Copyright © 2012. CombineNet, Inc.
Speakers and Agenda                                     Greg Holt                                     Director of Product ...
CombineNet Company Overview           The Company                   The Technology                Customer Value Establish...
We Do this for Companies Just Like Yours              A Wide Variety of Customers across All IndustriesCopyright © 2012. C...
Best of Breed E-Sourcing Solutions                                                              Bid              Award    ...
Increasing Spend Under Management     Large European Conglomerate                        $ Billion in Spend Managed       ...
Advanced Sourcing Events within  CombineNet ASAP            Very broad application across the enterprise            Transp...
CombineNet ASAP for Transportation Sourcing                Best in Class e-Sourcing for Transportation            400+ Tra...
Best-in-Class Transportation          Sourcing                        Copyright © 2012. CombineNet, Inc.
Transportation Sourcing Best Practices            Leverage as much of your network as possible              – Show carrier...
Challenges of Transportation Sourcing            Consolidated spend is a large, complex challenge              –    Potent...
Advanced Sourcing in Transportation                                     Carrier Measurement                               ...
CombineNet Customers’ Strategies              Consolidating Freight Spend for                  Negotiation Leverage       ...
Transportation Sourcing:TMS vs. Advanced Sourcing                      Copyright © 2012. CombineNet, Inc.
TMS Benefits: Operations Execution      TMS solutions provide a number of operational benefits            Cost savings thr...
Sourcing with TMS: The Limitations         Strategic sourcing capability is often an extension of            shipment tend...
Advanced Sourcing Complements TMS            Enables carrier collaboration with Expressive Bidding              – On lanes...
Customer Success Story Examples                         Copyright © 2012. CombineNet, Inc.
Case Study: AstraZeneca    Global biopharmaceutical company.                                        Key Stats             ...
Case Study: Bayer       Bayer MaterialScience AG global ocean                   Benefits delivered:          tender perfor...
Case Study: SABMiller plc   One of world’s leading brewers with     200 beer brands and 70,000                      Spend ...
Next Steps            Download the CombineNet ASAP Transportation Solution Kit                  www.combinenet.com/Transpo...
Next Steps            Download the CombineNet ASAP Transportation Solution Kit                  www.combinenet.com/Transpo...
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CombineNet Webcast 2012: Delivering Better Transportation Procurement to Your TMS Environment

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If you are using your TMS to make Transportation Procurement decisions – you don’t want to miss this presentation!

Transportation procurement is a complex sourcing activity, requiring careful evaluation of thousands of options presented by potentially hundreds of carriers across your shipping lanes, while considering the internal requirements and preferences of your stakeholders, to generate the right balance of cost and service across your supply chain.

Transportation Management Systems help keep freight moving efficiently and effectively, from tendering loads with approved carriers to scheduling pick-ups and deliveries, and managing the payment of carrier invoices. A good TMS is a logistics team’s operational right hand. But a TMS can only function to the highest degree if the plan it’s working from provides the best carrier options for all of your shipments.

In this presentation, we’ll review the fundamental differences between a TMS application and an Advanced E-Sourcing Solution. The presenters will discuss and demonstrate how advanced e-sourcing solutions can create the ideal roadmap for more effective transportation management within a TMS, including:

** Increasing Carrier Competition and Price Compression -- through next-generation e-sourcing capabilities, including Expressive Feedback

** Securing Capacity -- Ensure appropriate capacity for shipments by leveraging carrier assets and network flow, even with wide seasonal variations in traffic volume

** Reducing Risk – Utilize risk and service level indicators such as DOT safety scores, on-time ratings, and transit times to reduce supply chain disruptions

** Gaining Total Cost Insights -- Considering carrier capabilities, strengths, and even assessorials and fuel surcharges to identify each carriers’ total cost and value to your business

** Optimizing Carrier Selection -- Utilizing optimization-based bid analysis and advanced negotiations to identify the right carriers for each lane for optimal execution

** Using Expressive Bidding -- to encourage creative carrier proposals that drive efficiency, innovation and of course, deeper cost reductions

** Leveraging a Single Solution -- to conduct sourcing events for all modes of transportation, from Truckload/Intermodal, to Ocean and Air freight


Real-world case studies will highlight these and other issues to consider when evaluating the difference between using an advanced e-sourcing solution for transportation procurement vs. the sourcing module within an existing TMS solution or other e-sourcing products.


