Food and Beverage Transportation: 5 Tips for Sourcing Excellence

Welcome!Welcome!Welcome!Welcome!Welcome!Welcome!Welcome!Welcome!

Copyright © 2013. CombineNet, Inc.

AgendaAgendaAgendaAgendaAgendaAgendaAgendaAgenda

Greg Holt, Director of Product Marketing, Greg Holt, Director of Product Marketing,

CombineNet

– Introduction

CombineNet’s Role in Transportation Sourcing– CombineNet’s Role in Transportation Sourcing

Jessica Fenlon, Manager, Professional Services,

CombineNet

– 5 Tips for Transportation Sourcing in Food and – 5 Tips for Transportation Sourcing in Food and

Beverage Companies


CombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company Overview

Established in 2000.

The CompanyThe Company The TechnologyThe Technology Customer ValueCustomer Value

Capture >2X spend under E-Best of Breed Solutions that Established in 2000.

Global: Offices in

Pittsburgh, PA; London, UK;

Capture >2X spend under E-

Sourcing management.

Address complex spends

with advanced functionality.

Best of Breed Solutions that

improve Strategic Sourcing –

holding 21 U.S. patents.

Hamburg, Germany.

Partners for Latin America,

Middle East, APAC.

with advanced functionality.

Fast implementation and

broad adoption for any type

Software-as-a-Service (SaaS)

delivery model for ease of

adoption and scale

Customers: Global 2000

spanning CPG, Food & Bev,

Retail, Manufacturing,

Transportation, and more.

broad adoption for any type

of user.

Nearly 100% see full payback

after 1st sourcing event.

Easy integration into your

environment to complement

existing applications.Transportation, and more. after 1st sourcing event.


Some of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s Customers

Includes 16 of the Largest Food & Beverage

Manufacturing Companies


Best of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed E--------Sourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing Solutions

Supporting End-to-End E-Sourcing for All Spend Categories

with Advanced Technology Solutions


CombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation Sourcing

~600 transportation sourcing events per year – more than $15 billion in annual transportation spend

We will help you reduce costs in logistics sourcing!

annual transportation spend

Average savings of 10% on spend size – and 100% ROI after your first event

All Modes:

Truckload/IM, LTL, Ocean, Airfreight, Parcel, Multi-mode

Shippers, 3PLs, Freight Forwarders and Logistics Consultants of all sizes, across all industries, use CombineNet ASAP


How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?

Carrier Measurement

• Flexible RFI• Flexible RFI

• Assessing Carrier Capabilities, Equipment, Drivers, Carbon Footprint, Insurance, DOT Ratings

Expressive BiddingExpressive Bidding

• Expressive, Creative & Alternative Bids

• Equipment type, transit time, mode, capacity, service, volume offers/discounts

• Total Cost of Ownership Models• Total Cost of Ownership Models

• Rates, assessorials, fuel…

Scenario Analysis & Optimization

CombineNet ASAP

• “What If?” Scenario Models

• Regional preferences, network-wide contracts, corporate business goals

• Robust Reporting on Impact of Decisions

CombineNet ASAP


How Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet Today

Consolidating Freight Spend for

Negotiation LeverageMode Switching

Explore options for moving from LTL to Truck

• Network-wide bids vs. regional bids

• Outbound + Inbound shipments

• Balancing common carriers, dedicated, LSPs

• Combining Dry, Refrigerated, Bulk,

Explore options for moving from LTL to Truck

to Intermodal to Rail;

Review mode-mix for Ocean and Air

• Combining Dry, Refrigerated, Bulk,

Container, Intermodal

Review Carrier/Network Options

Carrier Collaboration: Understanding

Business Strategies & Needs

Look for mutual value/win-win opportunities For lane efficiencies, service & equipment

alternatives, carrier scalability to volume

changes

Look for mutual value/win-win opportunities

that match your shipments with their assets

and existing business

• Continuous loops/ backhauls/ multi-stop• Continuous loops/ backhauls/ multi-stop

• Carrier business/expansion plans

• Utilize imbalance between

inbound/outbound & import/export in

certain regions

Sustainability

Evaluating carrier/fleet fuel efficiency, network

carbon footprint, mileage reduction options carbon footprint, mileage reduction options


5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food & Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation


5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage Transportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation Buyers

