3PL Vs 4PL(3PL) & (4PL) Discussion

By: Justin Harris

Jharris@PFSL.com

01Different Layer of Logistics02Warehouse Receipt03Insurance & Claims04

Company Overview of a 3PL

– AGENDA –

PFS Raising the Bar

3

The PFS Difference

4

– COMPANY OVERVIEW –

– OUR FACILITIES - NORTH AMERICA –

270M+ ft3

830,000+ Pallet Positions

35 Facilities

A DEVELOPMENT/GROWTH CULTUREDevelopment and Construction Experience

• Builds state-of-the-industry freezers utilizing in-house engineering and technical expertise

• Since 1997, PFS has grown organically from 1 location to 36 freezers in 3 countries

• On average, PFS builds between 2 and 4 freezers each year. In 2006 alone, PFS built and opened 6 freezers.

• PFS Is Opening a 90,000 Pallet Freezer 1 Entire City Block in LA June 15th

Development and Construction

Experience

PFS Richland, WA

– COMPANY OVERVIEW –

1989

1997

Perth Amboy, New Jersey, U.S.A.

Design, Build, and Create

Cold Storage Locations

– TODAY –

• 200K ft2

• 12 acre parcels

• Design

• Location

Standard Freezer

PRODUCT MIX

Title Goes here

There are many variations of the

me

30%

CUSTOMER EXPERIENCE

Title Goes here

There are many variations of the

me

30%

Preferred Freezer Services has in excess of 3,000 active cold storage

customers that generate over $300 million dollars in annual sales. PFS

services food manufacturers, processors, importers, exporters, food

service distributors, retail chains, and independent retailers. The

following is a sample of the customers we serve every day…

BUILDING DESIGN BENEFITS

Title Goes

here

There are many

variations of the

me to the heaven

Two

• Efficiency

• Product Integrity

• Expanded Docks

• Rapid loading & unloading

• Maximum security

• Productive truck yards

– AUTOMATED SOLUTIONS –

14

MATERIAL HANDLING EQUIPMENT

Generation I Generation II Generation IVGeneration III

Engineering expertise to match customer requirement

Title Goes here

There are many

variations of Lorem

Ipsum available, but the

majority have suffered

There

Technology Alternatives Used:

• Automated loading and unloading

• Monorail/conveyer system• Telescopic transfer cart

induction • Single/dual mast cranes

• Telescopic forks• Tether-less mole

technology• Crane-fed pick tunnels

• Gravity flow racking• AGV case selection

• Voice direction• Layer pick (Tyguard)• Gravity fed pallet staging

AUTOMATED SOLUTIONS

AUTOMATIONDesign Benefits

Higher Customer

Satisfaction

• Improved Productivity

• No breaks

• No battery

• Accuracy

• Reduced Costs:

• Health and benefits

• Lights

• Battery

• Mis-picks

• Detention &

demurrage

• Reduced Damage:

• No forklift damage

• No product damage

WHY PARTNER WITH US?

• Footprint

• Locations

• Service

• Relationships

• Lower Costs

• Faster Response

• Improved Acceptance

• Generators

• 4G Network

• IT and communications

• Full functionality

DIFFERENTIATORSRedundancy

DIFFERENTIATORS

• BRC Global Standards = Guaranteed Safety

• Ongoing commitment

Quality Assurance and Safety

DIFFERENTIATORS

• Repacking

• Relabeling

• USDA Import/Export Inspections

• FDA & USDC Inspections

• U.S. Customs Bonded Facilities

Value Added Services

• Repacking

• Relabeling

• USDA Import/Export Inspections

• I-house/export establishment information

furnished upon request

• FDA & USDC Inspections

• U.S. Customs Bonded Facilities

Core Traits

• Trust and integrity

• Servant-leader; always willing to help others

• Coach, mentor, lift others

• Sense of urgency

Core Values

• Trust in one another

• Same trusts in customers

Core Purpose

• “We Get it Done!™” for customers and each

other

Core Goal:

Perfection in the

eyes of our

customers

OUR BIGGEST DIFFERENTIATORSOur People

PFS LOGISTICS

1. Portside Logistics Services

– Drayage

2. Outbound Logistics Services

– Pool Consolidation

– Less Than Truck Load

– Full Truck Load / Long Haul

3. Supply Chain Optimization

Turn-key Logistics Services “From Port to PFS- to the end customer”

The Different Layers of Logistics

23

3PL Vs 4PL

• What is a 1PL? • Cargo owners

• Manufacturing firm delivering to customers

• Consignee (such as a retailer picking up cargo from a supplier).

• They dictate the origin (supply) and the destination (demand)

24

3PL Vs 4PL

• What is a 2PL?

