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Each segment of the industry including air, truck and rail operators, post and parcel express services, logistics and shipping companies, travel and tour providers, airports, ports, and urban transit authorities faces particular challenges. But a few business imperatives e.g. achieving scale, defining the scope of the business, and managing increasingly complex networks and partnerships will likely determine success across the industry.
The special demands on logistics faced by the biggest sectors of the industry airlines, railroads, and post and parcel services are forcing them to develop more innovative service offerings and a more disciplined approach to operations. Some companies in these and other sectors are radically redefining the business model. In the last 10 years, for instance, some companies have moved into the fast-growing, $100 billion business of third-party logistics, providing warehousing, distribution, transportation and other supply-chain services to shippers in a variety of industries.
"Transport and logistics companies are unlike most of the businesses they serve," says Dr. Robert Angelone, Chairman of Epicurus, based in the Wall, New Jersey office. "They cannot produce inventory; they have to excel at managing pricing, capacity, and network economics. Service providers must be able to sell essentially the same product an airline seat or shipping slot to different customers at different price points, depending on the market and the needs of each customer. Operational excellence is key, but so is pricing and service differentiation." |
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