Koch Logistics Retail And Logistics Overview May 6 2008

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  • 1. Retail and Logistics Overview Presented by: Jennifer Johnson and Darren Nelson May 6, 2008
  • 2. Agenda and Purpose of Visit
    • Introductions
    • About Koch Logistics
    • Retail Capabilities and Experience
    • Current Strategies and Future Growth Iniatives
    • Focus Areas and Challenges
    SMARTER Supply Chain Connections
  • 3. 30 Years of Smarter Shipping
    • Koch Logistics is a division of Koch Companies, a leading, privately held international transportation and distribution firm. Koch Companies began as a manufacturer’s rep of chain, rope and hardware in the mid 1950’s. Two decades later the company had expanded into transportation. From the beginning, the Koch family embraced a philosophy of customer service that continues to distinguish Koch Companies today. This steadfast commitment to service has allowed Koch Companies to become a strategic resource for its customers in all aspects of international and North American transportation including logistics, trucking, air freight, maritime, warehousing and leasing.
    SMARTER Supply Chain Connections
  • 4. About Koch Companies
    • Asset and Non-Asset Service Offerings:
    • National Truckload Division; operating over 300 trucks in critical retail DC to store dedicated networks
    • National Truck and Trailer Leasing Division; assisting retailers with home delivery equipment and short-term onsite/offsite storage needs
    • Worldwide 3PL network of managed, project and transactional logistics services
    SMARTER Supply Chain Connections
  • 5. Koch Logistics Capabilities
    • TRANSPORTATION SERVICES
    • Truckload
    • Less than Truckload (LTL)
    • Warehousing
    • Expedited and Air Freight
    • International Import and Export
    • NVO/Customs broker
    • SUPPLY CHAIN MANAGEMENT
    • Retail & store opening/remodel logistics
    • Reverse logistics & returns
    • International consulting
    • On/Off-site distribution management
    • Distribution planning & optimization
    • Proactive customer & claims support
    SMARTER Supply Chain Connections
  • 6. Approach to Retail
    • Our People Make the Difference
      • Dedicated leadership and team to manage retail programs
    • Programs are Interactive and Flexible
      • Collaboration with our clients early on and at multiple levels
    • Extended Product Offerings
      • Strategic and exclusive relationship with Store Opening Solutions
        • Installation Services
        • Merchandising Services
        • Consolidation Services
        • Construction Services
        • Inventory and Construction Management Software
    SMARTER Supply Chain Connections Retail Support is at the heart of our organization. Koch Logistics brings a rare spirit of determination, integrity and smart thinking to third party logistics. We solve your most important and complex logistics challenges with a dedicated account team that’s focused on serving you.
  • 7. Stay Connected
    • Web Enabled Load Tracking
    • Web Enabled Load Tendering
    • EDI Capable
    • Custom Reporting
    • Data Security/Disaster Recovery
    • Data Imaging
    • Warehouse Management
    • Freight Management
    • Custom Data Interfaces
    High quality, integrated business solutions employing the latest information technology. SMARTER Supply Chain Connections Technology is a powerful tool for achieving a more convenient, efficient and information rich supply chain. At Koch Logistics , we’re well equipped to keep you ahead of the curve.
  • 8. Retailers Face Many Challenges Related to Store Openings and Remodels
    • Significant last minute changes and coordination
    • Coordinating and managing a large number of vendors
    • Financial impacts of late deliveries or site delays
    • Managing multiple carriers
      • Bidding
      • Tracking
      • Issues
      • Payment
    • Resources to manage process, vendors, carriers, performance and communications effectively
    SMARTER Supply Chain Connections
  • 9. Some of Our Retail Partners SMARTER Supply Chain Connections
  • 10. Re-Branding for Leading Health and Beauty Retailer
    • Client Needed:
    • 1,200 Stores re-branded within 18 months
    • Managed more than 100 suppliers and over 12,000 shipments
    • Multi-modal solution utilizing Truckload, LTL and air services
    • Delivered Value:
    • 99.6% On-time delivery performance for entire project
    • Simplified process - single source for planning, execution and payment
    • Event manager and dedicated team reacted to changes quickly with pro-active communications
    • Seamlessly coordinated heavy equipment and labor for store deliveries
    • We became the primary transportation provider for all future new store and remodels projects
    SMARTER Supply Chain Connections Koch Logistics client since November, 2000
  • 11. Leading Retailer of Technology and Entertainment
    • Client Needed:
    • Visibility and execution of all Truckload shipments from vendor direct to store
    • Sequence trucks to coordinate with construction crews
    • Manage multiple vendors and more than 5,000 shipments annually
    • Support significant spikes in volume during peak months
    • Delivered Value:
    • 99.1% On-time delivery in 2007 as measured to the day and hour of delivery
    • Network visibility and reporting tools enable process improvements to be identified and realized
    • Flexibility and partnership to support addition specialty needs within one provider such as the “Big Joe” program
    • Consistent and dedicated team has managed the vendor direct to store network for more than 8 years.
    SMART Supply Chain Connections Koch Logistics client since April, 1996
  • 12. Growing Health and Fitness Provider
    • Client Needed:
    • Visibility and execution of inbound goods into gym openings
    • Vendor management and pro-active communication
    • Reduce Shrinkage
    • Minimize delivery window upon turnover to less than 3 hours
    • Delivered Value:
    • Eliminated shrinkage by consolidating and completing inventory audits prior to final site delivery
    • Improved organization and flow on day of delivery by having an associate on-site on day of delivery at each gym opening
    • Reduced delivery window on turnover day to <2 hours
    Koch Logistics client since January, 2007 SMARTER Supply Chain Connections
  • 13. Leading concessionaire of baggage cart, locker and other guest services
    • Client Needs:
    • Improved service, visibility and execution
    • Manage delivery site restrictions
    • Communication with install teams
    • Support site returns
    • Delivered Value:
    • Improved level of service
    • Project summary ensures timely follow up and service reporting
    • Pro-active visibility allows their resources to focus on other areas of the business
    Koch Logistics client since January, 2008 SMARTER Supply Chain Connections
  • 14. Strategic Growth Areas
    • Project Management
    • Expanding Presence Nationally
      • Nashville
      • Chicago
      • Dallas
      • Atlanta
    • Launch of Koch Maritime
    SMARTER Supply Chain Connections
  • 15. We Add Value Through….
    • Our Experience & Track Record
      • Over $30M in annual revenues attributed to this type of work
      • Multiple network models and modes supported
      • Over 99% On-time delivery performance measured to the date and hour
    • We Understand the Impacts of Missed or Delayed Shipments
      • Overtime costs for labor
      • Store opening delays and lost sales
    • Our Ability to Incorporate Additional Services
      • Installation, Merchandising, Inventory and Construction Management Software, Heavy Equipment & Manpower Coordination and Dedicated Operations
    SMARTER Supply Chain Connections
  • 16. About Northern Tool
    • Over 18,000 products sold and supported
    • Sales channels include:
      • Catalogue
      • Website
      • Store (Over 60 stores in 11 states)
    • European operation in Portsmouth, United Kingdom
    SMARTER Supply Chain Connections
  • 17. Make the Connection Minimize interruptions and maximize sales with Koch Logistics Smarter Supply Chain Connections