5 Mega Trends and the Implication for

the Logistics Industry 3PL Summit, 2010 Brussels

24 November 2010

2

– Current Global Outlook and Risks

– 5 Mega Trends Facing International Business

– Effects on 3PL

– 3PL Reactions

– Tighter Competition

– Relentless Innovation

– Challenges & Sustainability

Content Content

3

Current Global Outlook and Risks

– The worst is behind us

– Many countries are in

growth mode

– Risks persist

– After the crisis is before

the crisis

2009 2010 2011

USA -2.6 2.7 1.4

Euro zone -4.0 1.7 1.2

Japan -5.2 2.6 0.8

Emerging Asia 5.6 8.0 6.8

Central Eastern Europe -5.9 2.8 3.2

Latin America -2.1 5.8 4.5

Sub Saharan Africa 2.1 4.4 5.0

Middle East North Africa 2.5 4.4 4.6

Source: The Insight Bureau LTD/ Nenad Pacek

GDP Growth yoy

4

5 Mega Trends

The age of

relentless

innovation –

with external

and internal

focus

Age of

economic

moderation

The competitive

landscape

will be tighter

than ever

Sales growth

mainly in

emerging

markets

Rise of

emerging

markets and

relative decline

of the developed

world Facing

international

business

through to 2020

Source: The Insight Bureau LTD/ Nenad Pacek

5

– Re-design of transport networks

– Re-balancing of trade lane priorities, distribution hubs, warehouses

– New logistics clusters

– Pricing structures to accommodate volume changes

– Closer cooperation with shippers and competitors to reduce supply chain risks

Effects on 3PL

2010 2030 Illustration

6

3PL Reactions

– Be truly global

– Be more flexible

(organization, operations)

– Lead strategy instead of

opportunistic approach

– Become two-headed monsters

(treat existing and emerging

markets equally)

7

Tighter Competition

– Highly fragmented industry

– Competition comes from

unexpected corners

– Fight for market share

– Price and quality war

– Shippers reduce or consolidate

number of 3PL used

– Deeper relationships with clients

– More control over the business

– Outspending competition on brand

building and local presence

8

Relentless Innovation

– 3PL must become even more

innovative

– Kick-start continuous innovation

process

– Collaboration with other

companies, even competitors,

to realize innovations

– More power to 3PL

– Centers of innovation, technology

transfer and standardization

shift from developed world to

developing countries

9

Challenges & Sustainability

– Stormy seas ahead

– No cash, no joy

– High flexibility

– New mind set

– War on talent

www.timowopp.de

Thank you for your time

Beat Simon, CEO Agility Europe

St. Jakobs-Strasse 220

CH - 4002 Basel

www.agilitylogistics.com