Harry Drajpuch - PowerPoint PPT Presentation

Title: Harry Drajpuch


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Logistics 21st Century Competitive Advantage
How good are you?

• Harry Drajpuch
• Executive Vice President General Manager
• USCO Logistics

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USCO Logistics Overview

• Business unit of Kuehne Nagel International AG
• Leading provider of supply-chain solutions
• 35 years experience
• Manage 15M sf in 70 facilities
• Process 1.9M lines monthly
• Integration with 75 client enterprise systems
• Partner to 36 of top 100 global companies

BusinessWeek Global 1000, 7/9/01
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KN Global Contract Logistics Reach
Locations 70 Logistics Space
15 M sq ft Employees 3,000
Locations 150 Logistics Space
15 M sq ft Employees 3,600
Locations 100 Logistics Space
10 M sq ft Employees 3,100
Locations 320 Logistics Space 40 M sq
ft Employees 9,700
Global reach local know-how
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USCO Core Services
Integrated Supply Chain Management Solutions
Information Logistics
GlobalLogistics
OrderManagement
TransportationManagement
WarehousingSolutions

• Dedicated shared
• Flexible scalable
• Largest NA network of distribution centers

• Delivery solutions
• Non-asset based
• Optimized service savings

• Online order placement
• Fulfillment call-center services
• Supply chain visibility

• Kuehne Nagel
• 180 multi-client DCsin 90 countries

• Lead logistics service provider
• Information driven
• Collaboration visibility

G
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North American Network
Edmonton
Calgary, Alberta
Winnipeg
Dorval, Quebec
Portland OR
Montreal, Quebec
Ottawa, Ontario
Franklin MA
Shakopee MN
Toronto
Jersey City NJ
Port Clinton OH
Allentown
Sheffield OH
Bridgeport NJ
Chicago IL
Joppa MD
Gaithersburg MD
Reno NV
Baltimore MD
Denver CO
Independence, MO
Hayward CA
Louisville KY
Lenexa KS
Durham NC
Zebulon NC
Nashville TN
Ventura CA
Charlotte NC
Ontario CA
Memphis TN
Cerritos CA
Atlanta GA
Dallas TX
Lewisville TX
Lakeland FL
Miami FL
Monterrey
Guadalajara
Mexico City
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Industries Customers
Integrated Supply Chain Management Solutions
Retail
Consumer /Industrial
Healthcare / Pharmaceuticals
High Tech
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Impact of Companies Like USCO

• Link worlds businesses people through
  globalization
• Connect North America
• Reduce economy-wide inventory
• Lower business-cycle risks

While information technology makes global
national linkages virtually possible -- companies
like USCO make them physically possible.
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Brush-Fire Management

• Typical focus is on daily operating problems,
  sales marketing promotions, service issues,
  etc.
• How often do you review logistics functions?
• Whats overall impact interaction with rest of
  business?
• Does logistics function
• Respond directly to present future needs?
• Support primary business mission?
• Drive most cost-effective customer-service
  support?
• How can you find out?

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Recommendation

• Conduct a self analysis of your logistics
  strategy
• Focus on what your logistics activities should be
  doing to support your business
• Consider the following 7 key areas

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Logistics Strategy Self-Analysis

• Company Markets
• Have you moved into new markets?
• Has there been shift in customer shipments?
  (I.e., wholesalers, distributors, retailers,
  etc.)
• Company Products
• Have you added or deleted product lines?
• Customer Service
• Has representative customer survey indicated
  service problems?
• Have there been any systems or order processing
  changes that have affected order cycles?

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Logistics Strategy Self-Analysis

• Logistics Operations
• Have labor or facility costs resulted in changes
  to location or operations?
• Have type, quality or size of product packaging
  changed?
• Have you reached capacity in existing
  distribution facilities?
• Transportation Operations
• Has the profile of product shipments changed?
  (i.e., UPS, full truckload, less-than-truckload)
• Do you move inbound outbound products across
  common shipping lanes?

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Logistics Strategy Self-Analysis

• Product Operations
• Have you changed or introduced new source points
  for products?
• Has product capacity changed at existing
  production locations?
• Other
• Have distribution transportation costs
  increased as percent of sales?
• Have there been internal structural changes?

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Assembling the Jigsaw Puzzle
Customer relationship management
Order Management
EAI
Internet
Intl trade compliance
e-Logistics Portals TMS
Global in-transit visibility
3PL
ASP
Warehouse management
Event management
LLP
Transportation planning management
Supply chain collaboration
e-Fulfillment
Merge-in-transit, diversions
All freight All modes All over the world
ERP
Private vs. public exchanges
Single command control center
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Develop In-house? Outsource?
Significant investment development required
to support
evolving supply chain. Best source of your ?
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Why Outsource?

• Manufacturers are now embracing third-party
  logistics providers (3PLs)
• Alternative to running their own distribution
  operations
• 3PLs have been providing distribution operations
  to companies for years
• Most have roots in transportation, warehousing or
  freight forwarding
• Providing 3PL logistics services a 56B industry
• Increasingly seen as distribution option by
  companies in range of industries

Armstrong Associates Logistics Management
Distribution Report 7/02
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3PL Benefits

• Although not right answer for every company,
  where its right it can provide cost, service
  strategic benefits

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3PL Usage Rates Growing
Percent Using or Considering 3PLs
Whats ahead for 3PLs? Modern Materials
Handling, 4/01
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Evolutionary Cycles Continuing
Internal Logistics Operations
Source Adapted from John Gattorna 1998
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QUESTIONS?
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Example Designed In Flexibility
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Example Designed In Flexibility

• Rapid marketplace changes
• Time to money