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3t Europe - 4PL transport solution
 

3t Europe - 4PL transport solution

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A more detailed over view of 3t and their 4PL offering.

A more detailed over view of 3t and their 4PL offering.

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    3t Europe - 4PL transport solution 3t Europe - 4PL transport solution Presentation Transcript

    • 3t Detailed Presentation
    • Contents
      • How we Save Money
      • Systems
      • Carrier Selection
      • Management Reports
    • What we do…
      • 3t take good logistics operations and turn them into a better ones
      • We do this through the implementation of a business model which is designed to maximise profitability
      • We ensure every component of the operation is using the optimum: process, service provider and automation available
      • We enable clients to exploit the next level of sustainable supply chain savings once traditional methods have been exhausted
        • Greater scope and deeper integration of supply chain
      • Harnessing the expertise of the service provider's
        • We believe there is no single optimum logistics provider
      • We translate the efficiencies into real accountable measurements: cost, service, time, carbon footprint.
    • What we do: Simplify complexity Internal Activity
      • Vehicle utilisation: carton, pallet, part load, FTL, parcel
      • Mode of Transport : Route, Road, Air, Sea, Specials, expedite, multi mode
      • Disruption : OTIF, returnable packaging, manufacturing issues, KPIs
      • Stock levels : inbound and outbound, right place, visibility
      External Activity
      • Customer demands: changing schedules, OTIF
      • Road: Congestion, legislation, fuel increases, environmental
      • Carrier: Driver shortages, vehicle costs, unbalanced transport routes, exchange rates, international road taxes, regional tariffs
      Misalignment
      • Margin on margin: carrier sub contracting
      • Carrier objectives: make more revenue when you want savings
      • Overlapping initiatives: IT systems, change management
      Cost
      • Transport operations typically represent between 5-10% of turnover
      • Every 10% saved is between 0.5 to 1% on the bottom line
      • This does not take into account all the non value added issues that effect transport but no systems capture this true cost (30%+)
    • What 3t offer…
      • A solution that to a single company can reduce its transport costs by 10-15%
      • A solution that with collaboration can reduce transport cost by 25-30%
      • A solution that is environmentally friendly and will reduce a companies carbon footprint
      • A solution that aims to put at least 1% on a companies bottom line
    • How we do it…
      • Account Management
        • Process improvements
        • Savings initiatives
      • Management reports
        • Visibility of costs
        • Identification of issues
      • Administration
        • Automation of administration
        • 100% invoice audit
        • Faster communication
      • Planning
        • Aligned objectives
        • Advanced visibility
        • Load fill calculation
      • Rates
        • Multi carriers
        • Reduced empty running
        • Volume leverage
        • Return loading
      Savings break down 5% 10% 15% 20% 25% Rates Planning Administration Management Reports Account Management
    • Our approach?
      • We fully understand the demands of your business, the processes and procedures in every detail, we reengineer the process to identify ways in which inefficiency can be driven out
      • We choose the right carrier for the right transport request
        • Initial tender during implementation followed by regular tenders
        • Different carriers for different modes and geographies
      • We optimise the transport planning using our state of the art transport management system (GCM)
      • We provide detailed management reports and a review structure to identify savings opportunities and monitor previous initiatives
    • Introduction to Global Carrier Manager
      • 3t have developed a best in class propriety transport management system
      • It has been developed over 9 years to meet the transportation needs of 3t clients
      • It fully integrated with clients ERP systems
      • Tool for managing the order process, from availability of product to fulfilment of the delivery
      • Interface with carriers
        • Via Web or full integration – carriers capability
      • Interface with Despatch function
