This executive briefing will help purchasing and supply professionals better understand their transportation and 3rd party logistics needs and develop sourcing strategies to fulfill those needs. Part II of two parts.
The session will focus on three topics. First, the terminology and economic basics of transportation and 3rd party logistics will be discussed. Next, alternate transportation/3rd party logistics strategies will be discussed. This topic will include a discussion of the advantages and disadvantages of private and for-hire alternatives. The final topic will identify and discuss alternative sourcing strategies when using for-hire transportation and 3rd party logistics services.
The 4 S's: For-hire Logistics and Transportation ServicesThomas Tanel
The 3PL contract cycle can be managed just like any other outsourced services procurement, and has four distinct
segments that we will call the four S: Source, Solicit, Select, and Secure. Proper execution of each segment is essential to developing and maintaining successful 3PL relationships.
Three Steps for Reducing Total Cost of Ownership in Pumping SystemsSchneider Electric
Electricity usage costs have become an increasing fraction of the total cost of ownership (TCO) for industrial pumping systems. In fact, energy cost represents 40% of the TCO of a typical pump. It is possible to reduce the electrical consumption by at least 30% through appropriate energy management practices while reducing the maintenance cost. This paper explains how to reduce TCO with a limited investment.
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...Thomas Tanel
The 3PL contract cycle can be managed just like any other outsourced services
procurement, and has four distinct segments that we will call the four S: Source,
Solicit, Select, and Secure. Proper execution of each segment is essential to developing and maintaining successful 3PL relationships.
A shift in sourcing strategies by mary seigfried -inside supply management ma...Thomas Tanel
Low-cost-country sourcing became popular decades
ago, but many supply managers found it to be a shortterm
strategy, says Thomas L. Tanel, C.P.M., president
and CEO of CATTAN Services Group, Inc. in College
Station, Texas. Now supply management professionals
are turning to best sourcing, which Tanel says also is
referred to as best-country sourcing or value-country
sourcing.
The Artful Application of Collaborative Negotiations with ProvidersThomas Tanel
Fortune favors the prepared mind—”luck” in negotiations is actually the result of hard work and good planning. This presentation is for those who seek some collaborative negotiation skills that can be applied for success.
One of your major functions is to negotiate the best terms and price for the materials and services your organization needs to operate. This complex task requires knowledge, tact, superior communication skills, and a solid game
plan!
But few people understand that 90% of all negotiations
take place before the involved parties even get to the bargaining table. Collaboration is “in” and compromise is “out” for successful negotiators.
Learn how to make collaboration one of your best negotiating assets and reduce your anxiety as you assume a negotiation comfort level.
Where's my stuff -logistic insight asia october 2012Thomas Tanel
Trading partners need the capabilities to track, trace, and control the progress of the entire logistics transaction. All partners need access to real-time information for collaboration to work. Supply chain celerity is necessity as today's supply chains move at a higher velocity than in the past.
Help employees meet great expectations -mh&l august 2012Thomas Tanel
Warehouse workers don’t do the same task the same way each and every time. Observing what really happens on the floor is key to developing good performance standards. Every warehouse manager has likely heard “What
gets measured gets done.” Measuring and
monitoring operations are key to managing an
efficient, productive facility. Therefore, developing and
implementing an employee performance expectations
program shouldn't be taken lightly.
The 4 S's: For-hire Logistics and Transportation ServicesThomas Tanel
The 3PL contract cycle can be managed just like any other outsourced services procurement, and has four distinct
segments that we will call the four S: Source, Solicit, Select, and Secure. Proper execution of each segment is essential to developing and maintaining successful 3PL relationships.
Three Steps for Reducing Total Cost of Ownership in Pumping SystemsSchneider Electric
Electricity usage costs have become an increasing fraction of the total cost of ownership (TCO) for industrial pumping systems. In fact, energy cost represents 40% of the TCO of a typical pump. It is possible to reduce the electrical consumption by at least 30% through appropriate energy management practices while reducing the maintenance cost. This paper explains how to reduce TCO with a limited investment.
The 4 s how do you bring purchasing skills to the process of 3pl selection--m...Thomas Tanel
The 3PL contract cycle can be managed just like any other outsourced services
procurement, and has four distinct segments that we will call the four S: Source,
Solicit, Select, and Secure. Proper execution of each segment is essential to developing and maintaining successful 3PL relationships.
A shift in sourcing strategies by mary seigfried -inside supply management ma...Thomas Tanel
Low-cost-country sourcing became popular decades
ago, but many supply managers found it to be a shortterm
strategy, says Thomas L. Tanel, C.P.M., president
and CEO of CATTAN Services Group, Inc. in College
Station, Texas. Now supply management professionals
are turning to best sourcing, which Tanel says also is
referred to as best-country sourcing or value-country
sourcing.
The Artful Application of Collaborative Negotiations with ProvidersThomas Tanel
Fortune favors the prepared mind—”luck” in negotiations is actually the result of hard work and good planning. This presentation is for those who seek some collaborative negotiation skills that can be applied for success.
One of your major functions is to negotiate the best terms and price for the materials and services your organization needs to operate. This complex task requires knowledge, tact, superior communication skills, and a solid game
plan!
But few people understand that 90% of all negotiations
take place before the involved parties even get to the bargaining table. Collaboration is “in” and compromise is “out” for successful negotiators.
Learn how to make collaboration one of your best negotiating assets and reduce your anxiety as you assume a negotiation comfort level.
Where's my stuff -logistic insight asia october 2012Thomas Tanel
Trading partners need the capabilities to track, trace, and control the progress of the entire logistics transaction. All partners need access to real-time information for collaboration to work. Supply chain celerity is necessity as today's supply chains move at a higher velocity than in the past.
Help employees meet great expectations -mh&l august 2012Thomas Tanel
Warehouse workers don’t do the same task the same way each and every time. Observing what really happens on the floor is key to developing good performance standards. Every warehouse manager has likely heard “What
gets measured gets done.” Measuring and
monitoring operations are key to managing an
efficient, productive facility. Therefore, developing and
implementing an employee performance expectations
program shouldn't be taken lightly.
Count the ways distribution centers add value 1st--supply chain digital augus...Thomas Tanel
IN RESPONSE TO THE “NEW Normal”, the business
landscape has changed fundamentally; tomorrow’s
distribution environment will be different, but no less
rich in possibilities for those who are looking for ways
to add value. With new trends and an “e-volution” in
moving and storing materials comes the inevitable need
to reconceive how we operate our distribution centers
to stay competitive. Outdated philosophies not based
on the “New Normal” may prevent us from recognizing
and integrating some of the new ways the distribution
facility or DC can add real value to our operations.
Out with the old, in with the new intra-logistics--mmg news letter 2013Thomas Tanel
I would like to introduce the concept of Intra-logistics as the new mantra for Materials Management. Intra-logistics is a recent European term that describes the internal flow of materials between different logistics nodes within a company. Conceptually, Intra-logistics includes the set of logistical activities necessary to find, purchase, receive, store, process, issue, and deliver materials.
The Art of Planning and Writing Specifications and Requirements Thomas Tanel
One of the most difficult tasks that purchasers face is converting user or internal customer needs to new specifications and requirements. For most, it’s easier said than done, while others simply dread the thought of constructing a Statement of Work. Failure to develop a properly defined scope of work, specification, or requirement may mean the solicitation will need to be abandoned and repeated with corrections. Purchasers who are involved in putting together specifications, requirements, or SOWs need to be aware that it is worth the investment, time, and effort to create a high quality outcome. Thus, it is important that purchasers understand the importance of good specifications and requirements, as well as their contractual and practical significance.
This presentation will offer you practical techniques, tools, and process methods for constructing effective specifications, requirements, and SOWs.
