time-critical logistics opportunities in air cargo frederik luz cso, marketing & sales...
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Time-critical logistics opportunities in air cargo
Frederik Luz
CSO, Marketing & Sales
time:matters Holding GmbH, Frankfurt, Germany
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100% focus on speed & special customer solutions
Exclusive & preferred access to carrier networks (Lufthansa,
Swiss World Cargo, >300 partners worldwide)
International top customers, including big four integrators and many
major logistics players / 3PLs
Proprietary IT-solution developed for time-critical solutions
Ownership structure enables high flexibility, customer orientation &
focus on growth
The experts for Courier-, Sameday- and Emergency Logistics.
Company Profile
USPs
Specialist for time-critical logistics.
Founded in ‘02 by Lufthansa Cargo, since ’07 owned by
Mgmt / Buchanan Capital (51%) & Lufthansa Cargo (49%)
Revenue CAGR >25% since foundation.
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time:matters is the expert for international time-critical logistics solutions
servicing logistics companies and selected industries
Commercial Linehaul
Transports on LH
Emergency Transports
(OBCs / Charter)
FLEXIBILITYPlanned / Standardized Ad-Hoc / Individualized
SPEEDCargo / Express Courier / OBC / Charter
Linehaul ServicesB2L - Integrators / Wholesaler
Courier, Sameday & Emergency LogisticsB2B – Industries (Automotive, Aviation, High-Tech etc.)
Courier Terminal
Sameday &
International CourierTransport
Services
Logistics
Solutions
Critical Spare
Parts Logistics
Emergency Logistics
Industry Specific
Emergency Logistics
Linehaul
Services Courier, Sameday &
Emergency Logistics
Critical Spare
Parts Logistics
Industry Specific
Emergency Logistics
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Time-critical logistics is a growing niche market with attractive
business potentials and sustainable competitive advantages.
Fragmented & emerging market.
Industry trends as drivers of growth:
Shorter cycles, lead & service times = demand
for speed.
Lean production & centralization of
warehouses = exposure to shortage risks.
Outsourcing of niche services / spare parts
logistics & search for one-stop-sourcing.
Differentiation through after-sales-services;
integration of sameday into distribution.
Emerging markets (Eastern EU, China, India).
Market Potential
>2.500 mln EUR
Market Growth
>15 %
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Especially time-critical Spare-Parts Logistics drive the need for
sophisticated air cargo solutions.
TransportableStorable Not too heavy(< 50 kg)
Not too large Expensive/capital intensive to keep on stock in large
numbers
High costs incur due to downtimes “Vulnerability”
—constant need for
servicing
Replacement parts and incidents
erratic and unpredictable
Delivery
After-Sales-Service as
competitive advantage
International / decentralized
production
Spare parts criteria Equipment/Facility criteria
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The market for time-citical logistics is growing at more than 10% per
year, thus at a higher rate than the air cargo market.
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Everyday business.
97% volume driven.
Regular & predictable.
Requires consolidation,
standardized handling processes &
networks.
USPs:
- Network coverage
- Standardization
Primary focus on cost structures.
Who can do it? Time-critical logistics services require a high degree of
flexibility & individuality as they often disturb standardized processes.
Exception business
3% of the orders … often require
30% of the capacities.
(Often) unpredictable.
Need for special solutions and ad-
hoc processes; no consol.
USPs:
- Verified experience
- Reliability / trust
Primary focus on solutions (service)
Standard Air Cargo Time-critical special services
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How? Speed, service, competence.
It’s the people, the network and the processes that make the difference!
Point-to-point transportation & individualized pick-up / delivery: - No consolidation, no hub & spoke
- Immediate, direct, customized
- No delays, no waiting, no complexity for customers
NFO with special capacity guarantees and separate loading- Worldwide destinations to all major industrial centers
- Last in – first out; no mixture with freight / luggage
Tailored processes & complete monitoring- Transportation & routing based on customers‘ problems / needs
- Continuous pro-active progress & interface checks
Personal responsibility, reachability & commitment- Highly skilled & motivated service team
- Extensive know-how & experience in doing specials
- 24/7/365 - any time
- <30 minutes reaction time
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Example: Less than 20 hours to ship fashion samples from Delhi to a
show-room in Long-Island, incl. pick-up, customs & delivery.
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Example: InteraDent Zahntechnik AG
Lübeck, Germany to Manila and return
Part of InteraDent´s production of 60.000 dental impressions is
manufactured in Manila / Phillipines. Between pickup and delivery of the
impressions is only a time range of 7 to 10 days – 4 days are needed for
production. To reduce the cycle time, InteraDent trusts in time:matters.
Hamburg – Manila in less than 15 hrs, 5 times a week.
07:00 pm: Shipment is delivered at Hamburg Airport
08:05 pm: Flight to Frankfurt with LH027
09:15 pm: Arrival in Frankfurt
10:45 pm: Flight to Manila with LH788
Next day:
08:05 pm: Arrival in Manila
09:05 pm: Shipment is available for the customer
Transportation time: approx. 15 hrs.
Time advantage: 2-3 days!
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Strategic positioning
CostsRevenues
Strategy for cargo airlines: outsourcing time-critical logistics services &
focusing on the core (volume) business.
Optimized usage of available capacities.
Meet basic & specific customer needs.
Service offer & competence for standard &
special services.
Premium services leverage existing
customer base.
Improvement of customer retention.
Transfer risk & fixed costs (no own
system, labor, mgmt. & admin).
Organizational streamlining & reduction
of complexity = greater efficiency.
Optimize (internal) service layers.
Bargaining power & production flexibility.
Increase competitive advantage through service line extension.
Focus on core business, partner for niches.
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1. Market trends lead to a growing demand for specialized time-critical
logistics services.
2. The use of available capacity for time-critical spare-parts logistics offers a
competitive advantage in customer service.
3. Increased flexibility & individualization increased complexity …
option for air cargo carriers = outsourcing service offer to a specialist.
Summary: Demand for High-Speed will not slow down …
3 Things to Remember:
Thank you for your attention