Transportation

40 Years of Experience Within the Industry

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Over the last almost 40 years, SAI has worked in and analyzed the entire value chain within the various sectors of the transportation industry, including automotive, truck, bus, aircraft/aerospace, rail and people movers. This integrated experience includes raw materials; components; equipment and machinery; batteries, fuel cells and other power sources; gas, electric and hybrid vehicles; recycling and related services. This comprehensive experience and knowledgebase enables us to explore your growth options, address challenges within your industry, develop investment and acquisition strategies, and make better corporate decisions with confidence and clarity. Our team has a unique combination of commercial experience and technical degrees/insights enabling us to understand key technology and business subtleties in the transportation industry sectors.

SAI has completed over 100 studies in the transportation industry involving vehicles, components, ships and boats, raw materials, and services etc:

In fact, SAI has addressed such topical issues impacting the industry as:

  • Trends in vehicle design and the subsequent impact on suppliers
  • New materials for components
  • Inter- and intra-material competition
  • Push-and-pull strategies for suppliers to the industry
  • Customer satisfaction surveys for suppliers to the industry
  • Recycling
  • NAFTA
CASE EXAMPLE: RAILCAR AND LOCOMOTIVE DRIVES

OBJECTIVE:

SAI’s client wished to identify and prioritize market development opportunities globally in drive train products used in selected industrial markets, including transverse and longitudinal drives for railcars and locomotives

APPROACH:

SAI completed 75 interviews worldwide with international suppliers of industrial gear drives and selected OEM customers. SAI contacted leading drivetrain component producers in Europe and North America to estimate sales of target products into each target market. Data from each leading supplier were then aggregated and cross checked against select suppliers’ estimates of overall market size and market shares to arrive at the total worldwide sales for each market and relevant market trends and characteristics. Comprehensive secondary (published) information on target suppliers was also gathered and analyzed as a baseline for validation to support SAI’s primary research

RESULTS:

SAI developed a prioritized ranking of the market attractiveness of the target segments, by scoring each on criteria including worldwide sales, profitability, supplier concentration, barriers to entry and fit with the client’s technological capabilities. SAI also identified key success factors in terms of distribution and product support for successful market penetration and the potential for differentiation from existing supplier offerings

SAI has completed over 100 studies in the transportation industry involving vehicles, components, ships and boats, raw materials, and services etc:

In fact, SAI has addressed such topical issues impacting the industry as:

  • Trends in vehicle design and the subsequent impact on suppliers
  • New materials for components
  • Inter- and intra-material competition
  • Push-and-pull strategies for suppliers to the industry
  • Customer satisfaction surveys for suppliers to the industry
  • Recycling
  • NAFTA
CASE EXAMPLE: COASTAL FREIGHT - CHINA

OBJECTIVE:

SAI’s client, a leading multinational producer of resources and minerals is facing key issues that impact on its profitability due to the uncertainties in:

  • Chinese current and future coal production
  • Major transportation systems (rails and seaports) that ship the domestically produced and imported coal to major consumption provinces in China
  • Potential and level of bottlenecking for coal shipment
  • Impact of the above bottlenecking, if any, on the Chinese coastal freight capacity

The key challenges of the study are that there are over 300 seaports in China, each of which was run by different companies in addition to the government port bureaus.  In addition, the rail capacity and future planning are also controlled by the government.  The information the client needs for its key business decision making requires extensive fieldwork and skills in obtaining information from highly bureaucratic and complicated government systems

APPROACH:

SAI has conducted a total of 600 interviews with both central and local government offices, rail and coastal fleet operators as well as coal mine operators and importers to:

  • Piece together a highly fragmented picture of how coal is transported and shipped to consumers in China to determine if there are bottlenecks, where and how serious these bottlenecks are
  • Assess the impact of the transportation bottlenecks on seaports and fleet capacity
  • Decode how regulatory system govern and influence the transportation systems and freight
  • Evaluate the impact on the coastal freight and forecast on future trend of freight development

RESULTS:

SAI’s findings helped the client to formulate pricing and logistics strategies which had substantial impact on profitability.  The client also changed its trading practices which mitigated risks associated with transportation and logistics

CASE EXAMPLE: FREIGHT LANES FOR KEY RAW MATERIALS

OBJECTIVE:

The project objective is to benchmark shipping freight lanes’ cost and contract terms for key raw materials among select competitors. Specific deliverables were:

  • Confirm international load and discharge ports for select competitors
  • Detail freight costs, volume and contract terms for key raw materials
  • Provide additional information on shipping carriers and load/discharge rates for target ports

APPROACH:

Conducted field interviews with appropriate individuals from target competitors in a variety of functions such as sourcing, logistics/transportation and product management. Also interviewed target port personnel in management and operations

RESULTS:

SAI provided a quantitative analysis benchmarking competitors’ freight lanes by raw material and port location, including:

  • Freight costs for key raw materials from international ports
  • Shipment lot sizes and type of shipping contract
  • Effective contract dates and duration
  • Contract shipping carriers
  • Load and discharge rates

The client was able to effectively benchmark its target competitors’ freight lane logistics across key raw materials and port locations

SAI’s extensive experience in the automotive industry includes raw materials, automotive components, vehicles and related services.