1) Evaluate Carrier Support for Seasonality

2) Review Dry and Temperature Controlled Equipment 2) Review Dry and Temperature Controlled Equipment

Options

3) Use a Carrier Scorecard as Part of Carrier Evaluation3) Use a Carrier Scorecard as Part of Carrier Evaluation

4) Consider Load Weight per Lane

5) Ensure Carrier Capacity Commitments5) Ensure Carrier Capacity Commitments


Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for SeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonality

Your Challenge:

In sourcing events, seasonality changes can have big In sourcing events, seasonality changes can have big impacts on monthly demand and capacityConsumer Demand:

“We want whole turkeys at Thanksgiving”– “We want whole turkeys at Thanksgiving”

Growing Seasons:– “It’s difficult to find some fresh vegetables during the winter in – “It’s difficult to find some fresh vegetables during the winter in

the North”

Solution:Solution:

Display Seasonality changes as Lane Information and

collect carrier capabilities


collect carrier capabilities

Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in CombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNet

Display Monthly Demand Patterns

Collect Monthly and Peak Capacity in your Collect Monthly and Peak Capacity in your CombineNet sourcing event:


Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Controlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment Options

Your Challenge:

Buyers with Dry and Temp controlled truckload often source Buyers with Dry and Temp controlled truckload often source

separately

– Data collection, bidding process, and analysis is time consuming

– Separate internal teams but similar corporate sourcing – Separate internal teams but similar corporate sourcing

requirements

Solution:Solution:

Combine Dry and Temp into one bidding event

– Similar contract expiration dates– Similar contract expiration dates

– Attractive bidding opportunity for carriers

– Significant internal time savings

– Brokers and 3PL’s should be invited to the event– Brokers and 3PL’s should be invited to the event


Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Truckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNet

Collect the right bids for the right lanes


Tip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier Scorecard

Your Challenge:

Quantifying RFI responses for unbiased comparisonsQuantifying RFI responses for unbiased comparisons

Maintaining a record of carrier capabilities and preferences throughout analysis

Solution:Solution:

Prioritize most important internal factors through weights for question and answerweights for question and answer

Set the weights before any carrier responses are received


Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard –––––––– RFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI Questions

Add scoring weights to your RFI Configuration


Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard –––––––– Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your CombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario Analysis

We’ll help you set up Carrier Scorecard calculations for analysis:


Tip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per Lane

Your Challenge:

Shipping heavy items that weigh-out before the truck cubes-Shipping heavy items that weigh-out before the truck cubes-

out

Carrier equipment weight varies, especially when using a Carrier equipment weight varies, especially when using a

refrigeration unit

Solution:

Display current Average Load Weight as Lane InformationDisplay current Average Load Weight as Lane Information

Collect carrier’s Load Weight in your CombineNet eRFP


Load Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFP

Lane information and bid collection in Lane information and bid collection in CombineNet

Transform carrier capacity to account for Transform carrier capacity to account for higher or lower weights

Avg Load

Weight

Carrier Load

Weight

Carrier

Capacity

Transformed

CapacityWeight Weight Capacity Capacity

46,000 46,000 50 50

46,000 45,000 50 48.9

46,000 47,000 50 51.1


Tip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier Capacity

Your Challenge:

Carriers quote across the network, not knowing what might be Carriers quote across the network, not knowing what might be

awarded

Carriers have capacity limits that cannot be expressed lane-by-

lanelane

Solution:

Collect lane level capacity, including seasonality limitsCollect lane level capacity, including seasonality limits

Collect summary capacity to model overarching limits


Modeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier Capacity

Lane-level Capacity

Origin

City

Origin

State

Dest City Dest

State

Annual

Volume

Capacity

Atlanta GA Wichita KS 156 150

Atlanta GA Overland Park KS 175 296Total: 446

Atlanta GA Overland Park KS 175 296

Atlanta GA Norfolk VA 468 400

Atlanta GA Richmond VA 451 844

Total: 446

Total: 1,244

Carriers have capacity limitations for each lane

– Wichita Volume: 156 loads– Wichita Volume: 156 loads

– Carrier Capacity: 150 loads

But by only considering lane-level capacity, buyers cannot determine realistic limits for carrier awards across the networkdetermine realistic limits for carrier awards across the network


You You You You You You You You cancancancancancancancan Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!

