What's happening in European supply-chains?

Many multinational companies are supposedly viewing Europe as one region and re-shaping their approach to the supply of products to customers. Several factors are thought to be driving this trend, notably the degree of merger and acquisitions activity; the need for improved financial performance; the pressure to reduce inventories and costs, facilitated by improvements in communication and information technology systems. All of this is in the context of European market and monetary harmonisation. This paper investigates the extent and effect of the amanegement of supply chains on a pan-European baisis by multinational business. A survey was used to examine changes, both made and anticipated. to operational strategies, processes, organisational structures and physical infrastructure across a range of businesses and industry sectors. Cost reducation, driven by the need for profit and shreholder return, was found to be the priority for developments in supply chains.Many businesses reported consolidation of manufacturing and distribution activities whilst retaining discrete country-by-country organisational structures for managing customers and markets.Logistics Service Providers were seen in a traditional role as suppliers of commodity warehousing and transport services and lacked true pan-European capability. Despite the often-vaunted concept of a pan-European business model, individual businesses wwere seen to be negotiating their own path to balancing economies of scale with customers' service needs and expectations.

Competition and complementarity between seaports and hinterlands for locating distribution activities.

A locational duality in port-related distribution activities is emerging. In some regions, distribution activities have moved from ports to inland locations, driven in part by ‘push factors’ such as port congestion and scarcity of land for container handling activities, or by ‘pull factors’ such as the growth of intermodal corridors, the influence of inland terminals and the changing economic geography in the hinterland. In other regions, ports retain their traditional role as centres of distribution and warehousing activity. More recently, the focus on ‘port-centric logistics’ is indicative that some regions are refocusing on ports as potential locations for large distribution centres. The result has been a growing competition, but also complementarity, between ports and inland locations concerning the location of distribution activities, driven not only by market forces but also by institutional settings and the governance relations between the actors involved. This report provides an overview of regional differences across the world in order to develop a framework identifying for which type of distribution activities ports are suitable locations and which activities are best suited to the hinterland, taking into account geographical, economic and logistics settings. Empirical evidence is derived from a variety of regions in Europe, North America, South America, Southern Africa and Asia.