Business Region Göteborg JOHN WEDEL Cluster Analysis Logistics SWEDEN IS # 1 AT INNOVATION Sweden • Sweden is the most innovative country in the EU Source: European Innovation Scoreboard 2017 (EIS) Denmark Finland • The Gothenburg region is the innovation leader among Netherlands 220 regions in Europe United Kingdom (European Commission – Regional Innovation Scoreboard 2017 (RIS)) Luxembourg • Sweden is ranked 1st out of 157 countries in the UN’s Germany Sustainable Development Goals Index Belgium Source: Sustainable Development Goals (SDG) Index and Dashboards Ireland Austria France EU Average 0 0.2 0.4 0.6 0.8 Value for the selected indicator Performance Group EU Average Strong Innovator Innovation Leader Definition • Logistics encompasses activities linked to the flow of materials, from raw materials to the final consumption of goods. • This includes transport, storage and related activities. • As such, the field is both broad and diverse. Innovations from a historical perspective THE CONTAINER has changed how THE FLOW APPROACH evolved THE WILSON FORMULA, or ROUTE PLANNING is an all trade is conducted and how our world thanks to, for example, Henry Ford’s EOQ (economic order quantity), example of an expert system that has evolved. The underlying idea is to production principles. Ford worked not only calculates the economic order helps businesses to work more use standardisation to streamline freight with car manufacturing, he also considered quantity for purchases. By efficiently. A route optimisation services. Containerisation was one of the the entire supply chain, from raw materials minimising the sum of the costs for system can make a well-planned greatest development steps in history and to finished product. Today, a flow approach placing orders and stockholding, distribution system some 10–15% the container has probably done more for is a given in any industry. the formula indicates how much to more efficient. The first systems world trade than all international trade order on each occasion. Ford were based on the principle of agreements together. Whitman Harris presented the EOQ turning right if faced with a fork in model in 1913. the road. Global challenges and trends Increased transportation and emissions Increased urbanisation creates new create a need for extensive environmental transport needs and climate measures Urbanisation Digitalisation and Environmental technological impact breakthroughs New value chains and business relationships Technological breakthroughs in numerous The industry is being transformed, areas are affecting the logistics industry. with new actors entering the market. They will reduce climate impact and may Customer relationships and data are even reduce transport costs. gaining in importance. Characteristic of Gothenburg SCANDINAVIA’S LOGISTICS CLIMATE SMART RESEARCH HUB VEHICLE DEVELOPMENT CITY LOGISTICS Gothenburg is Scandinavia’s leading logistics hub 1st place ranking since 2005 Port of Gothenburg − Container/car/ro-ro port Most logistics companies in − Stena Line Sweden Wallhamn World-leading research The Donsö cluster − Approx. 100 senior Göteborg Landvetter Airport logistics researchers − Sweden’s second-largest − Innovation centre airport Head offices of several major logistics companies Points Greater Gothenburg 94 Best Logistics Location 2019 as Örebro region 89 ranked by leading Swedish logistics Helsingborg region 86 Östgöta region 85 periodical Intelligent Logistik Jönköping region 81 Eskilstuna region 78 Stockholm North 77 Malmö region 74 Stockholm South 72 Halmstad region 71 Växjö region 70 Central Sweden 68 Skaraborg 65 Katrineholm/Nyköping 63 Västerås/Köping 61 Trollhättan/Uddevalla/ Vänersborg 58 Värnamo region 54 Northeast Skåne 53 Southeast region 52 Ulricehamn 51 Trelleborg/Ystad 51 Uppsala/Heby 51 Sundsvall region 49 Source: Intelligent Logistik Umeå region 48 Karlstad/Kristinehamn 46 Construction size, m² Greater Gothenburg 693,550 Newbuilds, logistics properties Stockholm North 356,200 m² 2014–2019 Helsingborg region 273,200 Örebro region 202,800 Stockholm South 175,400 Östgöta region 138,000 Jönköping region 136,600 Malmö region 110,300 Eskilstuna region 94,000 Southeast region 87,000 Halmstad region 85,000 Skaraborg 73,800 Växjö region 53,000 Trollhättan/Uddevalla/V änersborg 53,000 Uppsala/Heby 38,000 Västerås/Köping 30,500 Umeå region 23,000 Ulricehamn 12,400 Northeast Skåne 11,000 Katrineholm/Nyköping 10,000 Central Sweden 0 Source: Intelligent Logistik Värnamo region 0 Trelleborg/Ystad 0 Sundsvall region 0 Karlstad/Kristinehamn 0 Logistics ecosystem in the Gothenburg region NATIONAL & REGIONAL AUTHORITIES RESEARCH, DEMONSTRATION • Business Region Göteborg & TECHNOLOGICAL DEVELOPMENT • City of Gothenburg and other cities in the region • Research Institutes of Sweden (RISE) • Region Västra Götaland incl. Viktoria and SSPA • Swedish Maritime Administration • Chalmers University of Technology • Swedish Transport Administration • University of Gothenburg • Swedish Environmental Protection Agency • School of Business, Economics and Law at the • International Maritime Organization (IMO) University of Gothenburg • Swedish Transport Agency • Swedish Environmental Research Institute, IVL • Swedavia AB • Lindholmen Science Park • Closer at LSP • Gothenburg Port Authority • The Swedish National Road and Transport Research Institute (VTI) LOGISTICS FINANCE AND CAPITAL COMPANIES EDUCATION & RESEARCH • Public venture capital (ALMI Väst & Invest) • Research Institutes of Sweden (RISE) incl. Viktoria and SSPA • Regional funding (Region Västra Götaland) • Chalmers University of Technology • AP6 Sixth Swedish National Pension Fund • University of Gothenburg • Venture cup • Northern LEAD • Backstage Invest • School of Business, Economics and Law at the • Volvo Group Venture Capital University of Gothenburg • Chalmers Ventures • Swedish Environmental Research Institute, IVL • Fouriertransform • VOCATIONAL TRAINING • Vinnova Logistics ecosystem in the Gothenburg region SCIENCE PARKS NETWORKS & INCUBATORS • City of Gothenburg’s Goods • Lindholmen Science Park Network • Johanneberg Science Park • Region Västra Götaland’s Freight • Lindholmen Science Park Transport Group • The Gothenburg Region’s Infrastructure Network • Chamber of Commerce • TREFF • Chalmers Education • PLAN • SILF • KNEG LOGISTICS COMPANIES Industry structure Number of companies per size category Sales per company (number of employees) Industry structure EMPLOYEES PER SIZE CATEGORY 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 1-9 10-49 50-249 250-100,000 2008 2012 2016 Trends in logistics 2016 2012 2008 VALUE ADDED SEK VALUE ADDED VALUE ADDED 11,040 million SEK SEK 8,996 million 8,821 million TURNOVER TURNOVER SEK TURNOVER SEK SEK 46,475 million 54,139 million 50,876 million EMPLOYEES EMPLOYEES 14,915 EMPLOYEES 15,764 14,960 *Adjusted for inflation up to 2016 Trend in employee numbers 2008 2016 14,915 15,764 employees employees IN NEW IN NEW COMPANIES COMPANIES 220 3,862 IN COMPANIES IN COMPANIES ALREADY THAT OPERATING 2008– HAVE CLOSED 2016 DOWN -2,571 -662 Largest companies 2016 Turnover (SEK thousands) Employees Stora Enso Logistics 6,654,100 PostNord Sweden 1,800 Volvo Logistics 5,271,694 Västsvensk Tidningsdistribution 848 Schenker 3,589,432 Swedavia 697 Lindex 3,066,890 Schenker 656 PostNord Sweden 1,995,215 Lindex 457 Swedavia AB 1,311,427 Menzies Aviation 415 DHL Freight 1,092,594 Bring Citymail 380 Geodis Wilson Sweden 1,052,994 DHL Freight 295 GLC, Göteborgs Lastbilcentral 796,047 SAS Ground Handling 247 Schenker Dedicated Services 787,958 Volvo Logistics 242 Damco 787,594 Green Cargo 185 West Atlantic 729,300 United Parcel Service 173 DFDS Logistics 657,870 Geodis Wilson 153 DSV Road 619,417 DSV Road 150 Västsvensk Tidningsdistribution 566,759 Damco 142 Panalpina Aktiebolag 558,231 DFDS Logistics Contracts 141 Kuehne & Nagel 519,379 Bäckebols Åkeri 130 F.H. Bertling 453,122 DFDS Logistics Services 127 Toll Global Forwarding 415,025 Maersk Sweden 112 NORDIC BULKERS 405,694 Kuehne & Nagel 111 Green Cargo 387,962 TGM 106 HML Haga-Mölndal Lastbilcentral 365,059 GB Framåt Transport 103 Bring Citymail 363,545 Aviator Airport Services 89 United Parcel Service Sweden 358,653 THL Transportservice 84 Scandinavian Motortransport 357,162 DHL Exel Supply Chain 83 Finances Earnings per employee per company size Added value per employee per company size Solvency per company size Note: The negative value of earnings per employee for 2012 is due solely to the loss of SEK 185 million reported by a PostNord company Networks and meeting places CITY OF GOTHENBURG’S TRIPLE F The Swedish Transport Administration’s research and GOODS NETWORK innovation initiative contributing to the transition to fossil- Network for city distribution free freight transport in Sweden stakeholders https://triplef.lindholmen.se/ www.goteborg.se CLOSER THE GOTHENBURG REGION’S A national collaborative platform, knowledge hub INFRASTRUCTURE NETWORK and project workshop for increased transport The Gothenburg region’s network for infrastructure efficiency www.goteborgsregionen.se www.closer.lindholmen.se REGION VÄSTRA GÖTALAND’S SILF FREIGHT TRANSPORT GROUP Industry and member organisation in logistics and Working group for freight transport in a regional purchasing context www.silf.se www.vgregion.se CSCMP VOLVO RESEARCH AND World-wide education and networking organisation EDUCATION FOUNDATIONS VREF for logisticians Four Volvo foundations funding research and www.cscmp.se education in transport, environment and energy http://www.vref.se/ Networks