Key areas of focus that will be discussed in this workshop are:
Internal customer or user needs
The importance of a scope of work
SOWs and work requirements
The Statement of Work
Writing specifications and requirements
The Art of Planning and Writing Specs and Requirements--ISM 2010 TanelThomas Tanel
One of the most difficult tasks that purchasers face is converting user or internal
customer needs to new specifications and requirements. For most, it’s easier said than done,
while others simply dread the thought of constructing a Statement of Work. Failure to develop
a properly defined scope of work, specification, or requirement may mean the solicitation will
need to be abandoned and repeated with corrections. Purchasers who are involved in putting
together specifications, requirements, or SOWs need to be aware that it is worth the
investment, time, and effort to create a high quality outcome. Thus, it is important that
purchasers understand the importance of good specifications and requirements, as well as
their contractual and practical significance. This proceeding will offer you practical techniques,
tools, and process methods for constructing effective specifications, requirements, and SOWs.
Count the ways distribution centers add value 2nd--supply chain digital septe...Thomas Tanel
N RESPONSE TO THE “NEW Normal”, the business
landscape has changed fundamentally; tomorrow’s
distribution environment will be different, but no less
rich in possibilities for those who are looking for ways
to add value. With new trends and an “e-volution” in
moving and storing materials comes the inevitable need
to reconceive how we operate our distribution centers
to stay competitive. Outdated philosophies not based
on the “New Normal” may prevent us from recognizing
and integrating some of the new ways the distribution
facility or DC can add real value to our operations.
Assurance in uncertainty -logistics insight asia september 2012Thomas Tanel
For purchasers and suppliers who increasingly share vital information and resources, their relationship has evolved from mere transactions into a working business relationship.
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
This presentation will focus on developing the sourcing strategy as a fundamental and logical process involving the application of tools by skilled, competent, and knowledgeable purchasers. Simply put, our focus will be on the “how to” in developing a sourcing strategy. Are you experienced?
Topics that will be addressed include spend analysis, categorizing the best opportunities for sourcing group profiles, Porter’s Five Force Model and Sourcing Grids, establishing sourcing group portfolios and supplier portfolios, using the proper RFX format for sourcing, and making strategic sourcing the focal point for supplier negotiations. Participants will view “good practice” examples of the above.
If you find yourself “walking the tightrope” with a strategic sourcing initiative or an ongoing effort, you’ll get valuable information in developing your sourcing strategy. With our five phase approach, we will discuss the following “how to”:
1. Develop sourcing strategies differentiated by expenditure category and based on market dynamics.
2. Deeply involve end-users in sourcing for knowledge and buy-in.
3. Apply a rigorous sourcing approach that examines internal needs against supply market options to find the lowest total cost.
4. Challenge specifications and usage patterns to ensure that each expenditure is providing the best value for the company.
5. Identify, analyze, select, and negotiate with strategically advantaged suppliers, not just the ones with the lowest price today.
This presentation will conclude with a presentation review that can refine your understanding of the factors, tools, and guidelines you need to make your sourcing process more effective and more profitable for your organization.
Freight is a critcal component of any product supply business and is a sizeable cost. Increase your servicability and reduce costs by following this simple process
Preventing and Managing Supply Chain DisruptionsThomas Tanel
Supply chains worldwide have been battling various risks and challenges for some time. Each challenge not only threatens to disrupt operations, but also may have a negative financial impact on business performance and prevent an organization from meeting the demands from stakeholders, customers, shareholders, and regulators.
Supply Chain Council members have reported that less than half of enterprises have established metrics and procedures for assessing and managing supply risks and organizations lack sufficient market intelligence, process, and information systems to effectively predict and mitigate supply chain risks. Does this sound like your organization?
f so, supply chain disruptions can be extremely costly. A disruption in your supply chain can cost millions of dollars in lost time, energy and resources. Their effects are both direct (e.g. halting production altogether) and indirect (e.g. on stock values). Taking steps to help reduce supply chain disruption is the only way to avoid these costs.
Proactive discovery and visibility of risks is the key to the prevention and management of supply chain disruptions.
Top 10 Logistics Risks in the Spirit of David LettermanThomas Tanel
The simple fact is that in today’s longer, more global supply chains, product moves over greater distances and across more multinational borders than in the more localized supply chains of the past. The coordination and execution required for international shipments has always been a challenge. But now we find that market conditions, security considerations, transportation versus inventory costs of ownership, increasing regulatory and political pressures, and even natural events (such as storms and earthquakes) with increasing frequency and havoc are converging in such a way that it makes the task even more daunting.
Proactive discovery and visibility of logistics risks is the key to the prevention and management of supply chain disruptions. And a key ingredient in managing supply chain disruptions is risk identification; so attend this valuable presentation to find out what the Top 10 Logistics Risks are (in the spirit of David Letterman) that you will be facing in the coming years. Donald Rumsfeld, former US Secretary of Defense quipped in 2002, “Reports that say that something hasn’t happened are always interesting to me, because, as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns-—-the ones we don’t know we don’t know.”
General Gus Pagonis, in charge of logistics during the First Gulf War in 1991 describes it best in his own words, “Logisticians deal with unknowns. They attempt to eliminate unknowns, one by one, until they are confident that they have done away with the possibility of paralyzing surprises.” Are you equipped to succeed in a supply chain world of increasing difficulty and insecurity and multiple interconnected supply chains? Do you have the correct response to a supply disruption in the supply chain and the attendant Top 10 Logistics Risks?
Why is logistics risk management in the supply chain so important now? You’ve spent years streamlining operations, reengineering processes, integrating with partners, implementing purchasing, contract management and supply chain systems, and moving production to low-cost, offshore locations. You’ve done all of this in order to get a global supply chain that really works. Finally, you can take a deserved rest, right? Unfortunately, the answer is no-—-you must learn to continuously adapt to a volatile, uncertain, complex, and ambiguous logistics environment!
As noted by Charles Darwin, “It is not the strongest of the species that survives, or the most intelligent that survives. It is the one that is the most adaptable to change.”
Risk management is about having a systematic way of dealing with thin
Tips on Negotiating better in Cross-Cultural RelationshipsThomas Tanel
Nowadays, organizations of all sizes search for suppliers on a global level. International competition, foreign suppliers, and global sourcing may become a danger, but they may also create huge opportunities to develop your business. The increasingly global business environment requires purchasers to approach the negotiation process from the global business person’s point of view.
When you understand the personal, national, or organizational culture of your negotiation counterpart, then you can seek to align with them and hence gain greater influence. In this presentation, we attempt to bring these patterns of awareness to your attention:
Cross Cultural Communications and Negotiations
Hall’s Context, Chronomics, and Proxemics
Hofstede’s Five Key Elements of Culture
Paralanguage and Tips on Negotiation Better
So what?...you say. Given that cultural differences exist, the issue becomes how do they influence negotiations. Even though language molds thinking, other cultural classifications have a pervasive effect on how the world is perceived, how the self is experienced, and how life is organized.
Learning to communicate and negotiate business across cultural boundaries is paramount as today’s workplace rapidly changes because:
The business environment expands to include various geographic locations and span numerous cultures and,
The United States becomes more multi-culturally and ethnically diverse.
This presentation is designed to give purchasing, materials, supply management, sourcing, contracting, logistics, acquisition and procurement personnel a process of value measurement to quantify the value of purchased goods or services. Learn how to use Value Analysis to target goods and services where cost can be reduced, performance improved, quality enhanced, non-essentials eliminated, downsized, or consolidated through a step-by-step process of value identification and measurement.
The genesis of value analysis and value engineering can be traced to similar, parallel developments in the late 1940’s taking place at General Electric Company and Ford Motor Company. As a concept definition: it is the organized and systematic effort and study directed at analyzing the functional requirements of the system, product, equipment, facility, service or project for the purpose of achieving the lowest overall total cost at the best value. This means consistent with the needed performance, reliability, quality, and maintainability.
