Los Angeles Transportation Club May 14, 2013 Scott Satterlee C.H. Robinson Senior Vice President.

Los Angeles Transportation ClubMay 14, 2013

Scott SatterleeC.H. Robinson Senior Vice President

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Our people, processes, and technology improve the world’s transportation and supply chains, delivering exceptional value to our customers and suppliers.

+ $11.4 billion in annual gross revenues

+ 42,000 customers

+ 56,000 transportation providers

+ Global network of 11,000 employees in over 275 offices, 32 countries

+ Proprietary technology

+ Founded in 1905; publicly traded since 1997

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Company Overview

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Global Transportation & Logistics Trends

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The Changing World Landscape

*U.S. Census Bureau

+ Rise of technology and social media

+ Access to real-time information

+ Significant population growth+ 7 Billion people on the planet

today*

+ 9 Billion people by 2040*

+ Populations are shifting+ Locations of manufacturers and

where goods are consumed change supply chains

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The Growth of Mega Cities

+ 90% of the earth’s surface is now defined as accessible.

+ 10% is considered remote, or within 48 hours from a major city.

+ Connectivity is the story.

+ Significant population growth, and growth in the number of mega cities, will affect the future of supply chains.

European Commissions Joint Research Center and World Bank

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Why is supply chain volatility increasing?

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Demand Factors

+ Recessions and emerging markets

+ Interdependencies: global consumers, currency fluctuations

+ Lean inventory management practices, more emphasis on capital management

+ Innovation focus, shorter product cycles, obsolescence

+ Sophisticated, automated shippers and consumers

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Why is supply chain volatility increasing?

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Supply Factors

+ Volatility of cost structures+ Capacity production variances, financing challenges, complex ROI

variables

+ Fluctuating fuel prices, energy strategies

+ Labor costs, driver shortages, U.S. pension and healthcare issues

+ Regulatory changes: emissions, HOS, safety, EOBR, trade agreements

+ Aggressive market share strategies and consolidation

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Industry impacts of these trends

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+ Increased demand for:+ Outsourcing

+ Network analysis

+ Changes in origins and destinations (near-shoring/re-shoring)

+ New rate negotiation, contracting strategies

+ Less forward visibility on volumes and rates

+ Greater desire for flexibility and redundancy

+ Increased focus on: + Mode conversion opportunities

+ Risk management

+ Litigation

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The industry is changing

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+ The world is growing and changing faster than ever; so is our industry

+ What we do matters more than ever

+ Increased volatility leads to greater transportation and supply chain opportunities and pressures

Los Angeles Transportation Club May 14, 2013 Scott Satterlee C.H. Robinson Senior Vice President.

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Transcript of Los Angeles Transportation Club May 14, 2013 Scott Satterlee C.H. Robinson Senior Vice President.