• Carriers • providing a Service’s over a part of the Supply Chain

• Could be:

• Shipping company

• Rail operator

• Trucking company

25

3PL Vs 4PL

• What is a 3PL?

• Any Company working with shippers in order to manage their company’s logistics operations.

• 3PL is the action of outsourcing activities that are related to logistics and distribution.

26

3PL Vs 4PL

• Third party logistics providers usually specialize in

• Integrating operations

• Warehousing

• Transportation services

• Cross-docking

• Inventory management

• Packaging

• Freight forwarding

27

3PL Vs 4PL

• What is a 4PL?

• A 4 PL is a true Partner to the Customer working

to provide a Lean Cost effective Supply chain

solution.

• Functions provided by a 4PL company

• Procurement

• Storage

• Distribution

• Processes

28

3PL Vs 4PL

• Main Difference between 3PLs and 4PLs

• The 3PL targets a single function, whereas the

4PL manages the entire process. A 4PL may

manage the 3PL.

29

What is a Warehouse Receipt

• (From Wikipedia)

• A warehouse receipt is a document that provides proof of ownership of commodities (e.g., bars of copper) that are stored in a warehouse, vault, or depository for safekeeping.

• Warehouse receipts may be negotiable or non-negotiable. Negotiable warehouse receipts allow transfer of ownership of that commodity without having to deliver the physical commodity. See Delivery order.

• Most warehouse receipts are issued in negotiable form, making them eligible as collateral for loans. Non-negotiable receipts must be endorsed upon transfer.

• In the United States, warehouse receipts are generally regulated by Article 7 of the Uniform Commercial Code as adopted by the various jurisdictions.

30

Current Warehouse Receipt

31

Insurance What is covered at the warehouse?

32

33

SECTION 9 - LIABILITY AND LIMITATION OF DAMAGES

(a) PREFERRED FREEZER SERVICES LLC shall not be liable for

any loss, damage or destruction to GOODS, however caused,

unless such loss, damage or destruction resulted from the

PREFERRED FREEZER SERVICES LLC'S failure to exercise such

care in regard to the GOODS as a reasonably careful man

would exercise under like circumstances. PREFERRED FREEZER

SERVICES LLC is not liable for damages which could not have

been avoided by the exercise of such care

(b) PREFERRED FREEZER SERVICES LLC and STORER agree that

PREFERRED FREEZER SERVICES LLC'S duty of care referred to in

Section 9(a) above does not extend to providing a sprinkler

system at the warehouse complex or any portion thereof.

34

SECTION 9 - LIABILITY AND LIMITATION OF DAMAGES

(d) IN THE EVENT OF LOSS, DAMAGE OR DESTRUCTION TO GOODS FOR

WHICH THE PREFERRED FREEZER SERVICES LLC IS LEGALLY LIABLE,

STORER DECLARES THAT PREFERRED FREEZER SERVICES LLC'S

LIABILITY SHALL BE LIMITED TO THE LESSER OF THE FOLLOWING: (1) THE

ACTUAL COST TO STORER OF REPLACING, OR REPRODUCING THE LOST,

DAMAGED, AND/OR DESTROYED GOODS TOGETHER WITH TRANSPORTATION COSTS TO WAREHOUSE,

(2) THE FAIR MARKET VALUE OF THE LOST, DAMAGED, AND/OR

DESTROYED GOODS ON THE DATE STORER IS NOTIFIED OF LOSS, DAMAGE AND/OR DESTRUCTION,

35

SECTION 9 - LIABILITY AND LIMITATION OF DAMAGES

(3) 50 TIMES THE MONTHLY STORAGE CHARGE APPLICABLE TO SUCH LOST, DAMAGED AND/OR DESTROYED GOODS,

(4) $0.50 PER POUND FOR SAID LOST, DAMAGED, AND/OR DESTROYED

GOODS. PROVIDED, HOWEVER THAT WITHIN A REASONABLE TIME

AFTER RECEIPT OF THIS WAREHOUSE RECEIPT, STORER MAY, UPON

WRITTEN REQUEST INCREASE PREFERRED FREEZER SERVICES LLC'S

LIABILITY ON PART OR ALL OF THE GOODS IN WHICH CASE AN

INCREASED CHARGE WILL BE MADE BASED UPON SUCH INCREASED

VALUATION; FURTHER PROVIDED THAT NO SUCH REQUEST SHALL BE

VALID UNLESS MADE BEFORE LOSS, DAMAGE OR DESTRUCTION TO ANY PORTION OF THE GOODS HAS OCCURRED.

We want to thank you for the

opportunity to present our

capabilities to you today.

– THANK YOU –