- 1. OUTOFSIGHTOUTOFMIND FOUR CURRENTISSUES THAT EFFECTTHE
ABILITY TO OPTIMIZE LOGISTICS
2. Areas Covered
- Significance of Logistics
- Four Strategic Challenges
3. 4. 5. Evolution of Logistics
6. What % of gross sales are logistics costs?
- For companies, 5% to 25% of gross sales are logistics costs,
depending on business, geography and weight/value ratio
7. U.S. Logistics costs rise to1.3 TrillionDollars in 2008
SIGNIFICANCE TO U.S. ECONOMY Source:Gilmore, Dan,State of the
Logistics Union 2009 , Supply Chain Digest, 6/17/09 This represents
an annual Dollar increase of approximately$450 Billion
Dollarsbetween 2003 and 2007 8. LOGISTICS VERSUS G.D.P. 23.3%17%
7.15% 9.
- Only 37% percent of senior executives at large, U.S.-based
industrial manufacturers responding to a recent
PricewaterhouseCoopers Manufacturing Barometer survey believe their
companies' current distribution network and logistics approach is
very effective or extremely effective
Source: Terry, Lisa,From the Back Room to theBoardroom:
Logistics Gets on the Agenda,www.inboundlogistics.com , July, 2008
10. IMPORTANCE OF LOGISTICS TODAY
- NOTHING HAPPENS WITHOUT IT
- Logistics has moved from the backroom to the boardroom
- Dynamic nature of the logistics industry
11. TOPICS
- Infrastructure Underinvestment
- The Impact of the Current Recession
12. InfrastructureUnderinvestment 13. 14. I-710 Corridor from
the Port of Long Beach I -710 Under normal conditions I -710 During
Port Shutdown 15. Land Side Access
- As of 2005, congestion resulting from landside access
challenges was estimated to cost as much as $200 billion, wasting
2.3 billion gallons of fuel and 3.7 billion man-hours annually
(USDOT MARAD 2005)
16. 17. 18. Auto Infrastructure& Congestion
- Each year, 42,500 people are killed
- 2.5 million are seriously injured in more than
- 6 million motor vehicle accidents
- Accidents/Traffic cost Americans $365 Billion per
- year = $1 Billion a day = $1,200 per American
The Surface Transportation Authorization Act of 2009Committee on
Transportation & Infrastructure,House of Representatives Motor
vehicle crashes = leading cause of death of children &
peopleages 3 34 years old. 19. Domestic air-traffic delays last
year cost the U.S. Economyas much as $41 billion- Joint Economic
Committee Report, 2008 20. Regulation & Compliance 21. 22. Cap
& Trade 23. Government Agencies 24.
- The U.S. Department of Transportation website,
underregulations.govboasts over 1.2 Million pages of Regulatory and
adjudicatory information for easy research & referral
25. 26.
- "Gas is so expensive SUV now stands for sport utility
victim."
ENERGY 27. Fuel bills totaling in the billions
- Every additional $1 per barrel of oil costs the domestic U.S.
airline industry over $400 million
A one-penny increase in the price of diesel annualized over an
entire year costs the trucking industry an additional$391 milliona
year. -American Trucking Association 28. The Price of Fuel 29.
Future Demand Source: OECD/IEA -2008 30. PEAK OIL
Source:www.thesocialcontract.com , May 29 th , 2005 31. THE CURRENT
ECONOMIC STORM 32. 33. International air cargo is expected to slump
17% this year World airlines are flying towards a combined global
loss of $9Billion - IATA (International Air Transport Association)
34. Challenging times for the air cargo industry 35.
- Idled ocean container capacity hit a new high of 1.41 million
TEUs, or 11.3 percent of the world fleet on March 16, with 484
ships lying at anchor as carriers continued to retrench amid
declining cargo volumes on most liner trade routes.
- Citing the London based shipbroker Clarkson Plc the association
said in a statement on July 1st that new shipbuilding orders
worldwide totaled 1.6 million DWT in the first five months down by
98% from a year earlier.
- For the year to date, Los Angeles and Long Beach remain 16% and
29% behind, respectively, on total containers handled.
36. 37. Trucking
- New truck orders down 50% year over year
- U.S. For-Hire Trucking Industry employmentdeclines 124,700 in
the last 12 months.
- 4,000 company failures per year Avondale Partners
- NAFTA Surface Trade Volume down 27% year over year - USDOT
38. WHAT ABOUT THE FUTURE? 39. Performance today is more
important than ever 40. Industries rely on critical logistics
-
- Live television broadcasting
-
- Medical equipment and supplies
-
- Network equipment (Communications, IT systems, and point of
sale )
-
- Food production & service
-
- Printing, publishing & graphic arts
-
- Critical parts and service contracts
-
- Just-In-Time Manufacturing
41. 42. They agree: logistics offers a competitive &
strategic advantage
- In North America and Europe, 87% of user respondents agree that
logistics represents a strategic, competitive advantage for their
companies
Source:The State of Logistics Outsourcing in 2008,Capgemini,
2008 43. Emerging trends
- Changing logistical managementas supply chains intensify,
managers will need to know more and respond more quickly to take
advantage of positive changes.
Source: State of Logistics Union 2007,Gilmore,Dan,Supply Chain
Digest, June 2007, Robert Malone on Logistics, Forbes Magazine,
12/27/07 Two major trends have surfaced in
transportation/logistics:
- Logistics outsourcing-to reduce costs, take advantage of
expertise or new options & technologies, companies are looking
to 3 rdparties for their logistics solutions
44. Dont let the recession cause you to make the wrong decisions
Source:Penn State Smeal College of Business, 2008 45. 46. The best
plans developed today can be obsolete tomorrow The best plans
developed today can be obsolete tomorrow 47. 48.
- The industrial landscape is already littered with remains of
once successful companies that could not adapt their strategic
vision to altered conditions of competition.
49. High DefinitionLogistics Insert Logo Here High
DefinitionLogistics Insert Logo Here 50. About High Definition
Logistics
- High Definition was founded in 2007
- Expertise with solutions that include the management of
expedited and time definite logistics within North America
- Modern business model design taking advantage of current
applications with a focus on back end efficiency
- Client solutions are developed based on the unique needs of
those served and vary from one application to the next
51. Services Provided
- Air: Same day, next day, 2 day and 3 day.
- Ground: Next day, 2 day, 3 day and 3 to 5 day. FTLand LTL.
-
- Managed Delivery, Appointment and Installation, New
product
-
- build out and service contract support
- Roll outs, Launch/Release distribution, assetrecovery
- Technology, Information management
52. Unique margin of difference
- Efficiency of business model
53.
- High Definition understands the challenges you are facing today
and how important logistics is to your overall profitability. We
also understand you are trying to cut costs, while at the same
time, trying to build relationships with vendors who can help you
grow your business and profit.
- Allow us to evaluate your current logistics strategy. Contact
High Definition today at:
- High Definition Logistics 1102 East Dallas Road Suite 215
Grapevine, TX 76051
- Toll Free: 877.884.4443 Fax: 817.329.9400
Sales:[email_address] Customer Service:[email_address]
CONTACT