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									> > France
       The country
 of choice for logistics
 I. From logistics to supply
    chain management (SCM)

           With a centuries-old tradition of commerce, France combines a privileged
       geographical position with experience in logistics acquired over the years by
    a large number of companies. France's long history is confirmed by its position
  today and the French logistics sector is looking confidently towards the future to
    ensure the development of companies that choose France for their operations.

   "Logistics", "integrated logistics", "global logistics", "the extended enterprise", "supply chain
   management (SCM)", "the customer-supplier chain", "global fulfilment" all refer to a complex             Delivery
   activity that employs more than 887,000 people in France and 6.5 million in the European              Downstream logistics
   Union. Although modern logistics has military origins, at the end of the 20th century it had                (DRP)
   become a full, and most often strategic, function of business management. Its importance can
   be judged from the fact that French companies devote 8% to 12% of sales revenue ( 120
   billion) to logistics. Logistics accounts for 8% of Europe's GNP ( 800 billion).

 Material supplies
      Upstream logistics (SRM)

                                                                                                       Internal logistics
                                                                                                          (PGI, ERP)

reverse logistics
                                                                                       I.       From logistics
                                                                                                                                                    P 2
                                                                                                to supply chain management          (SCM)

                                                                                       II.      Downstream logistics and
                                                                                                                                                    P 4
                                                                                                France's key advantages
                                                                                                II.1 France, a first-class multi-modal point
                                                                                                     of entry to the European Union
                                                                                                II.2 Ever more intelligent platforms
                                                                                                II.3 Platform operators: 3PL, 4PL, LLP
                                                                                                II.4 The French handling equipment industry
                                                                                                II.5 Developers of IT solutions for comprehensive
                                                                                                     SCM management (SCM)

                                                                                       III.     Upper stream and
                                                                                                "last-mile" logistics                               P 18

                                                                                       IIII.    E-logistics                                         P 20

                                                                                       IIIII.   Collaborative logistics                             P 22

                                                                                                Glossary                                            P 23

                   “Last-mile” logistics

                                    Recent developments
                                    Much has been written as a result of the significant growth of logistics over the last 30 years. One of
                                    the main reasons put forward to explain the development of the logistics function is the
                                    internationalisation of trade between the three axes that are NAFTA, the European Economic Area, and
                                    the Asean countries. Internationalisation means that suppliers and customers can now be located
                                    anywhere in the world, and so demands co-ordinated control of the flows of both goods and
                                    information.The growing diversity of products and the shortening of their life cycle is making the
                                    organisation of businesses more complex. At the same time, businesses must be flexible and quick to
                                    respond in order to cope with the rapid obsolescence of inventories and large fluctuations in demand.
                                    Time is also a strong constraint because of the constantly rising expectations of customers, who
                                                           demand customised products with ever shorter delivery times. Businesses
           “The logistics function draws on several        therefore have to shorten their planning, production and delivery organisation
           trades and skills that contribute to the        timescales. More recently, exponential progress in the management of
           management and control of flows of              information flows, due to EDI and the Internet, have enabled the various
           goods and information, as well as of the        participants in the logistics chain (suppliers, producers, distributors, logistics
           means.”                                         service providers and customers), to communicate in real time and optimise
                         (from Afnor Standard X50-600)     each stage in the process. Logistics thus becomes more transversal, global,
                                                            extended, collaborative, and attentive to the customer's needs. Its integrated
                                                            approach enables a product to be followed from its design stage through to its
                                    return (from upper stream logistics to reverse logistics, using Integrated Logistic Support (ILS), and
                                    allows flows of goods and information between suppliers and producers to be managed (upstream
                                    logistics), production to be made more fluid (internal logistics) and flows between suppliers and
                                    distributors (B2B) or final customers (B2C) (downstream logistics) to be optimised.
                                    However, progress in the areas of logistic tools and techniques is not sufficient to ensure the
                                    effectiveness of a supply chain. This requires rational organisation of space and time as well. This
                                    combination of key advantages is what a large number of international corporations have come to
                                    seek in France.

France, an immense logistics platform
Being both the European continent's Atlantic coast and a crossroads between Northern Europe and the Mediterranean
Basin, it is natural that France should occupy a major place in global logistics. Its networks of land, air, river and
maritime communications are organised around this goal. The planned extensions of the freight zone of Roissy-
Charles de Gaulle airport, the development of TGV high-speed train links, or the motorway building programme are
just a few examples demonstrating France's will to accompany the evolution of transport needs. The size of
international trade in France offers businesses a guarantee that a partner or logistics supplier will always be found to
develop their activity. This availability of skills is also reflected in the training provided in the sector. Through initial
or in-service training, France trains thousands of logistics specialists every year, from forklift drivers to logisticians,
not forgetting IT network engineers. Placing France at the core of one's logistic organisation is to choose a country
that is itself central to logistics.
                          II. Downstream logistics
                          and France’s key advantages
                                        Downstream logistics is the centre of attention because it is directly
                        linked to an enterprise's commercial policy. The size of France's domestic market
           and its close relations with both the European Economic Area and the Mediterranean Basin
               combine with other competitive advantages to make France a logistics centre of choice.
                          Located between producer and distributor, downstream logistics is the first link
                                          in the supply chain. “Last-mile” downstream logistics handles flows
                    between the distributor and the final customer. E-commerce is even making logistical
                                       management of flows between producer and final customer possible.

France’s position at the heart of Europe
At the European level, the location chosen for a logistics centre should allow rapid
contact with the greatest possible number of customers. A large number of foreign
enterprises wishing to provide their European customers with optimal service rates
and speed of response have chosen France for their European logistics platform.
France's central position at the heart of a market of 380 million inhabitants and GNP
of $916 billion in 2000 (greater than that of the USA and double that of Japan), is an
undeniable advantage.
According to a recent report by the McKinsey consultancy firm, France is the European
country that offers the best value for money when developing commercial activities.
The needs of commerce and logistics are close. Other studies drawing similar
conclusions show that logistics costs in France are very competitive when compared
with the European average. In France, transport costs remain reasonable.

                              Takao Amase, Chairman of Bridgestone/Firestone Europe >>>

                                “  Its geographical position and its connections to a well-developed motorway
                                network and the TGV high-speed train network with access to the Channel
                                Tunnel, mean that France is ideally situated to meet the level of service
                                required by our customers. These factors, together with the quality of the
                                workforce, were important factors in our decision to double our warehousing

                                infrastructure in France.
                                   Philippe Monneret, Manager of the Ikea site at l’Isle d’Abeau >>>

                                   “  We were looking for a strategic location in Southern
                                   Europe that would allow us to receive suppliers' shipments
                                   from the UK, the Netherlands, France, Spain, Portugal,
                                   and Switzerland. Analysis of transport costs led us to
                                   choose Lyon as the ideal, and most economical, central

Competitiveness and reliability
The workforce is well qualified, with an hourly cost that is 15% to 40% lower than in
the countries of Northern Europe.
According to the World Competitiveness Yearbook 2002, French labour ranks second
for productivity, coming before Italy, Germany, Spain and the UK. Land prices remain
attractive and establishment and construction costs are low. France's technological
infrastructures are second to none. France is the only country of Europe that offers a
100% digital telecommunications network. High-speed Internet and EDI (Electronic
Data Interchange) are very widespread, with more than 110,000 enterprises using
them. Foreign investors also appreciate France's public sector infrastructure.

