Similar a Joel Sutherland from the Center for Value Chain Research, Lehigh University & OHL, Relationships that Respond Intelligently to Economic Rebound
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Similar a Joel Sutherland from the Center for Value Chain Research, Lehigh University & OHL, Relationships that Respond Intelligently to Economic Rebound (20)
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Joel Sutherland from the Center for Value Chain Research, Lehigh University & OHL, Relationships that Respond Intelligently to Economic Rebound
1. 8th Annual 3PL Summit
June 21-23, 2010
Executive Workshop:
Developing a Flexible Relationship
to Respond Intelligently
to the Economic Rebound
All rights reserved, Joel Sutherland, 2010
4. US GDP Growth
The US GDP is $14.2 trillion or 22.9% of the
world economy – the world’s largest.
US GDP growth for Q110 revised down to
3%, showing that the recovery may not be as
strong as many had expected.
All rights reserved, Joel Sutherland, 2010
5. US Balance of Trade
The US leads the world in imports while remaining one
of the top 3 exporters.
The US balance of trade deficit in April was $40.3B.
US trade deficit with China was $19.3 billion – nearly 50% of total.
Total 2010 deficit estimated at a record $1.84 trillion.
Represents 12.9% of the economy – highest since 1945.
Forecast to decrease in 2011 – but iffy.
Higher fiscal deficits will likely lead to higher taxes.
All rights reserved, Joel Sutherland, 2010
6. Unemployment
Employers in the US hired fewer workers in May than
forecast and Americans dropped out of the labor force -
showing a lack of confidence in the recovery.
Consumer spending (needed to increase production) is
weak mostly due to high unemployment rates.
It may take a few years to revive 8.5 million jobs lost
since the recession began in December 2007.
The federal government added 412,000 jobs.
All rights reserved, Joel Sutherland, 2010
7. Logistics Indicators
Logistics costs fell to 7.7% of US GDP in 2009 from
9.3% in 2008.
Warehousing costs fell 2% below 2008.
Although early 2009 saw warehouses full of inventory, by mid-year
inventories were reduced leaving facilities with empty space.
Transportation costs 20.2% lower than 2008, with all
modes of transportation being negatively affected.
Trucking had a 9% drop in tonnage carried.
Source: CSCMP’s 21st Annual “State of Logistics Report®”
All rights reserved, Joel Sutherland, 2010
8. US Logistics Costs - 2009
Source: CSCMP’s 21st Annual “State of Logistics Report®”
All rights reserved, Joel Sutherland, 2010
9. Looking Ahead
The jury is still out on when the economy will
realize a meaningful and sustainable recovery.
Understanding your customer’s needs, and
adapting an effective strategy that responds to
these needs, is essential in achieving
successful and sustainable 3PL-customer
relationships.
All rights reserved, Joel Sutherland, 2010
11. SC Management Challenges
Economic slowdown/recession recovery
Supply chain disruptions – natural & manmade
Managing global supply chains
Supply chain visibility and event management
IT: Internet, web applications, social networking
Developing ROI for going “Green”
Organizational issues
Source: SCLA Annual 2010 Conference
All rights reserved, Joel Sutherland, 2010
12. “Best” SC Management Strategies
Customer-driven
Aggressively pursue innovation and creativity
Capitalize on skills of people in every area
Leverage core competencies
Develop solutions, NOT technology (do after)
Inspire competitors to imitate
Source: SCLA Annual 2010 Conference
All rights reserved, Joel Sutherland, 2010
13. Areas for Improvement
Supply chain accounting/finance (CEO & Wall Street)
KPI’s (more supply chain focused)
Increasing skill requirements (continuous learning)
Using available information technology
Source: SCLA Annual 2010 Conference
All rights reserved, Joel Sutherland, 2010
14. What SC Leaders Need to Master
Strategy, tactics and execution
“Push” to “Pull”
Lean
Cash flow and people management
Sustainability and “Green”
Collaboration
Fundamentals
Source: SCLA Annual 2010 Conference
All rights reserved, Joel Sutherland, 2010
16. 3PL’s Can Help Their Customers’…
Contain Supply Chain Costs
Increase Supply Chain Visibility
Prepare for SC Disruptions
Improve Customer Service
Expand Globally
All rights reserved, Joel Sutherland, 2010
17. Opportunity: Develop lean and agile SC capabilities that
allow rapid response to customers’ changing needs and
provide variable cost structures that fluctuate with revenues.
18. Opportunity: Provide effective visibility tools and facilitate
the identification, collection, and use of information to
improve supply chain performance.
19. Opportunity: Become an expert in managing a variety of
potential supply chain disruptions. Enhance processes and IT
to more effectively monitor and respond to disruptive events.
20. Opportunity: Facilitate increased coordination, integration, and
collaboration with shippers and suppliers, utilizing information
technology, to improve end-customer satisfaction.
21. Opportunity: Provide end-to-end solutions, including
comprehensive visibility and event management, to ensure
reliable service and lowest total supply chain costs.
22. Takeaways
SC costs are significant and the pressures to
reduce costs are severe
Supply chains are global, increasingly
complex, and challenging to manage
Effective SC management has a high impact
on customer service
SC disruptions can be catastrophic if not
planned for
Technology is a game-changer
All rights reserved, Joel Sutherland, 2010
23. Interactive Discussion
What are YOU doing in each of these areas?
Contain SC Costs
Increase SC Visibility
Prepare for SC Disruptions
Improve Customer Service
Expand Globally
All rights reserved, Joel Sutherland, 2010
24. Questions?
Joel Sutherland
Managing Director
Center for Value Chain Research
Lehigh University
Joel.sutherland@lehigh.edu
All rights reserved, Joel Sutherland, 2010