Your Focus is Our Focus
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Transcript of Your Focus is Our Focus
Your Focus is Our Focus
Produce Supply Chain Challenge’s / Opportunities
Overview of C.H. Robinson North American Transportation Issues
Driver shortage Silo thinking in the supply chain Asset utilization
International Requirements, Opportunities and Implications
Providing Supply Chain Solutions Horizontal communication Supply chain process improvement Measurements/metrics
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• 101 year Tradition of Excellence (founded in 1905)
• Leading 3PL of transportation, distribution, sourcing and other supply chain services
• 2006 gross revenues in excess of $6.6 billion
• 5.2 million shipments delivered for over 25,000 customers in 2006
• Relationships with more then 45,000 transportation providers
• Global presence: North America, Europe, Central America, South America and Asia
• Over 6,700 employees in 210 offices worldwide
• Over 90 million cases of produce sold in 2006
• Publicly owned and traded on NASDAQ {chrw}
WHO WE ARE
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Basic Services• Transaction sourcing/transportation• Product development• Procurement• Transportation• LTL• Carrier/mode management
WHAT WE DOManage and execute supply chain activities for our customers
Value Added Services• Logistics• Replenishment• Facility management • Business & category analysis• Supply chain analysis• Total project management
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North American Transportation Issues
Driver Shortage Silo Thinking in the Supply Chain Asset Utilization
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Truckload Driver Shortage currently 20,000 projected to be 100,000 in next 4 years*
2% driver population – age 21-25 70% driver population – age 35-57 Teamsters (LTL) average age – 57 High turnover* – 114-121% for truckload
carriers Driver population is already diverse
• 27% of drivers have an ethnic background
North American Issues
*Source: Transport News
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A problem?Suppliers Transportation
Companies
Retail
Produce
Retail
Transportation
Often 12% 20% 0% 2%
Sometimes 28% 42% 22% 16%
How costly?Very 21% 20% 6% 7%
Somewhat 37% 26% 28% 20%
Delay in Loading at Supplier?
Progressive Grocer study 2006C.H. Robinson/Produce Marketing Association
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A problem?
Suppliers Transportation
Companies
Retail
Produce
Retail
Transportation
Often 28% 30% 9% 7%
Sometimes 28% 48% 33% 33%
Average reported wait time
Mean 3 hours 3.19 hours 1.28 hours 1.33 hours
Progressive Grocer study 2006C.H. Robinson/Produce Marketing Association
Wait Times at Receiver Docks?
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Asset Utilization – Strategies in Play
Effective Utilization of Driver and Equipment to Generate a Reasonable Return on Investment
Type of Load as it Relates to Compensation Number of picks or drops Supplier/receiver issues
Opportunity to Utilize Equipment in Other Less Contentious More Productive Categories
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Imports: Requirements and Opportunities
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Understanding the RequirementsPre shipment Requirements
Must have an FDA permit to transport/import plants/plant products
Pre notification of product shipped to the United States Transit package/container requirements
Correct cartons/carton conditions Shrink wrapped pallets/insect proof mesh Closed leak proof containers with sealable doors Phyto sanitary processes
Any order can be inspected in transit and refused
Imports: Requirements and Opportunities
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Arrival/Export Requirements Trans loading/storage of product (any activity) must
be approved 24 hours in advance of activity Fumigation Export
Identify approved port of exit Seals must be in place
Expense Permit holder is responsible for all costs Monitoring programs Inspection during transit or arrival Reconditioning Fumigation
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Documentation Advance notice by shipper at port of arrival Permit holder must insure CBP (customs and boarder patrol)
has a copy of permit before product ships Importer/broker must complete “entry notice”/bond acquisition Importer of record must submit proof of export within 24 hours
What you need to be aware of: US food labeling requirements Bulk container labeling Good manufacturing practices for food FDA’s sampling policies Information on CBP forms, procedures, duties and bond
acquisition
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What Can Happen if Something Goes Wrong? Product: South African grapes Situation: Container placed on hold Rational: Misinterpretation/confusion relative to import
permit by USDA and Canadian authorities Product Specifics: Packed on March 7th, arrived March
15th in port, received by customer April 27th in CanadaImplications: Cost of 3 days personnel time to resolve situation Increased opportunity for decay, customer rejection
and recondition Product rejected by customer due to condition
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Providing Supply Chain Solutions
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Subject Matter Experts Work Together Toward a Common Goal
Trust Built Between Two Organizations Open Information Framework People are Empowered/Incentified to
do the Right Thing
Horizontal Communication
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Collaborate Capacity Planning Order Placement/Load Building Receiving of Goods
Appointment scheduling/communication standards Wait times Unloading/loading
Product Rejections Carrier Treatment - relationship Documentation; understanding the
requirements
Process Improvement
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Mutually Agreed to and Well Defined Key Metrics that:
Allow Us to Evaluate and Improve Performance
Identify Areas for Process Improvement Help Take Costs Out of SystemDevelop an Activity Process that Precipitates
the use of these Metrics: Monthly Scorecard and Journal Six Month Reviews Annual Business Reviews
Measurements/Metrics
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