Learn more about Transportation Management Group and the best practices to lower transportation costs.

1. ©2012 Don Dovgin All Rights Reserved.
Proprietary & Confidential
Consulting
Technology
Outsourcing

2. Providing total solutions,
rather than advice.
Utilizing the latest
technology to enable
and generate new
business opportunities
for you.
Creating value by
delivering lifecycle
solutions and bottom line
results.
Bringing value-based
solutions to our clients to
help build bridges for the
future.
We quantify our results
so you see the value.
Consulting
Technology
Outsourcing
Relationshi
ps
Improved
Profitability
Driving hard for our clients

3.  Decades of experience
 Routinely achieve 8% to 12% savings for our clients
 Achieved as much as 50% savings in LTL
categories
 Utilize best practices in the industry
 “Big Four” Consulting at a competitive cost
 Warehouse, Distribution, Transportation, Logistics –
Our Core Competency!
Implementation

4.  Obtain visibility into enterprise spend to identify and prioritize sourcing
activities
 Use Best in Class methodology and templates to reduce effort for client
 Customized application of RFP’s to uncover underlying category
economics
 Unlocking unrealized potential by letting carrier bid on strengths
 Iterative bid analysis uncovers “what if” scenarios
 Review carrier consolidation opportunities
 Supported by comprehensive complement of analytic reports to ensure
feasibility
 Track implementation and actual savings, based on initiative
recommendations
 Identify secondary savings opportunities through sustained focus on
quality
Sourcing Process
Transport Sourcing Methodology
Baseline
Data Prep
Proposal
Collection
Bid
Analysis
Transportatio
n
Management

5. Typical Scenario
 After six to eight months, actual savings can fall short of expectations by >40%
Time
Savings
Savings shortfall
due to weak
compliance
tracking
Savings erosion due to
weak category
management
Projected Annualized Savings
Projected savings can erode rapidly without ongoing maintenance after implementation
 Carriers don’t accept tendered loads
 Non-compliant carriers used
 New lanes emerge as supply chain
partners change their networks
 Volumes shift as loads are optimized
Transport Support

6. Strategic
Alignment
Relationship
Leveraged
Drivers of Provider Selection
Consolidation of
requirements amongst
carriers
Operational integration
based on historical
successes
Systematic matching of
changing capacities and
capabilities
Notes
 This is an iterative and evolving process
 Timely progression through the appropriate
stages is key for deriving incremental
benefits
 The majority of carrier relationships
surveyed are being managed on the
relationship level today
Progression
Emphasis on building relationships with a few core carriers
Significant opportunities are uncovered
when transportation has been managed
based on strong relationships

7. Broad Strategic Sourcing Experience
 Supported numerous teams with services that
provided combined savings in excess of $200
million
Deep Transportation Sourcing Expertise
 Sourced over $1 Billion of global spend, generating
an average savings of 14% per initiative
 Routinely advise strategy consulting
firms, journalists, and analysts in transportation
sourcing
Collaborative Carrier Approach
 Methodology produces long-lasting carrier
relationships
 Frequent accolades from carriers validate
collaborative approach
Recent Results
Result Result
 International Air
& Ocean
 $3 million spend
 TMG saved
$700,000
 NA Truckload
 $7 million
spend
 TMG saved 1.5
million
Result Result
 LTL
 $15 million
spend
 Saved 23%
 Inbound Freight
 Converted
terms
 TMG saved
15%
WHY TMG?

8. Step 1 Step 2 Step 3 Step 4
Step 5
Baseline
Spend
Components
Select
Sourcing
Strategy
Develop
Provider
Base
Select
Implementation
Approach
Negotiate and
Select
Providers
Integrate
Providers
Benchmark
Performance
Step 6 Step 7
7-Step Sourcing Methodology

9. Baseline
Database
5.
Award notifications
Negotiate agreements
1.
Baseline Spend
4.
Implementation Approach
Facility Profiles
RFI/RFP
Savings Calculations
2.
Site interviews
Data and
Systems review
Sourcing Strategy
3.
Develop Provider Base
6.
Company Announcement
Integrate Providers
7.
Organize KPI’s
Benchmark Performance
Track Savings
Deeper into Sourcing Methodology
Inputs
Outputs

10.  Cost-effective coordination of moving of the right material in sufficient quantities from
manufacturing to storage.
 Movement from storage centers to on-time delivery to customers
How Does TMG Implement Optimization?
 Help client design and implement their physical distribution infrastructure:
 Detailed design of the “inside and outside the four walls”
 Helping clients address changes in their environment
 Take in account factors such as:
 Postponement cross-docking
 Increased customer demands for accuracy, speed, value-added services and
flexibility
What is Distribution & Warehouse Optimization?
Distribution & Warehouse Optimization
Distribution
operations
account for the
largest segment
of assets in the
supply
chain, and the
second
largest segment
of cost.

