May 2007 Transportation Best Practices

May 2007

Transportation Best Practices

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Overview of C.H. Robinson Worldwide 102 year Tradition of excellence (founded in 1905) Leading 3PL of transportation, distribution, sourcing and

other supply chain services 2006 gross revenues in excess of $6.5 billion Over 6,700 employees in 214 offices worldwide Over 5.2 million shipments delivered for over 25,000

customers in 2006 Contracts with over 45,000 carriers worldwide Publicly owned and traded on NASDAQ (CHRW)

Ranked 349 on Fortune 500 (Ranked #1 in our industry)

Overview cont’d

…. 4th largest produce / sourcing companies in the North America.

CHRW had it’s beginning in the buying and selling of produce

2006 Sourcing sales were 8.7% of CHRW gross profit

2006 Produce volume, over 90 million

cases sold 430+ employees dedicated to produce

and perishable transportation 28 produce offices in major cities and

growing areas

North American Network

Now OpenYoungstown, OH

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Overview Cont’dWHAT WE DOManage and execute supply chain activities for our customers

Basic Services• Transaction sourcing/transportation

• Product development

• Procurement

• Transportation

• LTL

• Carrier/mode management

Value Added Services• Logistics

• Replenishment

• Facility management

• Business & category analysis

• Supply chain analysis

• Total project management

Driver Availability– Ensuring Capacity Meets Supply

Collaborative Capacity Planning

Product Need Drives Mode

Sustain and Grow the Carrier Base

Driver Availability– (Impact)

Loyalty at a Cost

Volatility of Rates

Supply Issues

Loading – How Best Practices impact efficiency in loading a shipment.

Supply Chain Efficiency

Freshest product to market

Capacity Increases

Unloading – Impact of poor receiving practices

Supply Shortages

Inflated Rates

Rejection Process (Important steps to follow)

Notify All Parties of the Issue

Be Available

Document Everything

Seek Guidance from Peers and Industry Experts

Rejections - How to ensure loads aren’t rejected

Teach/Train the Driver/Carrier

Define Your Expectations

Be Proactive/Over Communicate Your Expectations

PULP EVERY PALLET

Check Product Temps Daily

Rejections - Impact of a rejected load

Sub Par Quality Product in the Marketplace

Rates Increase

Supply Issues/Shortages

Waiting Times – How to communicate delays

Call Carrier to call the shipper/receiver immediately of the delay. Shipper/Receiver to call carrier to provide new pick up/delivery

time and verify new time can be met. Follow up

Follow up with an email/fax reviewing discussion and requesting new pick up/delivery times.

Notice gives customers a chance to fill shortsCustomers require updates so they can either buy product to

cover the orders, halt or reschedule production and advise receiving of delays to limit staffing.

Avoid/limit penalties for missing original delivery times.

Waiting Times – Why communicate?

Lumper and gate fees – Who is responsible?

Unloading responsibilities• Who owns it?

–ReceiverClearly define costs to each carrier prior to negotiating terms

How is unloading paid? (Avoid cash transactions)

Pallet exchange policy