The Intermodal and Supply Chain Challenge

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The Intermodal and Supply Chain Challenge

• April 30, 2001
• Peter V. ColemanVice President

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Great Ideas But We Have Not Executed Well
Why?
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Where the Disconnect Has Been and Opportunity
Lies
Decision Support Systems
Supply Chain Visibility
Data Connectivity
Data Capture / Internal Visibility
Operational Execution
We believe the Internet provides the platform
and impetus for supply chain
integration. For the first time, supply chain
visibility and data connectivity are
finally possible on a cost-effective basis.
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The Intermodal Tree
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We must become more efficient as costs continue
to rise and physical barriers to supply chain
growth are reached.
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Unfortunately Logistics Spend is Not Decreasing
( in billions)
Logistics represented 10.4 of GDP in 1999
compared to 9.8 in 1990.
Source Survey of Current Business, U.S.
Statistical Abstract, Transportation in America,
ENO Transportation, Cass Information Systems.
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The 95 Corridor gives us a glimpse of the
future.
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Roadmap For Getting There
Connectivity
Collaboration
Optimization
Evolution
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Logistics Services Stock Performance vs. Market
Source FactSet, Banc of America Securities LLC.
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Intermodal Case Study - J.B. Hunt Intermodal
In partnership with eight major railroads, JBHT
operates a large intermodal network (over 21,000
containers), with volumes exceeding 600,000 loads
annually
Source FactSet, Company reports and Banc of
America Securities LLC.
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Future Challenges

• Weakening financial performance
• Continued commoditization of offerings
• Capital intensity
• Waning investor interest
• Reduced access to capital

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What The Government Can Do

• Re-regulate or further de-regulate
• Partnerships
• Other forms of encouragement

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My Takeaway
The supply chain is an interwoven chain of
participants, so any initiatives or strategies
must be inclusive.