Post on 20-May-2015
“Outsourcing Logistics: Meet and Exceed Your
Customers’ Real Expectations, and Create the 3PL
Relationships that Drive Costs Down and Drive ROI”
3PL SummitChief Supply Chain Officer
ForumAtlanta, GeorgiaJune 21-23, 2010
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Effects of Economic Crisis on Supply Chain and 3PL Relationships
Increase, 30%
Decrease, 21%
No Impact,
42%
Do Not Know, 7%
0%20%40%60%80%
Yes No Not Sure
59%
22% 19%
Current Economic Crisis is Viewed as “Inflection Point” to
Re-Think Supply Chain/3PL Relationships
The Need for 3PL Services in Times of Economic Volatility
Source: 2009 14th Annual 3PL Study.
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3PL/Customer Panel Participants
Scott McWilliams – CEO, OHL
Greg Javor – Vice President, Global Logistics, Starbucks
Tom Sanderson – President & CEO, Transplace
Chris Cavin – Director of Purchasing, Shared Services, Rock-Tenn Corporation
John Langley – Professor of Supply Chain Management, Georgia Tech (Moderator)
Starbucks® Coffee Company and OHL
Starbucks Confidential Page 5
From One Little Bean Store
• 16,700 retail stores
• 120,000 partners
• 51 countries
• 50M customers per week
• Our products:- Coffee and Tea- Handcrafted Beverages- Consumer Products
Stores
Starbucks Confidential Page 6
The Starbucks Supply Chain
• Plants- Coffee Roasting: 5- Tea: 1- Co-Manufacturing: 24
• Distribution- RDCs: 13- CDCs: 42- Green Coffee Warehouses: 6
> $4.0B Enterprise Spend> $0.8B Operating Expense > 4.4M Deliveries per year> 1.1M Picks per day
OHL OverviewGlobal integrated third‐party logistics company
Headquartered in Nashville, TN
Employs 5,500
$979MM 2009 revenue
3 business units:
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Contract Logistics
• $392MM
North America Transportation
• $250MM
Global Freight Management and Logistics
• $337MM
9%
27%
4%
14%3%3%
25%
11%4%
Retail
CPG
Automotive
Electronics & High Tech
Apparel
Chemical
Food & Beverage
Healthcare
Publishing
OHL Vertical Market Focus
OHL History
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Foundation
Acquisition
Integration
Execution
WCAS purchase 2005
Founded 1951
2006‐2008 2010 and beyond
• Improved Inventory Planning
• Less Expediting of Orders/Inventory
• Fewer stick‐outs/excess inventory
• Best‐fit network solution
• Efficient mode shift
• Fewer customs delays
• Proper inventory positioning
• Customer/market proximity
• Variable warehouse space and cost
• Fixed asset optimization
• OHL Supply Chain Visibility
• OHL Consolidation, Ocean/Air, Customs Brokerage and optimal network placement
• OHL Contract Logistics and North America Transportation Solutions
• Database driven KPI measurement
• Continuous operational improvement
• Optimized visibility
• Optimized core competencies
• OHL Integrated Solution
OHL Value Proposition
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Centralized CRM
Network Flexibility
Time to Market
Visibility
How to Get the Most out of a Partnership
• Partner; not vendor
• Communication
• Cultural fit
• Focus on core competency
• One source solution (visibility)
• Trust expertise
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© 2010 – All contents CONFIDENTIAL
Strategy Session – Outsourcing Logistics: Meet and Exceed Your Customer’s Real Expectations, andExamine the 3PL Relationships that Drive ROI
June 22, 2010
© 2010 – All contents CONFIDENTIAL
Technology & Service Offerings
Basic Comprehensive
Man
agem
ent S
olut
ion
Bas
icC
ompr
ehen
sive
Technology Solution
TMS Technology• On-Demand TMS
• Optimization• Highly Configurable• BI, Reporting and Analytics• Rapid Implementation & Integration
Capacity Provider• Single Source
• Core, Committed and Primary • Brokerage • Spot Market• Dedicated Fleet
Lead Logistics Provider (LLP)• Full Transportation Outsourcing
• Transportation Provider Contracting• Shipment Control Centers• Inbound Freight Management• Freight Bill Audit & Payment
Logistics Consulting Services• Benchmarking• Transportation Procurement• Network Analysis & Design• Professional Services Consulting• Joint Lean Six Sigma Projects
Transplace takes a consultative and analysis-driven approach to solution design and deployment. Ourbusiness model adapts to the operational needs of our customers – from high-tech and high-touch, tomore basic operational services.
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RockTenn Overview
• RockTenn is a leading North American producer of paperboard, containerboard, consumer and corrugated packaging
Headquarters in Norcross, GAOperating over 100 facilities in the US, Canada, Mexico, Chile and ArgentinaAnnual net sales of approximately $2.9 billion
• RockTenn Business SegmentsConsumer Packaging Corrugated Packaging Merchandising Displays Specialty Paperboard Products
• Transplace Services to RockTenn:• Load Control Center Operations/Staffing• TMS Technology • Customized Business Intelligence Reporting• Engineering Support for Strategic Bid/Network Events• LTL Contract Management
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RockTenn Production Facilities
RockTenn Operates over 100 Production Facilities160,000 + annual freight shipments across all modes7,000 + unique freight lanes over last 18 months
© 2010 – All contents CONFIDENTIAL
3PL Relationship Success
• Alignment with Customer Goals• Quarterly Business Reviews• Constructive Discussions/Problem Solving• Filling the Gaps• Supply Chain Expertise• Efficient Processes – Lean Six Sigma• Innovative Technology• Thought Leadership
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© 2010 – All contents CONFIDENTIAL
Why Transplace?
• Best in Class TechnologyTransplace is the only 3PL to make the 2010 Gartner TMS Magic Quadrant
• Flexible, Transparent, End to End Transportation Management• Ongoing Transplace Executive involvement ensures year over year
synchronization with Executive Management at customerQuarterly Business ReviewsOn-Demand Customer BenchmarkingCollaborative Transportation Management
• Annual “Voice of the Customer” survey• Transplace Customer Advisory Board
“Transplace aligns our Account Management Team’s Goals with our Customers’ Goals” Sheldon Ellis, Intertape
• Transplace Executive Management is committed to the principles of Lean Six Sigma
54 Green Belts and 12 Black Belts within Transplace» Proper ratio 10% and 1% employee base
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© 2010 – All contents CONFIDENTIAL
www.transplace.com Corporate Headquarters 972-731-4500www.transplace.com Corporate Headquarters 972-731-4500
“Outsourcing Logistics: Meet and Exceed Your
Customers’ Real Expectations, and Create the 3PL
Relationships that Drive Costs Down and Drive ROI”
3PL SummitChief Supply Chain Officer
ForumAtlanta, GeorgiaJune 21-23, 2010