Join the trend of many purchasing, sourcing, contracting, and supply management organizations who are reaping the rewards of Value Analysis (VA) and Value Engineering (VE) as a practical tool to improve performance and reduce the cost of goods and services. Their experience with cost reduction projects reveals that by merely determining what things cost and documenting cost breakdowns, one can reduce costs 5%. Improving the choice of material, conceptual design, and methods can further reduce cost by another 10%. Finally, developing a better way to perform what a project or a service was originally intended to do, one can save even more—20-30% and beyond!
Not convinced of the critical importance of value analysis/value engineering VA/VE--- then you must not be interested in product enhancement, service concept augmentation, cost reduction, and profit improvement. Those kinds of payoffs don’t come easily, however. Success depends on three things: understanding of the concept by those who will be involved, strong top management support, and enthusiastic team or project oriented direction to get and keep the program rolling.
No wonder that Purchasing magazine for years dedicated an annual issue to its “Value Analysis of the Year” Awards. Why? According to experts, VA/VE can make a difference: simple projects can take anywhere from one day to six weeks to implement with savings up to $2,000; intermediate projects can range from six weeks to six months with savings of $2,000 to $10,000; and complex projects can take six months to six years with savings ranging from $10,000 to $1 million.
Practically Applying Sourcing Grids for Risk Management Thomas Tanel
Purchasing and supply management have never been easy. The past several years have caused many executives and professionals to lose more sleep and gain more gray hair (or lose more hair) than usual; therefore, the next decade requires upgraded skill sets to survive.
Portfolio analysis is one of the most powerful techniques
used by the purchaser, despite its simplicity. It is a simple “grid” tool that charts the amount we spend on products or services and the complexity of its acquisition.
Portfolio analysis helps us define our sourcing strategy and the best sourcing techniques to use dependent upon the position on the sourcing grid. It also defines the relationships (supplier positioning) we need to have with our key suppliers and gives us an insight in how the key suppliers may see us in perception model. It allows you to organize your time and
resources for maximum benefit and it encourages strategic thinking and analysis to reduce cost, add value, and minimize risk.
International Logistics & Warehouse Management Thomas Tanel
This presentation is designed to take an astute quick look at international logistics and warehouse management, both in terms of today's global supply chain and in the demand flow management process, so you can know how to make the most of this strategically. You've probably heard something about these topics. You may even be somewhat familiar with them. But how much do you really know about their strategic importance?
In an international logistics and warehouse management system, cost-to-cost "trade-offs" available through systems analysis are easy to identify. One example is using premium transportation for small, time-phased purchased lots to reduce inventory investment and lower safety stock. Another might be using a distribution center for freight consolidation or Crossdocking to improve customer service levels and avoid material handling inefficiencies. Yet another might be the use of a blanket agreement (with a rolling forecast) with your supplier. By aligning supplier capacity to your customer schedules and your inventory goals, you gain pipeline visibility through automated order tracking and alerts in addition to lowering costs and raising customer service levels. The overall goal, to achieve a fully integrated logistics approach, is to realize maximum trade-offs among basic functional activities such as warehousing.
Traditional Logistics and Warehousing channels are indeed changing. As organizations move from mass production and mass distribution to lean manufacturing, postponement, and mass customization, creative approaches are needed in the management of logistics and warehousing. The challenge is always present, because different customers may demand different levels of service. Demand often cannot be forecasted, especially if one must deliver customized products or services exactly where the customer needs them on a global scale at multiple locations.
Businesses today must understand that they are competing on the basis of time more than on any other factor. The rigors of international logistics require that you take action to meet your customers’ demand for faster, more frequent, and more reliable deliveries. Your suppliers need to meet increasingly precise inbound schedules. Tomorrow’s customers are more likely to be in another country or continent than they are likely to be from across town, in another state, or in another province. In addition, diverse countries use different formats for weights and other units of measures, as well as many countries and localities have different licensing requirements and charge different duties, value-added taxes (VAT), and fees, which altogether amount to a major content-management challenge for your Global Trade and Logistics IT systems.
Warehouse Operations and Inventory Management Thomas Tanel
Companies that make the best use of the basic principles of planning and managing warehouse operations and inventory management have a competitive advantage. Organizations that lack warehouse strategic planning and inventory operational excellence lose profits, market share, cost advantages, and market leadership.
Traditional Supply Chain and Logistics channels are indeed changing. As organizations move from mass production and mass distribution to mass customization, creative approaches are needed in the management of warehousing and inventory. The challenge is always present, because different customers may demand different levels of service. Demand often cannot be forecasted, especially if one must deliver customized products or services exactly where the customer needs them.
Businesses today must understand that they are competing on the basis of time more than on any other factor. The rigors of supply chain management require that you take action to meet your customers’ demand for faster, more frequent, and more reliable deliveries. Your suppliers need to meet increasingly precise inbound schedules. Tomorrow’s customers are more likely to be in another country or continent than they are likely to be from across town, in another state, or in another province.
With a proven inventory management system and an A-B-C Analysis, you can transform your inventory into a proactive force that lowers your inventory investment, reduces carrying costs, boosts confidence in physical supply and distribution service levels, and increases customer and user satisfaction. From a storage and distribution perspective, you, as overseer of the supply management process, should also know how the warehousing layout design criteria and the space and storage schemes affect your material flow, service levels, computerization, and technology options.
Cost control and cost reduction are the two most viewed area in finance. Every corporate entity will have a specialized department to study on cost aspects. Apart from finance it is places a great role in micro economics.This presentation will helpful to university students in their study and enhance greater knowledge.
Count the ways distribution centers add value 1st--supply chain digital augus...Thomas Tanel
IN RESPONSE TO THE “NEW Normal”, the business
landscape has changed fundamentally; tomorrow’s
distribution environment will be different, but no less
rich in possibilities for those who are looking for ways
to add value. With new trends and an “e-volution” in
moving and storing materials comes the inevitable need
to reconceive how we operate our distribution centers
to stay competitive. Outdated philosophies not based
on the “New Normal” may prevent us from recognizing
and integrating some of the new ways the distribution
facility or DC can add real value to our operations.
Out with the old, in with the new intra-logistics--mmg news letter 2013Thomas Tanel
I would like to introduce the concept of Intra-logistics as the new mantra for Materials Management. Intra-logistics is a recent European term that describes the internal flow of materials between different logistics nodes within a company. Conceptually, Intra-logistics includes the set of logistical activities necessary to find, purchase, receive, store, process, issue, and deliver materials.
The Art of Planning and Writing Specifications and Requirements Thomas Tanel
One of the most difficult tasks that purchasers face is converting user or internal customer needs to new specifications and requirements. For most, it’s easier said than done, while others simply dread the thought of constructing a Statement of Work. Failure to develop a properly defined scope of work, specification, or requirement may mean the solicitation will need to be abandoned and repeated with corrections. Purchasers who are involved in putting together specifications, requirements, or SOWs need to be aware that it is worth the investment, time, and effort to create a high quality outcome. Thus, it is important that purchasers understand the importance of good specifications and requirements, as well as their contractual and practical significance.
This presentation will offer you practical techniques, tools, and process methods for constructing effective specifications, requirements, and SOWs.
Key areas of focus that will be discussed in this workshop are:
Internal customer or user needs
The importance of a scope of work
SOWs and work requirements
The Statement of Work
Writing specifications and requirements
The Art of Planning and Writing Specs and Requirements--ISM 2010 TanelThomas Tanel
One of the most difficult tasks that purchasers face is converting user or internal
customer needs to new specifications and requirements. For most, it’s easier said than done,
while others simply dread the thought of constructing a Statement of Work. Failure to develop
a properly defined scope of work, specification, or requirement may mean the solicitation will
need to be abandoned and repeated with corrections. Purchasers who are involved in putting
together specifications, requirements, or SOWs need to be aware that it is worth the
investment, time, and effort to create a high quality outcome. Thus, it is important that
purchasers understand the importance of good specifications and requirements, as well as
their contractual and practical significance. This proceeding will offer you practical techniques,
tools, and process methods for constructing effective specifications, requirements, and SOWs.
