Business Excellence

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© Copyright 2009William Driscoll

StrategyOperating Execution

Business Excellence

Operating Execution

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© Copyright 2009William Driscoll

The Supply Chain

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© Copyright 2009William Driscoll

Corp Purchase Order Transportation

Supplier

Customer DC

Manufacturing

The Customer

Retail

Warehouse

The Connecting Link

Logistics

Logistic Costs — the amount of money associated with the purchase, transport, storage and distribution of goods — are an unavoidable part of the supply chain process.

Logistic Service – the satisfactory performance of the suppliers it selects for purchasing, transport, storage and distribution – is an equally unavoidable element.

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© Copyright 2009William Driscoll

Logistics Cost

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© Copyright 2009William Driscoll

Order Process

Carrier Responsiveness

Carrier Contracts Cost to

Serve - Customer

Data

Warehouse

Customer Requirements

Customer Requirements

Shipping Department

Production Schedule

Accessorial Charges

Fuel Cost

Cost Reduction Opportunity

C

Logistics Cost

Warehousing Vendors/ Suppliers Transportation Customer Expectations

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© Copyright 2009William Driscoll

Logistics Cost

Warehousing

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© Copyright 2009William Driscoll

Logistics Cost

Facility Options– Ownership– Direct Provider– 3PL

Services– IT– Inventory Management

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© Copyright 2009William Driscoll

Logistics Cost

Marketplace capacity RFP consideration

Industry Size Major Providers

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© Copyright 2009William Driscoll

Logistics Cost

Cost opportunity areas– IN/ Out charges– Kiting rates– Pick/ pack rates– Odd size packages– Inventory management– Technology enhancements– Outsourcing– Process

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© Copyright 2009William Driscoll

Logistics Cost

Vendors/ Suppliers

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Logistics Cost

Manufacturing Commodity increases Lost raw material vendors Risk management Purchasing contract language

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© Copyright 2009William Driscoll

Logistics Cost

Distributors Commodity based product Volume quantities Fewer vendors produce product Transportation

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© Copyright 2009William Driscoll

Logistics Cost

Transportation

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© Copyright 2009William Driscoll

Logistics Cost

Marketplace capacity Mode selection/ change Rate direction

– Carrier partnership– Negotiation

Fuel

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© Copyright 2009William Driscoll

Logistics Cost

Carrier geography definition Mergers and Acquisitions HOS regulation Driver shortage Closed loop spend management

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© Copyright 2009William Driscoll

Logistics Cost

Recent safety legislation – CSA 2010 Recent international legislation – 10+2 Reach (Euro)

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© Copyright 2009William Driscoll

Logistics Cost

Customer Expectations continue to grow

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© Copyright 2009William Driscoll

Logistics Cost

Delivery Performance

Logistics CostService Reliability Cost

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© Copyright 2009William Driscoll

Logistics Cost

Questions

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© Copyright 2009William Driscoll