SlideShare une entreprise Scribd logo
1  sur  56
Buying Transportation and 3rd
Party Logistics Services II:

How Do You Bring Purchasing Skills to the Process of Purchasing
Transportation and Logistics Services

For

The 61st Annual Southwest Supply
Management Conference

Thomas L. Tanel, C.P.M., CTL, CCA, CISCM, President and CEO and
Ronald D. Grossman, PMC, PCMH, CISCM, CEPP, Practice Leader
CATTAN Services Group, Inc., College Station, TX
cattan@cattan.com 979-260-7200
© 2007 CATTAN Services Group, Inc.
Today’s Agenda
Part II
 Purchasing T & L Profile and Spend
 Freight Modal Analysis and Decision
Impacts
 The Four ‘S’s
 Define Expectations and Routing Guides
 Strategies to Enhance Your T & L ‘Buy’

CATTAN Services Group, Inc.

2
Purchasing Transportation and
3PL Profile
 This is a template that:
Considers
Appreciates
Understands

 The following:
Corporate philosophy and culture
Supplier and inbound requirements
Internal/external customer requirements
CATTAN Services Group, Inc.

3
Supply Chain USA 1
Returns

DC Bremen
•Inspection
•Warehousing
•Shipping

Port

Option 1 Ship

Port

Airport

Airport

Customs
Broker

Option 2 - Air

Shops
FL, LH

DC USA
•Inspection
•Warehousing
•Pick, Pack
•Shipping

Customer
TD

Returns

Timing (days)

Alt 1 A (Sea)

Alt 1 B (Air)

Cost / Week (US)

Min

Max Min

16 d

25 d

2d

2d

2d

2d

Total US

Order Cycle TD

2d

6d

2d

6d

US per LE

Alt 1 B (Air)

8 d 10.5 d

Order Cycle FL/LH

Alt 1 A (Sea)

Available in USA

Max
43,800

71,400

1.87

3.05

CATTAN Services Group, Inc.

4
Purchasing Transportation and 3PL
Profile Con’t


Map all locations:


Company inbound/outbound locations
 Plants

 Warehouse/DCs








Supplier locations
Customer locations
Ports and major consolidation points
Major traffic flow lanes

Collect traffic flow data for above





Article description
Alpha and numeric STCC
Bulk or packaged
Quantity or volume per shipment per time period
CATTAN Services Group, Inc.

5
Facility Location Map—
Example

CATTAN Services Group, Inc.

6
Freight Traffic Flow Major Lanes—
Example

CATTAN Services Group, Inc.

7
Purchasing Transportation and 3PL
Profile Con’t
 Define expenditures and analyze spend:
Origin/destinations
Carriers and 3PLs
Freight rates-both line haul and accessorial
Warehouse rates-both storage and in/out
Freight and sales terms
Product specification/STCC/NMFC/UFC
Product weight and packaging
CATTAN Services Group, Inc.

8
Transportation Spend—
Example
FREIGHT
Amount
SUM

ITEM
PCT

Amount
SUM

MISC
PCT

Amount
SUM

Sum
PCT

Vendor Name
SNL DISTRIBUTION INC

$39,345.44

6.6%

$554,802.41

93.4%

CARGILL

$33,806.56

5.7%

$559,368.12

94.1%

$1,560.92

0.3%

$594,735.60

AZTECA

$26,993.57

7.8%

$319,598.24

92.1%

$396.00

0.1%

$346,987.81

GENERAL MILLS

$20,128.26

12.3%

$143,434.59

87.7%

$163,562.85

BEMIS COMPANY

$11,916.56

1.0%

$1,177,949.07

99.0%

$1,189,865.63

ROMAN MEAL

$11,607.23

14.1%

$69,833.37

84.9%

DANISCO USA INC

$10,994.43

5.1%

$204,547.20

94.9%

$9,311.00

6.4%

$134,867.41

92.9%

SUNMAID GROWERS

CATTAN Services Group, Inc.

$594,147.85

$828.98

1.0%

$82,269.58
$215,541.63

$967.60

9

0.7%

$145,146.01
Transportation Spend—Example

CATTAN Services Group, Inc.

10
Transportation Spend—Example
Destination

Total Costs
Per
Truckload

Mill Owner

Average
Cost
Per Day

Approximate Annual
Transportation Costs

Port Hudson, LA

GP

$

218

$

655

$

229,021

Pineville, LA

IP

$

330

$

330

$

158,217

Bogalusa, LA

I

$

429

$ 1,287

$

486,320

Monticello, MS

GP

$

509

$ 2,035

$

643,277

Vicksburg, MS

IP

$

512

$ 1,024

$

357,051

DeRidder, LA

Boise

$

482

$

965

$

273,429

Hodge, LA

S

$

527

$ 1,055

$

344,929

Bastrop, LA

IP

$

569

$ 1,138

$

475,017

Campti, LA

W

$

526

$ 1,577

$

504,162

Mansfield, LA

GP

$

571

$ 1,142

$

298,676

West Monroe, LA

R

$

568

$ 1,135

$

476,285

Orange, TX

I

$

566

$ 1,133

$

444,378

Crossett, AR

GP

$

631

$ 1,892

$

716,182

Evadale, TX

MW

$

697

$ 2,787

$

884,308

Texarkana, TX

IP

$

837

$ 2,510

$

871,975

Pine Bluff, AR

IP

$

851

$ 1,702

$

653,819

Pine Bluff, AR

Inland

$

851

$

851

$

185,523

Lufkin, TX

A

$

821

$

821

$

214,614

Ashdown, AR

D

$

885

$ 5,312

$

1,697,178

$29,351

$

9,914,359

TOTAL

CATTAN Services Group, Inc.

11
Don’t Forget…Plan for the Future
 Where is your business headed in the

next 12, 24, and 36 months?
 What are the major initiatives that will
have an impact on what you expect
from your carriers and/or third parties?
 What risk and costs factors may affect
your transportation and 3PL budget
forecasts?
CATTAN Services Group, Inc.

12
Purchasing Freight Modal Profile by # of Shipments—
Based on Weight of Shipment and Distance Shipped
Distance
miles

<1,000 lbs

1,0001,999 lbs

10,00029,999 lbs

30,00059,999 lbs

60,00089,999 lbs

<100
100-199
200-499
500-750
750-1,000
1,000-1,499
1,500 or
more

CATTAN Services Group, Inc.

13

90,000-or
more lbs
Freight Modal Shipment Volume Analysis
100%
90%
80%
70%
60%
PCT PER MODE

50%
40%
30%
20%
10%
0%
1-5 lbs

70-150 lbs

10,000 lbs

40,000 lbs

60,000 lbs

MODAL WEIGHT BREAKS
Water

Rail

TL

LTL

Air

CATTAN Services Group, Inc.

Parcel

14
Performance Comparison for Selected Freight Modes
Vehicle

Capacity

Truck Equivalency

Barge

1500 Tons
52,500 Bushels
453,600 Gallons

57.7
(865.4 for 15 barges in tow)

Hopper Car

100 Tons
3,500 Bushels
30,240 Gallons

3.8

100 Car Train Unit

Semi-Trailer truck

Post-Panamax containership

VLCC

747-400F

10,000 Tons
350,000 Bushels
3,024,000 Gallons
26 Tons; 910 Bushels
7,865 Gallons
9,000 for a tanker truck
5,000 TEU

384.6

1

2,116

300,000 tons
2 million barrels of oil

9,330

124 tons

5

CATTAN Services Group, Inc.

15
Purchasing Transportation Profile—
Affect Modal Decisions
 Rail generally competes with truck on freight

movements of more than 750 miles.
 About 15-25% of rail movement business is
truck competitive.
 Rail transit times for most bulk and break-bulk
cargo are roughly equal to barge transit times
within 750 miles and are days shorter beyond
1000 miles.
 High-value goods and time-sensitive goods are
likely to move through faster, more expensive
modes of transportation like air.
CATTAN Services Group, Inc.

