July 2006

1
LOGISTIC CONTROL DFW Perspective
Andrea Dickerson
July 2006
2

General Logistics Planning Update

• What has happened in the last 2-3 months?
• Tuesdays were declared Inventory Day to ensure
  ULD report integrity
• Non-network Report (NNA) was created to aid in
  container recovery
• Now passed on to Martina
• Weekly Global Underage Report is updated every
  Wednesday
• Game board Updates occur on Wednesdays
• Trucking Matrix was created for easy cost per
  lane identification
• ULD report challenged and updated
• Provide information to sales as requested
• Provide information to LCs as requested
• Dead End Inventories has been reduced by 8
  Globally
• South America and Australia are virtually off the
  radar
• Asia has limited airports still listed
• Global reduction from 487 containers to 266
• Asias Inventories have been reduced by 42 since
  January
• January inventory was 337

3
NNA

• 91 Containers in NNA locations
• JYP (2)
• RAP T1 (2)
• RAP T2 (30)
• RKN T1 (11)
• RKN T2 (46)
• 74 Airline Leases
• KLM (29)
• EMIRATES (23)
• LH (10)
• SINAPORE (5)
• LX (2)
• AF (2)
• CO (1)
• LAN CHILE (1)
• CARGOLUX (1)
• 29 Key and Target Accounts

4
WEEKLY UNDERAGE / OVERAGE
5
TRUCKING MATRIX
6
Individual Focuses

• DEAD END INVENTORIES
• Removed from South America and Australia
• some from new business / increased business
• some new repo lanes and efforts
• Asia dead inventories
• KUL and TPE
• SIN and BKK have outbound business

• ASIA
• UA has offered to move 5 RKNs per day
• Once we have neared the end of the RKN
  inventories Estle and I plan to approach them in
  regards to the RAPs
• 40 RKNs currently remain in TPE
• Some days have only resulted in a return of 2
  containers
• Terry has offered to visit Jeffery Petit,
  Josephina and the department on behalf of
  Envirotainer and thank them for their efforts
• It is hoped that this occurs BEFORE we ask for
  the RAP relocation
• If they agree -gt the RAPs will come to the US and
  then we will need to move them onto EU

7
Dead End Inventories
8 Global Reduction
Global reduction from 17 to 9 of fleet (487 to
266 containers)
8
Changes in Asian InventoriesJan July 2006
42 Reduction in Asian Containers from January to
July
9
General Logistics Planning Update

• Where are we today?
• Sales opportunity sheet added to ULD report for
  better long range planning
• Liked by Terry and Ana
• Disliked by most sales people and OCs
• Viewed as extra work
• Told by sales to obtain information from
  Navigation Report
• Changes in operating style are still being met
  with opposition
• Intra office requests are still met with rebuttal
• New ULD report
• 10 min update instead of 2 hrs
• Used to create worksheets for LCs to aid in
  planning and container movement
• Used in our meetings
• Integrity of report still questioned by LCs
• Changes occur verbally and are not input
  therefore not reflected in ULD report
• These discrepancies cause disbelief in ULD report

10
Tools Which tools have proven useful?

• ULD report is a valuable overview planning tool
• DRAWBACKS
• Lack of customer identification under new
  guidelines
• Some recovery of lost containers from NNA report
• ASSETS
• LCs have recovered approximately 3 containers a
  month thanks to this report
• DRAWBACKS
• Developed a lot of questions of who is
  responsible for what and when
• Trucking Matrix has been useful in leading LCs to
  best prices when requesting quotes
• Used for guidance in decision making
• Quick lane rate identification requests from Gray
  and Kelly

11
A Major Success

• New relationship with UA
• Helping to clean out TPE of RKNs
• Hoping they will help with RAPs
• Asian container reduction of 42 since January

12
A Major Frustration

• Lack of acceptance of LP position and reports
  overall
• Negativity from OCs, LCs and Sales
• LC reluctance to move containers controlled by
  an OC they do not wish to confront
• LCs lack of desire to accept direction from LP
• Refusal by some LCs to move containers if
  identified by LP or OC
• Lack of communication
• Guarding of information and containers

13
LearningsWhat works well why

• ULD Report
• Preparation of LC Worksheet
• ULD report provides good global overview which
  can be then be transformed into regions to guide
  the LCs through their daily work
• Now with "easy" updates can provide current info
  to LC questions provided OCs/LCs update system
  and not just verbally relate changes
• Quick answers to Sales, OCs and LCs questions
• Answers the where are containers questions
  quickly and easily

14
Learnings What does not work well why

• LPs interact in daily functions
• Usage of worksheet and daily meetings
• Value of worksheet is not realized by most LCs
• Guidance of container movement in most LCs
  regions is met with resistance
• Limited OCs are open to direct communication in
  regards to the ULD report / Sales ops sheet
• Value of meetings is still questionable
• Meet at LCs request generally once per week

15
Ideas / RecommendationsWhat would you do to lift
"Logistics Planning" to the next (global) level?

• Target key lanes for sales based on container
  type and return routes available
• Increase fleet size and position the new units
  appropriately
• Better communications between everyone
• Stop leaving parties out of the loop
• Timely relaying of information
• Transition LC thinking from "their" region to
  global effect on placement
• More office interaction and global thoughts on
  container placement
• e.g. CDG needs RKNs returned ASAP to YYZ for
  Sanofi but CDG has own business
• Which account need is higher or more valuable to
  the company? CDG's accounts or YYZ's Sanofi?
• Do you create an "auto" return like what is being
  done in ATL and IAD for Wythe on RAPs despite
  local need or do you continue to use containers
  in CDG and hunt for YYZ returns?
• Acceptance of sales opportunity sheet by sales
  and OCs to allow for optimal logistics planning