        • Despatch planning
      • Transport pricing and cost allocation
    • GCM offerings…
      • Systems integration
        • Full integration allows us to automate many costly processes
      • Order consolidation
        • Full loads, regional consolidation and plan reengineering
      • Auto planning
        • Reducing headcount, optimal price, strict rule adherence, knowledge transfer to system
      • Carrier communication
        • Online POD’s, self billing process, dispute resolution, 48 hour cost agreement, stored rates
      • Despatch organisation
        • Optimal despatch load planning, standard manifests, issue logging
      • PODs
        • 48 hour POD return, customer access to online database, searchable by multiple fields
      • Invoice audit
        • Complete management of invoice process, accurate accruals, 100% carrier adherence to fast process, accurate data for management reporting
      • All of the above averagely saves 2-5% of your transport Spend !
    • Carrier selection
      • Choosing the right carrier for every consignment
        • Price, service, geography and size
        • Annual tenders – service provision, relationship management
      • Vehicle fill optimisation
        • Packaging types, stackability, compatibility, parts database
      • Transport Planning
        • Groupage vs full load / multi drop / milk runs
      • Rates are agreed for the duration of a year and agreed with carriers we have long standing relationships with. All additional costs are managed and visible.
      • If new carriers are sourced, they must go through the 3t audit process.
      • If there are long established relationships with carriers that offer competitive prices and service, 3t will continue exploit those relationships for the client.
    • Carrier selection
      • Tailored Invitation to tender for each client
        • Data profile to encourage best quotes
        • Operational profile to ensure service is matched
      • Carriers short-listed from 3t database, the customer and local/ regional market research
      • Responses analysed against profile of data to ensure best price for the service
      • Carrier audits undertaken of carriers not known to customer and / or 3t
      • Carrier decision matrix generated including price and service elements
      • Further short-listing, negotiation and target tariffs
      • Presentation of recommendation to customer and selection
    • 3T is positioned in the middle of your operation The 4PL system and process is an integral part of our customers operational infrastructure and the transport planners are based and work closely with the customer services and manufacturing planning
    • Reporting and systems integration
    • Management reporting process KPI reporting Improvement initiatives Exploratory Analysis Tracking & Review
      • Monthly Accrual
      • Cost Summary
      • Performance mgt
      • Cost to Serve
      • Top 10 winners & losers
      • Delivery Diary
      • Service realignment
      • Consolidation
      • Monthly meeting
      • Weekly micro reports
    • Systems integration www.3t-europe.com THE WEB Client ERP system GCM Account Management Reporting Issue resolution Performance mgt Operations Order mgt Planning & booking Issue management Day to day control Customer POD search Tracking tracing Despatch schedule Web order entry Carrier Load manifests Delivery confirmation Self bill Loading schedule Collection times Delivery confirmation New orders, updates, cancellations Confirmed despatched quantities
    • Benefits of integration continued…
      • Our system receives shipment data from the client ERP
      • GCM creates and optimum plan and sends the data back to client ERP for despatch
      • This information is stored in our system and allows us to weight costs against customers
      • Acc managers can generate generic reports which allow them to design tailored savings initiatives for our clients.
    • Geographical analysis Understanding your geographical profile can helps understand your costs and allows us to target regions to reduce cost £102,971 5,707 7,676 22,671 15,566 608 DOMESTIC TOTAL £ 18.4 13,834 754 1,105 3,258 2,472 76 South West £ 19.3 26,582 1,380 2,112 6,314 4,227 170 South East £ 15.3 15,377 1,006 1,324 3,866 2,612 111 South £ 35.6 181 5 6 18 14 3 North West £ 68.7 236 3 6 17 12 1 North East £ 27.7 2,488 90 132 387 241 10 North £ 18.8 29,303 1,556 1,987 5,927 4,196 182 Midlands £ 16.4 14,970 913 1,005 2,884 1,792 55 East Anglia Cost per Unit Transport Cost Unit measurment Std Pallet spaces Volume Customer Pallets Deliveries Region UK Domestic Deliveries - Summary by Region