16
Purchasing Transportation Profile—
Affect Modal Decisions
 Potential to convert TL to intermodal when

distance in excess of 1,000 miles and not time
sensitive.
 Competition for long-haul highway shipments in
particular are becoming noticeably more
intermodal as trucking companies have shifted
line haul movement legs to railroad TOFC or
COFC movements.
 About 90% of intermodal container traffic is
potentially rail vs. truck competitive
 Much of the international intermodal business
through the ports lends itself more practically to
rail moves and possibly barge.
CATTAN Services Group, Inc.

17
Purchasing Transportation Profile—
Affect Modal Decisions
 If you have to ship over 1,000 miles, you may

want to consider a national LTL carrier over a
regional LTL carrier. These firms offer the
advantage of not having to interline freight
traveling long distances.
 Private internal fleets are expanding to take on
shorter distance LTL or TL moves.
 Don’t assume that air means “you hear the roar
of jet engines” ; if the carrier can move your
freight on what it calls an ‘expedited truck’ and
get it to your destination in the timeframe you
specified---it may never see the tarmac. Also
don’t expect any great cost savings to result.
CATTAN Services Group, Inc.

18
Modal Decisions Translate
to Carrier Options
Shipping Modes
Orders

Carrier Options

• LTL/FTL
• Parcel
• Ocean
• Rail

CATTAN Services Group, Inc.

19
Purchasing Transportation Profile—
Affect Modal Decisions
 Review your shipping profile statistics and

understand where the economic shift
points are in your:
Parcel or Air/LTL mix
LTL/TL mix
TL/Rail mix
Air/Ocean mix

 Over 90% of all organizations are either

receiving and/or shipping internationally
CATTAN Services Group, Inc.

20
Comparison of Distribution Costs and Time from National Warehouses—
Example

CATTAN Services Group, Inc.

21
Thoughts About Choices
Bottom Line:
A company should define a
lane, process, operation, or
function that can be
improved, then make these
carriers and 3PL providers
compete for it.
CATTAN Services Group, Inc.

22
The Four S’s
Source
Solicit
Select
Secure
CATTAN Services Group, Inc.

23
The Four S’s: Source
 Identify Logistics and

Transportation
requirements:

 Review and clarify

req’mts
 Obtain feedback on
3PLs and carriers
 Review KPIs, KRAs,
and analyze gaps
 Establish which gaps
are most critical
CATTAN Services Group, Inc.

24
Material Flow DC USA—Daily 4 Month Average
Supply Chain Alternatives

0.8 Trucks/day

21 Pal/day (Euro)

5 Pal/day

Goods In
17 Pal/day (Euro)

Division Shop, Concessions

4 Pal/day (Euro)

Division T-Direct

2,060 Picks/day

5 Pal/day

Returns

Others

640 Picks/day

Pick / Pack

172 Cartons/day

172 Cartons/day

183 Cartons/day

5 Pal/day

Goods Out
Shop, Concession
14 Pal/day

1.5 Trucks/day

Direct
5 Pal/day

Others
5 Pal/day

0.5 Truck/day

CATTAN Services Group, Inc.

0.5 Trucks/day

25
The Four S’s: Source
 Gather data and manipulate information:
Compile or obtain 6-12 months of

history/activity req’mts
Obtain details: inbound and outbound;
origins and destinations; weight, cube
and # of pieces; traffic lanes, supply
chain streams, and demand chain
streams; types of equipment; volatility
and performance req’mts
CATTAN Services Group, Inc.

26
The Four S’s: Source


Create a RFI:
 Review 3PLs’ and carriers’ company and
public profiles
 Invite both current and new sources
 Get: completed profile questionnaires,
financials, insurance and safety certificates,
authority or operating documents, and
references
• Perform site visit when applicable. Talk with
local management.
CATTAN Services Group, Inc.

27
Trucker RFI Compilation and
Status—Example
Company Name
Interest Level
Own Pneumatics
24/7 Service
Rate Flexibility
Own Terminals
Full Time Drivers
Sub-Contractors
Act as 3PL
Regional Exp
National Exp

© 2003 CATTAN Services Group, Inc.

Blue Flash
High
Yes
Yes
Yes
Yes
Yes
Yes
Option
Yes
Yes

Dupre
High
No
Yes
Yes
Yes
Yes
Yes
Option
Yes
No

Savage
High
Yes
Yes
Yes
Yes
Yes
Yes
Must
Yes
Yes

CATTAN Services Group, Inc.

Omni
Medium
No
Yes
Yes
No
No
Only
Must
No
Yes

28
The Four S’s: Solicit
 Develop a RFB/RFP:

Decide which 3PLs and carriers receive

solicitation based on RFI results
Determine your preferred pricing and
contract formats
Specify whether bid/proposal by lane
allocation, region or complete scope
Include TCA/NITL Voluntary Guidelines
to Good Business Relations
CATTAN Services Group, Inc.

29
The Four S’s: Solicit
 Send bid/proposal package to qualified sources:
Prepare a template with details of info

gathered
Provide clear instructions concerning info you
want included
Attach a copy of anticipated contract and
T&Cs upfront
Provide sample performance reports to be
used as measures of agreed performance
Establish what is a responsive bid/proposal
and adequate submission date
CATTAN Services Group, Inc.

30
Information Gathered Template—
Example

Note: BH means backhaul opportunity
CATTAN Services Group, Inc.

31
The question is:
A carrier or 3PL can perform services which an
organization is either unwilling or unable to perform
itself, but are they as good as advertised?

First we need to determine who they
are and what they offer.

CATTAN Services Group, Inc.

32
The Seven Most Important Considerations
To Include When Choosing Carriers
• Financial Performance and Health
• Staffing
• Assets and Facilities
• Internal and External Programs
• Pricing Methods, Utilization, Periodic Review
• Measures of Agreed Performance
• Operations

CATTAN Services Group, Inc.

33
The Five Most Important Considerations To Include
When Choosing A Contract Logistics Firm
1. FINANCIAL STRENGTH
1. FINANCIAL STRENGTH
2. BUSINESS EXPERIENCE
2. BUSINESS EXPERIENCE
3. BUSINESS DEVELOPMENT
3. BUSINESS DEVELOPMENT
4. SUPPORT SERVICES
4. SUPPORT SERVICES
5. BUSINESS ARRANGEMENTS AND PRICING
5. BUSINESS ARRANGEMENTS AND PRICING
CATTAN Services Group, Inc.

34
The Four S’s: Solicit
 Hold a Pre-Bid/Proposal Conference:
Invite qualified bidders and proposers
Discuss expectations
Hold Q&A
Provide feedback and answers to all:
During

conference
After conference
CATTAN Services Group, Inc.

35
The Four S’s: Select
 Verify documentation submitted

 Establish T&Cs that may require adjustment,

compromise or negotiation
 Analyze bid or proposal submissions
 Develop selection criteria or negotiation strategy
 Use analytical tools to select. Do industry
comparisons for the type of customers, facilities,
regional, coverage, management and cultural
attitudes, cost model, etc.
 Select or conduct negotiation
CATTAN Services Group, Inc.

37
Bid or Proposal Analysis—Example
 

Truckload

CHRW

Origin

Equipment

Rated

Per mile/

Trailer

State

Zip

Required

Miles

Flat Fee

Size

Moncks Corner

SC

29461

DRY

1101

$

1.40

Cairo

GA

31728

DRY

830

$

Lithia

FL

33547

DRY

1112

Brooksville

FL

34609

DRY

Groveland

FL

34736

Loxley

AL

36551

City

FSC

 

Extension

1/29/2007

TOTAL

48/53

$ 1,541.40

252.23

$

1,793.63

1.15

48/53

$

954.50

190.15

$

1,144.65

$

1.05

48/53

$ 1,167.60

254.75

$

1,422.35

1074

$

1.05

48/53

$ 1,127.70

246.04

$

1,373.74

DRY

1069

$

1.05

48/53

$ 1,122.45

244.90

$

1,367.35

DRY

614

$

1.79

48/53

$ 1,099.06

140.66

$

1,239.72

Red indicates low bidder on traffic lane
CATTAN Services Group, Inc.