      M. Dosch, CEA of Borg Warner Automotive, S.U.M (Tulle – Corrèze) >>>

     “  The American group appreciated "the quality of the workforce and the
     labour costs, notably more competitive than in Germany.
                                                        II.1 France, a first-class
                                                        multi-modal point of entry
                                                           to the European Union
                                                                    Whatever the transport mode chosen to ship
                                                                  goods to the European Union, France provides
                                                     entry points that are technically excellent and extremely
                                                                  efficient in handling both imports and exports.

By sea

On the Atlantic and Channel coasts:
• Le Havre, the largest French port for containers, which account for 60% of traffic.
  Its “Port 2000” extension will enable the largest ships to be catered for,
  whatever the tide or the ship's draught.
• Rouen, very close to Paris, is specialised in bulk cargoes: wood,
  cereals, and fertilisers.
• Dunkerque is experiencing fast growth and handled 150,000 TEU
  containers in 2001. It is the most rail-oriented of European ports,
  with 49% of freight in transit carried by rail, compared with 40%
  by road and 11% by waterways.
• On the Atlantic coast, there are many ports that specialise in
  bulk cargoes: Bordeaux, La Rochelle, Nantes Saint-Nazaire,
  Lorient, Brest, Cherbourg, and in the North, Dieppe.

On the Mediterranean coast:
• Marseille-Fos, the largest port in the Mediterranean, is
  connected to the North European hinterland not only by a dense
  network of motorways and rail, but also by the Rhône-Saône river
  system. The Marseille port authority (PAM), certified ISO 9002 by
  Lloyd’s of London has been developing a programme since 1998 to be
  able to cater in due course for ships of 8,000 TEU* and reach an annual
  handling capacity of 1 million TEU.
  To ship their goods to or from these ports, enterprises can rely on major ship operators
  such as CMA-CGM (Compagnie Maritime d'Affrêtement - Compagnie Générale
  Maritime), Delmas (the world leader in North/South connections), and Cargosud.

                                                         By air

                                                         Ranking third in Europe, Paris Charles-de-Gaulle and Orly airports
                                                         together handle 20% of the total airfreight in the European Union. 600
                                                         enterprises, which together employ more than 55,000 people (of
                                                         which 12,000 in logistics), have based their operations there because
                                                         of their location in the heart of the Paris Basin, the region of Europe
                                                         with the highest GDP US integrated operator FedEx has constructed
                                                         its largest hub outside the USA at Paris Charles-de-Gaulle airport, with
                                                         77,000 m2 of warehousing. 2,000 people will work there in 2006.
                                                  According to Frederic W. Smith, CEO of FedEx    >>>

                                                  “ Paris CDG airport is one of the best managed airports

                                                    in Europe and is at the geographical centre of the continent.

By road, rail and waterways

950,000 km of roads (including 9,300 km of motorways) that are some of the best maintained and
least congested in Europe, with traffic density of 30 vehicles/km compared with 44 on average in the EU
and 65 in Germany

         • rail, which carried more than 55 billion tonne-kilometres in 2001, of which more than 20% by
         combined road-rail transport, a market share greater than the 14% European average. France is at the
         centre of the European Commission's freight corridor projects, with the Belifret Freeway that links
         Belgium, Luxembourg, France, Italy and Spain. As the future of rail freight is multi-modal, SNCF Fret and
         wagon manufacturer Lohr have developed an original technique, Modalohr, which allows full lorries to
         be loaded rapidly and autonomously. This technique will be tested on the Alpine rail highway between
         Savoy and Piedmont between 2002 and 2006.

         • waterways: the Seine and the Port of Paris (which is the second in Europe after Duisburg), the Rhône-
         Saône system, the canals of the North and the Rhine, accounted for more than 58.7 million tonnes of
         freight and nearly 7 billion tonne-kilometres in 2001.

         In France, the Logiseine grouping transports on average 32,000 TEU containers annually between Le
         Havre and Paris Gennevilliers with waterborne convoys of 132 to 264 TEU. Rhône Saône Conteneur (a
         subsidiary of CMA-CGM) is involved with the development of a 500,000 m2 “magmaparc” at Port of
         Pagny sur Saône in Burgundy, developed by Gazeley, a subsidiary of Wal-Mart.

         French expertise in river and canal transport is also recognised on foreign waterways, in the USA or
         South America, as demonstrated by Touax, formed in 1853, which operates on the Mississippi and in
         Amazonia, and CFNR (Compagnie Française de Navigation Rhénane) which operates on the Rhine, the
         Moselle, and the Danube, carrying more than 13 million tonnes annually.
                       II.2 2 Ever more intelligent platforms

 Placed firmly at the centre of logistics organisation plans, the platform
 is no longer seen as a mere warehouse. Its location is as crucial a choice
  as its design in determining an enterprise's performance.

Logistics platforms are needed in the supply chain and at the points of contact               The Southeast
between suppliers, producers and final distributors, where flows of information               The      local    government       and
                                                                                              economic decision-makers in the
will meet and the corresponding flows of physical goods will be handled. Even e-
                                                                                              Lyon region have an ambitiously
commerce, the domain of the virtual, cannot operate without these intelligent
                                                                                              aggressive policy       on logistics.
warehouses.                                                                                   Under the "Lyon Logistics" label,
Operated directly or via an external service provider (a 3PL provider), warehouses            they are pursuing a policy of joint
are today much more than simply space to store goods. Last-minute                             international promotion, putting the
                                                                                              advantages of their region to the
customisation of goods (known as "late differentiation"), packaging, and handling
                                                                                              fore. This strategy has met with
of administrative or customs procedures have been added to the traditional order
                                                                                              great success and a very large
preparing activities. The types of jobs found in these platforms are more and                 number        of    enterprises     of
more varied and require specialists in logistics, computer networks etc.                      international stature have arrived in
Given all that is at stake, enterprise decision-makers have to make the right                 the region.
                                                                                              The Japanese logistics service
choices on localisation, and assess the quality of the infrastructures available
                                                                                              provider New Wave Logistics (a
locally, the human potential etc.                                                             subsidiary of the NYK shipping
                                                                                              line), runs a 20,000 m2 warehouse
                                                                                              for Yamaha Motors at Lyon-l’Isle
                                                                                              Koyo Steering Europe, the world
                                                                                              leader     in   automotive    steering
                                                                                              systems, has decided to build its
   The Nord Pas-de-Calais region                                                              new HQ and European R&D
                                                                                              centre on the southern outskirts of
   Located in the centre of the Euro-region (formed in 1991 with Kent, Flanders,
   Wallonia and Bruxelles-Capitale), the Nord Pas-de-Calais is France's second region
                                                                                              DaimlerChrysler      has     built   a
   for logistics and boasts dozens of platforms, including the 260 hectare multi-modal
                                                                                              distribution centre at Etoile-sur-
   centre at Dourges built by Logistis and Prologis.
                                                                                              Rhône, in the Drôme département.
   The Nord Pas-de-Calais has already welcomed more than 500 well-known                       In 2001, the economic impact of
   investors, which together employ more than 75,000 people and have made the                 logistics activities on the Lyon
   Nord département their European Distribution Centre. Companies include Toyota              region has been estimated at more
   at Onnaing-Valenciennes; Mercedes Benz at Rouvignies; Visteon, Connair/Babylis,            than FRF 9 billion; 46 sites of more
   and Columbia Sportswear at Cambrai; Bridgestone/Firestone at Amiens, as well as            than 10,000 m2 have been created
   Schering, Siemens, Coca-Cola, US Robotics, etc.                                            in five years, corresponding to
                                                                                              4,000 jobs.

