You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
U.S. market for domestic ground and air<br />
transport of parcel and express items<br />
Percentage market share (1998)<br />
UPS<br />
48.2%<br />
All others 8.7%<br />
USPS 25.4%<br />
FedEx/RPS 17.7%<br />
Source: Report – The Colography Group, Inc.,<br />
Atlanta, GA (August 10/31, 1999)<br />
A further comparison with the United States reveals the<br />
potential that border-free parcel services have to offer.<br />
According to the U.S.-based Parcel Shipper Association,<br />
eight billion parcels were delivered in the U.S.A. in 1998.<br />
This translates into approximately 30 parcels per<br />
person. In Europe, the equivalent figure is only about<br />
eight parcels per person.<br />
Companies that are in a position to offer border-free<br />
services within their own network will be able to take<br />
advantage of these enormous opportunities. Package<br />
solutions from a single source make life easier for the<br />
customer. The volumes generated in this way make it<br />
possible for service providers to use their networks to<br />
full capacity and consequently offer attractive prices.<br />
LOGISTICS<br />
We define logistics as the process of planning, executing<br />
and controlling the transport and warehousing of all<br />
materials and goods and as the handling of attendant<br />
information, from the first link in the supply chain to<br />
the last one - in other words, right down to the end consumer.<br />
According to the International Monetary Fund, worldwide<br />
commodity export volume has grown twice as fast<br />
on annual average as production has since 1991.Accordingly,<br />
cross-border transport business will continue to<br />
increase in importance. Major factors fueling this trend<br />
include e-Commerce, increased outsourcing and the<br />
globalization of production and procurement. Here,<br />
the market for integrated logistics solutions – which<br />
especially benefits from the growing trend toward outsourcing<br />
in the industrial and service sectors – is a particularly<br />
fast-growing segment.<br />
Still highly fragmented, the European logistics market is<br />
marked by a large number of small and medium-sized<br />
companies. The market trend is expected to lead to further<br />
consolidation processes in both the European and<br />
the international logistics markets.<br />
Looking at the medium term, we expect those companies<br />
that offer the following conditions - which are critical<br />
to success - to be particularly successful in the logistics<br />
market:<br />
• Cost leadership arising from economies of scale since<br />
networks have enormous overhead costs.<br />
• An integrated range of one-stop-shopping services<br />
that cover the entire logistics value-added chain –<br />
including information and financial flows; services<br />
that were designed for specific industries or sectors<br />
and are supported by powerful, integrated IT systems<br />
and strong partners.<br />
• A range of worldwide services to help customers<br />
expand their businesses into new parts of the world.<br />
FINANCIAL SERVICES<br />
A shift in customer behavior is currently triggering<br />
changes in the banking market. Customers are demanding<br />
higher quality from banking products and services.<br />
In addition to traditional stationary sales operations at<br />
retail outlets, customers are also taking advantage of an<br />
increasing range of other services, such as:<br />
• Self-service banking (in retail outlet premises, selfservice<br />
banking locations, as well as so-called points<br />
of public);<br />
• Call centers which offer customers the convenience of<br />
making transactions at any time of the day;<br />
• Home banking and Internet banking;<br />
• Mobile sales operations and collaboration with distribution<br />
partners (insurance agencies, retailers).<br />
Management Report<br />
19