    • Transport summaries Reports break down monthly summaries by domestic, export, fuel costs and pallet returns   £40,013 £94,120 £77,361 £54,217 £10,069 Gross Domestic Saving                 5,707 16,916 17,730 16,234 14,169 Total Domestic KSM's Planned   7,676 25,256 26,679 24,957 22,860 Total Std Pallet Spaces   22,671 74,030 78,326 73,012 67,275 Total Volume   15,566 50,218 52,592 49,704 46,364 Total Pallets   608 1,858 2,016 1,913 2,039 Total Deliveries                 £25.05 £24.43 £23.78 £23.51 £24.36 Historical Cost per KSM   £142,984 £413,215 £421,596 £381,684 £345,152 Historical Domestic Freight                 £ -         Insurance Costs   £18.04 £18.86 £19.42 £20.17 £23.73 Cost per KSM   £0 £0 £0 £0 £313 Collection (Returns)   £102,971 £319,096 £344,235 £327,468 £336,185 Domestic Freight (inc shunting/ fuel)   Jan-09 Q4 2008 Q3 2008 Q2 2008 Q1 2008  
    • Carbon emissions reporting We can put you in a great position to deal with carbon emission taxation that is due to come into place in the next year. Reducing you carbon footprint can save you money, we can demonstrate that with EU approved formulas 609.51 1.81 55.18 100.07 105 2.72 1,832 GB Customer 10 645.39 15.37 25.42 390.75 410 18.48 3,552 BE Customer 9 758.01 0.81 59.99 48.61 51 1.51 1,639 GB Customer 8 1,121.02 7.21 38.09 274.48 288 9.06 5,481 GB Customer 7 1,155.65 2.59 46.28 120.08 126 4.36 2,853 GB Customer 6 1,186.53 3.37 50.85 171.55 180 8.65 1,946 GB Customer 5 1,218.27 1.02 50.39 51.46 54 3.22 1,783 GB Customer 4 1,272.65 2.53 58.45 147.72 155 3.72 3,959 GB Customer 3 1,296.72 2.70 53.35 143.91 151 6.32 2,262 GB Customer 2 2,024.45 3.91 52.37 204.90 215 6.08 5,671 GB Customer 1 Inefficiency Optimum carbon emissions per pallet opt pallets per load Carbon emissions full load kms per load Carbon Emissions per pallet Carbon emissions Destination Country Code Destination Name
    • Cost to serve Cost to serve reporting allows you to indentify true customer profitability by allocating accurate transport cost to customers £ 22.03 £ 14.75 0.7 3.0 2 1 North West Customer 10 £ 41.31 £ 35.03 0.8 2.9 2 2 Midlands Customer 9 £ 13.83 £ 4,718.40 341.2 1509.2 1188 28 South Customer 8 £ 15.09 £ 2,902.52 192.4 747.3 515 17 Midlands Customer 7 £ 26.92 £ 268.48 10.0 72.7 48 3 South Customer 6 £ 31.73 £ 91.43 2.9 13.6 10 1 South Customer 5 £ 16.35 £ 578.69 35.4 130.4 82 3 South East Customer 4 £ 24.12 £ 2,733.52 113.3 643.3 448 15 Midlands Customer 3 £ 20.61 £ 282.23 13.7 49.6 34 3 South Customer 2 £ 25.11 £ 1,281.48 51.0 248.3 170 9 Midlands Customer 1 Cost per Unit GrossCost Pln Area (Unit) Pln Volume Pln HU Qty Shipments DestRegion CustName
    • Cost of issues Hidden costs to transport can also be identified through the system deliveries 13.76 One issue per £ 8,374 1.1 49 Total             £ 289 0 2 Late order entry Customer Services 50015 £ 27 0 1 Late modification to order Customer Services 50015 £ 40 0 1 Customer Services Customer Services 50015 £ 69 1.1 4 Communication Customer Services 50015 £ 232 0 1 Late order IT - Customer 50015 £ 165 0 2 Part Refusal, Customer Customer 50015 £ 767 0 4 Late order entry Customer 50015 £ 714 0 3 Late order Customer 50015 £ 75 0 1 Late modification to order Customer 50015 Cost Proportion Deductions Issues Reason Desc Category Desc CusLocCode
    • Initiatives
      • 3t use the data behind the reports to design cost savings initiatives
      • The are presented on a monthly basis and are monitored
      • At the next meeting, new analysis is prepared to show whether there have been improvements.
      • The process then begins again and more initiatives are devised.
      • Our gainshare is dependent on lowering your costs
    • 3T is positioned in the middle of your operation Due to the position of our business being at the heart of yours, we believe we can help choose the most cost effective solution, whilst maintaining a high service level
    • Managing multi plant operations 4 1 5 3 2
      • Complex
      • No synergy
      • Independent
      • Minimal visibility
      • Little information
    • 3t information flow & control 4 1 4 3 2
      • Simple process
      • Maximise synergies
      • Central control
      • Complete visibility
      • Management information
      • Data capture and analysis
        • Transport profile
        • First stage optimisation
      • Operational overview
        • Operational constraints
        • Push / Pull order receipt
      • Carrier tender
      • Process redesign
      • Operational set-up
      • Systems integration
      3t implementation stages 0 2 4 6 8 10 12 weeks
      • Thanks for reading