Contract logistics
Under contract logistics a is business model in the context of the supply chain management understood that on a long term, the division of labor cooperation between a manufacturer or distributor of goods and a logistics provider based, by a service agreement (contract) is regulated, comprises a significant volume of business and individual is designed. Contract logistics service providers take on logistical and logistics-related tasks along the value chain and represent the link between all those involved in the value chain. Hence the term system service provider, which is used equivalent to contract logistics service provider. Logistics service providers are integrated into the value chain system.
Features of contract logistics
Even after more than 10 years of scientific discussion, the term contract logistics is still not clearly defined. This is due, on the one hand, to the fact that the transitions to other logistics market segments are partly fluid and, on the other hand, there are still different perspectives in both science and practice. Nevertheless, a pragmatic distinction has emerged for the term contract logistics in recent years using constitutive features: Contract logistics is therefore characterized by the integration of several logistical services, a high degree of individualization of the service package, a certain minimum business volume and long-term contractual security of the Business relationship .
Integration of several logistical services
Contract logistics are services that not only include basic logistical activities such as transport , handling or warehousing (TUL), but also integrate several logistical functions into service packages with increased complexity and problem-solving capabilities. In many cases, additional logistical services (such as order processing, shipment tracking) or non-logistical additional services (such as simple assembly activities, quality inspection) are used with the aim of generating additional added value for the customer.
High degree of customization of the service
In contract logistics, the services are adapted to the individual needs of the respective contractor and provided in an individually designed manner. Due to the strong integration in the customer's value chains and the high degree of customization, the respective contract logistics provider is not easily interchangeable at short notice.
Minimum business volume
The significant business volume for contract logistics services amounts to at least 0.5 to 1.0 million € p. a. , whereby there may also be smaller projects in the area of strategically important businesses. Overall, the project volumes are very heterogeneous and in exceptional cases can amount to several hundred million euros or more.
Long-term contractual safeguarding of the business relationship
In contract logistics, in contrast to “transaction” -based business relationships, which can be terminated at any time, the partnership with the associated rights and obligations of both parties is fixed in a written contract . The minimum term for contract logistics services is around one year. In practice, the term of a contract is typically between 3 and 5 years. In the Anglo-American literature, the term 3PL ( Third Party Logistics ) is used in connection with contract logistics services , although this often also includes the standardized services of international freight forwarding.
Contract logistics is often referred to as the supreme discipline of the logistics service industry - not least because of the high demands that are placed on the shippers and service providers, especially in the phases of project initiation and implementation. Also due to the high market potential of € 81 billion in Germany (estimated for 2008), of which only less than 30% have been contracted out to external service providers, and due to the high growth rates, contract logistics is a particularly promising business area for the logistics service industry. The winners in this market are freight forwarding and logistics companies that have specialized in industry solutions using their distribution centers and transport networks. Contract logistics also offers medium-sized providers significant opportunities in the market thanks to their mostly shorter decision-making paths and their high degree of flexibility in establishing individual and stable logistics systems.
With complex services such as contract logistics, trust is an extremely important success factor. Due to its complexity, a service provider cannot easily be replaced by a new one. Trust actually means "leap of faith" in the hope of future fairness on the part of the contractual partner. Trust is needed because of:
- Characteristic of services as a trustworthy good (often immaterial , mostly not available as a sample or test good, with regard to the success of the service there is an external factor dependency with regard to the cooperation of the customer)
- Impossibility of anticipating future constellations of conditions (incomplete case history of contracts)
- Need to reduce complexity
- asymmetrical information distribution after outsourcing
- Risk of opportunistic exploitation of control deficits
- unequal position of power in renegotiations
After the contract has been concluded, a change of service provider is not easily possible due to the specificity of the agreed service. Clients fear a so-called " lock-in situation ". Fear of loss of control is the logical consequence, because the client transfers the possibility of direct influence on resources and employees to the LDL through outsourcing and thus radically limits its own influence.
This fear can only be counteracted by a mixture of innovative contract design and the development of trust capital. The client must be able to rely on the fact that the service provider does not unilaterally use the information advantage that is growing in his favor. Not all possible contingencies can be covered from the outset by contractual arrangements; The trust capital should therefore not be underestimated and should be seen as a complementary factor to the drafting of contracts.
An important objective is therefore to prevent or minimize opportunistic behavior on the part of the contracting party as far as possible. For this purpose, service level agreements and performance measures and incentive systems to define and regular CIP - meetings set up.