Count the ways distribution centers add value 2nd--supply chain digital septe...Thomas Tanel
N RESPONSE TO THE “NEW Normal”, the business
landscape has changed fundamentally; tomorrow’s
distribution environment will be different, but no less
rich in possibilities for those who are looking for ways
to add value. With new trends and an “e-volution” in
moving and storing materials comes the inevitable need
to reconceive how we operate our distribution centers
to stay competitive. Outdated philosophies not based
on the “New Normal” may prevent us from recognizing
and integrating some of the new ways the distribution
facility or DC can add real value to our operations.
Assurance in uncertainty -logistics insight asia september 2012Thomas Tanel
For purchasers and suppliers who increasingly share vital information and resources, their relationship has evolved from mere transactions into a working business relationship.
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
This presentation will focus on developing the sourcing strategy as a fundamental and logical process involving the application of tools by skilled, competent, and knowledgeable purchasers. Simply put, our focus will be on the “how to” in developing a sourcing strategy. Are you experienced?
Topics that will be addressed include spend analysis, categorizing the best opportunities for sourcing group profiles, Porter’s Five Force Model and Sourcing Grids, establishing sourcing group portfolios and supplier portfolios, using the proper RFX format for sourcing, and making strategic sourcing the focal point for supplier negotiations. Participants will view “good practice” examples of the above.
If you find yourself “walking the tightrope” with a strategic sourcing initiative or an ongoing effort, you’ll get valuable information in developing your sourcing strategy. With our five phase approach, we will discuss the following “how to”:
1. Develop sourcing strategies differentiated by expenditure category and based on market dynamics.
2. Deeply involve end-users in sourcing for knowledge and buy-in.
3. Apply a rigorous sourcing approach that examines internal needs against supply market options to find the lowest total cost.
4. Challenge specifications and usage patterns to ensure that each expenditure is providing the best value for the company.
5. Identify, analyze, select, and negotiate with strategically advantaged suppliers, not just the ones with the lowest price today.
This presentation will conclude with a presentation review that can refine your understanding of the factors, tools, and guidelines you need to make your sourcing process more effective and more profitable for your organization.
Freight is a critcal component of any product supply business and is a sizeable cost. Increase your servicability and reduce costs by following this simple process
Preventing and Managing Supply Chain DisruptionsThomas Tanel
Supply chains worldwide have been battling various risks and challenges for some time. Each challenge not only threatens to disrupt operations, but also may have a negative financial impact on business performance and prevent an organization from meeting the demands from stakeholders, customers, shareholders, and regulators.
Supply Chain Council members have reported that less than half of enterprises have established metrics and procedures for assessing and managing supply risks and organizations lack sufficient market intelligence, process, and information systems to effectively predict and mitigate supply chain risks. Does this sound like your organization?
f so, supply chain disruptions can be extremely costly. A disruption in your supply chain can cost millions of dollars in lost time, energy and resources. Their effects are both direct (e.g. halting production altogether) and indirect (e.g. on stock values). Taking steps to help reduce supply chain disruption is the only way to avoid these costs.
Proactive discovery and visibility of risks is the key to the prevention and management of supply chain disruptions.
Top 10 Logistics Risks in the Spirit of David LettermanThomas Tanel
The simple fact is that in today’s longer, more global supply chains, product moves over greater distances and across more multinational borders than in the more localized supply chains of the past. The coordination and execution required for international shipments has always been a challenge. But now we find that market conditions, security considerations, transportation versus inventory costs of ownership, increasing regulatory and political pressures, and even natural events (such as storms and earthquakes) with increasing frequency and havoc are converging in such a way that it makes the task even more daunting.
Proactive discovery and visibility of logistics risks is the key to the prevention and management of supply chain disruptions. And a key ingredient in managing supply chain disruptions is risk identification; so attend this valuable presentation to find out what the Top 10 Logistics Risks are (in the spirit of David Letterman) that you will be facing in the coming years. Donald Rumsfeld, former US Secretary of Defense quipped in 2002, “Reports that say that something hasn’t happened are always interesting to me, because, as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns-—-the ones we don’t know we don’t know.”
General Gus Pagonis, in charge of logistics during the First Gulf War in 1991 describes it best in his own words, “Logisticians deal with unknowns. They attempt to eliminate unknowns, one by one, until they are confident that they have done away with the possibility of paralyzing surprises.” Are you equipped to succeed in a supply chain world of increasing difficulty and insecurity and multiple interconnected supply chains? Do you have the correct response to a supply disruption in the supply chain and the attendant Top 10 Logistics Risks?
Why is logistics risk management in the supply chain so important now? You’ve spent years streamlining operations, reengineering processes, integrating with partners, implementing purchasing, contract management and supply chain systems, and moving production to low-cost, offshore locations. You’ve done all of this in order to get a global supply chain that really works. Finally, you can take a deserved rest, right? Unfortunately, the answer is no-—-you must learn to continuously adapt to a volatile, uncertain, complex, and ambiguous logistics environment!
As noted by Charles Darwin, “It is not the strongest of the species that survives, or the most intelligent that survives. It is the one that is the most adaptable to change.”
Risk management is about having a systematic way of dealing with thin
Tips on Negotiating better in Cross-Cultural RelationshipsThomas Tanel
Nowadays, organizations of all sizes search for suppliers on a global level. International competition, foreign suppliers, and global sourcing may become a danger, but they may also create huge opportunities to develop your business. The increasingly global business environment requires purchasers to approach the negotiation process from the global business person’s point of view.
When you understand the personal, national, or organizational culture of your negotiation counterpart, then you can seek to align with them and hence gain greater influence. In this presentation, we attempt to bring these patterns of awareness to your attention:
Cross Cultural Communications and Negotiations
Hall’s Context, Chronomics, and Proxemics
Hofstede’s Five Key Elements of Culture
Paralanguage and Tips on Negotiation Better
So what?...you say. Given that cultural differences exist, the issue becomes how do they influence negotiations. Even though language molds thinking, other cultural classifications have a pervasive effect on how the world is perceived, how the self is experienced, and how life is organized.
Learning to communicate and negotiate business across cultural boundaries is paramount as today’s workplace rapidly changes because:
The business environment expands to include various geographic locations and span numerous cultures and,
The United States becomes more multi-culturally and ethnically diverse.
This presentation is designed to give purchasing, materials, supply management, sourcing, contracting, logistics, acquisition and procurement personnel a process of value measurement to quantify the value of purchased goods or services. Learn how to use Value Analysis to target goods and services where cost can be reduced, performance improved, quality enhanced, non-essentials eliminated, downsized, or consolidated through a step-by-step process of value identification and measurement.
The genesis of value analysis and value engineering can be traced to similar, parallel developments in the late 1940’s taking place at General Electric Company and Ford Motor Company. As a concept definition: it is the organized and systematic effort and study directed at analyzing the functional requirements of the system, product, equipment, facility, service or project for the purpose of achieving the lowest overall total cost at the best value. This means consistent with the needed performance, reliability, quality, and maintainability.
Join the trend of many purchasing, sourcing, contracting, and supply management organizations who are reaping the rewards of Value Analysis (VA) and Value Engineering (VE) as a practical tool to improve performance and reduce the cost of goods and services. Their experience with cost reduction projects reveals that by merely determining what things cost and documenting cost breakdowns, one can reduce costs 5%. Improving the choice of material, conceptual design, and methods can further reduce cost by another 10%. Finally, developing a better way to perform what a project or a service was originally intended to do, one can save even more—20-30% and beyond!
Not convinced of the critical importance of value analysis/value engineering VA/VE--- then you must not be interested in product enhancement, service concept augmentation, cost reduction, and profit improvement. Those kinds of payoffs don’t come easily, however. Success depends on three things: understanding of the concept by those who will be involved, strong top management support, and enthusiastic team or project oriented direction to get and keep the program rolling.
