d2 John Price

Demand for ICT in Latin American Logistics: 

Demand for ICT in Latin American Logistics Pinpointing the Opportunities

OK, so he’s no Al Gore …: 

OK, so he’s no Al Gore …

What we would like to discuss ….: 

What we would like to discuss …. Latin American Logistics and Transport Technology Needs ICT in Just-In-Time Supply Chain Integration Emerging Security Requirements for Shipping Cargo Tracking: Networks and Technologies Customs and Tariffs: Expediting Clearance How has the impact of ICT been measured and justified?

What we need to address first… : 

What we need to address first… Where do client demand and supplier competition necessitate investment in technology? Where is the Money?

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENTTier I : Mexico Export Economy: 

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier I : Mexico Export Economy Dominated by multinational clients and suppliers 100% outsourcing of transportation, high % outsource of logistics by clients Speed, secure handling are key decision-making factors World class suppliers with their own infrastructure, somewhat aligned by client industry specialization Heavy investment in ICT by Multinational players and largest domestically owned cross-border players Multinational 3PLs and Freight forwarders obligate their domestic trucking partners to invest in GPS and other security oriented solutions

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier II : Mexico's Domestic Economy, Brazil, Puerto Rico & Panama : 

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier II : Mexico's Domestic Economy, Brazil, Puerto Rico & Panama Important presence of multinational clients due to low country risk and/or large market high % outsourcing of transport, medium % outsourcing of logistics Speed, Security, Reputation but also price are decision factors for logistics customers Global 3PLs are readily buying out domestic 3PLs and freight forwarders where regulations permit 3PLs in these markets have some investments in transportation and warehousing hard assets where regulations permit Significant investment in ICT by multinational 3PLs but very limited investment by domestic 3PLs and transport providers

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier III : Chile, Argentina, Colombia, Uruguay, Costa Rica, Venezuela (Petrochemicals): 

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier III : Chile, Argentina, Colombia, Uruguay, Costa Rica, Venezuela (Petrochemicals) Significant presence of multinational clients or strong trade reliance High % outsourcing of transport, low-medium % outsourcing of logistics Price competes openly with Speed, Security, and Reputation when choosing logistics providers Most foreign 3PLs operate skeleton structures with the bulk of their investments in sales offices and some technology assets As markets mature, foreign 3PLs will obligate their domestic transport partners to invest in GPS and other track and trace capabilities On a client by client basis, foreign 3PLs introduce (via flown in experts) ICT solutions for select clients in areas such as inventory management, optimal route design, etc.

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier IV : Rest of Latin America: 

LATIN AMERICA’S FOUR TIERS OF MARKET DEVELOPMENT Tier IV : Rest of Latin America Minimal presence of multinationals outside of mining/energy low to medium % outsource of transport, close to zero outsourcing of logistics Price is the predominant decision making factor Local transport companies and freight forwarders are very unsophisticated ICT investment by select transport providers is focused on addressing security concerns

Logistics Players - Profit & Volume Levels : 

Logistics Players - Profit & Volume Levels PROFIT VOLUME domestic air cargo international air cargo cross-border trucking international maritime shipping domestic trucking NEGATIVE LOW HIGH LOW HIGH 3PLs b c a

Selling to Corporate Clients: Multinationals versus LatAm Domestics : 

Selling to Corporate Clients: Multinationals versus LatAm Domestics

Corporate Clients - Who appreciates ICT? : 

Corporate Clients - Who appreciates ICT? PREMIUM PRICING DISCOUNT PRICING LOW VOLUME HIGH VOLUME Pharmaceuticals Chemicals Consumer Electronics Automotive Food & Beverage Agriculture Textiles Consumer goods Retailers Export Horticulture Mining & metals Higher Profit Zone

2004/5 ICT INVESTMENT PRIORITIES Logistics and Transport Providers : 

2004/5 ICT INVESTMENT PRIORITIES Logistics and Transport Providers

2004/5 ICT INVESTMENT PRIORITIES Enterprise Corporate Clients : 

2004/5 ICT INVESTMENT PRIORITIES Enterprise Corporate Clients

Defining Security Issues : 

Defining Security Issues

Our Transportation & Logistics Project Experience includes …: 

Our Transportation & Logistics Project Experience includes … TRUCKING SERVICES 14 projects since 1996 RAIL SERVICES 3 projects since 1994 MARITIME TRANSPORT SERVICES 11 projects since 1995 AIR CARGO SERVICES 10 projects since 1997 LOGISTICS SERVICES 16 projects since 1999 PARCEL & MAIL SERVICES 4 projects since 1999 URBAN AND SPECIALTY TRANSPORT SERVICES 4 projects since 1995 TECHNOLOGY & EQUIPMENT 5 projects since 1995 InfoAmericas' has recently completed 41 Transportation & Logistics related projects in these markets … Argentina Brazil Chile Colombia Costa Rica Guatemala Mexico Panama Peru Uruguay USA Venezuela

Some of our clients in the Transportation & Logistics Industry sector: 

Some of our clients in the Transportation & Logistics Industry sector

Our Business Intelligence Solutions …: 

Our Business Intelligence Solutions … 8 8 8 8 8 8 8

We have the region covered …: 

We have the region covered … with offices in Miami - Mexico - Brazil and affiliates in Argentina - Chile - Colombia Dominican Republic - El Salvador Guatemala - Honduras - Nicaragua – Panama Peru - Puerto Rico - Uruguay - Venezuela

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(end) Demand for ICT in Latin American Logistics & Transport In Miami in Mexico in São Paulo email web +1-305-569-9133 +52-55-5545-4325 +55-11-3044-1371 solutions@infoamericas.com http://infoamericas.com