack & Son remain competitive in its
its services and end up running at a loss which ultimately would mean the closure of the company.
solution in 2002 to allow their customers to follow up their transport activities on a Web
of guaranteeing a good quality of information in an environment of multiple and small supplier, as it is the case for Saima Avandero in Italy
Logistics and forwarding services Primary customers: All sectors Year of foundation: 1993 (Saima bought Avandero
Turnover in last financial year (â: 675 million Most significant market area: China, Hong kong Main e-business applications studied:*
*e-Communication with customers 5. 10.1 Background and objectives Saima Avandero is one of the top five international freight-forwarding specialists on the
The company offers its customers an integrated logistic service including the delivery of tailor-made services that interconnect logistic and transport services
Saima Avandero†s activities cover the management of all logistics aspects including the collection, storage and distribution of products supported by state of art computing
Avandero can offer freight services like bulking, combined transport and special transports all over Europe Saima Avandero faces intense competition on its market with the main competitors being
TNT, DHL, Kuehne & Nagel and Schenker. To better face the growing demand of the
market, Saima Avandero joined the Belgian group ABX LOGISTICS in 1999 E-business in the transport & logistics industry
driving force to implement this service was to match the growing needs of its customers for traceability of their transports:
some of Saima Avandero†s most important customers wanted more visibility on their transports. This is why Saima Avandero decided to
transport over a Web interface to customers 5. 10.2 E-business activities The track and trace project, started in 2002,
The main requirement for the solution was to give customers access to a database where
Customers should be able to access this information in different ways, according to the specifications they define.
through any other communication means like e-mail, fax or phone in case the supplier is not directly connected to the Saima Avandero database.
the transport order (through the system or other communication tools. Once Saima Avandero has received confirmation from all suppliers,
communicated to Saima Avandero via the system or through other communication channels and entered manually into the database.
and some of the customers are very satisfied with it while others complain about the low quality of information available for
Even if some customers are satisfied very with this solution, overall Saima Avandero is not completely satisfied:
quality to the customers. For some transport, the quality of data is very good while for
Saima Avandero receives complaints from their customers. Some strategic customers for whom the company puts many efforts in place to maintain the data quality at a high level
are satisfied however with the solution E-business in the transport & logistics industry 174 5. 10.4 Lessons learned
Solutions that are aimed at providing data to customers encounter huge issues if the quality of information cannot be guaranteed in cases where a company depends on a
objective is to provide services and information to travellers in order to ensure an easy access to the network of all public transport operators in this region
Primary customers: Public transport authorities, Norway operators Year of foundation: 1986 Turnover in last financial year (â:
ownership of Trafikanten was changed slightly as 6 new shareholders entered the company representing Norwegian PT operators, PT branch organisations and two
The original 3 shareholders still have the majority of shares Trafikanten†s main objective is to promote public transport
business model, they compete indirectly with operators providing information to travellers and do marketing and promotion for their companies.
Information and Communication Technology (ICT) is key for Trafikantens activities. The efficiency of the company is fully dependant on the development of those solutions.
future services planned are based on Information and Communication technologies The first information service provided by Trafikanten set up in 1988 was a centrally
and provide information to customers. At the same time a call centre was opened for travellers. ICT at the time was used to give
were long waiting times for customers until a call was treated. The objective of developing the traffic planner was to reduce the duration of each call
increasing number of telephone customers In 1992 Trafikanten put the first travel planner in place did they develop it?.
stakeholders and project partners (including public transport authorities, the road authorities and operators) to agree on the organisation of the project and on the
project team included up to 20 persons, 7 stakeholders and 3 full time project officers from Trafikanten assisted by an external consultant.
