1. Start Stop Logistics
1

2. The Logistics Landscape is Changing
 Instability in Global Supply Chains which have
become more Demand Driven
 Capacity Shortage across the Supply Chain
 Slow Steaming on Major Deep Sea Routes
 Government Regulations and Punitive Measures for
Road Transport leading to Increased Demand for
Rail and Barge Transport
2

3. Start Stop Logistics
Weekly Volatility - Beer Segment
140
120
100
80
60
40
20
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
3

4. Start Stop Logistics
Weekly Volatility - Wine Segment
120
100
80
60
40
20
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
4

5. Start Stop Logistics
Weekly Volatility - Food Segment
250
200
150
100
50
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
5

6. Start Stop Logistics
Weekly Volatility - Toilet Paper Segment
30
25
20
15
10
5
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
6

7. Start Stop Logistics
Weekly Volatility - Chemical Segment
70
60
50
40
30
20
10
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
7

8. Start Stop Logistics
Weekly Volatility - Total across Segments
500
450
400
350
300
250
200
150
100
Actual
50
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
8

9. Multimodal / Short Sea
Short
Sea Rail
Barge Road
9

10. Making Procurement an Art
 Hiring Container Ships
 Leasing Containers
 Haulage Capacity
 Barge Capacity
 Rail Capacity
 Stevedoring Arrangements
 Bunkers / Bunkers Hedging
 Currency Hedging
Balancing Risk and Opportunity
10

11. Contract Management
11

12. Back2Back
Contract Management
12

13. Opportunities to Balance Risks
 Clear Communication of Trading Conditions
 Service Level Agreements including Daily/Weekly
Fluctuations
 High Understanding of Customer's Operational
Requirements
 Escape Clauses
 Prioritise Legal Contracts
 Complex Supply Chains need operationally minded
Commercial People
 Reciprocal Carrot and Stick Arrangements
13

14. Contract Management
 Reduced Profits
 Increasing Competition
 Less Resources
 Less Time
 Increasing Customer Demands
Have you ever thought about cutting a Corner ?
14

15. DON’ T !
HAVE THE GUTS TO SAY NO !
15

16. Conclusion
 Manufactures and Retailers have become more Risk adverse vis a vis
Inventory Management
 Start Stop Logistics will increase weekly and daily Fluctuations
 Visibility and Agility will improve but at a Cost
 Both Customers and Service Providers will need to invest in additional
Resources for the Forecasting Process
 The current Situation where Service Providers take most of the Risk is not
Sustainable in the middle to long Term
 3PL/4PL Providers can take advantage but need to improve
Communication and Risk and Reward Sharing with the Asset Providers
16

17. 17

18. Start Stop Logistics
18

19. 19