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John Langley from Georgia Institute of Technology on ‘Outsourcing Logistics: Meet and exceed your customer’s real expectations, and examine the 3PL relationships that drive ROI’
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John Langley from Georgia Institute of Technology on ‘Outsourcing Logistics: Meet and exceed your customer’s real expectations, and examine the 3PL relationships that drive ROI’

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    John Langley from Georgia Institute of Technology on ‘Outsourcing Logistics: Meet and exceed your customer’s real expectations, and examine the 3PL relationships that drive ROI’ John Langley from Georgia Institute of Technology on ‘Outsourcing Logistics: Meet and exceed your customer’s real expectations, and examine the 3PL relationships that drive ROI’ Presentation Transcript

    • “Outsourcing Logistics: Meet and Exceed YourCustomers’ Real Expectations, and Create the 3PLRelationships that Drive Costs Down and Drive ROI” 3PL Summit Chief Supply Chain Officer Forum Atlanta, Georgia June 21-23, 2010
    • Effects of Economic Crisis on Supply Chain and3PL Relationships Current Economic Crisis is Viewed as “Inflection Point” to Re-Think Supply Chain/3PL The Need for 3PL Services in Relationships Times of Economic Volatility 80% 59% Do Not Know, 7% 60% Increase, 40% 22% 19% 30% No 20% Impact, 42% 0% Decrease, 21% Yes No Not Sure Source: 2009 14th Annual 3PL Study. 2
    • 3PL/Customer Panel ParticipantsScott McWilliams – CEO, OHLGreg Javor – Vice President, GlobalLogistics, StarbucksTom Sanderson – President & CEO,TransplaceChris Cavin – Director of Purchasing,Shared Services, Rock-Tenn CorporationJohn Langley – Professor of Supply ChainManagement, Georgia Tech (Moderator) 3
    • Starbucks® Coffee Company and  OHL
    • From One Little Bean Store Stores • 16,700 retail stores • Our products: • 120,000 partners - Coffee and Tea • 51 countries - Handcrafted Beverages • 50M customers per week - Consumer ProductsStarbucks Confidential Page 5
    • The Starbucks Supply Chain • Plants > $4.0B Enterprise Spend - Coffee Roasting: 5 - Tea: 1 > $0.8B Operating Expense - Co-Manufacturing: 24 > 4.4M Deliveries per year • Distribution - RDCs: 13 > 1.1M Picks per day - CDCs: 42 - Green Coffee Warehouses: 6Starbucks Confidential Page 6
    • OHL OverviewGlobal integrated third‐party logistics companyHeadquartered in Nashville, TNEmploys 5,500$979MM 2009 revenue3 business units:Contract Logistics North America  Global Freight  Transportation Management and  Logistics • $392MM • $250MM • $337MM 7
    • OHL Vertical Market Focus Retail 4% 9% 11% CPG Automotive 27%25% Electronics & High Tech Apparel 4% Chemical 3% 3% 14% Food & Beverage Healthcare Publishing
    • OHL History Execution Integration Acquisition WCAS purchase  2005 FoundationFounded  1951 2006‐2008 2010 and beyond 9
    • OHL Value Proposition • Improved Inventory Planning • OHL Supply Chain  Visibility • Less Expediting of Orders/Inventory Visibility • Fewer stick‐outs/excess inventory • Best‐fit network solution • OHL Consolidation, Ocean/Air,  Time to  Customs Brokerage and  • Efficient mode shift optimal network placement Market • Fewer customs delays • Proper inventory positioning • OHL Contract Logistics Network  • Customer/market proximity and North America Flexibility • Variable warehouse space and cost Transportation Solutions • Fixed asset optimization • Database driven KPI measurement • OHL Integrated SolutionCentralized  • Continuous operational improvement CRM • Optimized visibility • Optimized core competencies 10
    • How to Get the Most out of a Partnership• Partner; not vendor• Communication• Cultural fit• Focus on core competency• One source solution (visibility)• Trust expertise 11
    • Strategy Session – Outsourcing Logistics:Meet and Exceed Your Customer’s Real Expectations, andExamine the 3PL Relationships that Drive ROI June 22, 2010 © 2010 – All contents CONFIDENTIAL
    • Technology & Service OfferingsTransplace takes a consultative and analysis-driven approach to solution design and deployment. Ourbusiness model adapts to the operational needs of our customers – from high-tech and high-touch, tomore basic operational services. Logistics Consulting Services Lead Logistics Provider (LLP) Comprehensive • Benchmarking • Full Transportation Outsourcing • Transportation Procurement • Transportation Provider Contracting • Network Analysis & Design • Shipment Control Centers • Professional Services Consulting • Inbound Freight Management • Joint Lean Six Sigma Projects • Freight Bill Audit & Payment Management Solution Capacity Provider TMS Technology • Single Source • On-Demand TMS • Core, Committed and Primary • Optimization • Brokerage • Highly Configurable • Spot Market • BI, Reporting and Analytics • Dedicated Fleet • Rapid Implementation & Integration Basic Basic Technology Solution Comprehensive © 2010 – All contents CONFIDENTIAL 13
    • RockTenn Overview • RockTenn is a leading North American producer of paperboard, containerboard, consumer and corrugated packaging Headquarters in Norcross, GA Operating over 100 facilities in the US, Canada, Mexico, Chile and Argentina Annual net sales of approximately $2.9 billion • RockTenn Business Segments Consumer Packaging Corrugated Packaging Merchandising Displays Specialty Paperboard Products • Transplace Services to RockTenn: • Load Control Center Operations/Staffing • TMS Technology • Customized Business Intelligence Reporting • Engineering Support for Strategic Bid/Network Events • LTL Contract Management 14
    • RockTenn Production Facilities RockTenn Operates over 100 Production Facilities 160,000 + annual freight shipments across all modes 7,000 + unique freight lanes over last 18 months 15
    • 3PL Relationship Success• Alignment with Customer Goals• Quarterly Business Reviews• Constructive Discussions/Problem Solving• Filling the Gaps• Supply Chain Expertise• Efficient Processes – Lean Six Sigma• Innovative Technology• Thought Leadership © 2010 – All contents CONFIDENTIAL 16
    • Why Transplace?• Best in Class Technology Transplace is the only 3PL to make the 2010 Gartner TMS Magic Quadrant• Flexible, Transparent, End to End Transportation Management• Ongoing Transplace Executive involvement ensures year over year synchronization with Executive Management at customer Quarterly Business Reviews On-Demand Customer Benchmarking Collaborative Transportation Management• Annual “Voice of the Customer” survey• Transplace Customer Advisory Board “Transplace aligns our Account Management Team’s Goals with our Customers’ Goals” Sheldon Ellis, Intertape• Transplace Executive Management is committed to the principles of Lean Six Sigma 54 Green Belts and 12 Black Belts within Transplace » Proper ratio 10% and 1% employee base © 2010 – All contents CONFIDENTIAL 17
    • www.transplace.com Corporate Headquarters 972-731-4500 © 2010 – All contents CONFIDENTIAL
    • “Outsourcing Logistics: Meet and Exceed YourCustomers’ Real Expectations, and Create the 3PLRelationships that Drive Costs Down and Drive ROI” 3PL Summit Chief Supply Chain Officer Forum Atlanta, Georgia June 21-23, 2010