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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
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