                                          Ile de France, the most highly developed centre in France with 955 million
                                          square metres of warehousing and 12 million consumers, is the favoured
                                          location for new sites. The port areas of Marseille-Fos, Le Havre-Rouen,
                                          Dunkerque, and the airport zones of Roissy-CDG, Marseille Marignane,
                                                             ,      ,
                                          Lyon Saint-Exupéry Vatry and Châteauroux-Déols (linked to Paris airport
                                          operator ADP), are confirming their role as logistics centres.
                                          Some companies choose to locate their operations on the edge of the so-
                                          called Blue Banana belt (which extends from London to Milan, passing
                                          through Frankfurt), near to rail, motorway or waterway centres in the
                                          Nord/Picardie, South East, Lorraine and Champagne regions.
             The East and Lorraine
            The Lorraine region has a large number of exceptional logistics centres chosen by world-class businesses, for example the
                                            ,                      ,
            multi-modal platforms at Nancy Eurotransit at Ennery and the Pôle Européen de Développement at Metz.
            - Ikea has opened a logistics platform with a 165,000 m3 storage facility at La Maxe; this is operated by logistics service
              provider Norbert Dentressangle Logistics.
            - Cat Logistics, a subsidiary of Caterpillar Inc, chose Lorraine in 1993 as a base to manage supply flows of its customers
              Chrysler, Land Rover, Hiab, Electrolux etc. in a 32,000 m2 logistics warehouse.
            - GE Lighting operates from the Eurotransit platform at Ennery  .
            - Tenneco Automotive, a manufacturer of automotive exhaust and suspension systems, is located at Fameck (Moselle).
            - Smart (SCC) has set up its worldwide logistics centre at Hatten (Bas-Rhin).

umber and surface area of logistics services
                                                                     v 43 § 289 225
                                          Haute-Normandie                                         Champagne-Ardennes

                                         v 18 § 85 500                    Picardie                 v 12 § 65 000
                                                                         § 64 650                 Lorraine
          Bretagne                                                                                v 19
                                v4          § 930                  Ile de France
                                                                                                 § 64 700
     v 7 § 16 349                                                    v 101                                                        Alsace
                                                                   § 956 000                                              v    14   § 82 640
                                                                Centre               Bourgogne
                      Pays de la Loire                          v 28                  v 11
                 v 19 § 65 100                              § 346 317                § 34 200                    Franche-Comté
                                                                                                                v 3 § 325

                                  v 7 § 28 000                               Auvergne                             Rhône-Alpes
                                                                          v 3 § 1 000                        v 39 § 258 000
                                              v 2 § 18 500
                                                                                                             Provence-Alpes-Côte d’Azur
                                                                                                             v 22 § 174 200
                     v 20 § 92 447
                                              Midi-Pyrénées                     Roussillon
                                             v 18 § 84 000                   v 6 § 49 200                v Number of sites
                                                                                                         § Total surface
                                                                                                                 Source: DATAR2000

  Port zones
  The Marseille port authority PAM (Port Autonome de Marseille) has set up a 160 hectare logistics zone at Fos named
  “Distriport”, where such firms are present as Danone, Kawasaki (which has a distribution centre managed by Lorafret
  and P&O-Nedlloyd), Dole Foods, and logistics specialist TNT. Since 1999, the "Clésud" 260 hectare multi-modal
  platform, chosen by Rexel, Nortène and by logistics service providers La Flèche and Giraud Logistics, has provided
  further capacity .
  Prologis has built a 125,000 m2 logistics platform on the Le Hode site at Le Havre.
  At Rouen, the Antwerp-based giant Westermund, the world's largest forestry products distributor, has set up a
  13,500 m2 terminal to serve its customers UPM, Kymene and M-Real and to export its pulp and kraft paper to as far
  as China.
  Dunkerque has a 20 hectare multi-modal platform where such world-class firms as Coca-Cola, Dupont de Nemours,
  Cynamid,Ajinomoto, Nutrasweet,Péchiney Maersk Logistic, Lego and Falcon have operations.
The “Blue Banana”
The so-called "Blue Banana" belt constitutes the
economic heart of the European Community,
accounting for 2/3 of GNP. The regions of France
that border this belt (the North, the East, and the
Southeast) are well placed on its periphery as sites
for logistics platforms, being less congested than
areas within it.

A secondary arc of development runs from the Le
Havre area to Marseille, taking in the Paris region,
Burgundy, the Lyon region and the Rhone valley; a
similar arc is appearing to the east of the "banana"
and stretching from Hamburg to Vienna, via Berlin.

Specialists in logistics real estate
Investors can rely on the expertise of the major construction companies to design and build turnkey

Even though the world leader in logistics warehouses, the US company Prologis, has been very present
in France since the purchase of Garonor (450,000 m2), French companies are also well established in
this market. Bouygues and its specialised subsidiary Parcolog have plans to build ten major logistics
parks between now and 2005, for a total area of 550,000 m2. GSE manages properties totalling
8,000,000 m2 in 12 countries. Logistis, a subsidiary of Caisse des Dépôts, manages warehouse
capacity of 600,000 m2. Sogaris, which was the initiator of such platforms in France at Rungis, has a
total capacity of 350,000 m2 in Lyon, Rouen, and Bayonne, and is involved in a 200,000 m2 project in
the Pont de Normandie logistics park at Le Havre.