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CombineNet Webcast 2012: Delivering Better Transportation Procurement to Your TMS Environment

  1. 1. Copyright © 2012. CombineNet, Inc.
  2. 2. Speakers and Agenda Greg Holt Director of Product Marketing Topic Introduction and Case Studies Rob Achtzehn Director of Account Development A Look at Transportation Sourcing Best Practices and How Advanced Sourcing Solutions Can Complement your TMSCopyright © 2012. CombineNet, Inc.
  3. 3. CombineNet Company Overview The Company The Technology Customer Value Established in 2000. Best of Breed Solutions that Capture >2X spend under E- improve Strategic Sourcing Sourcing management Global: Offices in Pittsburgh, PA; London, UK; Software-as-a-Service (SaaS) Address complex spends Hamburg, Germany. delivery model for ease of with advanced functionality Partners for Latin America, adoption and scale Middle East, APAC Fast implementation and Easy integration into your broad adoption for any type Customers: Global 2000 environment to complement of user spanning CPG, Food & Bev, existing applications Retail, Manufacturing, Nearly 100% see full payback Transportation, and more after 1st sourcing eventCopyright © 2012. CombineNet, Inc.
  4. 4. We Do this for Companies Just Like Yours A Wide Variety of Customers across All IndustriesCopyright © 2012. CombineNet, Inc.
  5. 5. Best of Breed E-Sourcing Solutions Bid Award CombineNet Create CombineNet Expressive Bidding® Scenario Spend RFxpress for Contract Expressive Feedback Analysis Analysis E-RFX or Management Event Management & Bid E-Auction Optimization CombineNet ASAP Supporting End-to-End E-Sourcing for All Spend Categories with Advanced Technology SolutionsCopyright © 2012. CombineNet, Inc.
  6. 6. Increasing Spend Under Management Large European Conglomerate $ Billion in Spend Managed Annually 8 >1,000 e-sourcing events conducted 7 annually 6 E-Sourcing Suite user since 2007 5 Adopted CombineNet in Jan. 2011 4 More than 2X Increase in Corporate 3 Spend Managed between years 1 and 2 2 1 0 $7.5 Billion E-Sourced 2010 2011 2012 in 2012 (projected) E-Sourcing Suite CombineNetCopyright © 2012. CombineNet, Inc.
  7. 7. Advanced Sourcing Events within CombineNet ASAP Very broad application across the enterprise Transportation is still one of the largest focus areas of E-Sourcing events in CombineNet ASAP Customer Events by Category: January 2011 - June 2012 Services 12% Packaging 12% Transportation 42% Indirect Materials 13% Direct Materials 21%Copyright © 2012. CombineNet, Inc.
  8. 8. CombineNet ASAP for Transportation Sourcing Best in Class e-Sourcing for Transportation 400+ Transportation Sourcing Events per Year More than $30 Billion in Annual Transportation Spend All Modes: Truckload/IM, LTL, Ocean, Airfreight, Parcel, Multi-mode Shippers, 3PLs, Freight Forwarders and Logistics Consultants of all sizes, across all industries, use CombineNet ASAPCopyright © 2012. CombineNet, Inc.
  9. 9. Best-in-Class Transportation Sourcing Copyright © 2012. CombineNet, Inc.
  10. 10. Transportation Sourcing Best Practices Leverage as much of your network as possible – Show carriers all the opportunities that exist within your business – Enable carriers to match their network/assets to yours – Enable carriers to pick and choose which pieces of the business they want, and express how they can best support that business Focus on balancing rates with the capacity, service levels, & carrier mix that suits your business Find the right mix of carriers based on business strategies & needs Evaluate the impact of regional or lane-level decisions on your network as a whole As much as possible, reduce sourcing cycle time and implement results quickly – Time is money!Copyright © 2012. CombineNet, Inc.
