The document discusses changes in the logistics landscape including volatility in supply chains and demand. It shows weekly volatility graphs for different product segments like beer, wine, food, and toilet paper. It advocates balancing risk and opportunity through careful procurement, contract management, and clear communication with customers about trading conditions and fluctuations. While start-stop logistics will increase visibility and agility, it will also raise costs requiring investment in forecasting. Both customers and service providers will need to better share risks and rewards to sustain relationships in the current environment.

1. Start Stop Logistics
1

2. The Logistics Landscape is Changing
 Instability in Global Supply Chains which have
become more Demand Driven
 Capacity Shortage across the Supply Chain
 Slow Steaming on Major Deep Sea Routes
 Government Regulations and Punitive Measures for
Road Transport leading to Increased Demand for
Rail and Barge Transport
2

3. Start Stop Logistics
Weekly Volatility - Beer Segment
140
120
100
80
60
40
20
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
3

4. Start Stop Logistics
Weekly Volatility - Wine Segment
120
100
80
60
40
20
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
4

5. Start Stop Logistics
Weekly Volatility - Food Segment
250
200
150
100
50
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
5

6. Start Stop Logistics
Weekly Volatility - Toilet Paper Segment
30
25
20
15
10
5
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
6

7. Start Stop Logistics
Weekly Volatility - Chemical Segment
70
60
50
40
30
20
10
Actual
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
7

8. Start Stop Logistics
Weekly Volatility - Total across Segments
500
450
400
350
300
250
200
150
100
Actual
50
Forecast
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
1
3
5
7
9
8

9. Multimodal / Short Sea
Short
Sea Rail
Barge Road
9

10. Making Procurement an Art
 Hiring Container Ships
 Leasing Containers
 Haulage Capacity
 Barge Capacity
 Rail Capacity
 Stevedoring Arrangements
 Bunkers / Bunkers Hedging
 Currency Hedging
Balancing Risk and Opportunity
10

11. Contract Management
11

12. Back2Back
Contract Management
12

13. Opportunities to Balance Risks
 Clear Communication of Trading Conditions
 Service Level Agreements including Daily/Weekly
Fluctuations
 High Understanding of Customer's Operational
Requirements
 Escape Clauses
 Prioritise Legal Contracts
 Complex Supply Chains need operationally minded
Commercial People
 Reciprocal Carrot and Stick Arrangements
13

14. Contract Management
 Reduced Profits
 Increasing Competition
 Less Resources
 Less Time
 Increasing Customer Demands
Have you ever thought about cutting a Corner ?
14

15. DON’ T !
HAVE THE GUTS TO SAY NO !
15

16. Conclusion
 Manufactures and Retailers have become more Risk adverse vis a vis
Inventory Management
 Start Stop Logistics will increase weekly and daily Fluctuations
 Visibility and Agility will improve but at a Cost
 Both Customers and Service Providers will need to invest in additional
Resources for the Forecasting Process
 The current Situation where Service Providers take most of the Risk is not
Sustainable in the middle to long Term
 3PL/4PL Providers can take advantage but need to improve
Communication and Risk and Reward Sharing with the Asset Providers
16

17. 17

18. Start Stop Logistics
18

19. 19