Forthcoming study: Transport services and logistics

This study by the Sectoral e-Business Watch is expected for June 2008.

Rationale

The transport and logistics services sector has not been covered by sector studies of e-Business W@tch. However, the availability of high quality transport and logistics services is of paramount importance for growth and competitiveness of the European economy. Strengthening the competitiveness of European transport companies is therefore a leverage European and national policy makers could use to enhance the economy in general. While the transport industry services other sectors, ICT and e-business have a crucial importance for the competitiveness of European transport companies themselves. Using e-business technologies, European transport and logistics companies can improve their productivity, create an integrated approach linking transport modes in innovative ways and, thus, the quality of their services. This has an impact on the European economic development as a whole.

Research objectives

The main objectives of this study are to analyse current trends of ICT and e-business usage in the transport and logistics sector, to assess the implications of these developments for firms, value chains and networks in the sectors concerned, and to assess policy implications thereof. To this end, the study will develop an innovative e-Business Index specifically for the transport and logistics sector. This index will be a tool for the European Commission, the European scientific research community and relevant European and national policy makers to assess:

• the most common applications of e-business technology in this industry, and the extent to which these applications are actually used by companies;
• the main drivers and barriers for e-business adoption in the sector;
• the role of RFID and other ICT innovations in logistics;
• role of telematics, toll collect and related activities;
• the impact of e-business on companies and on the sector as a whole, specifically in terms of competitiveness, productivity, employment and economic growth;
• the main differences in e-business adoption between European countries and among different sub-sectors;
• policy implications that arise from these developments.

Sector definition

The study analyses the usage of ICT in the transport and logistics sector. It will focus on business activities described by NACE Rev. 2 49.1-4: rail transport (both passengers and freight) and land/road transport (passengers and freight). Furthermore, the logistics sectors of warehousing, storage and cargo handling will be considered, to the extent that these sectors interact with the main business activities covered by the study (49.1-4). The study focus will be further discussed with the Advisory Board and can then be revised accordingly; for example, the scope can be expanded or further narrowed down, depending on whether a broad study perspective or a more in-depth analysis of specific sub-sectors is preferred.

Business activities covered by the sector study

NACE Rev. 2	NACE Rev. 1.1 (Proxy)	Business activites
49.1		Passenger rail transport, interurban
49.2		Freight rail transport
49.3		Other passenger land transport
49.4	60.24	Freight transport by road and removal services
52	63	Warehousing and support activities for transportation
52.10	63.12	Warehousing and storage
52.24	63.11	Cargo handling
52.29	63.40	Other transportation support activities

Data sources

It needs to be investigated whether data from the Eurostat survey can be used for this study or whether it has to be covered by the SeBW Sector Survey. Descriptive data on ICT adoption would be available from Eurostat; however, the analytical work proposed in this exposé would require case level data which are not available from Eurostat.

Irrespective of this decision, the following accompanying sources will be used:

• CATI Survey by the Sectoral e-Business Watch.
• Eurostat Community survey on ICT usage in enterprises. The transport sector is covered by the Eurostat survey, but in a different (higher) aggregation. Data from this survey can be used in addition to those from the SeBW CATI survey, e.g. to validate findings and provide complementary evidence on indicators not covered by the SeBW survey.
• Case studies: 10 case studies on e-business adoption in companies from the sectors covered will be conducted. A balance mix of cases in terms of countries, business activities (sub-sectors), and company size-bands is to be achieved. Case studies will be selected according to the topics in focus .
• Interviews: In addition to the interviews conducted with firm representatives as part of the case study work, we will conduct in-depth interviews with further company representatives and industry experts. This could include Advisory Board members from the industry and members of industry federations.
• Industry federations: Annual reports and position papers of EU industry federations will be used.

Data analysis - index construction

Based on data collected from the The "Transport Sector e-Business Index" a tool to summarise ICT adoption, e-business usage and the future potential in the transport and logistics sectors of European countries. The Index will be based on a mathematical model and will take into account the most relevant e-business indicators, impact and factors.

The study will employ innovative and advanced data analysis and data mining techniques in the design, component selection and weighting, and building of the e-business synthetic index, such as

• Frequency analysis (descriptive);
• Factor analysis;
• Clustering analysis;
• Adaptive sequential programming estimation algorithms.

For example, clustering analysis techniques on the results of the Index model and its components could be used to identify the main sectoral and enterprise clusters as regards the use of ICT and e-business technologies, i.e. those with similar adoption patterns and impact. This helps to develop recommendations specifically suited for each cluster.

Specific topics to be studied

The study will focus on the following issues:

• Driving forces for the use of e-business in the sector, using analytical methods (in the context of developing the Transport Sector e-Business Index) to identify the most important factors of e-business adoption and impact.
• Barriers to e-business. Using ranking, benchmarking and factor analysis techniques, the study will evaluate the importance of barriers to the usage of e-business in transport and logistics companies from the perspective of different types of companies (e.g. SMEs vs. big companies).
• The study will assess the impact of e-business on the sector with regard to employment, competitiveness, economic growth, transport safety, possible cost reductions (distribution costs), technological innovation and entering into new markets.
• Technological innovation in transport and logistics companies related to e-business technologies. The use ICT specific systems for transport: new EDI standards, applications for fleet control, GPS, transport communications, wharehouse management systems, etc.
• Relative position of transport and logistics sector in e-business development compared to other sectors.
• Policy implications, for example with regard to the regulatory framework, public funding, e-business support programmes, and specific issues at country and EU levels.

One of the main outputs of the study will be a set of recommendations how to further improve the actual scenario of e-business in transport and logistics sectors.