The Global 4PL: Building a Platform for Global Expansion

Eye For Transport Logistics CIO & Supply Chain Technology Forum

April 8, 2010

MULTI MODAL EXPERTISE

Ocean Bulk Rail TL LTL

Ocean Container

Intermodal TOFC/COFC AirBulk Truck

Global Transportation across the Modal Spectrum

• Operations Mgmt• Procurement• Shipment Execution /

Audit• Project Mgmt

ODYSSEY FUNCTIONAL OPERATIONS

North America Service CenterCharlotte, NC

North America Service CenterCharlotte, NC

• Shipment Tendering• Global Freight Payment• Project Management• Operations Management• IT

• Product Management• IT Infrastructure• Production & User Support• Engineering

• Senior Logistics Management Staff

• Procurement• Carrier Relations• Int’l Freight Forwarding• IT Management

• Project Mgmt• Engineering

HeadquartersDanbury, CT

HeadquartersDanbury, CT

Odyssey OverlandHackettstown, NJ

Odyssey OverlandHackettstown, NJ

• Bulk Overland Transportation

• Continuous Move• Bulk Procurement

APAC Service CentersShanghai, Tokyo

APAC Service CentersShanghai, Tokyo

EMEA Service CenterAntwerp, BEL

EMEA Service CenterAntwerp, BEL

• Operations Mgmt• Procurement• Shipment Execution /

Audit• Project Mgmt• International F/F

• Globalization (of course)• ERP consolidation – companies driving to a single

ERP instance• Drive for common global processes• Drive to reduce cost & waste

• And in some cases, reduce carbon footprint• Seeking next frontier in competitive advantage

GLOBAL LOGISTICS – WHAT’S DRIVING IT?

GLOBAL LOGISTICS – HOW TO GET THERE?

Use a “Global Systems Adaptor?”

Unfortunately, there is no Global Systems Adaptor!

• Evolution of logistics providers• Lead logistics providers – multi-modal,

global• Global 3PLs

• Technologies that are finally delivering on their promises• B2B integration• Next generation collaborative web

applications

GLOBAL LOGISTICS – WHAT’S ENABLING IT?

• All modes of transport• Web-based, Service

Oriented Architecture• Works globally• Single set of B2B

integration interfaces, globally

• Single system instance• Allows global control &

reporting of all logistics activities

A VISION: GLOBAL 4PL SYSTEMS

• Differences in logistics processes & norms

• Understanding global geography & languages

• Level of sophistication of carriers and 3PLs

• Training & supporting global system users 24 x 7

GLOBAL EXPANSION – KEY CHALLENGES

• Key variable is the degree of automation that’s expected/possible

• In some countries, logistics processes are kept simple—designed for a manual world• Not designed to be automated!• E.g., monthly invoices vs. transactional invoices• E.g., freight contracts that require data that is hard

for shipper to obtain

IN EUROPE & ASIA, DIFFERENCES IN LOGISTICS PROCESSES & NORMS

• Different logistics contracts• Different freight rate structures

• Different shipment documentation requirements & Hazmat rules

• Different tax and currency requirements (e.g., VAT)

IN EUROPE & ASIA, DIFFERENCES IN LOGISTICS PROCESSES & NORMS (CONT’D)

LANGUAGE SUPPORT

• Most important:• Receive and store transactions in

other languages• Let users view transactional data

in non-Roman characters• Validate Global Location data in

any language• Need for freight rates, routes and

business rules

• Least Important:• Translate User Interface labels to

other languages• Don’t really need it for Europe • Need it in Japan

• North America• Significant carriers have EDI

capability –ANSI standards• Established VANs exist

• Europe• Carriers are willing to integrate• Some EDIFACT; more proprietary

integrations than we expected• VANs not widely used

• Asia• Carrier/3PL systems are

generally weaker, in some cases non-existent!

• Customarily, little integration

CARRIER & 3PL SYSTEMS + INTEGRATION

• Need to leverage and expand your existing, centralized support staff• Level 2 & 3

• Support off hours with overseas staff• Can’t get many good

people to work shifts• Put regional expertise where

it’s needed• Level 1 support in local

languages• Familiar with regional

customers

24X7 GLOBAL OPERATIONS & SUPPORT

THANK YOU