Reality of Network Realignment
& Rate Negotiations with Carriers

                       Brussels Nov, 25th 2009




     ...
2009 Results


               Business Model Description:

               •   Full Truck Loads

               •   $ 20 mi...
Savings & situation

Savings coming from :

?          Expertise

?          Economical situation                 Economic...
Business Control model
 Create a fully integrated transport chain which is:
     Optimally configured to specific customer...
Business Case




                5
Outsourcing ?
Theoretical / Sales approach:

As most 3PLs rarely can offer service that fulfil all your requirements, an o...
3PL/4PL capabilities evaluations
Procurement and tendering process
    - no strategic market approach (core carriers vs sp...
Conclusions

The competition is open …


Logistics Providers demonstrating best practices to support
  shippers expectatio...
9
Upcoming SlideShare
Loading in …5
×

Ludovic Menedeme, Baxter Healthcare on 'The Reality of Network Realignment & Rate Negotiations with Carriers'

752 views

Published on

Ludovic Menedeme, Sr. Transport Manager at Baxter Healthcare speaks at a session on 'The Reality of Network Realignment & Rate Negotiations with Carriers' at the 7th European 3PL Summit in Brussels, November 25th 2009.

To download all of the slides from the conference for free visit www.3PLsummit.com/eu_2009ppts

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
752
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ludovic Menedeme, Baxter Healthcare on 'The Reality of Network Realignment & Rate Negotiations with Carriers'

  1. 1. Reality of Network Realignment & Rate Negotiations with Carriers Brussels Nov, 25th 2009 1
  2. 2. 2009 Results Business Model Description: • Full Truck Loads • $ 20 millions spent • Temperature conditions • Road/Short-sea/Intermodal Results: 10% savings Overall performance 98% 2
  3. 3. Savings & situation Savings coming from : ? Expertise ? Economical situation Economical situation ? Extra-business !?! RISKS and RESPECTS !?! Carriers out of market Capacity reduction Carrier relationship & Rates reduction compromized ‘Survival’ mode 3
  4. 4. Business Control model Create a fully integrated transport chain which is: Optimally configured to specific customer’s service and cost needs Managed in a planned, controlled, predictable and visible manner Reduced Costs Improved Service Reduced Cost Reduced Cost Improved Improved service procurement Transport Transport Chain level Visibility Reduced Cost Reduced Cost Improved capacity Labour Management & Increased availability Admin responsiveness & Reduced Cost exceptions flexibility Could we find one Company able to provide that ?
  5. 5. Business Case 5
  6. 6. Outsourcing ? Theoretical / Sales approach: As most 3PLs rarely can offer service that fulfil all your requirements, an option is to use one party, a 4PL that can combine the best of each into one setup : Better buying power than yourself They may have access to a larger scale of subcontractors Can manage / control the operations more efficiently Can develop the logistic setup proactively in a more professional way The need for a strategic partner who can increase your own competitive advantage Reality: Currently running a 3PL/4PL tender out of 12 Cies no-one can deliver ALL the above basic expectations 6
  7. 7. 3PL/4PL capabilities evaluations Procurement and tendering process - no strategic market approach (core carriers vs spot ones) - weak contracts with carriers (legal administration on contract, SLA’s, …) Operational - proactivity and administration on transport document (temp records, CMR, …) Carrier management - power to drive corrective actions (alternative$, integrity) Financial - invoicing to Customers vs carrier invoices management, payment, credit Transport intelligence - flows / loading optimization - segmentation vs clusterization (dedicated team per shippers activities) - network integration and modelization Audits - not used to be audited neither to run audit plan on carriers 7
  8. 8. Conclusions The competition is open … Logistics Providers demonstrating best practices to support shippers expectations will gain business More than saying, being a strategic partner is mandatory Carriers are key in our businesses… cost effective solutions should come by managing the supplychain in an integrated way We all have a role to play to target our challenges 8
  9. 9. 9

×