CASE EXAMPLE: RECYCLED AUTOMOTIVE PARTS

OBJECTIVE:

SAI helped its client formulate a global recycled parts strategy.  A key consideration was to devise a strategy that did not result in a loss of consumer confidence in the clients “new parts” brand

APPROACH:

To accomplish this task, SAI undertook a multi-phase approach that included:

  • The client’s input
  • About 100 primary field interviews with competitors, dealers and other key industry participants
  • Brand risk analysis

RESULTS:

SAI recommended a branding strategy and completed a financial assessment of revenues and profits under various scenarios involving potential cannibalism of new parts by recycled parts

CASE EXAMPLE: DIESEL ENGINES - AUSTRALIA

OBJECTIVE:

The study assessed the overall market for filters and coolants for diesel engines in Australia so that SAI’s client could develop a marketing strategy.  SAI’s study compared market sizes by type of filter and coolant and determined the performance of major competitors

APPROACH:

SAI completed 84 interviews with competitors, distributors and customers of filters and coolants.  The market size was estimated by combining the comprehensive statistical data obtained during the study and the opinions of interview respondents

RESULTS:

Based on this detailed market intelligence of products, trends and market performance of competitors, SAI’s client completed its marketing strategy

SAI has strong experience in various aspects of the aircraft/aerospace industry, including services, supplies and materials of construction, as described on the following pages

The aerospace industry often drives technological development in the materials and equipment industries. As a result, SAI has analyzed many aspects of the industry, ranging from opportunities for new materials, the outlook for specific military programs and the role of subcontractors

SAI maintains a network of useful contacts in the aircraft/aerospace industry globally

CASE EXAMPLE: AVIATION FUEL - ASIA

OBJECTIVE:

SAI’s client is a leading energy company focused on power generation, exploration and production of oil and gas and chemical manufacturing.  It has operations in various countries including the Asia Pacific region.  The client collaborated with an local company in Asia to set up a refinery for Aviation fuel.  The client was interested in understanding the potential for aviation fuel business in the target market over the next ten to fifteen years particularly from the perspective of the government’s policies on kerosene production and its impact on the availability of Aviation fuel.  The client was also interested in understanding the impact that the dismantling of the administered pricing mechanism would have on the pricing of aviation fuel in target country

APPROACH:

SAI used its market and regulatory assessment methodology by conducting in depth primary interviews with the existing participants in the aviation fuel market, airport authorities, regulatory authorities and government agencies such as Ministry of Petroleum and Natural Gas, Civil Aviation, Ministry of Finance, Ministry of Commerce, Banks and so on.  In addition, SAI also conducted 165 interviews across various functions in production and distribution business of the oil companies and with the airline companies

RESULTS:

SAI developed a comprehensive market assessment.  From SAI’s analysis, it was clear that the aviation sector in target country had significant growth prospects in demand for this product and that restrictions on conversion of kerosene to aviation fuel could be offset partly through imports and setting up the refinery locally.  SAI recommended that the client should enter the market through its existing relationship to set up a refinery and commence supplies through the infrastructure that its client had.  Since the client planned to market transportation fuel, this would also assist the client in addressing investment commitments to the local Government.  SAI also recommended that the client should bring in its international storage and distribution expertise on aviation fuel supply and bring in value added services and superior supply chain logistics

CASE EXAMPLE: MRO SERVICES – AIRCRAFT BRAKES

OBJECTIVE:

For a manufacturer of advanced materials, SAI analyzed the aircraft brake business, including industry structure, role of industry participants, FAA’s formal and informal role in approving brakes for use in aircraft, issues affecting airlines’ purchasing decisions, current airline purchasing practices and opportunities for our client

APPROACH:

To complete this study, SAI interviewed individuals at major airlines, commuter/regional airlines, air framers, brake non-OEM’s, brake distributors and the FAA.  Such issues addressed included assessment of opportunities for new versus replacement versus refurbished brakes, approval of non-OEM brakes on an aircraft-by-aircraft basis, liability, cost versus performance, pricing and current interest in non-OEM products

RESULTS:

As a result of this information and analysis, SAI recommended specific action items for our client to successfully enter the brake market independently, including specific companies and individuals to target