Supply Chain Expectations

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Supply Chain Expectations

  1. 1. Business Excellence Operating Strategy Execution Business Excellence © Copyright 2009 William DriscollConfidential and Proprietary
  2. 2. Operating Execution Supply Chain Operating Production Execution Finance Sales © Copyright 2009 William DriscollConfidential and Proprietary
  3. 3. The Supply Chain Corp Purchase Order Transportation Supplier Customer DC Manufacturing The Customer Retail The Connecting Link Warehouse © Copyright 2009 William DriscollConfidential and Proprietary
  4. 4. 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. © Copyright 2009 William DriscollConfidential and Proprietary
  5. 5. Logistics Cost Customer Carrier Responsiveness Requirements Carrier Order Process Contracts Cost to Serve - Customer Fuel Cost Warehouse Cost Reduction C Opportunity Data Shipping Accessorial Production Charges Schedule Department © Copyright 2009 William DriscollConfidential and Proprietary
  6. 6. Logistics Cost  Warehousing  Vendors/ Suppliers  Transportation  Customer Expectations © Copyright 2009 William DriscollConfidential and Proprietary
  7. 7. Logistics Cost Warehousing © Copyright 2009 William DriscollConfidential and Proprietary
  8. 8. Logistics Cost  Facility Options – Ownership – Direct Provider – 3PL  Services – IT – Inventory Management © Copyright 2009 William DriscollConfidential and Proprietary
  9. 9. Logistics Cost  Marketplace capacity  RFP consideration  Industry Size  Major Providers © Copyright 2009 William DriscollConfidential and Proprietary
  10. 10. Logistics Cost  Cost opportunity areas – IN/ Out charges – Kiting rates – Pick/ pack rates – Odd size packages – Inventory management – Technology enhancements – Outsourcing – Process © Copyright 2009 William DriscollConfidential and Proprietary
  11. 11. Logistics Cost Vendors/ Suppliers © Copyright 2009 William DriscollConfidential and Proprietary
  12. 12. Logistics Cost Manufacturing  Commodity increases  Lost raw material vendors  Risk management  Purchasing contract language © Copyright 2009 William DriscollConfidential and Proprietary
  13. 13. Logistics Cost Distributors  Commodity based product  Volume quantities  Fewer vendors produce product  Transportation © Copyright 2009 William DriscollConfidential and Proprietary
  14. 14. Logistics Cost Transportation © Copyright 2009 William DriscollConfidential and Proprietary
  15. 15. Logistics Cost  Marketplace capacity  Mode selection/ change  Rate direction – Carrier partnership – Negotiation  Fuel © Copyright 2009 William DriscollConfidential and Proprietary
  16. 16. Logistics Cost  Carrier geography definition  Mergers and Acquisitions  HOS regulation  Driver shortage  Closed loop spend management © Copyright 2009 William DriscollConfidential and Proprietary
  17. 17. Logistics Cost  Recent safety legislation – CSA 2010  Recent international legislation – 10+2  Reach (Euro) © Copyright 2009 William DriscollConfidential and Proprietary
  18. 18. Logistics Cost Customer Expectations continue to grow © Copyright 2009 William DriscollConfidential and Proprietary
  19. 19. Logistics Cost Delivery Performance Logistics Cost Service Reliability Cost © Copyright 2009 William DriscollConfidential and Proprietary
  20. 20. Logistics Cost Questions © Copyright 2009 William DriscollConfidential and Proprietary

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