38
Thoughts About Choices
Which is a more important category to your
company: Warehousing, Transportation, IT, other?

Choose a firm that has its
roots in that category.

Do they have a local or regional office nearby your
facility or headquarters.

A local or regional office
lends more control to you.

Meet with the actual operations personnel, not just
sales, to determine their personal chemistry with
you and their fit with your corporate culture.

Your comfort level is an
important key to success.

Know your costs for comparison to theirs.

Remember, you are
paying for their profit
margin too.

Agree upon measurement criteria in advance.

Know when to fix things
or to leave them alone.

CATTAN Services Group, Inc.

39
The Four S’s: Secure
 Provide contracts to selected providers
 Emphasize L ong T erm R elationship

 Monitor 3PLs’ and/or carriers’ performance,

costs and commitments—use scorecard
 Issue company routing guide
 Seek continuous improvement and
incorporate feedback to and from
 Hold IPRs and provide a performance
report card on a regular interval
CATTAN Services Group, Inc.

40
Define Expectations
 In the wonderful world of expectations we have a

problem:

 The buyers/shippers want everything
 The Carriers or 3PLs want the business
 The suppliers and customers want things also

 In theory, everything is possible
 In reality, there are constraints

CATTAN Services Group, Inc.

41
Why Use Routing Guides?
 Are used to provide guidance and rules for

any transportation and logistics scenarios
 Are part of contractual obligations for
suppliers and internal/external customers
 Are used identify each carrier and 3PL
that you dictate by price/service for use by
any suppliers and customers
 Are used to identify the shipment size,
volume, and weight for each carrier and
3PL to be used
CATTAN Services Group, Inc.

42
CATTAN Services Group, Inc.

43
Carrier Selection—Oracle
Example
      Rule  
    Criteria

• Weight
• Volume
• Geographic
Regions

     

Inputs

Carrier
Selection
Process

      Selection 
       Results

Results

• Carrier
• Service Type
• Mode
• Payment
Terms

Rules Based 
Selection Process
CATTAN Services Group, Inc.

44
Basic Modal Routing Guide—Example

CATTAN Services Group, Inc.

45
Domestic Ground Routing Guide—
Example
Shipment Weight and Transit Days
201 – 9000 pounds
Origin States

Small Package
Transit

1 Day

2 Days

3 Days

4–6 Days

Truck Load

MD, DC (Local)

1 Day

EXCEL

EXCEL

N/A

N/A

N/A

CT, MA, MD, NH,
NJ, NY, PA,
RI, VT

2-3 Days

New Penn

New Penn

N/A

N/A

CFI or Schneider

ME

3 Days

New Penn

New Penn

New Penn

N/A

CFI or Schneider

AR, IA, KS, LA,
MN, MS,
ND, NE, OK,
SD, TX

5-7 Days

FedEx 1 Day

FedEx 2Day

FedEx 2Day

Yellow Freight

CFI or Schneider

AZ, CA, CO,
ID,MT, NM,
NV, OR, UT,
WA, WY

5-7 Days

FedEx 1 Day

FedEx 2Day

FedEx 2Day

Yellow Freight

CFI or Schneider

AK, HI

N/A

FedEx 1 Day

FedEx 2 Day

N/A

N/A

N/A

For shipments over 9000 pounds, truck load movements, shipments requiring special handling, or shipments between suppliers, contact your buyer for special instructions.

CATTAN Services Group, Inc.

46
International Routing Guide—Example
INTERNATIONAL ROUTINGS
ORIGIN COUNTRY/REGION

AIR FORWARDER

OCEAN FORWARDER

Europe/Ukraine

Expeditors

Expeditors

Africa

Expeditors

Expeditors

India

Expeditors

Expeditors

Japan

Expeditors

Expeditors

Hong Kong

Expeditors

Expeditors

Taiwan

Expeditors

Expeditors

Shanghai

Expeditors

Expeditors

Malaysia

Expeditors

Expeditors

Singapore

Expeditors

Expeditors

Central and S. America

Expeditors

Expeditors

Canada and Mexico

Emery/Menlo

N/A

All Other Origins

Expeditors

Expeditors

Shipments in excess of 500 pounds or 227 Kg need authorization to ship via Air.

CATTAN Services Group, Inc.

47
International Routing Guide—Example

CATTAN Services Group, Inc.

48
Rail Routing Guide—Example

CATTAN Services Group, Inc.

49
Air Routing Guide—Example
DOMESTIC AIR SHIPMENTS
Note: Second Day Service if PO delivery date permits;
Overnight Air Express if PO delivery requires.

1-150 lb.
< 68 kg

Small package shipments requiring overnight service
purchased FOB freight collect within the 50 states

DHL ® Priority overnight
service

150-500 lb.
> 68 kg

Small package shipments requiring overnight service
purchased FOB freight collect within the 50 states

EGL Eagle Global
Logistics

> 501 lb.
> 1105 kg

Contact Traffic Administrator, provide the weight,
dimensions, freight description and PO Number

(618) 7xx-1220 Phone
(618) 5xx-3677 Fax

CATTAN Services Group, Inc.

50
Truck Routing Guide—Example
ST

ORIGIN
STATE

Zip
Code

Less Than
Truckload (LTL)

LTL to TL transition
(Pounds)

Use 'TL' If shipment is over 1/2 the visible capacity of a 48"
vehicle or exceeds pounds

AL

Alabama

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority, May

AZ

Arizona

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, May

CA

California

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, May

DE

Delaware

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Priority, May

FL

Florida

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Priority, May, Prime

GA

Georgia

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority, May

IA

Iowa

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority, May

ID

Idaho

All

FedEx Freight

10 Pallets or 10,000 Lbs

May, Navajo, Prime

KS

Kansas

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, M. Bruenger, Prime

KY

Kentucky

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority, May

LA

Louisiana

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority, May

MD

Maryland

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Priority, May

ME

Maine

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Priority, May

MI

Michigan

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority, May

MN

Minnesota

All

FedEx Freight

10 Pallets or 10,000 Lbs

Navajo, Prime, Priority

CATTAN Services Group, Inc.

51
Truck Routing Guide—Example
LTL Common Carrier
LTL (Less Than Truckload) Routing
Shipments under 10,000 lbs.
In Order of Preference

State

Preferred Carrier

2nd Preferred Carrier

Alabama

Yellow Freight

UPS Freight

Arizona

UPS Freight

Yellow Freight

Arkansas

UPS Freight

Yellow Freight

California

UPS Freight

Yellow Freight

Colorado

Yellow Freight

UPS Freight

Connecticut

UPS Freight

Yellow Freight

Delaware

Yellow Freight

UPS Freight

Washington D.C.

UPS Freight

Yellow Freight

CATTAN Services Group, Inc.

52
Strategies to Enhance Your
Transportation and Logistics ‘Buy’
 Extend the processes beyond the walls of

purchasing, traffic, and logistics
 Create strategies to buffer yourself
against:
Capacity Shortages
Reliability Issues
Rate or Price Hikes

 Possible strategies for consideration follow
CATTAN Services Group, Inc.

53
Strategies to Create Greater
Capacity


Adding consolidation/de-consolidation centers to global distribution
networks so freight gets moved as FCL and FTL



Looking for ways to extract more capacity from private fleets and
facilities by:






Improving cube utilization of fleet equipment
Improving facility cube and storage capacity
Eliminating empty truck miles and ‘dead heads’
Consolidating orders to same destination or customer
Using a carrier appointment scheduling or “order notify” system



Rethinking your transportation and logistics network design and
inbound/outbound flow of shipments



Making your freight traffic or warehouse operations attractive to the
service providers
CATTAN Services Group, Inc.