No wonder that Purchasing magazine for years dedicated an annual issue to its “Value Analysis of the Year” Awards. Why? According to experts, VA/VE can make a difference: simple projects can take anywhere from one day to six weeks to implement with savings up to $2,000; intermediate projects can range from six weeks to six months with savings of $2,000 to $10,000; and complex projects can take six months to six years with savings ranging from $10,000 to $1 million.
Practically Applying Sourcing Grids for Risk Management Thomas Tanel
Purchasing and supply management have never been easy. The past several years have caused many executives and professionals to lose more sleep and gain more gray hair (or lose more hair) than usual; therefore, the next decade requires upgraded skill sets to survive.
Portfolio analysis is one of the most powerful techniques
used by the purchaser, despite its simplicity. It is a simple “grid” tool that charts the amount we spend on products or services and the complexity of its acquisition.
Portfolio analysis helps us define our sourcing strategy and the best sourcing techniques to use dependent upon the position on the sourcing grid. It also defines the relationships (supplier positioning) we need to have with our key suppliers and gives us an insight in how the key suppliers may see us in perception model. It allows you to organize your time and
resources for maximum benefit and it encourages strategic thinking and analysis to reduce cost, add value, and minimize risk.
International Logistics & Warehouse Management Thomas Tanel
This presentation is designed to take an astute quick look at international logistics and warehouse management, both in terms of today's global supply chain and in the demand flow management process, so you can know how to make the most of this strategically. You've probably heard something about these topics. You may even be somewhat familiar with them. But how much do you really know about their strategic importance?
In an international logistics and warehouse management system, cost-to-cost "trade-offs" available through systems analysis are easy to identify. One example is using premium transportation for small, time-phased purchased lots to reduce inventory investment and lower safety stock. Another might be using a distribution center for freight consolidation or Crossdocking to improve customer service levels and avoid material handling inefficiencies. Yet another might be the use of a blanket agreement (with a rolling forecast) with your supplier. By aligning supplier capacity to your customer schedules and your inventory goals, you gain pipeline visibility through automated order tracking and alerts in addition to lowering costs and raising customer service levels. The overall goal, to achieve a fully integrated logistics approach, is to realize maximum trade-offs among basic functional activities such as warehousing.
Traditional Logistics and Warehousing channels are indeed changing. As organizations move from mass production and mass distribution to lean manufacturing, postponement, and mass customization, creative approaches are needed in the management of logistics and warehousing. The challenge is always present, because different customers may demand different levels of service. Demand often cannot be forecasted, especially if one must deliver customized products or services exactly where the customer needs them on a global scale at multiple locations.
Businesses today must understand that they are competing on the basis of time more than on any other factor. The rigors of international logistics require that you take action to meet your customers’ demand for faster, more frequent, and more reliable deliveries. Your suppliers need to meet increasingly precise inbound schedules. Tomorrow’s customers are more likely to be in another country or continent than they are likely to be from across town, in another state, or in another province. In addition, diverse countries use different formats for weights and other units of measures, as well as many countries and localities have different licensing requirements and charge different duties, value-added taxes (VAT), and fees, which altogether amount to a major content-management challenge for your Global Trade and Logistics IT systems.
Warehouse Operations and Inventory Management Thomas Tanel
Companies that make the best use of the basic principles of planning and managing warehouse operations and inventory management have a competitive advantage. Organizations that lack warehouse strategic planning and inventory operational excellence lose profits, market share, cost advantages, and market leadership.
Traditional Supply Chain and Logistics channels are indeed changing. As organizations move from mass production and mass distribution to mass customization, creative approaches are needed in the management of warehousing and inventory. The challenge is always present, because different customers may demand different levels of service. Demand often cannot be forecasted, especially if one must deliver customized products or services exactly where the customer needs them.
Businesses today must understand that they are competing on the basis of time more than on any other factor. The rigors of supply chain management require that you take action to meet your customers’ demand for faster, more frequent, and more reliable deliveries. Your suppliers need to meet increasingly precise inbound schedules. Tomorrow’s customers are more likely to be in another country or continent than they are likely to be from across town, in another state, or in another province.
With a proven inventory management system and an A-B-C Analysis, you can transform your inventory into a proactive force that lowers your inventory investment, reduces carrying costs, boosts confidence in physical supply and distribution service levels, and increases customer and user satisfaction. From a storage and distribution perspective, you, as overseer of the supply management process, should also know how the warehousing layout design criteria and the space and storage schemes affect your material flow, service levels, computerization, and technology options.
Cost control and cost reduction are the two most viewed area in finance. Every corporate entity will have a specialized department to study on cost aspects. Apart from finance it is places a great role in micro economics.This presentation will helpful to university students in their study and enhance greater knowledge.
Bridgepoint Merchant Banking releases an update on the trucking industry, including reporting and insights on valuation cycles and key business considerations.
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Logistics and Supply Chain Management-OverviewThomas Tanel
This presentation is designed to take an overview of global supply chain logistics, both in terms of today's supply chain and in the demand flow management process, so you can know how to make the most of this powerful tool. You've probably heard something about these topics. You may even be vaguely familiar with them. But how much do you really know about their strategic importance and the specific benefits you can gain from having a solid understanding of them?
Here's the best way to investigate global supply chain logistics and the impact it can have on your organization. You will have the opportunity to explore a variety of logistics areas , extrapolate their meanings in ways that are appropriate for strategic planning, and apply the techniques needed to make it all work for your organization.
Your business needs and technology are in a constant state of rapid-fire change, but you can count on one thing remaining constant: the need to align logistics strategically with your market needs in order to gain a competitive advantage. This alignment requires building a supply and demand system that truly helps you respond to worldwide changes in sourcing and ever-shifting customer demand. What is the potential effect that global trade management will have on your supply chain? How do you convert digital value inputs into logistics value-added outputs? How can you harness the power of global supply chain logistics as a significant force in the execution of your corporate strategy? How can you gain the information you need to translate abstractions into concrete benefits through supply chain management and continuous flow distribution?
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Thomas Tanel
In the movie Heartbreak Ridge, Clint Eastwood as Gunny Highway says, “You're Marines now. You adapt. You overcome. You improvise.”
With more than 40 plus years of seasoned and practical supply chain experience, I would like to share with you a military perspective on what Gunny Sergeant Thomas Highway meant and its application to the supply chain.
Supply chain performance reporting and metrics -logistics digest 091112Thomas Tanel
Many managers see supply chain performance reporting and metrics as a huge time drain that results in a series of uncomfortable conversations and confrontations they would rather not endure. You cannot manage what you cannot measure, and your supply chain is one of the most important functions to manage. The good news is that you’re Logistics and Supply Chain Management people
are probably already doing a lot of measuring. The bad news is that they might not be measuring the right things. To measure your supply chain effectively, you must identify metrics that are appropriate for your organization and that will improve business performance.
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There is a Darwinian effect occurring in the supply chain as Fortune 1000 companies cut weaker suppliers. The simple fact is that in today’s longer global supply chains, product
moves over greater distances and across more multinational borders than in the more localized supply chains of the past. In an era of wildly fluctuating commodity prices and security regulations, the coordination and execution required for international shipments has become
more of a challenge than in the past.
Spaced out are you making the most of your shrinking space--werc sheet (may-j...Thomas Tanel
Are you making the most of your (shrinking) space? Tanel says that most companies do consider adding space. “However,” he says, “it is sometimes necessary to review the presently occupied facilities to determine if one can increase productivity by changing the physical and spatial relationships between operations,” he explains. According to Thomas Tanel, president of CATTAN Services, before you can consider making any changes in your current mode of operation, you have to thoroughly understand how your warehouse runs.
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consider the ultimate cost of delivering the goods to the buyer's facility.