Contract logistics market
The global market leader Deutsche Post estimated the market volume for the contract logistics market for 2014 at € 176 billion.
| rank | Companies | Sales [mil. USD] |
|---|---|---|
| 1 | DHL Supply Chain & Global Forwarding | 28,120 |
| 2 | Kuehne + Nagel | 25,320 |
| 3 | Schenker AG | 19,968 |
| 4th | Nippon Express | 18,781 |
| 5 | CH Robinson Worldwide | 16,631 |
| 6th | DSV | 12,411 |
| 7th | XPO Logistics | 10,850 |
| 8th | Sinotrans | 10,549 |
| 9 | UPS Supply Chain Solutions | 9,814 |
| 10 | JB Hunt | 8.214 |
| rank | Companies | Head office | Sales in Europe in million euros |
|---|---|---|---|
| 1 | Deutsche Post DHL |
 Germany
|
8,380 |
| 2 | Kuehne + Nagel |
 Switzerland
|
3,462 |
| 3 | AP Møller-Mærsk |
 Denmark
|
2,030 |
| 4th | Arvato Services |
Germany
|
2,000 |
| 5 | Wincanton |
 United Kingdom
|
1,870 |
| 6th | SNCF |
 France
|
1,838 |
| 7th | DB Mobility Logistics |
Germany
|
1,808 |
| 8th | Fiege Foundation |
Germany
|
1,500 |
| 9 | Ceva Logistics |
United Kingdom
|
1.406 |
| 10 | Volkswagen Logistics |
Germany
|
1,400 |
| 11 | Norbert Dentressangle |
France
|
1,234 |
| 12 | United Parcel Service (UPS Europe) |
 Belgium
|
1,070 |
| 13 | Post Norge (Norway Post) |
 Norway
|
974 |
| 14th | Metro Group Logistics |
Germany
|
950 |
| 15th | Panalpina |
Switzerland
|
714 |
| 16 | DSV A / S |
Denmark
|
652 |
| 17th | Easydis |
France
|
554 |
| 18th | Dachser |
Germany
|
535 |
| 19th | HAVI Logistics |
Germany
|
525 |
| 20th | STEF-TFE |
France
|
522 |
| rank | Companies | Sales in Europe in million euros |
|---|---|---|
| 1 | Deutsche Post DHL | 9,000 |
| 2 | Schenker AG | 7,260 |
| 3 | Kuehne + Nagel | 2,710 |
| 4th | Dachser | 2,600 |
| 5 | Rhenus | 2,420 |
| 6th | Volkswagen Logistics | 1,850 |
| 7th | Hermes Europe | 1,800 |
| 8th | DPDgroup | 1,600 |
| 9 | UPS Germany | 1,550 |
| 10 | Panalpina | 1,400 |
literature
- P. Klaus, C. Kille: The TOP 100 in logistics. Market sizes, market segments and market leaders in the logistics service industry. Deutscher Verkehrs-Verlag, Hamburg 2008, ISBN 978-3-87154-385-2 .
- W. Stölzle, J. Weber, E. Hofmann, Carl Marcus Wallenburg: Handbook of Contract Logistics - Management of Complex Logistics Services. Wiley-VCH Verlag, Weinheim 2007, ISBN 978-3-527-50203-5 .
- H. Wrobel, P. Klaus: Project initiation in contract logistics. An empirical study on the status quo and the success factors in sales and purchasing of contract logistics services. Fraunhofer Verlag, Stuttgart 2009, ISBN 978-3-8396-0022-1 .
swell
- ↑ H. Wrobel, P. Klaus: Project initiation in contract logistics . Stuttgart 2009, p. 23 f .
- ↑ P. Klaus, C. Kille: The TOP 100 in logistics . Hamburg 2008, p. 115-127 .
- ↑ Thomas Mühlencoert: Contract logistics management: basics, examples, checklists . Gabler Verlag, Wiesbaden 2012, ISBN 978-3-8349-3131-3 , p. 45 , doi : 10.1007 / 978-3-8349-3733-9 .
- ↑ The 50 largest contract logistics companies worldwide by turnover
- ↑ Top 20 Logisticians Europe 2011. ( Memento from April 26, 2012 in the Internet Archive ) on: Lebensmittelzeitung.net
- ↑ Top 10 logistics companies in Germany
Web links
- Link catalog on the subject of contract logistics at curlie.org (formerly DMOZ )