54
Strategies to Create Greater Reliability


Forging close collaborative ties with their carriers and 3PL
providers



Establishing preferred customer status or dedicated contract
carriage and/or contract warehousing



Consolidating multiple carrier and 3PL provider relationships by
traffic lane, region, or geographic area



Increasing volume with premium operators where service is a
differentiating factor---not the low price or discounted
carriers/providers



Treat carriers and 3PLs as partners in the commitment to 100%
on-time performance



Identifying root causes of service failures and cost overruns by
using scorecards and measures of agreed perofrmance
55
CATTAN Services Group, Inc.
Strategies to Create Greater Price
Stability



Update the granularity and accuracy of your systems to:

Create efficient freight lanes and facility networks
 Leverage aggregated spend to negotiate better prices, rates, and
charges on a contract basis
 Know when to bundle or unbundle goods and transportation costs for
freight auditing purposes and checking supplier costs
 Help calculate costs per supplier, per customer, per product or SKU, per
geographic area or business unit, per facility or site, etc.




Employ total delivered or landed cost analysis and optimization



Use shipment optimization and electronic tendering software



Monitor sources of transportation and logistics data for trends and
forecasts



Enforce compliance with your routing guide to avoid transportation
and logistics exceptions
CATTAN Services Group, Inc.

56
Thank You !
CATTAN Services Group, Inc.

57

Contenu connexe

En vedette

Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...Thomas Tanel
 
Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...Thomas Tanel
 
Out with the old, in with the new intra-logistics--mmg news letter 2013
Out with the old, in with the new intra-logistics--mmg news letter 2013Out with the old, in with the new intra-logistics--mmg news letter 2013
Out with the old, in with the new intra-logistics--mmg news letter 2013Thomas Tanel
 
The Art of Planning and Writing Specifications and Requirements
The Art of Planning and Writing Specifications and Requirements The Art of Planning and Writing Specifications and Requirements
The Art of Planning and Writing Specifications and Requirements Thomas Tanel
 
The Art of Planning and Writing Specs and Requirements--ISM 2010 Tanel
The Art of Planning and Writing Specs and Requirements--ISM 2010 TanelThe Art of Planning and Writing Specs and Requirements--ISM 2010 Tanel
The Art of Planning and Writing Specs and Requirements--ISM 2010 TanelThomas Tanel
 
Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...Thomas Tanel
 
Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012Thomas Tanel
 
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyStrategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyThomas Tanel
 
How To Write An RFP For Freight
How To Write An RFP For FreightHow To Write An RFP For Freight
How To Write An RFP For FreightMark Oldfield
 
Preventing and Managing Supply Chain Disruptions
Preventing and Managing Supply Chain DisruptionsPreventing and Managing Supply Chain Disruptions
Preventing and Managing Supply Chain DisruptionsThomas Tanel
 
Top 10 Logistics Risks in the Spirit of David Letterman
Top 10 Logistics Risks in the Spirit of David LettermanTop 10 Logistics Risks in the Spirit of David Letterman
Top 10 Logistics Risks in the Spirit of David LettermanThomas Tanel
 
Tips on Negotiating better in Cross-Cultural Relationships
Tips on Negotiating better in Cross-Cultural RelationshipsTips on Negotiating better in Cross-Cultural Relationships
Tips on Negotiating better in Cross-Cultural RelationshipsThomas Tanel
 
Purchasing & Value Analysis
Purchasing & Value AnalysisPurchasing & Value Analysis
Purchasing & Value AnalysisThomas Tanel
 
Practically Applying Sourcing Grids for Risk Management
Practically Applying Sourcing Grids for Risk Management Practically Applying Sourcing Grids for Risk Management
Practically Applying Sourcing Grids for Risk Management Thomas Tanel
 
International Logistics & Warehouse Management
International Logistics & Warehouse Management International Logistics & Warehouse Management
International Logistics & Warehouse Management Thomas Tanel
 
Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management Thomas Tanel
 
Cost control and reduction
Cost control and reductionCost control and reduction
Cost control and reductionShri Theja
 
Packaging Design Conference 12-09
Packaging Design Conference 12-09Packaging Design Conference 12-09
Packaging Design Conference 12-09Paul Vickers
 

En vedette (18)

Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...Applying the powers of observation to supplier visits -mmg news letter octobe...
Applying the powers of observation to supplier visits -mmg news letter octobe...
 
Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...Count the ways distribution centers add value 1st--supply chain digital augus...
Count the ways distribution centers add value 1st--supply chain digital augus...
 
Out with the old, in with the new intra-logistics--mmg news letter 2013
Out with the old, in with the new intra-logistics--mmg news letter 2013Out with the old, in with the new intra-logistics--mmg news letter 2013
Out with the old, in with the new intra-logistics--mmg news letter 2013
 
The Art of Planning and Writing Specifications and Requirements
The Art of Planning and Writing Specifications and Requirements The Art of Planning and Writing Specifications and Requirements
The Art of Planning and Writing Specifications and Requirements
 
The Art of Planning and Writing Specs and Requirements--ISM 2010 Tanel
The Art of Planning and Writing Specs and Requirements--ISM 2010 TanelThe Art of Planning and Writing Specs and Requirements--ISM 2010 Tanel
The Art of Planning and Writing Specs and Requirements--ISM 2010 Tanel
 
Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...Count the ways distribution centers add value 2nd--supply chain digital septe...
Count the ways distribution centers add value 2nd--supply chain digital septe...
 
Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012Assurance in uncertainty -logistics insight asia september 2012
Assurance in uncertainty -logistics insight asia september 2012
 
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing StrategyStrategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
Strategic Sourcing: Walking the Tightrope in Developing Sourcing Strategy
 
How To Write An RFP For Freight
How To Write An RFP For FreightHow To Write An RFP For Freight
How To Write An RFP For Freight
 
Preventing and Managing Supply Chain Disruptions
Preventing and Managing Supply Chain DisruptionsPreventing and Managing Supply Chain Disruptions
Preventing and Managing Supply Chain Disruptions
 
Top 10 Logistics Risks in the Spirit of David Letterman
Top 10 Logistics Risks in the Spirit of David LettermanTop 10 Logistics Risks in the Spirit of David Letterman
Top 10 Logistics Risks in the Spirit of David Letterman
 
Tips on Negotiating better in Cross-Cultural Relationships
Tips on Negotiating better in Cross-Cultural RelationshipsTips on Negotiating better in Cross-Cultural Relationships
Tips on Negotiating better in Cross-Cultural Relationships
 
Purchasing & Value Analysis
Purchasing & Value AnalysisPurchasing & Value Analysis
Purchasing & Value Analysis
 
Practically Applying Sourcing Grids for Risk Management
Practically Applying Sourcing Grids for Risk Management Practically Applying Sourcing Grids for Risk Management
Practically Applying Sourcing Grids for Risk Management
 
International Logistics & Warehouse Management
International Logistics & Warehouse Management International Logistics & Warehouse Management
International Logistics & Warehouse Management
 
Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management Warehouse Operations and Inventory Management
Warehouse Operations and Inventory Management
 
Cost control and reduction
Cost control and reductionCost control and reduction
Cost control and reduction
 
Packaging Design Conference 12-09
Packaging Design Conference 12-09Packaging Design Conference 12-09
Packaging Design Conference 12-09
 

Similaire à Buying Transportation and 3rd Party Logistics Services-Part II

2009 Ch Robinson Overview Flatbed Blueprint
2009 Ch Robinson Overview Flatbed  Blueprint2009 Ch Robinson Overview Flatbed  Blueprint
2009 Ch Robinson Overview Flatbed BlueprintPANIRUD
 
Supply Chain Optimization with TSC
Supply Chain Optimization with TSCSupply Chain Optimization with TSC
Supply Chain Optimization with TSCsteelch1268
 
G Log Transportation Mgmt V5.7
G Log Transportation Mgmt V5.7G Log Transportation Mgmt V5.7
G Log Transportation Mgmt V5.7K P Siva Prasad
 
Peer group summary
Peer group summaryPeer group summary
Peer group summaryAmy Patton
 
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02Prakash K.C
 
2000 F T. Overview Edited 2009 B
2000 F T. Overview Edited 2009 B2000 F T. Overview Edited 2009 B
2000 F T. Overview Edited 2009 BLivingston Smith
 
Gls Capstone Ppt Presentation 061410 Master
Gls Capstone Ppt Presentation 061410 MasterGls Capstone Ppt Presentation 061410 Master
Gls Capstone Ppt Presentation 061410 MasterKaren Allec
 