Coming from the building and public works sector, these companies have been able to follow the
evolution of the logistics sector and have become real specialists in platform engineering.
How much does a 20,000 m2 logistics
centre cost?

Land costs of 2 million + construction costs of        5m =     7m, or there is an annual rent of      0.82m
( 41.16 per m 2).

These high construction costs are due to the ancillary aspects of warehouse construction, covering quality
landscaping, with trees, lawns and flower beds, as well as:
- anti-theft and fire-prevention systems;
- ergonomic design of the work environment;
- lighting of 150 lux in storage areas, 200 lux in order preparation areas, 250 lux in offices; more pleasant
  central lighting through the roof to provide 6% of the total lighting;
- heating, ensuring a minimum temperature of +7°C in warehouses.

In the future, the needs of e-commerce for storage and distribution facilities could lead to the appearance of
smaller sites closer to large urban centres, resulting in even higher property costs.

A sign of things to come was the inauguration,in April 2001, of a 16,000 m 2 telehousing platform at Garonor
(Paris), which brings together all the communication equipment for internet-based trading required
by the e-merchants present on the site.
    II.3 Platform operators 3PL, 4PL, LLP

                                                            The trend towards enterprises
                    focussing on their core activities has also affected logistics.
                                               By abandoning this function, enterprises
 have allowed a true market for service provision to emerge in the sector,
                                   in particular in the field of platform management.

                          Although logistics is an ever more important part of running a business, it also demands ever more
                          resources. In order to avoid owning an unfocussed range of assets and to optimise their return on
                          investment, enterprises are increasingly outsourcing their supply chain. Their traditional partners,
                          such as transport companies, have thus extended the services they offer and have become true
                          logistics partners, known as 3PL (Third Party Logistics) providers. Working from huge logistics
                          platforms that enable them to benefit from scale economies, 3PL providers manage their customers'
                          inventories, process their orders, pack goods or complete customs formalities.

DAHER, a company formed in about 1880, now                            BILS DEROO, which made sales of 833m in
derives more than 1/5 of its sales from logistics                     2001 and employs 1,800 people on 40
( 157.17m out of a total of 760m in 2001) and                         platforms with a total area of 450,000 m2, is a
employs 2,205 people of whom 550 are engaged                          good illustration of this participation by a 3PL
in logistics.                                                         provider in the optimisation of upstream
It manages 675,000 m2 of warehousing on five sites.                   logistics. The company provides the following
DAHER also has a design office of 60 engineers, of                    services for Renault at Douai or for PSA:
whom 40% are specialised in aeronautics. In this sector,              q   assembly and distribution of spare wheels;
Daher transports airframe sections for AIRBUS and ATR,
                                                                      q   distribution of parts every two hours to a car
with permanent satellite tracking, as well as performing
                                                                          assembly line that produces 1,000 cars/day under
landing gear preparation and assembly operations for
                                                                          JIT thanks to 200 vehicles with onboard telephone;
the A300, to AIRBUS Industrie quality approval
standards (DAHER has been ISO 9002 certified since                    q   holding of safety stocks of seat covers, body panels,
October 1994).                                                            and tyres, with a response time between 10 minutes
In the chemical industry sector, DAHER runs 21,000 m2                     and 4 hours;
of special category storage at Rognac, on the Berre site,             q   application of primary treatment on windscreens
for ATO, BP CECA, HOECHST, SHELL, SOLVAY, etc.                            and pre-gluing around their edges prior to gluing in
For the automobile industry, DAHER stores, prepares,                      the factory;
and delivers goods made by SIV, a manufacturer of                     q   quality tests on mail order goods, mounting of tyres
windows supplying French carmakers, to assembly                           on wheels, export packing of tyres.
For TECHNIP, DAHER contributed to the construction of
a refinery in Omsk in Western Siberia, transporting an
exceptional 55 metre load weighing 2,700 tonnes, by
inland waterway barge from Lyon to Fos, by jumbo                          CAT Conseil, a subsidiary of CAT Logistique, is
derrick ship to the Russian port of Arkangelesk, and                      an LLP that assists customers such as Alcatel,
then again by barge to Omsk. Transport costs                              Aussedat, Digital, France Télécom, Lafarge,
represented only 7% of the total job.                                     La Poste, Renault, Sommer, and Wheelabrotor,
Again in Russia, DAHER took part in the programme to                      in setting up master plans for logistics
computerise the Russian tax authorities (ISIMPOL), by                     strategy on a pan-European basis.
handling the logistics of the delivery of BULL computers
in sealed, satellite-tracked wagons.
                               Companies such as Cat, Gefco, Heppner, and Faure et Machet Logistic, become involved
                               in the production process, customising goods as required by customers.
                               Third Party Logistics providers can in fact participate in the management of an
                               enterprise's flows at each stage in the chain, be it upstream to manage relations with
                               suppliers, internally to trim back the production chain, or downstream to optimise
                               distribution of goods.
                               But although 3PL providers are playing an increasing role, their activity requires
                               substantial investments and logistical resources. Fourth Party Logistics, or 4PL
                               providers, a more recent phenomenon, are involved in supply chain planning only,
                               applying intellectual and computing resources to define and optimise them. They select
                               sub-contractors and take responsibility for their services. The French companies
                               Freelog, or PEA Consulting, which advises on industrial and logistics
                               organisation, are active in this specialised field.
                               Half-way between these two approaches are the LLP, or Lead Logistics Providers, that
                               take charge of their customers' logistics by combining their own resources, which is the
                               3PL role, with the management of a network of partners defined by them, which is the
                               4PL role.

                                                                 In 2001, FAURE ET MACHET LOGISTIC (FML),
                                                                 which has a background in transport of timber
                                                                 and building materials, booked sales of 305m,
made sales of more than 800m in 2001, and
                                                                 employed 5,721 people and operated 25
employ 6,500 people at 120 sites devoted to
                                                                 warehouses in France.
international trade, located in 13 countries and
providing a wide range of logistics services.                    FML offers its customers production systems with
                                                                 late   differentiation    (co-manufacturing  and
For its customers, GIRAUD LOGISTICS undertakes
                                                                 outsourced packaging) to reduce inventory levels
warehousing and inventory management (using
                                                                 and costs. Its customers include MARS at Brumath,
8,500,000 m2    of   warehouse     capacity), order
                                                                 HEWLETT PACKARD at Saint Quentin Fallavier and
preparation, assembly and fitting, pre- and post-
                                                                 HENKEL at Crépy en Valois.
manufacturing operations, outsourced packaging and
co-packing*, JIT deliveries, as well as shared
management of information, using tools such as
GEDILOG to optimise and control flows and storage,
EDI, barcodes and weight checking.
                 II.4 The French handling
                      equipment industry

Handling equipment has undergone
great changes in recent years
in order to make operations
in logistics platforms easier.
The main objective is to speed up
operations while at the same time
enhancing employee safety.

