This document summarizes a report on opportunities for Columbus, Ohio related to logistics and supply chain management. The report finds that Columbus is well positioned due to its central U.S. location and access to transportation infrastructure. It recommends that Columbus emphasize its reliability and predictability to attract more distribution and warehousing facilities. Specific opportunities mentioned include rail-served logistics parks, accelerating development at Rickenbacker, capturing growth in e-commerce, and marketing Columbus' value proposition to manufacturers.

1. Columbus Report Summary and
Opportunities
Steve Schellenberg
IMS Worldwide, Inc.

2. IMSW 2011 Market Study
• Verify Population coverage from Columbus
• Verify Columbus is retaining competitive edge
• Identify other regions threats to Columbus
• IMC rate proof, or identify gaps on rates
• Transportation/infrastructure corridor issues
• Review of rail and truck services
• Government/EDC initiatives review
• Present a logistics “value proposition”
– This is what we did

3. Report
• Report Summary and Key Findings
• From a Logistics POV, Columbus is Perfectly
Placed
• Comparative Zone of Coverage Maps
• The Real Columbus Value Proposition
• Import and Export Market Share
• Real Estate Market Overview
• Rail Logistics Marketing
• E-Commerce Opportunities
• Final Take Away

4. Miles Population % of US Population
Columbus 500
Miles
142,100,000
Population
46.02%
% of US & Canadian
(500 Mile Radius) 500 150,100,000 44.11%

5. Columbus Miles
300
Population
53,700,000
% of US Population
17.38%
(300 Mile Radius) Miles
300
Population
59,100,000
% of US & Canadian
17.36%

6. Market Population Reach
300 Mile % of US 500 Mile % of US
Market Reach Population Reach Population
Chicago 50,100,000 16.23% 82,900,000 26.87%
Columbus 53,700,000 17.38% 142,100,000 46.02%
Harrisburg 70,300,000 22.77% 112,200,000 36.35%
Indianapolis 54,100,000 17.52% 111,200,000 36.03%
Kansas City 19,100,000 6.18% 67,300,000 21.81%

7. Columbus Value Proposition
Market Analysis Ranking
(5 Represents Best Use/Cost Advantage)
Chicago Columbus Harrisburg Indianapolis Louisville
Ranking Level 1-5 1-5 1-5 1-5 1-5
Population Reach 300
3 4 5 4 4
Miles
Population Reach 500
1 5 3 3 2
Miles
Cost of Labor 2 4 3 5 3
Cost of Occupancy 2 4 3 1 5
Logistics Cost
East Coast vs. West 5 4 3 4 2
Coast Inbound
Total 13 21 17 17 16

8. Regional Market Real
Estate Analysis
Market Statistics Columbus Chicago Indianapolis Louisville Central PA
Rentable Area (SF) 205,891,574 1,184,605,187 236,704,434 97,124,883 148,681,066
Vacancy Rate 13.8% 9.2% 8.5% 8.0% 11.7%
Net Absorption (SF) -1,104,356 6,239,271 3,541,406 521,250 1,056,168
Under Construction (SF) 1,862,035 2,795,480 492,000 186,000 0
Average Lease Rate $3.22 $3.98 $4.32 $2.88 $3.51
Source: CB Richard Ellis

9. Report Findings
What we found: Columbus can gain
important advantages over other freight
communities by delivering a freight network
that is predictable (Maersk Daily Service
9/2011: “absolute reliability, its predictable,
its boring and its right on time”)

10. Predictability in the Supply Chain
Delivered by the Columbus Region
Nine Recommendations
1. Marketing message/value proposition
received by all Columbus Region
members
2. Harmonize web contents so that all
members are consistent in site selection,
links to Columbus Region

11. Predictability in the Supply Chain
Delivered by the Columbus Region
Nine Recommendations
3. Create a roster of Class A buildings to
demonstrate Columbus Region’s
advantage with this product type
4. Establish a working group to accelerate
development at Rickenbacker Rail
Served Logistics Park
5. Identify new sites that can be ready for
Jobs Ready Sites

12. Predictability in the Supply Chain
Delivered by the Columbus Region
Nine Recommendations
6. Retail sites supported by retail
distribution centers not in Columbus
7. Review, analyze Georgia’s Innovation
and Logistics Center, attributes that may
benefit the CRLC
8. Forum for manufacturers and distributors
on HOS and CSA-issues which impact
drivers services and capabilities

13. Predictability in the Supply Chain
Delivered by the Columbus Region
Nine Recommendations
9. Determine an e-commerce strategy for
the Region in order to capture new
distribution in this sector

14. Rail Served Logistics Parks

15. Rickenbacker Global Logistics Park

16. E-Commerce Overview

17. Types of New Commerce
• E-Commerce = Electronic Commerce
(Computer, Laptop, Desktop)
• M-Commerce = Mobile Commerce
(Phone, tablets, readers etc.)
• S-Commerce = Social Commerce
(Derived from Social Networks such as
Facebook, Twitter, Groupon, etc.

18. What Retail Tells Us
• National Retail Federation: retail growth for
2012 should be 3.4%, down from 4.7%
growth in 2011 (GDP growth 2.1%-2.4%)
• Amazon growth in 2010 was 39.5%, revenue
of $34.2 Billion
– 52 Distribution Centers exist
– 28 overseas order processing, fulfillment DC’s
– 17 Distribution Centers proposed/planned
– 1/5/2012, Two new DC sites announced in VA,
one in TN; 1/24/2012, new DC site announced in
SC

19. E-Commerce Leaders
• Next to Amazon, e-commerce leaders are:
– Staples, $10.2b, 4.1% growth in 2010
– Apple, $5.2b, 23.0% growth in 2010
– Dell, $4.8b, 6.0% growth in 2010
– Office Depot, $4.1b, 0.0% growth in 2010
– Walmart, $4.0b, 17% growth in 2010
• (internetretailer.com, Top 500 List, 12/2011)

20. Projected Impact of
E-Commerce
• By 2025 it has been estimated that
Ecommerce will represent 30% of all
Retail Sales and account from 2.7 trillion in
total sales (Source: Dematic)
• Within 5 years, the percentage of sales
closed at physical stores vs. alternative
sales channels (E-Commerce, M-
Commerce and S-Commerce) will drop
from 91% (today) to 76% (Deloitte Study)

21. Shipping’s Role in
E-Commerce
• Fulfillment “promise” stipulates site selection
and access to transportation networks and
hubs
• “Free shipping” retains transactions (3/4 of
consumers abandon shopping at checkout if
shipping is not free)
– Shipping solutions include “retail shipping clubs
based on purchase thresholds, linking free
shipping to minimum orders or certain products
(higher margins), customized delivery or
providing free shipping on two or three day
delivery solutions

22. Why Does all this Matter?
• The logistics systems must continue to evolve
to support this new commerce channel,
– Buildings, building configurations, processing
systems
– Truck-load, less-than-truck load distances
– Zone-skipping
– Multiple air hubs – Truck Hubs
– Customized deliver, disposal of products
– And new job opportunities (WSJ: wanted e-
commerce chiefs: salary ranges $300k-500k
according to top recruiters (11/15/2011)

23. How Are They
Making It Work?
• Single DC supports national store
replenishment and e-commerce order
fulfillment
• Stand alone DC(s) for store replenishment and
stand alone e-commerce fulfillment centers (in
different locations)
• Third-party sourcing for all aspects of fulfillment
and transaction support
• Third-party sourcing for selected goods to
enhance product launch, seasonal products

24. QUESTIONS ?
Thank You
Steve Schellenberg
IMS Worldwide, Inc.
www.imsw.com