If you thought your supply chain was resilient before 2020, you may have been proven very wrong. If your supply chain is still feeling the effects of the pandemic, you may feel that the insights and lessons are yet to be distinguished among the mess--that's what we're here for. Join Scott Wooley, President of Thermal Solutions at Atlantic Tape and Packaging, and redefine what a resilient supply chain is.

1. What
Resilience
Means in
2021
Brought to you by:
Supply Chain Brief
June 3rd, 2021
11:00 am PDT
2:00 pm EDT
6:00 pm GMT
With
Scott Wooley
President of Thermal Packing
Solutions at Atlantic Tape
and Packaging
&
Emily Murphy
Supply Chain Brief
Sr. Web Content Specialist
An Episode from our "Jumpstart
Success in Your Supply Chain"
Webinar Series

2. W e seek t o b u il d c o n n ec t io n s b et w een al l t h e
d iverse m em b ers o f o u r n et w o rk , an d t o b rin g t h e
b en efit s o f c o n n ec t io n t o al l .W e ap p l y t h e h ig h est
et h ic al st an d ard s t o en su re t h at su p p l iers are safer
an d m o re ac c o u n t ab l e. W e d o w h at w e say.W e d raw
u p o n an u n m at c h ed d ep t h o f p rac t ic al k n o w l ed g e
t o so l ve in d u st ry c h al l en g es. W e rep l ac e n eed l ess
c o m p l exit y w it h sim p l e effic ien c y.
02

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Supply Chain Brief
"Jumpstart Success
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4. 04
Scott Wooley
President of Thermal Packing Solutions
at Atlantic T
ape and Packaging
What Resilience Means in 2021

5. Atlantic Tape & Packaging
• Started in 1975 – Atlanta, GA
• Product offerings include sealing tapes, poly
bags, protective packaging, corrugated boxes,
stretch/food/shrink films, thermal packaging,
strapping and machinery automation/service.
• Offer local warehousing and sales coverage with
100+ people across 10 major regions in the US
• Kitting and fulfillment capabilities across the US
• Materials Agnostic with a Consultative Outcome
Driven Approach
• www.atlantictape.com

6. Agenda
• Landscape Today
• Strategies and Getting Tactical
• Champion – Challenger strategy
• TCO (Total Cost of Ownership)
• Blended Supplier Pricing Model
• Recap
• Questions

7. Rebooting
Economy
Inflation
Extreme Weather
Covid-19
A Perfect Storm
• Covid-19 is affecting market dynamics, driving
behaviors, exaggerating existing trends, and
changing buying behaviors
• Rebounding economy is driving demand ahead
of industry ability to ramp up
• Inflationary pressures on raw material prices
• Lingering supply-chain disruptions from port
delays, extreme weather, tight labor market,
and transportation constraints

8. Evaluate Strategies
• Blocking
- Where strong buying power exists, block or reduce incremental price increases
• Transfer
- Share risk w/ suppliers by locking in reduced pricing in exchange for long-term and/or
offer categorical exclusivity
• Deflecting
- Reengineer specifications, or pass increases to customers where market influence is
deficient
• Operate
- Build up inventory and/or explore making previously purchased product in-house

9. Getting Tactical
• Prioritize spend based on exposure
• Identify most challenged categories
• Evaluate regional demand against supply chain nodes/touch-points to assess risk
• Give more volume to challenger to put lowered spend pressure on champion
• Evaluate multiple options for different products that are outcome based not product
specific – ie, pallets, thermal insulation
• View the spend categories as a portfolio – you may be able to leverage overall spend
with a vendor to mitigate increases

10. Getting Tactical
• Defensive approach; Identify strategic levers to mitigate risk from price volatility
• Research market indices, claw back price decreases that were not passed along over
the past 12-18 month
• Accelerate value engineering to use less expensive, more readily available materials
• Explore bringing component manufacturing/converting in-house or potential joint-
venture opportunities
• Adjust order frequency and project timelines to maximize economies of scale
• Consider consolidating small spends together to aggregate volume w/ suppliers and
strengthen demand power
• Ensure that supplier contracts include favorable market indexation mechanisms
• Pass increases to customers

11. Getting Tactical
• Cross-functional alignment to implement levers
• Nerve center team: Supply chain, sales, planning, finance, operation, engineering
• Triage supply-availability problems for raw materials/components
• Act as nerve center to rapidly make decisions, and lead strategic implementation of
lever plans

12. Champion – Challenger Approach
• Make one of your vendors either based on price, quality or service the “champion”
vendor and give them 50-80% of your category spend
• Make one or more vendors the “challenger(s)” and give them 10-30% of your category
spend
• Ideally, find inflection points in their pricing model where giving them more/less volume
only marginally effects their price to you
• On a Quarterly basis, grade them on performance across service, flexibility, OTIF, quality,
etc. and bi-annually or annually consider a rebalance of the category spend

13. Total Cost of Ownership
• Make sure you are evaluating 1) price per unit + 2) lead time + 3) freight charges + 4)
time to market when evaluating a buy decision
• Balance a low price per unit with the MOQ needed - obsolete inventory increases actual
price per unit
• Lead time affects inventory needed to fulfill demand and carrying costs of the inventory
– cash drag that needs to be added into price per unit
• Freight charges (while not a part of COGS) add directly to the price per unit of a product
so seek to buy as close to the delivery point as possible to drive a lower “landed” cost
• Time to market means the transit time of the item leaving the dock and arriving to your
facility – longer transit times usually create complexity and increased cost on the price
per unit

14. Blended Supplier Pricing Model
• To increase resiliency, implement a blended supplier price model
• Take the average of 3-5 market prices and establish as your budgeted buy price. Every
transaction below the average price establishes a surplus to support situational
transactions above the average price. The more transactions at or below the average
price the better your target budget attainment
• Blended pricing also can account for different products in a category – wood, HT wood,
plastic, pressed wood pallets
• View your vendor panel as a portfolio that delivers an outcome – not specify a product

15. Recap – What We Learned Today
• Challenging Landscape!
• Choose Which Strategies to Implement to Increase Resiliency
• Get Tactical! Claw back where you can, value engineer to alternative
materials where you can, pass on where you can’t
• Specific strategies like Champion-Challenger, TCO and Blended
Supplier Pricing Model help build resiliency and margin in your supply
chain

16. Q&A
LinkedIn: /in/scottwooley/
Website: atlantictape.com
Scott Wooley
President of Thermal Packing Solutions
at Atlantic Tape and Packaging
LinkedIn: /in/emily-millard-murphy/
Twitter ID: @scbrief
Website: supplychainbrief.com
Emily Murphy
Sr. Web Content Specialist,
Supply Chain Brief
To view the recording page, visit
https://www.supplychainbrief.com/frs/16053391/what-resilience-means-in-2021/