To equip these platforms where the physical operations involved
in storage and handling linked to real-time information
processing are performed, a substantial handling industry
has developed in France, comprising more than 320 enterprises
that together employ more than 24,000 people.
Sector sales were   4.5 bn in 2000, of which 38% for export.

The French handling equipment industry offers a full and varied range of
equipment, software, systems and services, which have been listed by the
trade association the Syndicat des Industries de Matériels de Manutention
(SIMMA), and which cover all the equipment needs of these intelligent plat-
forms. France is one of the world leaders in this sector.
New products are available, from companies such as Duwicquet, Eurostock,
Féralco, Mecalux, and Prodex, that for example enable storage capacity per
square metre to be increased, enhancing storage space profitability with
dynamic shelving and storage systems.
Order preparation and sorting systems, storage and retrieval machines,
monorails (Siemens Dematic), palletising machines (Mepal), pallet trucks
(MIC/Jungheinrich), pallets (Allibert, Sameto Technifil), and conveyers make
the handling of goods easier.
 quipment for heavier goods than these also aims to make operations simpler and safer, and includes lifting
 quipment, handling machines (Dalmec), gantries (ADC Groupe Fayat, Europont, Demag, Abus-Standlev),
 ods (Pinguely Haulotte, Manitou), winches (Huchez, Tractel), hoists (Verlinde), jacks (SSVH), load turners
 opal Industries), and also systems for handling large single items. Some operations can be automated using
 river-less guided vehicles (B.A Systèmes, Savoye Logistics) and automated systems for handling large single
Designer/manufacturers and integrators such as Alstef Automation, Savoye Logistics, Sydel/Sedep, Siemens
Dematic and Vanderlande have drawn up a Guide to Best Practices to ensure successful implementation of
 utomated handling projects, at the suggestion of their trade association SIMMA. The goal, according to
 IMMA is to manage and carry out the various implementation phases of such projects and to guarantee that
 he result is a comprehensive and coherent system that meets the challenges and provides the expected
 erformances. These companies commit themselves on the performance of the systems provided, including
 he IT integration aspects.
                                            II.5 Developers of IT solutions
                                                 for comprehensive
                                                 SCM management (SCM)
                                                                                 As the various flows in an enterprise
        The logistics revolution
        is coming from the new                                           increase in number and speed, Information

        capabilities provided by              Technology is the key tool for processing logistics related data.
        Information Technology
       for database storage and
       management (DBMS) and
                                      ERP systems, transactional tools
 for their processing by various
                                      ERP systems are internal applications that have enabled functions such as payroll,
             software solutions.
                                      accounts, purchasing and production to be automated and comprise gigantic common
        These tools either allow      databases (DBMS). These multi-site applications are accessible to all levels of decision-
                various sections      making and allow exchanges of information to be organised within the enterprise. French
                                      vendors such as Cegid, Focal, Ordirope and Qualiac supply excellent ERP products for
of an enterprise to communicate
                                      medium and large enterprises.
                with each other,
                                      Whereas ERP systems manage an enterprise's internal processes, SCM systems are focused
              or handle logistics     on the automation of processes linking the enterprise and its environment. The information
          activities in particular.   exchanged allows each party to plan and optimise its flows while taking account of each
                                      other's needs and availability. They thus extend ERP by supplying relevant data for decision
  Some also enable action to be
                                      making. SCM software can be considered as true decision support tools, enabling flows to
          taken on flows during       be optimised while taking external constraints into account. GeneriX Execution from French
          production processes.       software vendor Générix, or Cormag from Bordeaux-based Edic, are good examples.

                                                   BI (Business Intelligence) software for decision support >>>
                                                  ERP systems, having been originally designed to optimise production systems, did not
                                                  provide assistance in decision making. Over time, they have been connected to
                                                  Decision Support Systems (Business Intelligence or APS) which transform data into
                                                  relevant information; examples are the systems developed by French software vendors
                                                  such as Ortems, or Business Object, a world leader that is present both in France
                                                  (in Paris) and the USA (at San José in the Silicon Valley) and that has been chosen by
                                                  logistics service providers such as Calberson (the Geodis Group), and Danzas (DP).

 Logistics software
 For effective resource scheduling, ERP systems need data that is frequently updated. The number and variety of data flows within
 an enterprise and their location at multiple sites mean that automation of data transfer is essential to avoid data loss that would
 lead to errors in decision making. Supply Chain Execution (SCE) software dynamically plans the use of fixed resources comprising
 loading bays, handling equipment and people, while permanently balancing workload.

 For example, at the goods inward bay, SCE software will optimise the position of goods taking into account their value, weight,
 volume, category, characteristics and dangerousness. Inventory is optimised using various methods. CEG Informatique's
 Stockexpert solution uses LIFO or FIFO, Logarithme's LM Stock Optimizer uses ABC stock rotation, while world leader Hardis (with
 the University of Grenoble) uses a method called Dynamic Allocation of Storage Category. Hardis' Adelia 400 and Reflex software
 have in particular been adopted by McDonald's.

 SCE can also manage forklift truck movements (with Reflex), control robots (with Infolog GE WMS from DL Consultants), and
 optimise fleet management and delivery rounds (with Logiroute from Acteos, or Eurotrans from C2G). Real-time communication is
 possible using EDI added-value networks or Internet via radiofrequency or by satellite with products available from a large number
 of French software vendors specialising in warehouse or transport management, such as CLE 128 (Géode), GFI Info (Magellan),
 Infflux (Alice), or KLS (Gildas).
                                                                                                            ILOG >>>
                                                                                                           The quality of these software
                                                                                                           systems depends to a great
                                                                                                           extent on their algorithm-driven
                                                                                                           computation engines. The most
                                                                                                           advanced        algorithms     are
                                                                                                           supplied     by     the     French
                                                                                                           company ILOG, which employs
                                                                                                           480 people worldwide, located
                                                                                                           on     three     continents.    Its
                                                                                                           customers include not only the
                                                                                                           world's largest ERP or SCM
                                                                                                           software vendors such as SAP      ,
                                                                                                           Oracle,    People       Soft,   I2,
                                                                                                           Dynasis, or JD Edwards, but
                                                                                                           also industrial concerns. France
                                                                                                           Télécom uses ILOG in the real-
                                                                                                           time     supervision      of    its
                                                                                                           1,000,000 kilometre fibre optic
                                                                                                           network. ADP uses ILOG in
                                                                                                           managing      runways,     parking
                                                                                                           slots,   doors     and    baggage
                                                                                                           handling equipment at the Paris
                                                                                                           airports, taking account of
                                                                                                           climatic     constraints,     while
                                                                                                           Chrysler uses it in scheduling
                                                                                                           paintshop operations etc.