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more multinational borders than in the more localized
supply chains of the past. This distance-based supply chain, whose links are forged by many supplier tiers in various countries, carries a risk dependent on its length and
diversity. The longer and more diverse it becomes, the
more it is susceptible to unforeseen circumstances.
Management by walking around is a good start here’s what to do while walking-...Thomas Tanel
‘Management by walking around’ is a good start; here’s what to do while walking. Getting out on the floor of the
DC is a crucial management tactic. But if you walk around only once in a while, you run the risk of what Tom Tanel calls the “lip-service presentation and eyewash tour.”
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Thomas Tanel
Supply chains are becoming increasingly complex. Yet many procurement teams are not working to prevent and manage disruptions that could prove costly. In a recent webcast, “Preventing and Managing Supply Chain Disruptions,” Tanel describes costs of disruption to the supply chain and explains why it’s important for procurement to learn to identify vulnerabilities and develop a plan to mitigate risk.
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The concepts of Just-in-Time (JIT) and Lean have led many to question the continued relevance of Economic Order Quantity (EOQ), whose function is to identify the optimum order with the lowest cost parameter. In response, yes, it is still valid as a basic analytic tool, however, many supply chain industry executives perceive it as “old school” or don’t even know about it. My experience has shown that
many individuals and some companies cannot apply it—even if they wanted to—because they do not know their acquisition costs to place an order or their yearly inventory carrying cost rate.
Cost Reduction Strategies:Focus and TechniquesThomas Tanel
This is a highly concentrated presentation that addresses the differences among price, cost, and TCO; what cost reduction strategies to focus on; and an overview of various techniques, as well as when and where to use them. Faced with excruciating competitive pressures, many senior C-Level executives require maximum effort from every part of their organization to survive. Today, purchasing, acquisition, procurement, contracting, and supply management professionals must be the most progressive cost reduction oriented group in the company.
For many organizations, senior C-Level executives set forth annual purchasing, acquisition, procurement, contracting, and supply management goals that mandate cost reductions. Regardless of the cost savings, avoidances, or containments achieved previously, you are faced with new cost reduction initiatives and objectives.
To make the goal of cost reduction a reality, we cannot focus solely on the price. We must examine the total cost of ownership to your organization, which means moving beyond the organizational environs to include suppliers, internal customers, other allied business functional entities, and external customers. By working both internally and externally with these stakeholders, cost reduction opportunities will become visible.
A typical purchasing, acquisition, procurement, contracting, or supply management professional will help reduce supplier prices and avoid incremental costs. A good purchasing, acquisition, procurement, contracting, or supply management professional will reduce costs by lowering both costs of acquisition and risks of supply. A great purchasing, acquisition, procurement, contracting, or supply management professional will reduce total costs across the board, increase service levels to the internal customer, make a significant contribution to the bottom line, seek value-added opportunities, and help to delight the organization’s customer. This type of professional also balances supply related costs and cycle time for the lowest overall cost, at the best value, while seeking risk optimization rather than risk minimization strategies.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
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Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
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As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
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2. Today’s Agenda
Part II
Purchasing T & L Profile and Spend
Freight Modal Analysis and Decision
Impacts
The Four ‘S’s
Define Expectations and Routing Guides
Strategies to Enhance Your T & L ‘Buy’
CATTAN Services Group, Inc.
2
3. Purchasing Transportation and
3PL Profile
This is a template that:
Considers
Appreciates
Understands
The following:
Corporate philosophy and culture
Supplier and inbound requirements
Internal/external customer requirements
CATTAN Services Group, Inc.
3
4. Supply Chain USA 1
Returns
DC Bremen
•Inspection
•Warehousing
•Shipping
Port
Option 1 Ship
Port
Airport
Airport
Customs
Broker
Option 2 - Air
Shops
FL, LH
DC USA
•Inspection
•Warehousing
•Pick, Pack
•Shipping
Customer
TD
Returns
Timing (days)
Alt 1 A (Sea)
Alt 1 B (Air)
Cost / Week (US)
Min
Max Min
16 d
25 d
2d
2d
2d
2d
Total US
Order Cycle TD
2d
6d
2d
6d
US per LE
Alt 1 B (Air)
8 d 10.5 d
Order Cycle FL/LH
Alt 1 A (Sea)
Available in USA
Max
43,800
71,400
1.87
3.05
CATTAN Services Group, Inc.
4
5. Purchasing Transportation and 3PL
Profile Con’t
Map all locations:
Company inbound/outbound locations
Plants
Warehouse/DCs
Supplier locations
Customer locations
Ports and major consolidation points
Major traffic flow lanes
Collect traffic flow data for above
Article description
Alpha and numeric STCC
Bulk or packaged
Quantity or volume per shipment per time period
CATTAN Services Group, Inc.
5
8. Purchasing Transportation and 3PL
Profile Con’t
Define expenditures and analyze spend:
Origin/destinations
Carriers and 3PLs
Freight rates-both line haul and accessorial
Warehouse rates-both storage and in/out
Freight and sales terms
Product specification/STCC/NMFC/UFC
Product weight and packaging
CATTAN Services Group, Inc.
8
9. Transportation Spend—
Example
FREIGHT
Amount
SUM
ITEM
PCT
Amount
SUM
MISC
PCT
Amount
SUM
Sum
PCT
Vendor Name
SNL DISTRIBUTION INC
$39,345.44
6.6%
$554,802.41
93.4%
CARGILL
$33,806.56
5.7%
$559,368.12
94.1%
$1,560.92
0.3%
$594,735.60
AZTECA
$26,993.57
7.8%
$319,598.24
92.1%
$396.00
0.1%
$346,987.81
GENERAL MILLS
$20,128.26
12.3%
$143,434.59
87.7%
$163,562.85
BEMIS COMPANY
$11,916.56
1.0%
$1,177,949.07
99.0%
$1,189,865.63
ROMAN MEAL
$11,607.23
14.1%
$69,833.37
84.9%
DANISCO USA INC
$10,994.43
5.1%
$204,547.20
94.9%
$9,311.00
6.4%
$134,867.41
92.9%
SUNMAID GROWERS
CATTAN Services Group, Inc.
$594,147.85
$828.98
1.0%
$82,269.58
$215,541.63
$967.60
9
0.7%
$145,146.01
11. Transportation Spend—Example
Destination
Total Costs
Per
Truckload
Mill Owner
Average
Cost
Per Day
Approximate Annual
Transportation Costs
Port Hudson, LA
GP
$
218
$
655
$
229,021
Pineville, LA
IP
$
330
$
330
$
158,217
Bogalusa, LA
I
$
429
$ 1,287
$
486,320
Monticello, MS
GP
$
509
$ 2,035
$
643,277
Vicksburg, MS
IP
$
512
$ 1,024
$
357,051
DeRidder, LA
Boise
$
482
$
965
$
273,429
Hodge, LA
S
$
527
$ 1,055
$
344,929
Bastrop, LA
IP
$
569
$ 1,138
$
475,017
Campti, LA
W
$
526
$ 1,577
$
504,162
Mansfield, LA
GP
$
571
$ 1,142
$
298,676
West Monroe, LA
R
$
568
$ 1,135
$
476,285
Orange, TX
I
$
566
$ 1,133
$
444,378
Crossett, AR
GP
$
631
$ 1,892
$
716,182
Evadale, TX
MW
$
697
$ 2,787
$
884,308
Texarkana, TX
IP
$
837
$ 2,510
$
871,975
Pine Bluff, AR
IP
$
851
$ 1,702
$
653,819
Pine Bluff, AR
Inland
$
851
$
851
$
185,523
Lufkin, TX
A
$
821
$
821
$
214,614
Ashdown, AR
D
$
885
$ 5,312
$
1,697,178
$29,351
$
9,914,359
TOTAL
CATTAN Services Group, Inc.
