This document summarizes the evolution of logistics and supply chain management from niche markets to multibillion dollar businesses. It traces the development from factory-focused production to integrated global supply chains. It also outlines challenges in growing globally like coordinating resources, production and infrastructure worldwide. The summary concludes that CEVA Logistics has become a leading provider by offering end-to-end supply chain solutions through mergers and acquisitions.

1. From a Niche Market to a Multibillion Dollar Business: Logistics Lessons to Localization Stakeholders Wagner Covos CEVA Logistics

2. Logistics is the management of the flow of goods , information , and other resources between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics involves the integration of information , transportation , inventory , warehousing , material-handling , and packaging , and occasionally security . Definitions A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer . Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. Transport is the movement of goods from one location to another.

3. Agenda Introduction to CEVA Logistics Market Evolution Challenges for Growth Summary Food for Thought

4. Agenda Introduction to CEVA Logistics Market Evolution Challenges for Growth Summary Food for Thought

5. CEVA: Merger of TNT Logistics and EGL 6.3 billion Euro revenue 54,000 employees 1,171 locations in 100 countries

6. Agenda Introduction to CEVA Logistics Market Evolution Challenges for Growth Summary Food for Thought

7. Evolution Factory Point of Sales Before 1940

8. Evolution Factory Point of Sales 1940s Freight concept Eur 10Bn

9. Evolution 1950s Factory Point of Sales Warehouse Eur 30Bn Buffer Stock 1956 - Ocean container

10. Evolution 1960s Factory Point of Sales Warehouse Eur 80Bn Freight Management Distribution Center Inbound Distribution Center Inventory Management

11. Evolution 1970s Factory Warehouse Eur 120Bn Suppliers planning (inbound) Inbound Consol Center (feeding) Inventory Management (Inbound / Outbound) Suppliers Distribution Centers Point of Sales Inbound Warehouse

12. Evolution 1980s Factory Warehouse Eur 150Bn Inside Logistics Revolution Kanban / ‘Just in Time’ concept Lean Concept Supply Chain Production linked with logistics Material Management Suppliers Distribution Centers Suppliers Point of Sales

13. Evolution 1990s Factory Point of Sales Warehouse Eur 220Bn Suppliers Distribution Centers Suppliers Manufacturing Support Line Replenishment Inventory Planning Special Packing JIT in Distribution Centers Globalization Challenges Communication (IT)

14. Evolution 2000 - 2010 Factory Point of Sales Warehouse Eur 300Bn Suppliers Distribution Centers Suppliers Manufacturing Support Assembly Direct Buy Trading Services Web delivery Home

15. Summary

16. 4th Largest Global Supply Chain Company 0 50 100 150 200 250 300 350 Global Market Top 10 Companies € 300bn € 83bn 1 2 3 4 5 6 7 8 9 10 25,739 14,057 10,348 6,295 5,773 5,249 5,013 4,685 3,646 3,644 Company ’ 08 rev (Eur M) Global Logistics Market

17. This Matters! Logistics costs represent 7.8% of the world’s GDP

18. Summary 4.2Tr

19. Agenda Introduction to CEVA Logistics Market Evolution Challenges for growth Summary Food for thought

21. Challenges Global Resources Global Production Global Infrastructure

22. Result – Emergence of Multiple Global Supply Chains Asset-Light Integrated Solutions Combination of Freight Forwarding and Contract Logistics Assets ACR Value Added Services Outsourcing Rise of Contract Logistics for Efficient Supply Chain Management Asset Providers for Simple Transportation Needs Growth of Specialized Asset-Light Providers Asset-Based Evolution

23. What Drives Green – Some Early Drivers “ It seems to benefit your reputation” “ Everybody talks about it” “ Governments are forcing us to act” “ Flavor of the month”

24. Some New Supply Chain Skill Sets Information management Multi-culturalism Supply chain design Educate customers for outsourcing

25. Activities Full supply chain operation and dress up of engines: Parts Schedule and Purchase Milk Run Inventory management Assembly Sequencing GM line feeding Key Facts and Figures Management of 30 suppliers both national and international Year Production: 220K modules (2009) More than 70 employees Start Date Oct/2006 – Dress Up Apr/2009 – Direct Buy Innovation

26. Summary

27. Agenda Introduction to CEVA Logistics Market Evolution Challenges for Growth Summary Food for Thought

28. From this… Factory Point of Sales

29. … to Unparalleled Integrated End-to-End Supply Chain Solutions Supplier Pick-up Outbound Logistics Dedicated warehousing Consolidation Container stuffing Inbound Logistics Warehouse management e-Fulfillment Local Transportation Management Swaps and Return Value Added Services Lead Logistics Provider Total Supply chain management consulting Route optimization Billing payment and claims management Web-based tracking and reporting Order management User Control Tower Ocean Air Land Custom Brokerage Origin services Destination services Port services International Multi-modal Transportation Manufacturing Support Sub-assembly Inventory planning Line replenishment Special Packing Slide

30. Agenda Introduction to CEVA Logistics Market Evolution Challenges for Growth Summary Food for Thought

31. Food for Thought How can the translation and localization market add value to its customers? What are the boundaries to overcome? Who is thinking outside the box? How to turn threats into opportunities? Freight company => Logistics Service Provider Translation company => Language Service Provider

32. THANK YOU! Wagner Covos [email_address]