all operators it needed a great involvement of all stakeholders and partners from the very
Passenger satisfaction and the attractiveness of public transport services can increase considerably if reliable and clear passenger information is available before a journey is
that allowed achieving significant benefits in terms of passenger communication and service improvements, lower travel times and increased planning efficiency for the Public
stakeholders contributed to the success of the project The question of operational cost management should also be addressed in the planning
Presentation of Trafikanten and their services Websites: Trafikanten (www. trafikanten. no E-business in the transport & logistics industry
Primary customers: Passengers Year of foundation: 1981 Turnover in last financial year (â: n. a Most significant market area:
transport services to passengers in the Värmland region of Sweden with its central office located in Munkfors.
passenger comfort, security and environment and controlling the respect of the requirements and the activity of the operators
and the shareholders, including the county council and the different municipalities IT solutions play an important role in supporting the company in achieving its objective of
providing good transport services while keeping the costs at a low level, through improving operational efficiency and lowering costs through internal IT solutions
improving customer services and customer communication through Web based and mobile information services for passengers (Travel planner, Timetables etc
ticketing systems, etc To improve the management of the operator contracts, Värmlandstrafik decided in 2004
quality, security and environment Another important driving force to implement a solution was that the PTAS in Sweden
security, quality, and environment 5. 12.2 E-business activities The solution chosen by Värmlandstrafik had been developed initially by Nordic Port and
became customers in the system, a user society was formed,@FRIDA, which now manages the development of the system.
up concrete and achievable goals for the environment for the different regional authorities 5. 12.5 References
interrelation with almost all other European economy sectors, any improvements to the competitiveness and effectiveness of European transport and logistics enterprises will
have a positive impact on other industries and, undoubtedly, will also have an impact on
the European economy as a whole. Based on the results of the E-business Survey presented in Chapter 3,
potential for exploiting cost-saving opportunities. For micro and small companies the feelings that the â€oecompany is too smallâ€
In international comparisons, EU TLS enterprises are †on average †level with their counterparts in USA in their use of ICT.
although, Polish enterprises are not far behind in its use of some ICT technologies Sectoral comparison:
Therefore, investments in training and skill-formation are at least equally important as investments in ICT capital itself in order to attain optimal benefits.
In other words, in a knowledge economy driven by rapid technical change, the ability to empower the work
force is a necessary complementary measure to ICT adoption. Without having the right skills in place, costly investments bear the risk of becoming ineffective
IT practitioners. Interviewed SMES often lack a coherent ICT investment strategy or the related skills-partly because most SMES cannot afford to employ ICT practitioners
According to the present report, only about 9%of small firms and 33%of medium-sized
investments in training and skill-formation are at least equally important as investments in ICT capital themselves in
order to realise the optimal benefits Using the key findings and the companies†subjective feelings, the
the European economy The ebsn (European E-business Support Network for SMES) is an e-business policy coordination platform, bringing together decision-makers in the field of e
policy Communication on"e-Skills for the 21st Century: Fostering Competitiveness Jobs and Growth"on the 7th september 2007 presenting a long term e-skills
COM (2006) 314 final-Communication: Keep Europe moving-Sustainable mobility for our continent: Mid-term review of the European commission's 2001
RFID Stakeholder Group to provide an open platform allowing a dialogue between consumer organisations, market actors,
their particular needs and business models Sector associations Business intermediaries Competence centres Improving ICT skills and
and enterprises  Counteract e-business skill-shortages in the market e g. by promoting multi-stakeholder partnerships in ICT
training programmes  Provide incentives for ICT training of employees  Improve skills related to the reorganisation of working
 Create opportunities for dialogue between SMES and ICT service providers European commission National Governments Regional Governments
and little incentive to change business models when returns are unclear. In a nutshell SMES€ ICT requirements are that they support their core business,
Moderate financial support can be given in the form of prizes for competitions featuring innovative e-business applications. 124 Potential small business benefits
deployment of an ERP systems among medium-sized and small enterprises would create a much broader base for sectoral e-business and this could drive process efficiency and
productivity gains in European enterprises. Now there is a positive market environment to attain this goal:
driven by market requirements, and enabled by technological advances ICT companies are increasingly addressing the SME market.