Echo Power Point Sales Presentation
Echo Power Point Sales PresentationEcho Power Point Sales Presentation
Echo Power Point Sales PresentationDigbydrk
 
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02RakeshNimhan
 
Power Point For Linked In
Power Point For Linked InPower Point For Linked In
Power Point For Linked Indbearden
 
Logistics_Management_in_Supply_Chain_Man.pptx
Logistics_Management_in_Supply_Chain_Man.pptxLogistics_Management_in_Supply_Chain_Man.pptx
Logistics_Management_in_Supply_Chain_Man.pptxArunMudhol2
 
It's a Bird, It's a Plane, It's a Drone...Innovation at CSCMP
It's a Bird, It's a Plane, It's a Drone...Innovation at CSCMPIt's a Bird, It's a Plane, It's a Drone...Innovation at CSCMP
It's a Bird, It's a Plane, It's a Drone...Innovation at CSCMPMarketing_Kenco
 
Logistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-OverviewLogistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-OverviewThomas Tanel
 
Logistics Transportation
Logistics TransportationLogistics Transportation
Logistics Transportationshri1984
 

Similaire à Buying Transportation and 3rd Party Logistics Services-Part II (20)

2009 Ch Robinson Overview Flatbed Blueprint
2009 Ch Robinson Overview Flatbed  Blueprint2009 Ch Robinson Overview Flatbed  Blueprint
2009 Ch Robinson Overview Flatbed Blueprint
 
Supply Chain Optimization with TSC
Supply Chain Optimization with TSCSupply Chain Optimization with TSC
Supply Chain Optimization with TSC
 
G Log Transportation Mgmt V5.7
G Log Transportation Mgmt V5.7G Log Transportation Mgmt V5.7
G Log Transportation Mgmt V5.7
 
Final1[1]
Final1[1]Final1[1]
Final1[1]
 
Beyond Brokerage Insert
Beyond Brokerage InsertBeyond Brokerage Insert
Beyond Brokerage Insert
 
Peer group summary
Peer group summaryPeer group summary
Peer group summary
 
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
 
2000 F T. Overview Edited 2009 B
2000 F T. Overview Edited 2009 B2000 F T. Overview Edited 2009 B
2000 F T. Overview Edited 2009 B
 
Trucking Industry Update, February 2018
Trucking Industry Update, February 2018Trucking Industry Update, February 2018
Trucking Industry Update, February 2018
 
TCC Stock Pitch
TCC Stock PitchTCC Stock Pitch
TCC Stock Pitch
 
Gls Capstone Ppt Presentation 061410 Master
Gls Capstone Ppt Presentation 061410 MasterGls Capstone Ppt Presentation 061410 Master
Gls Capstone Ppt Presentation 061410 Master
 
Secure Benchmarking
Secure BenchmarkingSecure Benchmarking
Secure Benchmarking
 
Echo Power Point Sales Presentation
Echo Power Point Sales PresentationEcho Power Point Sales Presentation
Echo Power Point Sales Presentation
 
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
Logisticsandsupplychainmanagement napm-wichita-140121142320-phpapp02
 
Power Point For Linked In
Power Point For Linked InPower Point For Linked In
Power Point For Linked In
 
Logistics_Management_in_Supply_Chain_Man.pptx
Logistics_Management_in_Supply_Chain_Man.pptxLogistics_Management_in_Supply_Chain_Man.pptx
Logistics_Management_in_Supply_Chain_Man.pptx
 
It's a Bird, It's a Plane, It's a Drone...Innovation at CSCMP
It's a Bird, It's a Plane, It's a Drone...Innovation at CSCMPIt's a Bird, It's a Plane, It's a Drone...Innovation at CSCMP
It's a Bird, It's a Plane, It's a Drone...Innovation at CSCMP
 
Logistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-OverviewLogistics and Supply Chain Management-Overview
Logistics and Supply Chain Management-Overview
 
Logistics Transportation
Logistics TransportationLogistics Transportation
Logistics Transportation
 
Pres0513
Pres0513Pres0513
Pres0513
 

Plus de Thomas Tanel

Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Thomas Tanel
 
Supply chain performance reporting and metrics -logistics digest 091112
Supply chain performance reporting and metrics -logistics digest 091112Supply chain performance reporting and metrics -logistics digest 091112
Supply chain performance reporting and metrics -logistics digest 091112Thomas Tanel
 
Supplier financial stability and risk differentiation in turbulent times -sup...
Supplier financial stability and risk differentiation in turbulent times -sup...Supplier financial stability and risk differentiation in turbulent times -sup...
Supplier financial stability and risk differentiation in turbulent times -sup...Thomas Tanel
 
Spaced out are you making the most of your shrinking space--werc sheet (may-j...
Spaced out are you making the most of your shrinking space--werc sheet (may-j...Spaced out are you making the most of your shrinking space--werc sheet (may-j...
Spaced out are you making the most of your shrinking space--werc sheet (may-j...Thomas Tanel
 
Recriminations the need to reevaluate manufacturing offshoring and outsourcin...
Recriminations the need to reevaluate manufacturing offshoring and outsourcin...Recriminations the need to reevaluate manufacturing offshoring and outsourcin...
Recriminations the need to reevaluate manufacturing offshoring and outsourcin...Thomas Tanel
 
Nine ways warehousing adds value -logistic insight asia november-december 2012
Nine ways warehousing adds value -logistic insight asia november-december 2012Nine ways warehousing adds value -logistic insight asia november-december 2012
Nine ways warehousing adds value -logistic insight asia november-december 2012Thomas Tanel
 
Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...
Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...
Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...Thomas Tanel
 
Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...Thomas Tanel
 
Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Thomas Tanel
 
How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012Thomas Tanel
 
Cost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and TechniquesCost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and TechniquesThomas Tanel
 

Plus de Thomas Tanel (11)

Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...Adapt, overcome, and improvise words to live by for the supply chain--e parce...
Adapt, overcome, and improvise words to live by for the supply chain--e parce...
 
Supply chain performance reporting and metrics -logistics digest 091112
Supply chain performance reporting and metrics -logistics digest 091112Supply chain performance reporting and metrics -logistics digest 091112
Supply chain performance reporting and metrics -logistics digest 091112
 
Supplier financial stability and risk differentiation in turbulent times -sup...
Supplier financial stability and risk differentiation in turbulent times -sup...Supplier financial stability and risk differentiation in turbulent times -sup...
Supplier financial stability and risk differentiation in turbulent times -sup...
 
Spaced out are you making the most of your shrinking space--werc sheet (may-j...
Spaced out are you making the most of your shrinking space--werc sheet (may-j...Spaced out are you making the most of your shrinking space--werc sheet (may-j...
Spaced out are you making the most of your shrinking space--werc sheet (may-j...
 
Recriminations the need to reevaluate manufacturing offshoring and outsourcin...
Recriminations the need to reevaluate manufacturing offshoring and outsourcin...Recriminations the need to reevaluate manufacturing offshoring and outsourcin...
Recriminations the need to reevaluate manufacturing offshoring and outsourcin...
 
Nine ways warehousing adds value -logistic insight asia november-december 2012
Nine ways warehousing adds value -logistic insight asia november-december 2012Nine ways warehousing adds value -logistic insight asia november-december 2012
Nine ways warehousing adds value -logistic insight asia november-december 2012
 
Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...
Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...
Mitigating supply chain risk in uncertain times murphy's law--mworld volume 1...
 
Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...Management by walking around is a good start here’s what to do while walking-...
Management by walking around is a good start here’s what to do while walking-...
 
Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...Identifying vulnerability is step one to mitigating supply chain risk -my pur...
Identifying vulnerability is step one to mitigating supply chain risk -my pur...
 