11
12. Don’t Forget…Plan for the Future
Where is your business headed in the
next 12, 24, and 36 months?
What are the major initiatives that will
have an impact on what you expect
from your carriers and/or third parties?
What risk and costs factors may affect
your transportation and 3PL budget
forecasts?
CATTAN Services Group, Inc.
12
13. Purchasing Freight Modal Profile by # of Shipments—
Based on Weight of Shipment and Distance Shipped
Distance
miles
<1,000 lbs
1,0001,999 lbs
10,00029,999 lbs
30,00059,999 lbs
60,00089,999 lbs
<100
100-199
200-499
500-750
750-1,000
1,000-1,499
1,500 or
more
CATTAN Services Group, Inc.
13
90,000-or
more lbs
15. Performance Comparison for Selected Freight Modes
Vehicle
Capacity
Truck Equivalency
Barge
1500 Tons
52,500 Bushels
453,600 Gallons
57.7
(865.4 for 15 barges in tow)
Hopper Car
100 Tons
3,500 Bushels
30,240 Gallons
3.8
100 Car Train Unit
Semi-Trailer truck
Post-Panamax containership
VLCC
747-400F
10,000 Tons
350,000 Bushels
3,024,000 Gallons
26 Tons; 910 Bushels
7,865 Gallons
9,000 for a tanker truck
5,000 TEU
384.6
1
2,116
300,000 tons
2 million barrels of oil
9,330
124 tons
5
CATTAN Services Group, Inc.
15
16. Purchasing Transportation Profile—
Affect Modal Decisions
Rail generally competes with truck on freight
movements of more than 750 miles.
About 15-25% of rail movement business is
truck competitive.
Rail transit times for most bulk and break-bulk
cargo are roughly equal to barge transit times
within 750 miles and are days shorter beyond
1000 miles.
High-value goods and time-sensitive goods are
likely to move through faster, more expensive
modes of transportation like air.
CATTAN Services Group, Inc.
16
17. Purchasing Transportation Profile—
Affect Modal Decisions
Potential to convert TL to intermodal when
distance in excess of 1,000 miles and not time
sensitive.
Competition for long-haul highway shipments in
particular are becoming noticeably more
intermodal as trucking companies have shifted
line haul movement legs to railroad TOFC or
COFC movements.
About 90% of intermodal container traffic is
potentially rail vs. truck competitive
Much of the international intermodal business
through the ports lends itself more practically to
rail moves and possibly barge.
CATTAN Services Group, Inc.
17
18. Purchasing Transportation Profile—
Affect Modal Decisions
If you have to ship over 1,000 miles, you may
want to consider a national LTL carrier over a
regional LTL carrier. These firms offer the
advantage of not having to interline freight
traveling long distances.
Private internal fleets are expanding to take on
shorter distance LTL or TL moves.
Don’t assume that air means “you hear the roar
of jet engines” ; if the carrier can move your
freight on what it calls an ‘expedited truck’ and
get it to your destination in the timeframe you
specified---it may never see the tarmac. Also
don’t expect any great cost savings to result.
CATTAN Services Group, Inc.
18
20. Purchasing Transportation Profile—
Affect Modal Decisions
Review your shipping profile statistics and
understand where the economic shift
points are in your:
Parcel or Air/LTL mix
LTL/TL mix
TL/Rail mix
Air/Ocean mix
Over 90% of all organizations are either
receiving and/or shipping internationally
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21. Comparison of Distribution Costs and Time from National Warehouses—
Example
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22. Thoughts About Choices
Bottom Line:
A company should define a
lane, process, operation, or
function that can be
improved, then make these
carriers and 3PL providers
compete for it.
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24. The Four S’s: Source
Identify Logistics and
Transportation
requirements:
Review and clarify
req’mts
Obtain feedback on
3PLs and carriers
Review KPIs, KRAs,
and analyze gaps
Establish which gaps
are most critical
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26. The Four S’s: Source
Gather data and manipulate information:
Compile or obtain 6-12 months of
history/activity req’mts
Obtain details: inbound and outbound;
origins and destinations; weight, cube
and # of pieces; traffic lanes, supply
chain streams, and demand chain
streams; types of equipment; volatility
and performance req’mts
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27. The Four S’s: Source
Create a RFI:
Review 3PLs’ and carriers’ company and
public profiles
Invite both current and new sources
Get: completed profile questionnaires,
financials, insurance and safety certificates,
authority or operating documents, and
references
• Perform site visit when applicable. Talk with
local management.
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29. The Four S’s: Solicit
Develop a RFB/RFP:
Decide which 3PLs and carriers receive
solicitation based on RFI results
Determine your preferred pricing and
contract formats
Specify whether bid/proposal by lane
allocation, region or complete scope
Include TCA/NITL Voluntary Guidelines
to Good Business Relations
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30. The Four S’s: Solicit
Send bid/proposal package to qualified sources:
Prepare a template with details of info
gathered
Provide clear instructions concerning info you
want included
Attach a copy of anticipated contract and
T&Cs upfront
Provide sample performance reports to be
used as measures of agreed performance
Establish what is a responsive bid/proposal
and adequate submission date
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32. The question is:
A carrier or 3PL can perform services which an
organization is either unwilling or unable to perform
itself, but are they as good as advertised?
First we need to determine who they
are and what they offer.
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33. The Seven Most Important Considerations
To Include When Choosing Carriers
• Financial Performance and Health
• Staffing
• Assets and Facilities
• Internal and External Programs
• Pricing Methods, Utilization, Periodic Review
• Measures of Agreed Performance
• Operations
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34. The Five Most Important Considerations To Include
When Choosing A Contract Logistics Firm
1. FINANCIAL STRENGTH
1. FINANCIAL STRENGTH
2. BUSINESS EXPERIENCE
2. BUSINESS EXPERIENCE
3. BUSINESS DEVELOPMENT
3. BUSINESS DEVELOPMENT
4. SUPPORT SERVICES
4. SUPPORT SERVICES
5. BUSINESS ARRANGEMENTS AND PRICING
5. BUSINESS ARRANGEMENTS AND PRICING
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35. The Four S’s: Solicit
Hold a Pre-Bid/Proposal Conference:
Invite qualified bidders and proposers
Discuss expectations
Hold Q&A
Provide feedback and answers to all:
During
conference
After conference
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36. The Four S’s: Select
Verify documentation submitted
Establish T&Cs that may require adjustment,
compromise or negotiation
Analyze bid or proposal submissions
Develop selection criteria or negotiation strategy
Use analytical tools to select. Do industry
comparisons for the type of customers, facilities,
regional, coverage, management and cultural
attitudes, cost model, etc.
Select or conduct negotiation
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37. Bid or Proposal Analysis—Example
Truckload
CHRW
Origin
Equipment
Rated
Per mile/
Trailer
State
Zip
Required
Miles
Flat Fee
Size
Moncks Corner
SC
29461
DRY
1101
$
1.40
Cairo
GA
31728
DRY
830
$
Lithia
FL
33547
DRY
1112
Brooksville
FL
34609
DRY
Groveland
FL
34736
Loxley
AL
36551
City
FSC
Extension
1/29/2007
TOTAL
48/53
$ 1,541.40
252.23
$
1,793.63
1.15
48/53
$
954.50
190.15
$
1,144.65
$
1.05
48/53
$ 1,167.60
254.75
$
1,422.35
1074
$
1.05
48/53
$ 1,127.70
246.04
$
1,373.74
DRY
1069
$
1.05
48/53
$ 1,122.45
244.90
$
1,367.35
DRY
614
$
1.79
48/53
$ 1,099.06
140.66
$
1,239.72
Red indicates low bidder on traffic lane
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38. Thoughts About Choices
Which is a more important category to your
company: Warehousing, Transportation, IT, other?
Choose a firm that has its
roots in that category.
Do they have a local or regional office nearby your
facility or headquarters.
A local or regional office
lends more control to you.
