Time-critical logistics opportunities in air cargo Frederik Luz CSO, Marketing & Sales time:matters Holding GmbH, Frankfurt, Germany.

Time-critical logistics opportunities in air cargo

Frederik Luz

CSO, Marketing & Sales

time:matters Holding GmbH, Frankfurt, Germany

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100% focus on speed & special customer solutions

Exclusive & preferred access to carrier networks (Lufthansa,

Swiss World Cargo, >300 partners worldwide)

International top customers, including big four integrators and many

major logistics players / 3PLs

Proprietary IT-solution developed for time-critical solutions

Ownership structure enables high flexibility, customer orientation &

focus on growth

The experts for Courier-, Sameday- and Emergency Logistics.

Company Profile

USPs

Specialist for time-critical logistics.

Founded in ‘02 by Lufthansa Cargo, since ’07 owned by

Mgmt / Buchanan Capital (51%) & Lufthansa Cargo (49%)

Revenue CAGR >25% since foundation.

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time:matters is the expert for international time-critical logistics solutions

servicing logistics companies and selected industries

Commercial Linehaul

Transports on LH

Emergency Transports

(OBCs / Charter)

FLEXIBILITYPlanned / Standardized Ad-Hoc / Individualized

SPEEDCargo / Express Courier / OBC / Charter

Linehaul ServicesB2L - Integrators / Wholesaler

Courier, Sameday & Emergency LogisticsB2B – Industries (Automotive, Aviation, High-Tech etc.)

Courier Terminal

Sameday &

International CourierTransport

Services

Logistics

Solutions

Critical Spare

Parts Logistics

Emergency Logistics

Industry Specific

Emergency Logistics

Linehaul

Services Courier, Sameday &

Emergency Logistics

Critical Spare

Parts Logistics

Industry Specific

Emergency Logistics

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Time-critical logistics is a growing niche market with attractive

business potentials and sustainable competitive advantages.

Fragmented & emerging market.

Industry trends as drivers of growth:

Shorter cycles, lead & service times = demand

for speed.

Lean production & centralization of

warehouses = exposure to shortage risks.

Outsourcing of niche services / spare parts

logistics & search for one-stop-sourcing.

Differentiation through after-sales-services;

integration of sameday into distribution.

Emerging markets (Eastern EU, China, India).

Market Potential

>2.500 mln EUR

Market Growth

>15 %

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Especially time-critical Spare-Parts Logistics drive the need for

sophisticated air cargo solutions.

TransportableStorable Not too heavy(< 50 kg)

Not too large Expensive/capital intensive to keep on stock in large

numbers

High costs incur due to downtimes “Vulnerability”

—constant need for

servicing

Replacement parts and incidents

erratic and unpredictable

Delivery

After-Sales-Service as

competitive advantage

International / decentralized

production

Spare parts criteria Equipment/Facility criteria

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The market for time-citical logistics is growing at more than 10% per

year, thus at a higher rate than the air cargo market.

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Everyday business.

97% volume driven.

Regular & predictable.

Requires consolidation,

standardized handling processes &

networks.

USPs:

- Network coverage

- Standardization

Primary focus on cost structures.

Who can do it? Time-critical logistics services require a high degree of

flexibility & individuality as they often disturb standardized processes.

Exception business

3% of the orders … often require

30% of the capacities.

(Often) unpredictable.

Need for special solutions and ad-

hoc processes; no consol.

USPs:

- Verified experience

- Reliability / trust

Primary focus on solutions (service)

Standard Air Cargo Time-critical special services

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How? Speed, service, competence.

It’s the people, the network and the processes that make the difference!

Point-to-point transportation & individualized pick-up / delivery: - No consolidation, no hub & spoke

- Immediate, direct, customized

- No delays, no waiting, no complexity for customers

NFO with special capacity guarantees and separate loading- Worldwide destinations to all major industrial centers

- Last in – first out; no mixture with freight / luggage

Tailored processes & complete monitoring- Transportation & routing based on customers‘ problems / needs

- Continuous pro-active progress & interface checks

Personal responsibility, reachability & commitment- Highly skilled & motivated service team

- Extensive know-how & experience in doing specials

- 24/7/365 - any time

- <30 minutes reaction time

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Example: Less than 20 hours to ship fashion samples from Delhi to a

show-room in Long-Island, incl. pick-up, customs & delivery.

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Example: InteraDent Zahntechnik AG

Lübeck, Germany to Manila and return

Part of InteraDent´s production of 60.000 dental impressions is

manufactured in Manila / Phillipines. Between pickup and delivery of the

impressions is only a time range of 7 to 10 days – 4 days are needed for

production. To reduce the cycle time, InteraDent trusts in time:matters.

Hamburg – Manila in less than 15 hrs, 5 times a week.

07:00 pm: Shipment is delivered at Hamburg Airport

08:05 pm: Flight to Frankfurt with LH027

09:15 pm: Arrival in Frankfurt

10:45 pm: Flight to Manila with LH788

Next day:

08:05 pm: Arrival in Manila

09:05 pm: Shipment is available for the customer

Transportation time: approx. 15 hrs.

Time advantage: 2-3 days!

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Strategic positioning

CostsRevenues

Strategy for cargo airlines: outsourcing time-critical logistics services &

focusing on the core (volume) business.

Optimized usage of available capacities.

Meet basic & specific customer needs.

Service offer & competence for standard &

special services.

Premium services leverage existing

customer base.

Improvement of customer retention.

Transfer risk & fixed costs (no own

system, labor, mgmt. & admin).

Organizational streamlining & reduction

of complexity = greater efficiency.

Optimize (internal) service layers.

Bargaining power & production flexibility.

Increase competitive advantage through service line extension.

Focus on core business, partner for niches.

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1. Market trends lead to a growing demand for specialized time-critical

logistics services.

2. The use of available capacity for time-critical spare-parts logistics offers a

competitive advantage in customer service.

3. Increased flexibility & individualization increased complexity …

option for air cargo carriers = outsourcing service offer to a specialist.

Summary: Demand for High-Speed will not slow down …

3 Things to Remember:

Thank you for your attention