  11. 11. Challenges of Transportation Sourcing Consolidated spend is a large, complex challenge – Potentially 1,000’s of individual lanes; 100’s of carriers Regionalized decisions vs. center-led team/strategy – Business unit/regional rules & preferences – Site rules – Customer delivery requirements – Incumbency preferences Balancing cost/coverage/service levels/strategic carrier decisions – Rates – Capacity – Transit time What’s the right number and mix of carriers – At the Network & Lane level – Price compression between primary and secondary carriers on high volume lanes Internal resources constrained – focused on daily execution Not supported by standard technology toolsCopyright © 2012. CombineNet, Inc.
  12. 12. Advanced Sourcing in Transportation Carrier Measurement • Flexible RFI • Assessing Carrier Capabilities, Equipment, Drivers, Carbon Footprint, Insurance, DOT Ratings Expressive Bidding • Expressive, Creative & Alternative Bids • Equipment type, transit time, mode, capacity, service, volume offers/discounts • Total Cost of Ownership Models • Rates, assessorials, fuel… Scenario Analysis & Optimization • “What If?” Scenario Models • Regional preferences, network-wide contracts, corporate business goals • Robust Reporting on Impact of Decisions CombineNet ASAPCopyright © 2012. CombineNet, Inc.
  13. 13. CombineNet Customers’ Strategies Consolidating Freight Spend for Negotiation Leverage Mode Switching Explore options for moving from LTL to • Network-wide bids vs. regional bids Truck to Intermodal to Rail; Review mode- • Outbound + Inbound shipments mix for Ocean and Air • Common carriers, dedicated, LSPs, NVOs • Dry, Refrigerated, Bulk, Container, Intermodal Carrier Collaboration: Understanding Business Strategies & Needs Review Carrier/Network Options Look for mutual value/win-win opportunities For efficiencies, service & equipment that match your shipments with their assets alternatives and existing business • Continuous loops/ backhauls/ multi-stop • Carrier business/expansion plans • Utilize imbalance between Scalability inbound/outbound & import/export in Responsiveness to changes in volume certain regionsCopyright © 2012. CombineNet, Inc.
  14. 14. Transportation Sourcing:TMS vs. Advanced Sourcing Copyright © 2012. CombineNet, Inc.
  15. 15. TMS Benefits: Operations Execution TMS solutions provide a number of operational benefits Cost savings through automated carrier selection, route planning and load consolidation. Process efficiency gains with the automation of global freight movement and the ability to better adapt to changes. Improved asset utilization. Service performance management in real-time. Access to historical carrier performance and cost information.Copyright © 2012. CombineNet, Inc.
  16. 16. Sourcing with TMS: The Limitations Strategic sourcing capability is often an extension of shipment tenders or spot buying functionality Good enough for collecting rate information, but what about engaging carriers in real negotiations? Carrier capacity is often an afterthought in the sourcing process – evaluated after bids are collected and analyzed Service and Equipment mirrors what is available in the execution system, but how can your carriers add value? Simultaneous analysis of all key decision criteria (Capacity, Service, Sustainability, Mode Conversion, Safety/Risk, etc.) is non-existent, so how do you get the “Big Picture”?Copyright © 2012. CombineNet, Inc.
  17. 17. Advanced Sourcing Complements TMS Enables carrier collaboration with Expressive Bidding – On lanes, alternate service/mode/equipment/O&D pairs – Capacity on a lane, region, and network level – Volume discounts and carrier-defined packages Price compression tools to reduce rate variability on lanes between primary and secondary carriers Powerful, Flexible and Efficient Bid Analysis and Optimization – All key decision criteria and savings levers considered at one time Extensive & efficient negotiation support Reporting capabilities that quickly provide clear insight into Cost Tradeoffs, Stakeholder Alignment, Negotiation priorities & Routing Guide Development Easy data migration to/from TMS Process Control: Launch same RFX structure on like events Flexibility: Easily configurable to incorporate outside dataCopyright © 2012. CombineNet, Inc.