How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012How to make eoq relevant again -logistics & supply chain world july 2012
How to make eoq relevant again -logistics & supply chain world july 2012
 
Cost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and TechniquesCost Reduction Strategies:Focus and Techniques
Cost Reduction Strategies:Focus and Techniques
 

Dernier

Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000dlhescort
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptxnandhinijagan9867
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...amitlee9823
 
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Sheetaleventcompany
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...rajveerescorts2022
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentationuneakwhite
 
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLJAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLkapoorjyoti4444
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Sheetaleventcompany
 
Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...
Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...
Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...lizamodels9
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwaitdaisycvs
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperityhemanthkumar470700
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...amitlee9823
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPanhandleOilandGas
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noidadlhescort
 
RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsP&CO
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityEric T. Tung
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756dollysharma2066
 

Dernier (20)

Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
 
Falcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in indiaFalcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in india
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
 
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLJAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
 
Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...
Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...
Russian Call Girls In Rajiv Chowk Gurgaon ❤️8448577510 ⊹Best Escorts Service ...
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
 
RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors Data
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 

Buying Transportation and 3rd Party Logistics Services-Part II

  • 1. Buying Transportation and 3rd Party Logistics Services II: How Do You Bring Purchasing Skills to the Process of Purchasing Transportation and Logistics Services For The 61st Annual Southwest Supply Management Conference Thomas L. Tanel, C.P.M., CTL, CCA, CISCM, President and CEO and Ronald D. Grossman, PMC, PCMH, CISCM, CEPP, Practice Leader CATTAN Services Group, Inc., College Station, TX cattan@cattan.com 979-260-7200 © 2007 CATTAN Services Group, Inc.
  • 2. Today’s Agenda Part II  Purchasing T & L Profile and Spend  Freight Modal Analysis and Decision Impacts  The Four ‘S’s  Define Expectations and Routing Guides  Strategies to Enhance Your T & L ‘Buy’ CATTAN Services Group, Inc. 2
  • 3. Purchasing Transportation and 3PL Profile  This is a template that: Considers Appreciates Understands  The following: Corporate philosophy and culture Supplier and inbound requirements Internal/external customer requirements CATTAN Services Group, Inc. 3
  • 4. Supply Chain USA 1 Returns DC Bremen •Inspection •Warehousing •Shipping Port Option 1 Ship Port Airport Airport Customs Broker Option 2 - Air Shops FL, LH DC USA •Inspection •Warehousing •Pick, Pack •Shipping Customer TD Returns Timing (days) Alt 1 A (Sea) Alt 1 B (Air) Cost / Week (US) Min Max Min 16 d 25 d 2d 2d 2d 2d Total US Order Cycle TD 2d 6d 2d 6d US per LE Alt 1 B (Air) 8 d 10.5 d Order Cycle FL/LH Alt 1 A (Sea) Available in USA Max 43,800 71,400 1.87 3.05 CATTAN Services Group, Inc. 4
  • 5. Purchasing Transportation and 3PL Profile Con’t  Map all locations:  Company inbound/outbound locations  Plants  Warehouse/DCs      Supplier locations Customer locations Ports and major consolidation points Major traffic flow lanes Collect traffic flow data for above     Article description Alpha and numeric STCC Bulk or packaged Quantity or volume per shipment per time period CATTAN Services Group, Inc. 5
  • 7. Freight Traffic Flow Major Lanes— Example CATTAN Services Group, Inc. 7
  • 8. Purchasing Transportation and 3PL Profile Con’t  Define expenditures and analyze spend: Origin/destinations Carriers and 3PLs Freight rates-both line haul and accessorial Warehouse rates-both storage and in/out Freight and sales terms Product specification/STCC/NMFC/UFC Product weight and packaging CATTAN Services Group, Inc. 8
  • 9. Transportation Spend— Example FREIGHT Amount SUM ITEM PCT Amount SUM MISC PCT Amount SUM Sum PCT Vendor Name SNL DISTRIBUTION INC $39,345.44 6.6% $554,802.41 93.4% CARGILL $33,806.56 5.7% $559,368.12 94.1% $1,560.92 0.3% $594,735.60 AZTECA $26,993.57 7.8% $319,598.24 92.1% $396.00 0.1% $346,987.81 GENERAL MILLS $20,128.26 12.3% $143,434.59 87.7% $163,562.85 BEMIS COMPANY $11,916.56 1.0% $1,177,949.07 99.0% $1,189,865.63 ROMAN MEAL $11,607.23 14.1% $69,833.37 84.9% DANISCO USA INC $10,994.43 5.1% $204,547.20 94.9% $9,311.00 6.4% $134,867.41 92.9% SUNMAID GROWERS CATTAN Services Group, Inc. $594,147.85 $828.98 1.0% $82,269.58 $215,541.63 $967.60 9 0.7% $145,146.01
  • 11. Transportation Spend—Example Destination Total Costs Per Truckload Mill Owner Average Cost Per Day Approximate Annual Transportation Costs Port Hudson, LA GP $ 218 $ 655 $ 229,021 Pineville, LA IP $ 330 $ 330 $ 158,217 Bogalusa, LA I $ 429 $ 1,287 $ 486,320 Monticello, MS GP $ 509 $ 2,035 $ 643,277 Vicksburg, MS IP $ 512 $ 1,024 $ 357,051 DeRidder, LA Boise $ 482 $ 965 $ 273,429 Hodge, LA S $ 527 $ 1,055 $ 344,929 Bastrop, LA IP $ 569 $ 1,138 $ 475,017 Campti, LA W $ 526 $ 1,577 $ 504,162 Mansfield, LA GP $ 571 $ 1,142 $ 298,676 West Monroe, LA R $ 568 $ 1,135 $ 476,285 Orange, TX I $ 566 $ 1,133 $ 444,378 Crossett, AR GP $ 631 $ 1,892 $ 716,182 Evadale, TX MW $ 697 $ 2,787 $ 884,308 Texarkana, TX IP $ 837 $ 2,510 $ 871,975 Pine Bluff, AR IP $ 851 $ 1,702 $ 653,819 Pine Bluff, AR Inland $ 851 $ 851 $ 185,523 Lufkin, TX A $ 821 $ 821 $ 214,614 Ashdown, AR D $ 885 $ 5,312 $ 1,697,178 $29,351 $ 9,914,359 TOTAL CATTAN Services Group, Inc. 11
  • 12. Don’t Forget…Plan for the Future  Where is your business headed in the next 12, 24, and 36 months?  What are the major initiatives that will have an impact on what you expect from your carriers and/or third parties?  What risk and costs factors may affect your transportation and 3PL budget forecasts? CATTAN Services Group, Inc. 12
  • 13. Purchasing Freight Modal Profile by # of Shipments— Based on Weight of Shipment and Distance Shipped Distance miles <1,000 lbs 1,0001,999 lbs 10,00029,999 lbs 30,00059,999 lbs 60,00089,999 lbs <100 100-199 200-499 500-750 750-1,000 1,000-1,499 1,500 or more CATTAN Services Group, Inc. 13 90,000-or more lbs
  • 14. Freight Modal Shipment Volume Analysis 100% 90% 80% 70% 60% PCT PER MODE 50% 40% 30% 20% 10% 0% 1-5 lbs 70-150 lbs 10,000 lbs 40,000 lbs 60,000 lbs MODAL WEIGHT BREAKS Water Rail TL LTL Air CATTAN Services Group, Inc. Parcel 14
  • 15. Performance Comparison for Selected Freight Modes Vehicle Capacity Truck Equivalency Barge 1500 Tons 52,500 Bushels 453,600 Gallons 57.7 (865.4 for 15 barges in tow) Hopper Car 100 Tons 3,500 Bushels 30,240 Gallons 3.8 100 Car Train Unit Semi-Trailer truck Post-Panamax containership VLCC 747-400F 10,000 Tons 350,000 Bushels 3,024,000 Gallons 26 Tons; 910 Bushels 7,865 Gallons 9,000 for a tanker truck 5,000 TEU 384.6 1 2,116 300,000 tons 2 million barrels of oil 9,330 124 tons 5 CATTAN Services Group, Inc. 15
  • 16. Purchasing Transportation Profile— Affect Modal Decisions  Rail generally competes with truck on freight movements of more than 750 miles.  About 15-25% of rail movement business is truck competitive.  Rail transit times for most bulk and break-bulk cargo are roughly equal to barge transit times within 750 miles and are days shorter beyond 1000 miles.  High-value goods and time-sensitive goods are likely to move through faster, more expensive modes of transportation like air. CATTAN Services Group, Inc. 16