For fleet optimisation and localisation, French hauliers rely on the major world-class operators; France Télécom proposes its "Road
on line" solution. Bouygues Télécom, for its part, takes 20% of the localisation market while SFR-Cegetel provides mobile
platforms to enterprises. Alcatel Space, using its telematic fleet management system Euteltracks, provides secure pan-European
data transmission via two geostationary satellites.
Exchanges of pre-formatted data between mobile stations and operational centres feed data to the many French software
solutions for "road telematics" available on the European market from companies such as Aplus Informatique (Traplus), C2G
 nformatique, and CJM International (Transics).
These various packages can also monitor working times; examples are Clever route from Cleversys, linked to the Géoconcept's
cartographic information system and Ilog's constraint-based optimisation engine, or Inovia's Optimal route, which forbids
exceeding the regulation working times or plans lunch breaks, and loading and unloading times.

Production management software
The logistics revolution, because it allows production levels to be varied depending on sales
forecasts and procurement supplies, also requires precise production scheduling. Management's
concern is then focused on reducing inventory levels and optimising the use of automated
production equipment. These organisational imperatives are adapted from practice in the Japanese
automobile industry. Well-known French software packages allow this flexibility to be brought to
production, by implementing computer-aided production management (CAPM*) with Courbon's WES
 multilingual) or Adonix's Prodstar (more than 1,000 sites installed), or by monitoring production
 imes and events with Brittany-based BG Soft's Step pro.

Major organisation and production management consultancy firms such as Cogite Nord, Cybernetix,
 MA Consultants and PMGI assist enterprises in reducing production costs and cycle times, in
developing products, and in improving productivity in factories and research and design offices.

To create flexible, fast-responding production facilities, upstream supply chains should also be opti-
mised, using techniques such as Kanban* and JIT*. At the "upper stream", design alterations should be
 eacted to in real time, while reverse logistics will contribute to reducing the cost of returned goods.
III. Upper stream
       and “last-mile” logistics

                                 Modern logistics alters the relationship between the producer and end user
                                               of a product, by making it possible to do without intermediaries.
                                            However, this brings new constraints to bear on the supply chain.

           One of the possibilities     Logistics and product customisation
offered by the new communication        However, this type of logistics, coming at the very start of the chain or "upper stream", has to
   and information technologies is      be integrated in the product from the very early stages of product design. Logistics should be
 for the final customer to become       taken into account in the value analysis phase, so that design and production organisation
                                        staff can be informed of the supply chain constraints of shape, weight, volume, and changes
    directly involved in the supply
                                        in the behaviour of packaging during transport or storage.
   chain. Although customers can
                                        Logisticians can then specify the means of transport and storage that need to be
   now place their orders directly,     implemented to reduce costs. Of the costs that make up the Life Cycle Cost, 80% to 90% are
               the main innovation      locked in at the design stage and of these, 60% arise from the logistical support required to
is the possibility offered to modify    maintain availability throughout a product's lifetime and when it is withdrawn from the
                                        market. This is also an important theme in logistics today. Manufacturers should plan very
     and customize the purchased
                                        early on for the return of goods.
 product. Customers can then add
     options as well as choose the
   colour. This is what companies
          like Dell offer for on-line
        purchases of PCs. Renault
              would like to be able
        to promise delivery within
 a maximum of 15 days whatever
      the combination of options.
Returned goods logistics
When removing intermediaries, "upper stream" logistics should ensure that the return of
goods for maintenance and repair etc. is managed. In an e-commerce context, however,
customers have a right to withdraw from a purchase after taking delivery of the goods. In
both cases the procedure for returning goods must be allowed for, so that the final
customer's involvement in the process, and in some cases, in bearing the costs, is limited.
Thought must be given to the related logistics right from the product design stage.
Furthermore, environmental legislation is increasingly imposing an obligation on
manufacturers to follow their products throughout their life. Product Lifecycle Management
software to assist in this task is available from Agile Software or Syncra. If products are not
completely biodegradable, legislation can require manufacturers to arrange collection of their
products at the end of their useful life, again generating further logistics costs. French
consultancy firms have specialised in this field. An example is DIB Consultant, which
specialises in total waste management; amongst its customers are the European steel groups,
ADEME (the French Agency for Environmental and Energy Management), OCP Répartition,
Logidis, FML, Auchan, Leclerc, Castorama, and UGAP (public sector procurement).
3PL providers have set up specialised subsidiaries; leading French logistics operator Geodis
has formed G2R (standing for Geodis Recyclage Revalorisation), to manage end-of-life
processing of computers, photocopiers, phones, and telephone exchanges for such
customers as France Télécom, Bouygues Télécom, Rank Xerox, Toshiba, etc. Industrial
undertakings in the environmental services sector are also entering this market for waste
reprocessing and recycling; examples are Conibi (which handles office machinery and IT
waste for Canon, Epson, HP Konica, Minolta, and Sharp), and Tridex, (which manages the
return of goods that are past their sell-by date for Gillette, BASF Coca-Cola, and Orangina).

      >>> For liquids, Tridex works with logistics services provider Tibbett & Britten, sorting
      and emptying packages, repackaging if required, and removing labels. Goods are then
      exported on secondary markets. Glass, cartons, aluminium, plastics, and tinplate are
      sorted, stored and sold to the Onyx company  .
                                        IIII. E-logistics

    Although e-commerce has opened up new possibilities for enterprises,
    it has also given extra power to the final customer, whose
    demands then have a greater influence on the manufacturer's business.
    E-commerce logistics is adapting by becoming increasingly a matter for specialists.

The growth of the Internet has wrought deep changes
in customer-supplier relations, in both B2B and B2C,
by giving even more power to sophisticated cyber-
customers, who now expect to get products faster
than before and to their own specification.
Although purchasing takes place in a virtual world,
consumers' concerns are perfectly concrete. In
particular, on-line buyers will not accept the slightest
failure in order fulfilment, be it regarding delivery
times or the condition of the goods. A new type of
logistics has appeared, "e-logistics".
Internet site operators did not immediately realise the
importance that needed to be given to this logistical
support, turning all their attention to secure payment
methods, their site's graphics, and the catalogue of
goods offered. As Mr. Soriano, Chairman of the Irepp
(Postal Trends Research Institute), has pointed out,
start-ups initially handled logistics with luxury
methods, and by default, and did not take into
account the true logistics costs involved in this new
distribution technique, either because of a strategy to
acquire new customers, or because of poor estimates
of these costs.

                                                                  >>> 4PL providers known as infomediaries, such as
                                                                  Freelog or Baliseo, have made their appearance in the
                                                                  “e-chain” to assist e-merchants in selecting their part-
                                                                  ners and the most appropriate type of logistics service.

                                                           E-marketplaces have
                                                           also concerned themselves
                                                           with logistics.
                                             E-logistics operators
                                             In France, the major distribution groups such as
                                             Auchan, Carrefour-Promodès, Casino, Cora and
                                             Galeries Lafayette have overcome these logistical
                                             constraints using various methods, opening
                                             Internet sites such as, or
                                             Telemarket (the top French supermarket site), and
                                             using their experience of traditional logistics.