Meet with the actual operations personnel, not just
sales, to determine their personal chemistry with
you and their fit with your corporate culture.
Your comfort level is an
important key to success.
Know your costs for comparison to theirs.
Remember, you are
paying for their profit
margin too.
Agree upon measurement criteria in advance.
Know when to fix things
or to leave them alone.
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39. The Four S’s: Secure
Provide contracts to selected providers
Emphasize L ong T erm R elationship
Monitor 3PLs’ and/or carriers’ performance,
costs and commitments—use scorecard
Issue company routing guide
Seek continuous improvement and
incorporate feedback to and from
Hold IPRs and provide a performance
report card on a regular interval
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40. Define Expectations
In the wonderful world of expectations we have a
problem:
The buyers/shippers want everything
The Carriers or 3PLs want the business
The suppliers and customers want things also
In theory, everything is possible
In reality, there are constraints
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41. Why Use Routing Guides?
Are used to provide guidance and rules for
any transportation and logistics scenarios
Are part of contractual obligations for
suppliers and internal/external customers
Are used identify each carrier and 3PL
that you dictate by price/service for use by
any suppliers and customers
Are used to identify the shipment size,
volume, and weight for each carrier and
3PL to be used
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43. Carrier Selection—Oracle
Example
Rule
Criteria
• Weight
• Volume
• Geographic
Regions
Inputs
Carrier
Selection
Process
Selection
Results
Results
• Carrier
• Service Type
• Mode
• Payment
Terms
Rules Based
Selection Process
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45. Domestic Ground Routing Guide—
Example
Shipment Weight and Transit Days
201 – 9000 pounds
Origin States
Small Package
Transit
1 Day
2 Days
3 Days
4–6 Days
Truck Load
MD, DC (Local)
1 Day
EXCEL
EXCEL
N/A
N/A
N/A
CT, MA, MD, NH,
NJ, NY, PA,
RI, VT
2-3 Days
New Penn
New Penn
N/A
N/A
CFI or Schneider
ME
3 Days
New Penn
New Penn
New Penn
N/A
CFI or Schneider
AR, IA, KS, LA,
MN, MS,
ND, NE, OK,
SD, TX
5-7 Days
FedEx 1 Day
FedEx 2Day
FedEx 2Day
Yellow Freight
CFI or Schneider
AZ, CA, CO,
ID,MT, NM,
NV, OR, UT,
WA, WY
5-7 Days
FedEx 1 Day
FedEx 2Day
FedEx 2Day
Yellow Freight
CFI or Schneider
AK, HI
N/A
FedEx 1 Day
FedEx 2 Day
N/A
N/A
N/A
For shipments over 9000 pounds, truck load movements, shipments requiring special handling, or shipments between suppliers, contact your buyer for special instructions.
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46. International Routing Guide—Example
INTERNATIONAL ROUTINGS
ORIGIN COUNTRY/REGION
AIR FORWARDER
OCEAN FORWARDER
Europe/Ukraine
Expeditors
Expeditors
Africa
Expeditors
Expeditors
India
Expeditors
Expeditors
Japan
Expeditors
Expeditors
Hong Kong
Expeditors
Expeditors
Taiwan
Expeditors
Expeditors
Shanghai
Expeditors
Expeditors
Malaysia
Expeditors
Expeditors
Singapore
Expeditors
Expeditors
Central and S. America
Expeditors
Expeditors
Canada and Mexico
Emery/Menlo
N/A
All Other Origins
Expeditors
Expeditors
Shipments in excess of 500 pounds or 227 Kg need authorization to ship via Air.
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49. Air Routing Guide—Example
DOMESTIC AIR SHIPMENTS
Note: Second Day Service if PO delivery date permits;
Overnight Air Express if PO delivery requires.
1-150 lb.
< 68 kg
Small package shipments requiring overnight service
purchased FOB freight collect within the 50 states
DHL ® Priority overnight
service
150-500 lb.
> 68 kg
Small package shipments requiring overnight service
purchased FOB freight collect within the 50 states
EGL Eagle Global
Logistics
> 501 lb.
> 1105 kg
Contact Traffic Administrator, provide the weight,
dimensions, freight description and PO Number
(618) 7xx-1220 Phone
(618) 5xx-3677 Fax
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50. Truck Routing Guide—Example
ST
ORIGIN
STATE
Zip
Code
Less Than
Truckload (LTL)
LTL to TL transition
(Pounds)
Use 'TL' If shipment is over 1/2 the visible capacity of a 48"
vehicle or exceeds pounds
AL
Alabama
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority, May
AZ
Arizona
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, May
CA
California
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, May
DE
Delaware
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Priority, May
FL
Florida
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Priority, May, Prime
GA
Georgia
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority, May
IA
Iowa
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority, May
ID
Idaho
All
FedEx Freight
10 Pallets or 10,000 Lbs
May, Navajo, Prime
KS
Kansas
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, M. Bruenger, Prime
KY
Kentucky
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority, May
LA
Louisiana
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority, May
MD
Maryland
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Priority, May
ME
Maine
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Priority, May
MI
Michigan
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority, May
MN
Minnesota
All
FedEx Freight
10 Pallets or 10,000 Lbs
Navajo, Prime, Priority
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51. Truck Routing Guide—Example
LTL Common Carrier
LTL (Less Than Truckload) Routing
Shipments under 10,000 lbs.
In Order of Preference
State
Preferred Carrier
2nd Preferred Carrier
Alabama
Yellow Freight
UPS Freight
Arizona
UPS Freight
Yellow Freight
Arkansas
UPS Freight
Yellow Freight
California
UPS Freight
Yellow Freight
Colorado
Yellow Freight
UPS Freight
Connecticut
UPS Freight
Yellow Freight
Delaware
Yellow Freight
UPS Freight
Washington D.C.
UPS Freight
Yellow Freight
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52. Strategies to Enhance Your
Transportation and Logistics ‘Buy’
Extend the processes beyond the walls of
purchasing, traffic, and logistics
Create strategies to buffer yourself
against:
Capacity Shortages
Reliability Issues
Rate or Price Hikes
Possible strategies for consideration follow
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53. Strategies to Create Greater
Capacity
Adding consolidation/de-consolidation centers to global distribution
networks so freight gets moved as FCL and FTL
Looking for ways to extract more capacity from private fleets and
facilities by:
Improving cube utilization of fleet equipment
Improving facility cube and storage capacity
Eliminating empty truck miles and ‘dead heads’
Consolidating orders to same destination or customer
Using a carrier appointment scheduling or “order notify” system
Rethinking your transportation and logistics network design and
inbound/outbound flow of shipments
Making your freight traffic or warehouse operations attractive to the
service providers
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54. Strategies to Create Greater Reliability
Forging close collaborative ties with their carriers and 3PL
providers
Establishing preferred customer status or dedicated contract
carriage and/or contract warehousing
Consolidating multiple carrier and 3PL provider relationships by
traffic lane, region, or geographic area
Increasing volume with premium operators where service is a
differentiating factor---not the low price or discounted
carriers/providers
Treat carriers and 3PLs as partners in the commitment to 100%
on-time performance
Identifying root causes of service failures and cost overruns by
using scorecards and measures of agreed perofrmance
55
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55. Strategies to Create Greater Price
Stability
Update the granularity and accuracy of your systems to:
Create efficient freight lanes and facility networks
Leverage aggregated spend to negotiate better prices, rates, and
charges on a contract basis
Know when to bundle or unbundle goods and transportation costs for
freight auditing purposes and checking supplier costs
Help calculate costs per supplier, per customer, per product or SKU, per
geographic area or business unit, per facility or site, etc.
Employ total delivered or landed cost analysis and optimization
Use shipment optimization and electronic tendering software
Monitor sources of transportation and logistics data for trends and
forecasts
Enforce compliance with your routing guide to avoid transportation
and logistics exceptions
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