  • 17. Purchasing Transportation Profile— Affect Modal Decisions  Potential to convert TL to intermodal when distance in excess of 1,000 miles and not time sensitive.  Competition for long-haul highway shipments in particular are becoming noticeably more intermodal as trucking companies have shifted line haul movement legs to railroad TOFC or COFC movements.  About 90% of intermodal container traffic is potentially rail vs. truck competitive  Much of the international intermodal business through the ports lends itself more practically to rail moves and possibly barge. CATTAN Services Group, Inc. 17
  • 18. Purchasing Transportation Profile— Affect Modal Decisions  If you have to ship over 1,000 miles, you may want to consider a national LTL carrier over a regional LTL carrier. These firms offer the advantage of not having to interline freight traveling long distances.  Private internal fleets are expanding to take on shorter distance LTL or TL moves.  Don’t assume that air means “you hear the roar of jet engines” ; if the carrier can move your freight on what it calls an ‘expedited truck’ and get it to your destination in the timeframe you specified---it may never see the tarmac. Also don’t expect any great cost savings to result. CATTAN Services Group, Inc. 18
  • 19. Modal Decisions Translate to Carrier Options Shipping Modes Orders Carrier Options • LTL/FTL • Parcel • Ocean • Rail CATTAN Services Group, Inc. 19
  • 20. Purchasing Transportation Profile— Affect Modal Decisions  Review your shipping profile statistics and understand where the economic shift points are in your: Parcel or Air/LTL mix LTL/TL mix TL/Rail mix Air/Ocean mix  Over 90% of all organizations are either receiving and/or shipping internationally CATTAN Services Group, Inc. 20
  • 21. Comparison of Distribution Costs and Time from National Warehouses— Example CATTAN Services Group, Inc. 21
  • 22. Thoughts About Choices Bottom Line: A company should define a lane, process, operation, or function that can be improved, then make these carriers and 3PL providers compete for it. CATTAN Services Group, Inc. 22
  • 24. The Four S’s: Source  Identify Logistics and Transportation requirements:  Review and clarify req’mts  Obtain feedback on 3PLs and carriers  Review KPIs, KRAs, and analyze gaps  Establish which gaps are most critical CATTAN Services Group, Inc. 24
  • 25. Material Flow DC USA—Daily 4 Month Average Supply Chain Alternatives 0.8 Trucks/day 21 Pal/day (Euro) 5 Pal/day Goods In 17 Pal/day (Euro) Division Shop, Concessions 4 Pal/day (Euro) Division T-Direct 2,060 Picks/day 5 Pal/day Returns Others 640 Picks/day Pick / Pack 172 Cartons/day 172 Cartons/day 183 Cartons/day 5 Pal/day Goods Out Shop, Concession 14 Pal/day 1.5 Trucks/day Direct 5 Pal/day Others 5 Pal/day 0.5 Truck/day CATTAN Services Group, Inc. 0.5 Trucks/day 25
  • 26. The Four S’s: Source  Gather data and manipulate information: Compile or obtain 6-12 months of history/activity req’mts Obtain details: inbound and outbound; origins and destinations; weight, cube and # of pieces; traffic lanes, supply chain streams, and demand chain streams; types of equipment; volatility and performance req’mts CATTAN Services Group, Inc. 26
  • 27. The Four S’s: Source  Create a RFI:  Review 3PLs’ and carriers’ company and public profiles  Invite both current and new sources  Get: completed profile questionnaires, financials, insurance and safety certificates, authority or operating documents, and references • Perform site visit when applicable. Talk with local management. CATTAN Services Group, Inc. 27
  • 28. Trucker RFI Compilation and Status—Example Company Name Interest Level Own Pneumatics 24/7 Service Rate Flexibility Own Terminals Full Time Drivers Sub-Contractors Act as 3PL Regional Exp National Exp © 2003 CATTAN Services Group, Inc. Blue Flash High Yes Yes Yes Yes Yes Yes Option Yes Yes Dupre High No Yes Yes Yes Yes Yes Option Yes No Savage High Yes Yes Yes Yes Yes Yes Must Yes Yes CATTAN Services Group, Inc. Omni Medium No Yes Yes No No Only Must No Yes 28
  • 29. The Four S’s: Solicit  Develop a RFB/RFP: Decide which 3PLs and carriers receive solicitation based on RFI results Determine your preferred pricing and contract formats Specify whether bid/proposal by lane allocation, region or complete scope Include TCA/NITL Voluntary Guidelines to Good Business Relations CATTAN Services Group, Inc. 29
  • 30. The Four S’s: Solicit  Send bid/proposal package to qualified sources: Prepare a template with details of info gathered Provide clear instructions concerning info you want included Attach a copy of anticipated contract and T&Cs upfront Provide sample performance reports to be used as measures of agreed performance Establish what is a responsive bid/proposal and adequate submission date CATTAN Services Group, Inc. 30
  • 31. Information Gathered Template— Example Note: BH means backhaul opportunity CATTAN Services Group, Inc. 31
  • 32. The question is: A carrier or 3PL can perform services which an organization is either unwilling or unable to perform itself, but are they as good as advertised? First we need to determine who they are and what they offer. CATTAN Services Group, Inc. 32
  • 33. The Seven Most Important Considerations To Include When Choosing Carriers • Financial Performance and Health • Staffing • Assets and Facilities • Internal and External Programs • Pricing Methods, Utilization, Periodic Review • Measures of Agreed Performance • Operations CATTAN Services Group, Inc. 33
  • 34. The Five Most Important Considerations To Include When Choosing A Contract Logistics Firm 1. FINANCIAL STRENGTH 1. FINANCIAL STRENGTH 2. BUSINESS EXPERIENCE 2. BUSINESS EXPERIENCE 3. BUSINESS DEVELOPMENT 3. BUSINESS DEVELOPMENT 4. SUPPORT SERVICES 4. SUPPORT SERVICES 5. BUSINESS ARRANGEMENTS AND PRICING 5. BUSINESS ARRANGEMENTS AND PRICING CATTAN Services Group, Inc. 34
  • 35. The Four S’s: Solicit  Hold a Pre-Bid/Proposal Conference: Invite qualified bidders and proposers Discuss expectations Hold Q&A Provide feedback and answers to all: During conference After conference CATTAN Services Group, Inc. 35
  • 36. The Four S’s: Select  Verify documentation submitted  Establish T&Cs that may require adjustment, compromise or negotiation  Analyze bid or proposal submissions  Develop selection criteria or negotiation strategy  Use analytical tools to select. Do industry comparisons for the type of customers, facilities, regional, coverage, management and cultural attitudes, cost model, etc.  Select or conduct negotiation CATTAN Services Group, Inc. 37
  • 37. Bid or Proposal Analysis—Example   Truckload CHRW Origin Equipment Rated Per mile/ Trailer State Zip Required Miles Flat Fee Size Moncks Corner SC 29461 DRY 1101 $ 1.40 Cairo GA 31728 DRY 830 $ Lithia FL 33547 DRY 1112 Brooksville FL 34609 DRY Groveland FL 34736 Loxley AL 36551 City FSC   Extension 1/29/2007 TOTAL 48/53 $ 1,541.40 252.23 $ 1,793.63 1.15 48/53 $ 954.50 190.15 $ 1,144.65 $ 1.05 48/53 $ 1,167.60 254.75 $ 1,422.35 1074 $ 1.05 48/53 $ 1,127.70 246.04 $ 1,373.74 DRY 1069 $ 1.05 48/53 $ 1,122.45 244.90 $ 1,367.35 DRY 614 $ 1.79 48/53 $ 1,099.06 140.66 $ 1,239.72 Red indicates low bidder on traffic lane CATTAN Services Group, Inc. 38
  • 38. Thoughts About Choices Which is a more important category to your company: Warehousing, Transportation, IT, other? Choose a firm that has its roots in that category. Do they have a local or regional office nearby your facility or headquarters. A local or regional office lends more control to you. Meet with the actual operations personnel, not just sales, to determine their personal chemistry with you and their fit with your corporate culture. Your comfort level is an important key to success. Know your costs for comparison to theirs. Remember, you are paying for their profit margin too. Agree upon measurement criteria in advance. Know when to fix things or to leave them alone. CATTAN Services Group, Inc. 39