                                             Traditional mail order operators such as
                                             La Redoute/Redcats, Camif, Les 3 Suisses, or
                                             Yves Rocher's subsidiary Distrihome, have been
                                             able to benefit from their experience in delivering
                                             to customers' homes.

                                             La Poste, with its 14,000 outlets and 90,000
                                             postmen, has become a well-appreciated partner
                                             for e-commerce operators. Apart from its presence
                                             in France, La Poste can also depend on its
                                             European subsidiaries (Denkhaus, Birkhart, and
                                             Interspe in Germany, Parceline and Interlink
                                             Express in the UK and Ireland), as well as on INSA
                                             in the USA. It also has agreements with Geodis,
                                             FedEx, and the Italian, Portuguese and Greek post

                                             Certain 3PL providers are developing an e-logistics
                                             specialisation. Geodis, ranked fourth freight
                                             forwarder in Europe and first in France, has
                                             entered into an alliance with France Télécom and
                                             its e-commerce site, Télécommerce.

                                             Mory Team has formed a joint-venture with Elia
                                             (Team-on-line), a software vendor specialising in
                                             transport, in order to offer a logistics service
La Poste has 150,000 m2 of secure
                                             suited to web-based transactions, while Heppner
storage. It has formed a division named
"La Poste Commerce Electronique" via its     has an agreement with US start-up Escalate, an e-
Publi-Trans/Eurodispatch subsidiary, which   commerce service provider. Ninety percent of
offers transport and logistics solutions     Staci's business originates on the Web.
tailored to the needs of its e-commerce
customers,     such    as,,,     Siemens,
3 Suisses, etc. Publi-trans performs
groupage      and    order     preparation
operations, shipping orders express with
Chronopost, or fast with Coliposte, and
can also supply factoring services.
                   IIIII. Collaborative logistics
                        To be useful, logistics planning needs reliable and accurate information. Enterprises are
                                          therefore led into exchanging data that they previously guarded jealously.
                                This collaborative logistics creates new win-win partnerships. Using the functions
          provided by ERP and SCM software, collaborative management makes it possible for the various
sites of the enterprises involved in a supply chain to communicate, in real time.
                  The profits generated from this mode of organisation are shared
           by all the participants. Tensions inherent in customer-supplier relations
                                                       are reduced and costs are optimised.

Collaborative logistics applications
Upstream, collaborative management with suppliers makes very fast responses and savings on
purchase and procurement transactions possible. SCM order execution software, known as Supplier
Relationship Management software (SRM), can for example allow enterprises to identify suppliers (sourcing), to approve them on the
basis of critical size and their ability to deliver JIT to undertake negotiations, to issue direct invitations to tender or offers, to make up a
short list of suppliers or to assess a supplier's performance and risk rating, using Decision Support Systems such as Business Object's
Source Analytics. Downstream, collaborative logistics involving manufacturers and distributors, and beyond that, final customers, is
known as Customer Relationship Management or CRM. CRM software enables sales forecasts to be compared against the constraints of
the whole supply chain, i.e. production and transport capacity, inventory levels etc. French software vendor CJM offers a multi-site,
multi-warehouse solution that does this.
Another logistics component of Efficient Customer Response, or ECR, is Supply Management Inventory, or SMI. Once suppliers have real-
time access to daily data, they can reduce the level of their safety stocks by manufacturing to cover expected stock-out levels, and can
make suggestions for continuous replenishment that are either agreed by the customer-distributor (CMI or Co-Managed Inventory) or
made under the supplier's own responsibility (VMR/VMI or Vendor Managed Replenishment/Inventory).
Suppliers receive fundamental, confidential data every evening via EDI relating to the shipments into and out of their customers'
warehouses, which have to be processed by software. The main French vendors are Alamacon, Atos, Everest Informatique, Syntégra,
Unilog and, more particularly, Influe (supplier of EWROne), the world leader in SMI solutions and which has 50% of the market and 4,500
customers across the world. In order to better avoid difficulties arising at the various partners' sites, such as stock-outs, halts in
production, or drivers' strikes, SC Event Management software, such as that from French vendor Ortems, provides product tracing and
warnings management. However, despite their real value, such solutions seem to be difficult for enterprises to deploy.

Implementation of collaborative logistics
The difficulty of this collaborative logistics management lies in the compatibility of the various software products (ERP SCM, SRM,
ECR, SCE). Interfacing is done through technical platforms managed by EAI (Enterprise Application Integration) or OAI (Open
Application Integration) software, such as that developed by French vendor Logarithme, which offers a multi-site decision support
facility. GFI offers a solution to manage the interfaces between EDI and MRP solutions. DynaSys' software brings together all the ERP
connection technologies. Esker, the French vendor that is the most present in the USA, develops packages for communication
between all the new communication and information technologies. However, apart from these undoubted technical problems of
interfaces between software, the true difficulties in implementing collaborative management lie in the changes that need to be made
to mentalities; internally, barriers need to be removed between vertically organised departments and externally, any confrontation-
based behaviour that may remain has to be altered. Recourse to supply chain management consultants often enables change to be
implemented and supported. According to P Eymery, President of ASLOG1, their role is to propose, design and support change, and
to act as a guide in the ever more complex universe of technologies.

In the future, the role and activity of each participant in the supply chain will have to be completely transformed. Manufacturers will
increasingly be managing data coming directly from their distributors. Logistics service providers will be handling flows of goods
sold "ex works" and brought together on the same site as several manufacturers and distributors (cross-docking). Distributors and
manufacturers will have to work together, replenishing outlets on the basis of sales, using Supply Management Inventory, and no
longer on the basis of an inventory management approach such as ERP They will have to extend the supply chain by integrating
forecasts, using Collaborative Planning, Forecasting and Replenishment (CPFR) and by anticipating events (SC Event Management).
                                                                 3PL = Third Party Logistics: sub-                 Management), SRM (Supplier        Relationshi
                                                                 contractors that play a traditional execution     Management)     and      CRM        (Custome
                                                                 role, managing and performing a specific          RelationshipManagement).
                                                                 logistic function using their own assets and
                                                                                                                   Hub: a logistics platform at the centre o
                                                                 resources for the account of another party.
                                                                                                                   logistic flows.
                                                                 4PL = Fourth Party Logistics: sub-
                                                                                                                   ILS = Integrated Logistics Support: the
                                                                 contractors that undertake scheduling and
                                                                                                                   human, material, and software resources to b
                                                                 planning work that do not have their own
                                                                                                                   implemented, needed to provide the expecte
                                                                 resources but that steer, combine, optimise
                                                                                                                   service by a given product throughout it
                                                                 and sub-contract the entire physical and data
                                                                                                                   lifetime, and planned from the design stage.
                                                                 flows of their customers.
                                                                                                                   JIT = Just in Time: a production metho
                                                                 APS = Advanced Planning System: a
                                                                                                                   under which all the manufacturing processes
                                                                 system that is dedicated to the management
                                                                                                                   are launched on the basis of firm orders an
                                                                 of a collaborative supply chain, providing
  Production management                                          decision support. Manages all supply chain
                                                                                                                   not forecasts, as was the case under MRP2.

