You are viewing presentations from conferences that I have attended. Please enjoy & if we can help you with any logistics projects in the Americas please contact me at 678.364.3475 Bill was also on the Board of Directors for the St.Vincent DePaul Foodbank in Roseville California helping with the fund raising and meals to the poor program. While based in Northern California he was successful in fund raising programs for the Crusade of Mercy and helped Father Dan Madigan at the Sacramento Food Bank also. For 2008, Bill is a member of the Board for WORKTEC on also an Advisory Board Member for Boys and Girls Club for Metro Atlanta-Clayton County Chapter. See www.worktec.biz or www.bgcma.org . Bill is also on the Board of Directors for the Southeastern Warehouse Association & represents Georgia for 2010-2012. Regards, Bill Stankiewicz Vice President and General Manager Shippers Warehouse Email: williams@shipperswarehouse.com www.shipperswarehousega.com http://www.linkedin.com/in/billstankiewicz2006 http://twitter.com/BillStankiewicz http://www.topexecutivesnet.com/index.aspx

1. LLC Law
Hi Tech & Electronics Supply
Chain European Summit
September 2007

2. Creating innovative
customer centric 3PL & 4PL
service contracts &
collaborative frameworks
whilst raising profit: realising
the elusive "Win-Win"…

3. Focus:
• 3PL & 4 PL
• Innovation
• Customer satisfaction
• Increasing Profit
• Win-Win
• Creative frameworks

4. Our Work…
LLC
LLC
MHE
MHE Logistics
Logistics £ Private
£ Private
Equity
Equity
Comm Corp Comm Corp Corp Comm
• MHE • M&A Deals
• 3PL & 4PL
Procurement Supply Agmts Joint Ventures
Outsourcing Outsourcing Partnerships
Agency, distribution, TSA
franchise Share/Business Sales
WSA Investment Agmts
IT Agmts
T&WSA Share Option Agmts
T&W+VASA Checklists
IT Agmts

5. LLC’s Contribution…
• leveraging negotiating position
• Improve ROI
• Reduce risk
• Grooming for growth/investment/exit
• Understand, apply & deliver…

6. Frameworks…
• Contracts
• Adversarial
• Risk averse
• Point scoring
• Profit focussed
• “I-Win” c.f. “Win-Win”

7. Market Backdrop
• Services transactional
• Margins eroded
• Outsourcing growth
• Complexity…

8. Variance in demand
Order Risk aversion
batching processes
Time delays
Duplication Poor OTIF
of activity operating
Large
Product
stockpiles
commoditisation
Globalisation

9. …Market Backdrop
• Services transactional
• Margins eroded
• Outsourcing growth
• Complexity
• 25 % dissatisfaction…
• Leveraging opportunities

10. Transactional Logistics
• Transport • Inventory
• Warehousing management
• Container handling • LSP selection
• Stevedoring • Coordination (4PL)
• Shipping • Reverse logistics
• Freight forwarding • Parts management
• Customs clearance

11. Transactional SLAs & KPIs
• Time compression
• Service Costs
• Service quality
• Flow of product
• Lower unit cost
• Capacity utilisation
• OTIF

12. Adding Value…
• Project management • Product re-processing
• Info management Local sourcing
• IT solutions • Packaging reduction
• Product customisation • CO2/ case delivered
• Compliance (e.g. • RFID support
WEE) • Returns logistics
• + • +
• + • +

13. Adding Value…
• Effective processes…
• Consumer focussed… ?

14. Framework Roadmap…
Open Market
Cooperation Coordination Collaboration
Negotiations
≈ Price based ≈ Fewer suppliers ≈ Info links ≈ S/C integration
≈ Adversarial ≈ Longer term ≈ WIP links ≈ Joint Planning
contracts ≈ EDI Exchange ≈ Technology sharing

15. Collaborative Team’s Objective
• Optimise solutions
• Product features
• Service features
• Reduce misalignment
• Info flows
• Manpower