  • 39. The Four S’s: Secure  Provide contracts to selected providers  Emphasize L ong T erm R elationship  Monitor 3PLs’ and/or carriers’ performance, costs and commitments—use scorecard  Issue company routing guide  Seek continuous improvement and incorporate feedback to and from  Hold IPRs and provide a performance report card on a regular interval CATTAN Services Group, Inc. 40
  • 40. Define Expectations  In the wonderful world of expectations we have a problem:  The buyers/shippers want everything  The Carriers or 3PLs want the business  The suppliers and customers want things also  In theory, everything is possible  In reality, there are constraints CATTAN Services Group, Inc. 41
  • 41. Why Use Routing Guides?  Are used to provide guidance and rules for any transportation and logistics scenarios  Are part of contractual obligations for suppliers and internal/external customers  Are used identify each carrier and 3PL that you dictate by price/service for use by any suppliers and customers  Are used to identify the shipment size, volume, and weight for each carrier and 3PL to be used CATTAN Services Group, Inc. 42
  • 43. Carrier Selection—Oracle Example       Rule       Criteria • Weight • Volume • Geographic Regions       Inputs Carrier Selection Process       Selection         Results Results • Carrier • Service Type • Mode • Payment Terms Rules Based  Selection Process CATTAN Services Group, Inc. 44
  • 44. Basic Modal Routing Guide—Example CATTAN Services Group, Inc. 45
  • 45. Domestic Ground Routing Guide— Example Shipment Weight and Transit Days 201 – 9000 pounds Origin States Small Package Transit 1 Day 2 Days 3 Days 4–6 Days Truck Load MD, DC (Local) 1 Day EXCEL EXCEL N/A N/A N/A CT, MA, MD, NH, NJ, NY, PA, RI, VT 2-3 Days New Penn New Penn N/A N/A CFI or Schneider ME 3 Days New Penn New Penn New Penn N/A CFI or Schneider AR, IA, KS, LA, MN, MS, ND, NE, OK, SD, TX 5-7 Days FedEx 1 Day FedEx 2Day FedEx 2Day Yellow Freight CFI or Schneider AZ, CA, CO, ID,MT, NM, NV, OR, UT, WA, WY 5-7 Days FedEx 1 Day FedEx 2Day FedEx 2Day Yellow Freight CFI or Schneider AK, HI N/A FedEx 1 Day FedEx 2 Day N/A N/A N/A For shipments over 9000 pounds, truck load movements, shipments requiring special handling, or shipments between suppliers, contact your buyer for special instructions. CATTAN Services Group, Inc. 46
  • 46. International Routing Guide—Example INTERNATIONAL ROUTINGS ORIGIN COUNTRY/REGION AIR FORWARDER OCEAN FORWARDER Europe/Ukraine Expeditors Expeditors Africa Expeditors Expeditors India Expeditors Expeditors Japan Expeditors Expeditors Hong Kong Expeditors Expeditors Taiwan Expeditors Expeditors Shanghai Expeditors Expeditors Malaysia Expeditors Expeditors Singapore Expeditors Expeditors Central and S. America Expeditors Expeditors Canada and Mexico Emery/Menlo N/A All Other Origins Expeditors Expeditors Shipments in excess of 500 pounds or 227 Kg need authorization to ship via Air. CATTAN Services Group, Inc. 47
  • 48. Rail Routing Guide—Example CATTAN Services Group, Inc. 49
  • 49. Air Routing Guide—Example DOMESTIC AIR SHIPMENTS Note: Second Day Service if PO delivery date permits; Overnight Air Express if PO delivery requires. 1-150 lb. < 68 kg Small package shipments requiring overnight service purchased FOB freight collect within the 50 states DHL ® Priority overnight service 150-500 lb. > 68 kg Small package shipments requiring overnight service purchased FOB freight collect within the 50 states EGL Eagle Global Logistics > 501 lb. > 1105 kg Contact Traffic Administrator, provide the weight, dimensions, freight description and PO Number (618) 7xx-1220 Phone (618) 5xx-3677 Fax CATTAN Services Group, Inc. 50
  • 50. Truck Routing Guide—Example ST ORIGIN STATE Zip Code Less Than Truckload (LTL) LTL to TL transition (Pounds) Use 'TL' If shipment is over 1/2 the visible capacity of a 48" vehicle or exceeds pounds AL Alabama All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority, May AZ Arizona All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, May CA California All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, May DE Delaware All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Priority, May FL Florida All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Priority, May, Prime GA Georgia All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority, May IA Iowa All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority, May ID Idaho All FedEx Freight 10 Pallets or 10,000 Lbs May, Navajo, Prime KS Kansas All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, M. Bruenger, Prime KY Kentucky All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority, May LA Louisiana All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority, May MD Maryland All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Priority, May ME Maine All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Priority, May MI Michigan All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority, May MN Minnesota All FedEx Freight 10 Pallets or 10,000 Lbs Navajo, Prime, Priority CATTAN Services Group, Inc. 51
  • 51. Truck Routing Guide—Example LTL Common Carrier LTL (Less Than Truckload) Routing Shipments under 10,000 lbs. In Order of Preference State Preferred Carrier 2nd Preferred Carrier Alabama Yellow Freight UPS Freight Arizona UPS Freight Yellow Freight Arkansas UPS Freight Yellow Freight California UPS Freight Yellow Freight Colorado Yellow Freight UPS Freight Connecticut UPS Freight Yellow Freight Delaware Yellow Freight UPS Freight Washington D.C. UPS Freight Yellow Freight CATTAN Services Group, Inc. 52
  • 52. Strategies to Enhance Your Transportation and Logistics ‘Buy’  Extend the processes beyond the walls of purchasing, traffic, and logistics  Create strategies to buffer yourself against: Capacity Shortages Reliability Issues Rate or Price Hikes  Possible strategies for consideration follow CATTAN Services Group, Inc. 53
  • 53. Strategies to Create Greater Capacity  Adding consolidation/de-consolidation centers to global distribution networks so freight gets moved as FCL and FTL  Looking for ways to extract more capacity from private fleets and facilities by:      Improving cube utilization of fleet equipment Improving facility cube and storage capacity Eliminating empty truck miles and ‘dead heads’ Consolidating orders to same destination or customer Using a carrier appointment scheduling or “order notify” system  Rethinking your transportation and logistics network design and inbound/outbound flow of shipments  Making your freight traffic or warehouse operations attractive to the service providers CATTAN Services Group, Inc. 54
  • 54. Strategies to Create Greater Reliability  Forging close collaborative ties with their carriers and 3PL providers  Establishing preferred customer status or dedicated contract carriage and/or contract warehousing  Consolidating multiple carrier and 3PL provider relationships by traffic lane, region, or geographic area  Increasing volume with premium operators where service is a differentiating factor---not the low price or discounted carriers/providers  Treat carriers and 3PLs as partners in the commitment to 100% on-time performance  Identifying root causes of service failures and cost overruns by using scorecards and measures of agreed perofrmance 55 CATTAN Services Group, Inc.
  • 55. Strategies to Create Greater Price Stability  Update the granularity and accuracy of your systems to: Create efficient freight lanes and facility networks  Leverage aggregated spend to negotiate better prices, rates, and charges on a contract basis  Know when to bundle or unbundle goods and transportation costs for freight auditing purposes and checking supplier costs  Help calculate costs per supplier, per customer, per product or SKU, per geographic area or business unit, per facility or site, etc.   Employ total delivered or landed cost analysis and optimization  Use shipment optimization and electronic tendering software  Monitor sources of transportation and logistics data for trends and forecasts  Enforce compliance with your routing guide to avoid transportation and logistics exceptions CATTAN Services Group, Inc. 56
  • 56. Thank You ! CATTAN Services Group, Inc. 57