Using Multiple Levels of Carrier Capacity ensures that

Carriers can handle all of the awarded loads

Origin to Destination State CapacityOrigin to Destination State CapacityOrigin to Destination State CapacityOrigin to Destination State Capacity

Capacity Bid by the CarrierCapacity Bid by the Carrier

Confirming Capacity at

Overall Capacity across the NetworkOverall Capacity across the NetworkOverall Capacity across the NetworkOverall Capacity across the Network

Confirming Capacity at

Multiple Levels


Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage ManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturers


CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for Food & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage Manufacturers

Advanced E-Sourcing Technology + Content & Services You Need to

Achieve World-Class Success!Achieve World-Class Success!

CombineNet ASAP® – Our industry-

leading best-in-class e-sourcing platform

for creating and managing online RFIs,

Food & Bev Best Practices Center –access to

a wide range of best practices solutions,

content and services tailored to the Food & for creating and managing online RFIs,

RFPs, and e-auction events. Key features

include:

content and services tailored to the Food &

Beverage Manufacturing industry, including:

• E-Sourcing Template Library

• RFxpress

• Expressive Bidding®

• Expressive Feedback

• Scenario BuilderSM

• E-Sourcing Template Library

• Premium E-Sourcing Knowledge Content

• Premium Training

• Event Start-Up Service

• Unlimited RFP Readiness Reviews• Scenario BuilderSM

• Bid Analysis and Optimization

• Reporting and Dashboards

• Unlimited RFP Readiness Reviews

• Event Coaching Services

• 15% Discount on Other Services


Case Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European Truckload

World’s 2nd Largest Brewing Company

- Consolidated European Freight

Using CombineNet ASAP enabled

Key Facts

Using CombineNet ASAP enabled

consolidation across all regions,

creating a better overall picture of

what was available for

2,500 lanes.

Mostly Full Truckload

(FTL)

8% + savings.

Retained 80% of

incumbent carrierswhat was available for

suppliers/carriers:

– Encouraged carriers to pick and

choose which transportation lanes

to bid on

Inbound/Outbound

between breweries,

warehouses, customers

Single sourcing

event for all of

Europe

“With more data under one tender event, there was the

need to support the process with a strong e-sourcing

solution. We chose CombineNet based on its intuitive

to bid on

– Enabled carriers to leverage their

assets to best meet SABMiller’s

needs with Packaged Bids and solution. We chose CombineNet based on its intuitive

handling of large data sets, the flexibility in defining

tender variables, and the strong analytical engine to

assess and visualize different implementation

scenarios.”

needs with Packaged Bids and

Conditional Offers

Using CombineNet’s Expressive

Feedback provided carriers with

guidance on their competitiveness Flavio Gall, Global Category Director for Freight and Fleet, Trinity

Procurement

guidance on their competitiveness

during bidding


Case Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean Transportation

Event Metrics

– # of Lanes: 800

– # of Carriers: 45– # of Carriers: 45

– Spend Size: $15M

Key Benefits:

Able to conduct a Global event while ensuring regional requirements – Able to conduct a Global event while ensuring regional requirements and preferences

� Temperature controlled containers for 20% of lanes

� Bids collected were based on a lane-defined container type� Bids collected were based on a lane-defined container type

� Some regions required All-in Rate, others required separate Fuel Surcharge

– Carrier total-value evaluated through Non-price data

� Carrier preferred Origin and Destination ports� Carrier preferred Origin and Destination ports

� Number of transshipments

� Total transit time

� Annual Capacity commitments

Result: Regional preferences achieved 18% savings


What Next?What Next?What Next?What Next?What Next?What Next?What Next?What Next?

Learn more about CombineNet’s solution for Food & Learn more about CombineNet’s solution for Food &

Beverage companies

– Download our Strategic Sourcing Information Kit– Download our Strategic Sourcing Information Kit

� Found under the Resources tab on the Webinar console


Thank You.Thank You.Thank You.Thank You.Thank You.Thank You.Thank You.Thank You.Questions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & Discussion

www.combinenet.com

[email protected]@combinenet.com

Phone: 412-471-8200


Food and Beverage Transportation: 5 Tips for Sourcing Excellence

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Transcript of Food and Beverage Transportation: 5 Tips for Sourcing Excellence