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The development and current situation of European logistics

Basenton Logistics on the development and current situation of European logistics

Current situation of European logistic

Although it has provided viable solutions to Europe’s numerous transportation problems, it still faces several insurmountable obstacles. First of all, national protectionist politics poses various obstacles to the integration of European railways financially, technically and materially. For example, high-speed rail systems have been developed in France, Germany, Italy and Spain, but there are many incompatible operations.


place. Second, many countries outside Europe simply do not have a viable railway infrastructure. In addition, there are many European railways that are state-owned, inefficient and expensive to operate, because they are only used for passenger travel and limited access to terminal areas.


Intermodal transportation is an undeveloped solution in European transportation because it lacks standardized containers, road-rail intermodal trailers (called “exchange carriers”) and operating systems. Acceptable truck connections and short-distance transportation between European countries remain obstacles to intermodal arrangements.

1. Today’s business and logistics environment in Europe


(1) Europe is a rapidly changing dynamic market
(2) The congested state of European transportation infrastructure has a negative impact on the serviceability
(3) Environmental control, especially the control of the reuse, refurbishment and disposal of products, packaging materials, and pallets, etc., will have an important impact on the logistics business;
(4) Due to the continuous increase in taxes and fees. The shipper expects that the freight rate will rise in the next year even if competition and deregulation will occur in the short term. 

2. Various strategic responses of European logistics


(1) In Europe, proper logistics is reflected in integration (for example, connecting dispersed operations and locations through a public logistics system) and rationalization (for example, streamlining the logistics system to achieve greater access to less resources with less resources). good result)
(2) Logistics integration will occur regardless of whether the Stricht Treaty takes effect or not
(3) Integration increases the choice of logistics strategy and also increases the complexity of plant management
(4) Material fluidization and rationalization greatly reduce logistics costs
(5) Europe uses high interest rates to encourage manufacturers to commit to supply chain management to reduce inventories to promote logistics integration. 

3. Critical management issues


(1) Logistics is becoming the agenda of the board of directors of many manufacturers
(2) Although many manufacturers have achieved initial success, few have long-term logistics concepts
(3) Reconfiguration of the logistics system requires the entire supply chain channel
(4) Public-resistance and high-level organizations must reorganize the alliance to promote integrated logistics management
(5) Planning and control systems are critical to the success of the 6s, integrated strategy
(6) In order to develop an effective logistics strategy, manufacturers must master inventory and transportation analysis. 

4. Realize and maintain logistics advantages


(1) To meet the new needs of shippers, European third-party logistics services must be more practical
(2) Flexible response to changes in market demand, transportation economy, and competition environment is the key to European logistics system design. 

5. European logistics: challenges for the future


(1) Develop a view of the future market in Europe and use its changes instead of being knocked down by it.
(2) Taking advantage of the new changes in Europe, consider the trend of launching high-value products, increasing border trade, more advanced information and transmission technology, increasing environmental considerations, and investing in Eastern Europe.

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