  18. 18. Customer Success Story Examples Copyright © 2012. CombineNet, Inc.
  19. 19. Case Study: AstraZeneca Global biopharmaceutical company. Key Stats 1,000 + global lanes. 12% + savings. Customer since: 2011 95% of volume on 250 70% reduction Initial project: Global Air-Ocean lanes. in sourcing Freight cycle time. Special handling Strategic initiative to transition requirements, 10% mode more product from air to ocean including temp-control. switch from air to ocean. “The additional insight we were able to capture and use in negotiations thanks to CombineNet ASAP would not have been possible before with other solutions, especially in the accelerated timeframe and global scale of this spend category.” James Shaw, Global Lead, Freight & Logistics, AstraZenecaCopyright © 2012. CombineNet, Inc.
  20. 20. Case Study: Bayer Bayer MaterialScience AG global ocean Benefits delivered: tender performance improvement.  23% in savings over prior bid rounds. Customer since: 2009  50% time reduction to manage data Initial project: Transportation - Global and process: Tender executed in 2 Ocean Tender sourcing months vs 4.5. Growth: Continue to extend/expand  Awarding based on multiple criteria. CombineNet for ocean sourcing.  Supports global strategy while considering regional requirements.  One interface to the carriers. Key Sourcing Stats “CombineNet lets sourcing teams Nearly 80,000 45 carriers involved. concentrate on the analysis of differentiated containers in 2010. 15,000 bids to scenarios instead of mainly managing the 4 regions, 3 subgroups, manage. data and process.” and 3 silent partners. – Lars Blüthner, Lead Ocean Buyer, Bayer MaterialScience AGCopyright © 2012. CombineNet, Inc.
  21. 21. Case Study: SABMiller plc One of world’s leading brewers with 200 beer brands and 70,000 Spend Under Management employees in 75 countries. Road Freight Ocean Freight Customer since 2011 (mostly FTL) Initial Projects: Aggregate ground transportation (2,500 lanes); and “With more data under one tender event, improve Ocean freight (up to there was the need to support the process 30,000 TEU of standard containers) with a strong e-sourcing solution. We chose CombineNet based on its intuitive handling Results: of large data sets, the flexibility in defining – Road Freight: 8% savings and tender variables, and the strong analytical achieved one consolidated engine to assess and visualize different sourcing process implementation scenarios." – Ocean Freight: 10% savings and – Flavio Gall, Global Category Director – major efficiency gains Freight and Fleet, Trinity Procurement/ SABMillerCopyright © 2012. CombineNet, Inc.
  22. 22. Next Steps Download the CombineNet ASAP Transportation Solution Kit www.combinenet.com/TransportationKit Read the latest Transportation Sourcing Case Study: “SABMiller Brews Up Impressive Transportation Sourcing Improvements with CombineNet” http://www.combinenet.com/resource-center/index.phpCopyright © 2012. CombineNet, Inc.
  23. 23. Next Steps Download the CombineNet ASAP Transportation Solution Kit www.combinenet.com/TransportationKit Read the latest Transportation Sourcing Case Study: “SABMiller Brews Up Impressive Transportation Sourcing Improvements with CombineNet” http://www.combinenet.com/resource-center/index.php Questions & Discussion Contact Us www.combinenet.com info@combinenet.com 1-877-293-5480Copyright © 2012. CombineNet, Inc.

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