         software                                                flows on the basis of sales forecasts and         Kanban: a component of Just In Time
                                                                 computes the optimum solution for each            production. A label is attached to a containe
                                                                 operation from a DBMS (internal or ERP).          of parts showing the product identity numbe
French Consultants listed because of
                                                                 B2B = sales from business to business.            and quantity. The label is removed from th
their size, length of experience and                                                                               full container and is returned back up th
specialisation:                                                  B2C = sales from business to consumers.           production chain and serves as a production
                                                                 CAPM = Computer          Assisted   Production    order, purchase order or transfer order.
• Altis, Clé 128, Sofresid, Diagma (consultant                   Management.
                                                                                                                   Late differentiation or     postponement:
and SCM software vendor), Valtech Axelboss                       Co-manufacturing: repackaging on demand,          production method that      aims to keep th
(leader in logistics and SCM consultancy on                      assembly of several products at the storage       product in a standard        form until it i
t h e F re nc h m a rk et , i t al s o h a s a st r o ng         site to meet customers' orders.                   customised at the time      of delivery to th
presence abroad), Newton Vauréal.                                Co-packing: grouping products by batch for        consumer.
                                                                 promotional operations.                           LLP = Lead Logistics Provider: a first ran
• World-renowned French IT service providers:
                                                                 Cross-docking:           transforming        a    integrator with a leadership role with regar
Cap Gemini, S o p r a , and Unilog, which also                                                                     to their customers' supply flows, bringin
                                                                 groupage/break-bulk      warehouse (without
have teams of recognised experts in logistics                                                                      together all modes of transports, carrying ou
                                                                 storage) into a profit centre, adding value to
strategy and a large number of international                     primary tasks.                                    certain tasks and subcontracting others (
references in logistic process change.                                                                             status between a 3PL and a 4PL).
                                                                 CPFR      =     Collaborative     Planning,
                                                                 Forecasting & Replenishment: a strategy           MRP = Material Requirements Planning:
• Consultants specialising in warehousing and
                                                                 that is common to distributors and                computerised method proposed by Orlick
forwarding: JP2 (design and restructuring of                                                                       (USA 1967) to manage flows of materials.
                                                                 manufacturers aimed at sharing forecasts of
distribution centres or warehouses), Logistock
                                                                 sales and orders, production and distribution     PLM = Product Lifecycle Management
(specialist in workstation ergonomics, o r d e r                 scheduling.                                       management of a product throughout it
p r e p a r a t i o n , a uto matic tr ans fer by a uto-                                                           lifecycle from design to collection fo
                                                                 CRM = Customer Relationship Mana-
g ui ded veh ic le s, tr ansfe r b etwe en w ork-                                                                  recycling.
                                                                 gement: improving the action of sales and
stations).                                                       marketing forces by aligning the appropriate      SCE = Supply Chain Execution: a softwar
                                                                 sales channel (Web, call centre, salespersons)    package      for   the     management     an
• Specialists in tailoring production tools to the
                                                                 and the customer, whose profitability has been    optimisation of warehousing, enabling flow
flexibility of fluctuations in demand: Artemis                   measured.                                         of goods and information to be supervised i
I n t e r n a t i o n a l , Ouroumoff Diffusion (consul-
                                                                 DBMS = Database Management System.                one or more warehouses; it includes function
tancy in industrial organisation and logistics,                                                                    to define reception, preparation and dispatc
v e n d or o f P re a ct or, wh i c h h a s m a de               DRP = Distribution Resource Planning.             areas. SCE systems are, at least initially
s imu la ti on of pro duct io n flows a nd fin ite               ECR = Efficient Customer Response: an             distinct from inventory management software
capacity scheduling generally available and                      industrial and commercial strategy aimed at       which     computes     inventory  levels o
has been sold to 500 customers on all the                        building a response system from the final         the basis of pre-determined managemen
continents of the world).                                        consumer back up to the distributors and          rules.
                                                                 suppliers, which work together, managing          SCM = Supply Chain Management:
• Specialists in transport planning: Ecal, GFI                   replenishments, promotions and new products       software package that allows flows of good
I n f o r m a t i qu e ( s u p p l i e r s o f U ly ss e a n d   together in order to satisfy the consumer.        and information to be managed, in a chai
Magellan) and Wilogs (belongs to Freelog).                       EDI = Electronic Data Interchange.                running from the supplier's suppliers to th
                                                                                                                   customers' customer, in four major processes
                                                                 E-procurement: web-based purchasing and
• Specialists in data flow interfaces between                                                                      scheduling, material supply, manufacture
the various participants in the SCM system:                                                                        delivery.
Influe, the world leader, which has developed                    ERP = Enterprise Resource Planning:
                                                                                                                   SMI = Supply Management Inventory: the
                                                                 software packages that organise data flows
a range of EDI software engines that allow                                                                         supplier is responsible for the management o
                                                                 and enable them to be connected within an
business partners to exchange commercial,                                                                          levels of inventory held by the distributor.
                                                                 enterprise in order to create a single database
financial and administrative documents.                          covering     accounting,    commercial      and   SRM    =         Supplier        Relationshi
                                                                 production management functions.                  Management.
                                                                 Global Fulfilment: a logistics concept that       TEU = Twenty-Foot Equivalent: the ISO un
(source: Aslog Guide 2001)
                                                                 considers the whole value chain from product      of measurement in containerisation (= 6.06m
ASLOG: the logistics service providers’ association              design through to delivery to the final           In maritime supply chains, one 40-foo
                                                                 customer. It includes SCM (Supply Chain           container counts as two TEUs.

The Ministry of the Economy, Finance and Industry
General Directorate for Industry, Information Technology and the Post
Le Bervil – 12, rue Villiot – DiGITIP 5 - 75572 PARIS Cedex 12 - France
Phone: 33 (0) 1 53 44 92 11 - Fax: 33 (0) 1 53 44 91 35
Website :

The French Agency for International Business Development
14, avenue d’Eylau - 75116 PARIS - France
Phone: 33 (0) 1 44 34 50 00 - Fax: 33 (0) 1 44 34 50 01

AFII - French Agency for International Investments
2, avenue Velasquez - 75008 PARIS - France
Phone: 33 (0) 1 40 74 74 40 - Fax: 33 (0) 1 40 74 74 01

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