In this context, the European commission, the European Investment Bank and the European Investment Fund launched, in May 2006 the Joint European Resources for
124 Other possible tools could include microcredits, strengthening equity capital, mezzanine financing, securisation of loans, etc
Micro to Medium Enterprises (JEREMIE) initiative, which allows European Member States and Regions to use a part of their structural funds to obtain a set of financial
enterprises Improving ICT skills and managerial understanding and skills for e-business Skills requirements arise as an important issue
assessment of required skills for enterprises in the TLS. The required skills can be provided at a general level, such as public education,
existing business models and strategies to change organisational structures As has been pointed out in Chapter 4, investments in training and skill-formation are at
least equally important as investments in ICT capital themselves in order to realise the optimal benefits. Thus investments in e-skill formation and training have to be prioritised
This is also in line with the recommendations made in the recent"Small Business Act"for Europe, where one of the 10 action lines focuses on upgrading the skills in SMES. 125
Developing standards for e-business, facilitating the process of interoperability Setting standards and promoting interoperability is another important policy implication
Communication from the Commission to the Council, the European parliament, the European Economic and Social Committee and the Committee of the regions. COM (2008) 394 final
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various standards required by their customers. This increases the overall cost of integration and weakens the incentives to use ICT
The implementation of new ICT and complementary investments can lead to innovations and innovations are associated positively with turnover growth.
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European enterprises by means of representative surveys. The E-business Survey 2007 the fifth in a series of surveys conducted in 2002,2003,
 Transport & logistics services 2248 3 RFID adoption  Manufacturing sectors  Retail  Transport services
 Hospitals 434 4 Intellectual Property rights in ICT SMES  ICT manufacturing  ICT services
 Software publishing 683 Questionnaire The questionnaires for Projects 1 and 2 contained about 70 questions which were
Automated data exchange (Project 1)/ E-business with customers and suppliers Project 2 C: e-Standards and interoperability issues (Project 1
The highest level of the population was the set of all computer-using enterprises (and, in
2. 2 Transport services and logistics 60.10,60. 21+23+24 63.11+12+40 Companies that
Micro enterprises (up to 9 employees)--up to 30 %Small companies (10-49 employees) up to 40-50%*at least 30
The survey was carried out as an enterprise survey: data collection and reporting focus on the enterprise, defined as a business organisation (legal unit) with one or more
establishments. Due to the small population of enterprises in some of the sector-country cells, the target quota could not be achieved (particularly in the larger enterprise size
-bands) in each country. In these cases, interviews were shifted to the next largest size -band (from large to medium-sized, from medium-sized to small),
or to other sectors Fieldwork Fieldwork was coordinated by the German branch of Ipsos Gmbh (www. ipsos. de) and
distribution of enterprises in the population of the respective sector or geographic area The Sectoral E-business Watch applies two different weighting schemes:
and by the number of enterprises. 130 Weighting by employment: Values that are reported as employment-weighted
figures should be read as"enterprises comprising x%of employees"(in the respective sector or country.
predominance of micro-enterprises over other kinds of firms. If the weights did not factor in the economic importance of different sized businesses, the results would
Weighting by the number of enterprises: Values that are reported as"x%of enterprises"show the share of firms irrespective of their size,
i e. a micro-company with a few employees and a large company with thousands of employees both
The results for follow-up questions can be computed on the basis of enterprises that were asked the question (e g."
"in%of enterprises with internet access")or on the basis of all companies surveyed. In this report, both methods are used,
enterprises. In some cases, every enterprise within a country-industry and size-band cell was contacted and asked to participate in the survey.
This means that it is practically impossible to achieve a higher confidence interval through representative enterprise
surveys in which participation is not obligatory. This should be taken into account when comparing the confidence intervals of E-business Watch surveys to those commonly
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