This document discusses a 3PL (third party logistics) initiative between the presenting company and a client. It outlines the benefits of 3PL for reducing operational costs and focusing on core competencies. The company offers an end-to-end supply chain solution utilizing their technological platform and network. Their operational scheme would integrate the client's supply chain data and processes. The services would enhance the client's business operations and supply chain management through applications, business intelligence, and performance management tools. Partnering with the presenting company provides value through cost savings compared to a company's logistical expenses.

1. Collaborative SCM
Capturing Mutual Value from a 3PL Initiative
Presented for a collaboration with:
January 2008
* This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

2. Table of Contents
• Background, why 3PL
• Our Offer
• Operational Scheme
• Service Enhancement
• Why Us

3. Background, Why 3PL
Firms need to stay competitive by keeping their business lean.
Whatever the industry is, businesses needs to Focus on its area of service and thus reduce
operational cost from inefficient non-core business process.
3rd Party Logistic Service (3PL)
3 PL Solution for:
-Firms with wide and/ complex distribution network
- Firms where logistic is not a core competence
- Firms in strategic discussion for a core competence
- In the process of creating new product group
- Acquisitions and integration initiatives

4. Our Offer
Technological Platform: Brick Business
• Applications and Service Provider • Warehouses
• Implementation Services • Transport
• Consultancy • People
• Processes and Procedures
+ Captive Client Network
Enhancing company X IT Platform to Provide End to End
Supply Chain Solution
3PL service that allows Cost Competitiveness, Resource Efficiency, End-to-
end Logistic Control, B2C and B2B supporting features as well as Driving
Competitive Advantage

5. Operational Scheme, Supply Chain Management
WHOLE SALER /
Vendor / Suppliers IT DATA CENTRE SMS Order
at headquarters Application
Vendor Application
Vendor – A to n Financial Management
Application
Transaction Management
Application
3rd Party Logistic WHOLE SALER /
Operation Management SMS Order
WMS & TMS Application Application
Application
Industry
Principal Application
Principal – A to n
Direct Customer
Transaction Direct SMS Order
FLOW of INFORMATION FLOW of GOODS DISTRIBUTION BANKING Information
Credit Limit
information

6. Service Enhancement
Business
Support
Data Warehousing Business Intelligence Performance Management
Logistic Apps TMS WMS ERP SFA
Business
Operation
Supplier Mgt Customer Self Services Freight Forwarding Apps Supply Chain Planning Mobile Solution Customer Mgt
Customer Focused Planning
- Productions - Inventory - Distribution
- Scheduling - Planning
Quick DSBD Integrated Micro
Network Flexible Cross Activity-Based Sales Force Marketing
Rationalization Manufacturing Costing Response Strategy
Docking Planning
Strategies
Inbound Manufacturing Transportation Warehousing Delivery Retailer Consumer
Vendors
Logistics
Supply
Chain
Mgt
PRODUCT FLOW
Order Management and Information Systems
Cash Flow
Supply Chain Vendor- Category
Promotion
Forecasting Systems Electronic Data Management Paletizing Net Landed Cost Management
Planning
Selection & Interchange Inventory Barcoding Continuous
Process
Implementation Replenishment

7. Why Us
The Value of Captive Market
Using common business practice assumption where
logistical expense is 20% of companies’ VAT. Captive
VAT vs Logistic Expense
market value for the business would at least be:
Rp
500,000.0
400,000.0
300,000.0
Value
200,000.0 VAT Logistical
100,000.0 Expense
0.0
A B C D
Company
* Business Week Stock Report, 2006 (in Million IDR)
Partnership Relations not Vendor Relations: Share the Pain, Share the
Gain (Pay-as-you-grow Scheme)