16. Collaborative Team’s Objectives
• Re-align asset utilisation
• Diagnose opportunities
• Integrated action plan
• Pro-active follow-through
• Engage in differentiation

17. Collaborative Value Add No 1
e.g. postponed customisation
@ UK warehouse by 3PL

18. Collaborative Value Add No 2
e.g. on-location spare parts
fitting by in-bound transport 3PL

19. Collaborative Value Add No 3
e.g. Transport LSP reduces Retail User
carbon footprint

20. Collaborative Environments…
Create a culture of collaboration
Create the opportunity for
managers to think collaboratively
Create a framework for
collaboration

22. Direction of Collaboration
Vertical
Collaboration
eg transport
management
• Vertical & External
collaboration
horizontal (suppliers)
collaboration
• Holistic - source to External
collaboration Internal
External
Horizontal
Collaborative
collaboration
end-consumer (other
organisations)
collaboration
(competitors)
eg transport
management
• Non-transactional +
transactional External
collaboration
(customers)
Source: Adapted from Barratt 2004

23. Plan for collaboration

24. Traditional Frameworks…?
• Not the main LSA
• Negotiated arm’s length, adversarial
• Formal – ITT, contract, renewal/termination
• Not geared to “possibilities”
• Transactional by nature
• Often relatively short term
• Risk averse
• Transactional SLAs & KPIs c.f. effectiveness
• Resource specific & constrained
• Traditionally static for term

25. CFAs – a framework for Collaboration
• Constitution
• Steering committee
• Objectives
• Contributions
• Cost recovery
• IP ownership
• Liability
• + Rules / Code of Practice
• + Ops Guidelines

26. Characteristics of CFA’s…
• Trust & relationship based
• Planned goals
• Prescribed participation
• Resourced by Sponsor(s)
• Shared management
• Limited risk & liability

27. Characteristics of CFA’s…
• “Own account” participation
• Shared responsibility
• Multi-party c.f. dual party
• Multi-channel communication
• Specific outcome
applications eg IP
• Joint guidelines eg IT

28. Characteristics of CFA’s…
• Strategic objectives -
possibilities
• Reasonable endeavours
• Know-how sharing
• Confidential
• Shared benefits & rewards
• Long term
• Dynamic & flexible

29. Characteristics of CFA’s…
• Competition compliant &
enhancing
• Non-solicitation codes
• Data protection
• Non-binding & Binding +
dispute ADR
• Expulsion eg code breach
• Exclusion of agency, joint
venture & partnership law
• Process & Consumer focussed
c.f. cost

30. Collaborative Value Add No 4
• ASN advance shipment • RF communications (wireless
notification LAN)
• Automated storage & retrieval • Electronic market places
systems (AS / RS) • Extranets
• Electronic data interchange (EDI) • Intranets
• XML / EDI • Satellite communications
• Bar coding technology
• RFID tags • Decision support systems (DSS,
• Voice input services data warehousing)
• Portal technologies • Warehouse management systems
• Internet applications • etc…
e.g. pooled IT applications
sourced from participants…

31. Conventional Contract vs CFA…
Conventional Contract -
LSA, TSA, WSA etc
CFA’s
…some outcomes extend LSA

32. Mission of S/C Collaboration
• Sponsor’s competitive
advantage
• Customer focussed
• Improved processes

33. Non-Collaboration
Indirect: Direct:
• EU WTD • De-selected from bidder
• WEE Directive list
• Congestion charges • Profit / margin erosion
• Loading restrictions • Loss of business
• H&S compliance • No investors, sale or exit
• Price of fuel
• Driver shortages
• Insurance premiums
• Poor asset utilisation
• Environmental

34. vs Collaboration…
Upside:
• Relationships reinforced
• best practice spread
• Contracts & business grows
• Profits increase
• Value grows – business,
investor & exit
• “Win-Win” not “I-Win”

35. Creating innovative
customer centric 3PL & 4PL
service contracts &
collaborative frameworks
whilst raising profit: realising
the elusive "Win-Win"…