11. 1. Distribution Strategy:
Channel strategy performs customer driven market segmentation, quantifies cost to
serve, optimizes go-to-market strategies, service requirements and associated
distribution capabilities; network strategy rationalizes current distribution network
2. Warehouse Management Systems:
Focuses on execution capabilities of warehouse, enabling distribution capabilities and
integrating with other supply chain partners and providing transaction backbone
3. Distribution Design:
Improves processes such as cross-docking and consolidated distribution, picking and
dispatching
4. Performance Management:
Enhances human performance through and short term and continuous improvement
efforts
Distribution & Warehouse Optimization
Four key components

12. What comprises TMG’s Distribution & Warehouse Optimization
Solution?
TMG is one of few firms that offer a comprehensive “cradle to grave” solution set.
The solution incorporates:
 Distribution Strategy: Channel requirements and desired capabilities
definition, master distribution plan
development, benchmarking/assessment, operating model definition, supply
chain configuration
 Warehouse Management Systems: Selection and implementation of WMS
solutions
 Distribution Design: Detailed facility design for new & retrofitted
facilities, facility expansion
 Performance Management: employee
performance/measurement, operations management, slotting, equipment
maintenance, vendor compliance
Distribution & Warehouse Optimization

13. Traditional Warehouse Integrated Distribution Center
Characteristics
Client: Storage Depot
Isolated, discrete operation-functional
Inflexible, production oriented
No value added
Problem: One dimensional
Flow- through distribution center- extension of suppliers.
Integrated into cross-enterprise supply/demand chain.
Resilient, geared to agile manufacturing. Products
customized, made
floor-ready
Solution: Linkage of strategy, people, processes and
technology
Facilities
Large centralized
Up to half of storage space wasted
Storage-oriented use of space
Fewer, smaller, focused on regional markets
Maximized space utilization
Landing point for imported product, merge cross-dock unit,
plus value-added service area
People/Organization
Individuals working alone in a single function
Executives on single-discipline career track
Excessive bureaucracy/supervision
Multifunctional teams
Executives cross-trained to manage total business, make
knowledge-based decisions
Empowered workers, few management levels
Technology
Legacy systems, not integrated with vendors
Emphasis on assets – inventory, transportation, warehousing
Traditional/rigid order management
Integrated networks, distributed architecture
Emphasis on information, instant feedback real-time
readouts of business pulse points
Advanced system provides full-span logistics visibility to
implement agile distribution
Dramatic, Measurable Results
Order-handling cycle time, Shipping accuracy, Customer
lead-time
Twice as fast, Up to 20 percent better, 50 percent better,
Improved 10 to 20 percent, 99.9 percent, down 75 percent,
Distribution & Warehouse Optimization

14. What are the client benefits of TMG’s Solution?
 Increased volume (e.g. improved order fill rates)
 Reduced freight and indirect labor/warehousing costs
 Optimized physical network / facilities
 Leveraged new and/or alternative distribution channels
 Reduced customer service & order management costs
 Improved customer service (shorter lead times, more accuracy, value added se
 Reduce Finished Goods inventories
 Optimize AP and AR
 Improve Asset Utilization and Rationalization
Distribution & Warehouse Optimization Clients

15.  TMG has some of the best industry experts available known for logistics
supply chain and strategy practice
 TMG approach involves clients as part of our team that is trained with our
winning formula
 TMG takes an ongoing process to uniquely position client distribution facilities
in a constant state of improvement, not in a constant state of flux
 TMG shares implementation methods with top WMS vendors that have
proven abilities in:
 Fast-track operations implementation
 Reliable operations performance delivery
 Seamless integration between physical infrastructure and information
systems
 Designed-in worker usability
 Structured employee learning and process ownership
Why Hire TMG For Distribution & Warehouse Optimization
What is the
implementation
timeframe?
 Studies are 4 to 12
weeks
 Process
Implementation 12 to
18 weeks
 Technology
Implementation
4 to 18 weeks
Who are the client
decision-makers?
 VP Materials
 VP Logistics
 VP Supply Chain

16. 645 N. Michigan Avenue, Suite 800 • Chicago, IL 60611
Phone: 312.280.1380 • Fax: 312.751.0313
Email: info@tmginconline.com
www.tmginconline.com
Learn more about freight studies and our solutions.