Charlotte, North Carolina April 7, 2009 - MHI · 2009. 4. 17. · MHIA Warehousing Charlotte, North Carolina April 7, 2009 Phone: +1-608-873-8929 Website:

MHIA

WarehousingCharlotte, North Carolina

April 7, 2009

Phone: +1-608-873-8929Website: www.3PLogistics.com

©Copyright 2009 Armstrong & Associates, Inc.2

� Founded in 1980

� Supply Chain Market Research and Consulting Services

� Current Research:

� Who's Who Logistics and Supply Chain Management – Americas

� Who's Who in Logistics and Supply Chain Management – International

� Warehousing in North America – 2009 Market Size, Major 3PLs,

Benchmarking Costs, Prices and Practices

� Targeted in-depth market research papers

� Articles & Press Coverage: American Shipper, Global Logistics & Supply Chain Strategies, Journal of Commerce, Logistics Management, Logistics Quarterly, Modern Materials Handling, Traffic World, Transport Topics, Wall Street Journal

� Consulting Services: Benchmarking, Expert Witness, Logistics Outsourcing, Logistics Provider Contracting & Negotiation, M&A, Network Analysis & Design, Transportation Analysis, Systems Evaluation & Selection

� Global Resources: U.S. Organization; Eric Xiang, Shanghai China; Latin America, Japan and South Korea Alliance Partners

About Armstrong & Associates, Inc.


http://www.3plogistics.com/Site_Visits.htm

Click on the links below to view case studies completed previous years.


Largest Commercial Warehousemen in North America(Ranked by Millions of Square Feet)


Largest Refrigerated Warehousemen in North America(Ranked by Millions of Cubic Feet)

*Atlas Cold Storage was purchased by VersaCold Group in 2007.Source: 2007 International Cold Chain Directory, IARW

*


Warehousing Rates

Vacancy (12-31-08)

20 MSF1Q09

107 MSF3Q07

Construction

9.1%National

13.3%Inland Empire – LA

9.8%Dallas

10.3%Chicago

12.6%Atlanta


Kuehne + Nagel Comparative Breakdown (2007)

Air Freight Ocean Freight Contract Logistics

Turnover (Gross Revenue) $3,198M $8,292M $4,013M

Gross Profit (Net Revenue) $600M $1,092M $3,001M

Gross Margin 18.8% 13.2% 5.2%

EBIT $169M $332M $87M

EBIT/Turnover 5.3% 4.0% 2.2%EBIT/Gross Profit 28.2% 30.4% 2.9%


EBIT Comparisons (VAWD)

11.0%10.0% 10.0%

9.5%8.5%

3.6%2.9%

-2.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

GENCO Jacobson UTi CAT

Logistics

Kenco DHL Exel Kuehne +

Nagel

CEVA


Expected and Actual EBIT Margins (%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

< 0 0–4.9 5–9.9 10–14.9 15–19.9 20–24.9 25 or >

% o

f C

as

es

Expected

Actual


Commodity/Industry Vertical Actual Operating Margins

Industry Vertical Actual (%)

Chemicals 22.5

Telecommunications 20.2

Apparel 18.7

High-tech/Computers 18.2

Healthcare/Cosmetics 15.8

Retail/Consumer Products 13.9

Industrial (non-automotive) 13.9

Building Materials 12.9

Automotive 12.5

Food/Beverage 12.4


GSCM Value-Added Services & Capabilities

Transportation Management/ForwardingCargo Insurance

Carrier Contracting/Brokering/Freight PaymentCustoms Brokerage/ACE/C-TPAT/FAST

Duty DrawbackIncoterms Management – EXW to DDP

Letters of Credit/Negotiable BOLsMerge-In Transit

NVOCCProject Logistics

Project ManagementTransportation Execution

Transportation Network Planning/Optimization

Warehousing/Cross-dockingBonded Warehouse

Home DeliveryInstallation/Removal

JIT/KanbanKitting/Pick & Pack

Light Manufacturing/AssemblyReverse Logistics

Small Package/FulfillmentWMS

Both – 3PL/4PL4PL/Lead Logistics Provider

Call CentersConsolidation/Deconsolidation

Consulting/Process ReengineeringEDI

Financial ServicesFood Grade/Temperature Controlled

HazmatPurchase Order Management

Internet Supply Chain VisibilityInventory/Vendor Management

ISO CertificationPool Distribution/Cross-docking

Radio Frequency/RFIDSecurity Processes

Sourcing


Frequency of Value-Added Services

©Copyright 2009 Armstrong & Associates, Inc.

3PL Trends

� VAWD – ERP VS. WMS

� Customer Ownership / Leases of Buildings

� Cheap Leases – 1 to 2 Years VS. Buying by 3PL

� Limited Packaging Options

� Equipment Investment – Long Running Projects – Utilization

� Short Run Projects

� Limited Growth Opportunities?

� Retail Apparel – GOH

13


UPS SCS Laptop Repair


UPS 757 at Worldport Dock


CEVA Global Footprint


CEVA Sector/Service Focus - Sample of Customers


CEVA International Logistics Solutions (ILS)


UKMEA

37%

Mainland

Europe

31%

Asia Pacific

6%

Americas

26%

DHL Regional Revenue Split


UTi airfreight forwarding pallet ready for loading


TELUS Mobility clamshell packaging operation


Penske’s Sao Paulo Multi-Client Warehouse


Menlo Operated Clean Room


GENCO - Sample of Customers by Solution


� North America’s 3rd largest 3PL: manages 37m sq. ft. of warehouse space

� The leader in Reverse Logistics

� #1 rated customer experience through an ongoing commitment to customer satisfaction

� Innovative leader in supply chain technology R&D and implementation

� Suite of supply chain visibility and data analysis tools

� Over $1 billion in freight managed annually

� Visibility to $1.5 billion in parcel freight

� Liquidates $3.5 million worth of product daily

� Long-term customer relations with impressive customer base and significant depth across major industries: Fortune 500manufacturers, retailers and U.S. government agencies

� Formal process to provide initial and ongoing value

GENCO’s Differentiators


ATCL&E Accessory Packaging


Cat Logistics Sagamihara Distribution Center


Cat Logistics Japan Operations

Loading a Truck for Local Delivery

Packaging Line Auto-bagging of Parts

Three-level Central Mezzanine

Thank You!

Stoughton Wisconsin OfficeRichard Armstrong

Armstrong & Associates, Inc.100 Business Park Circle

Suite 202Stoughton, WI 53589 USA

1-608-873-8929

Milwaukee Wisconsin OfficeEvan Armstrong

Armstrong & Associates, Inc.10401 West Lincoln Avenue

Suite 207West Allis, WI 53227 USA

1-608-268-5860

Documents

Charlotte, North Carolina April 7, 2009 - MHI · 2009. 4. 17. · MHIA Warehousing Charlotte, North Carolina April 7, 2009 Phone: +1-608-873-8929 Website: