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Similar a Supply Chain Expectations (20)
Supply Chain Expectations
- 1. Business
Excellence
Operating
Strategy
Execution
Business
Excellence
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 2. Operating
Execution
Supply
Chain
Operating
Production Execution Finance
Sales
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 3. The Supply Chain
Corp Purchase Order Transportation
Supplier
Customer DC
Manufacturing
The Customer
Retail The Connecting
Link
Warehouse
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 4. Logistics
Logistic Costs — the amount of money
associated with the purchase, transport, storage
and distribution of goods — are an unavoidable
part of the supply chain process.
Logistic Service – the satisfactory
performance of the suppliers it selects for
purchasing, transport, storage and distribution –
is an equally unavoidable element.
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 5. Logistics Cost
Customer Carrier
Responsiveness
Requirements
Carrier Order Process
Contracts Cost to
Serve -
Customer
Fuel Cost
Warehouse
Cost Reduction
C Opportunity
Data
Shipping Accessorial Production
Charges Schedule
Department
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 6. Logistics Cost
Warehousing
Vendors/ Suppliers
Transportation
Customer Expectations
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 7. Logistics Cost
Warehousing
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 8. Logistics Cost
Facility Options
– Ownership
– Direct Provider
– 3PL
Services
– IT
– Inventory Management
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 9. Logistics Cost
Marketplace capacity
RFP consideration
Industry Size
Major Providers
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 10. Logistics Cost
Cost opportunity areas
– IN/ Out charges
– Kiting rates
– Pick/ pack rates
– Odd size packages
– Inventory management
– Technology enhancements
– Outsourcing
– Process
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 11. Logistics Cost
Vendors/ Suppliers
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 12. Logistics Cost
Manufacturing
Commodity increases
Lost raw material vendors
Risk management
Purchasing contract language
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 13. Logistics Cost
Distributors
Commodity based product
Volume quantities
Fewer vendors produce product
Transportation
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 14. Logistics Cost
Transportation
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 15. Logistics Cost
Marketplace capacity
Mode selection/ change
Rate direction
– Carrier partnership
– Negotiation
Fuel
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 16. Logistics Cost
Carrier geography definition
Mergers and Acquisitions
HOS regulation
Driver shortage
Closed loop spend management
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 17. Logistics Cost
Recent safety legislation – CSA 2010
Recent international legislation – 10+2
Reach (Euro)
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 18. Logistics Cost
Customer Expectations
continue to grow
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 19. Logistics Cost
Delivery Performance
Logistics Cost
Service Reliability Cost
© Copyright 2009
William Driscoll
Confidential and Proprietary
- 20. Logistics Cost
Questions
© Copyright 2009
William Driscoll
Confidential and Proprietary