Retail and Logistics Overview
Presented by: Jennifer Johnson and Darren Nelson
May 6, 2008
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Agenda and Purpose of Visit
• Introductions
• About Koch Logistics
• Retail Capabilities and Experience
• Current Strategies and Future Growth Iniatives
• Focus Areas and Challenges
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30 Years of Smarter Shipping
Koch Logistics is a division of Koch Companies, a leading, privately held international transportation and distribution firm. Koch Companies began as a manufacturer’s rep of chain, rope and hardware in the mid 1950’s. Two decades later the company had expanded into transportation. From the beginning, the Koch family embraced a philosophy of customer service that continues to distinguish Koch Companies today. This steadfast commitment to service has allowed Koch Companies to become a strategic resource for its customers in all aspects of international and North American transportation including logistics, trucking, air freight, maritime, warehousing and leasing.
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About Koch Companies
Asset and Non-Asset Service Offerings:
• National Truckload Division; operating over 300 trucks in critical retail DC to store dedicated networks
• National Truck and Trailer Leasing Division; assisting retailers with home delivery equipment and short-term onsite/offsite storage needs
• Worldwide 3PL network of managed, project and transactional logistics services
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Koch Logistics Capabilities
TRANSPORTATION SERVICES
• Truckload
• Less than Truckload (LTL)
• Warehousing
• Expedited and Air Freight
• International Import and Export
• NVO/Customs broker
SUPPLY CHAIN MANAGEMENT
• Retail & store opening/remodel logistics
• Reverse logistics & returns
• International consulting
• On/Off-site distribution management
• Distribution planning & optimization
• Proactive customer & claims support
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Approach to Retail
Our People Make the Difference• Dedicated leadership and team to manage
retail programs
Programs are Interactive and Flexible• Collaboration with our clients early on and
at multiple levels
Extended Product Offerings• Strategic and exclusive relationship with
Store Opening Solutions
• Installation Services• Merchandising Services• Consolidation Services• Construction Services• Inventory and Construction Management
Software
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Retail Support is at the heart of our organization. Koch Logistics brings a rare spirit of determination, integrity and smart thinking to third party logistics. We solve your most important and complex logistics challenges with a dedicated account team that’s focused on serving you.
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Stay Connected
• Web Enabled Load Tracking
• Web Enabled Load Tendering
• EDI Capable
• Custom Reporting
• Data Security/Disaster Recovery
• Data Imaging
• Warehouse Management
• Freight Management
• Custom Data InterfacesHigh quality, integrated business solutions employing the latest information technology.
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Technology is a powerful tool for achieving a more convenient, efficient and information rich supply chain. At Koch Logistics, we’re
well equipped to keep you ahead of the curve.
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Retailers Face Many Challenges Related to Store Openings and Remodels
• Significant last minute changes and coordination
• Coordinating and managing a large number of vendors
• Financial impacts of late deliveries or site delays
• Managing multiple carriers
• Bidding
• Tracking
• Issues
• Payment
• Resources to manage process, vendors, carriers, performance and communications effectively
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Some of Our Retail Partners
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Re-Branding for Leading Health and Beauty Retailer
Client Needed:
• 1,200 Stores re-branded within 18 months• Managed more than 100 suppliers and over 12,000 shipments• Multi-modal solution utilizing Truckload, LTL and air services
Delivered Value:
• 99.6% On-time delivery performance for entire project • Simplified process - single source for planning, execution and payment• Event manager and dedicated team reacted to changes quickly with pro-active
communications• Seamlessly coordinated heavy equipment and labor for store deliveries• We became the primary transportation provider for all future new store and
remodels projects
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Koch Logistics client since November, 2000
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Leading Retailer of Technology and Entertainment
Client Needed:
• Visibility and execution of all Truckload shipments from vendor direct to store• Sequence trucks to coordinate with construction crews• Manage multiple vendors and more than 5,000 shipments annually• Support significant spikes in volume during peak months
Delivered Value:
• 99.1% On-time delivery in 2007 as measured to the day and hour of delivery• Network visibility and reporting tools enable process improvements to be identified
and realized• Flexibility and partnership to support addition specialty needs within one provider
such as the “Big Joe” program• Consistent and dedicated team has managed the vendor direct to store network for
more than 8 years.
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Koch Logistics client since April, 1996
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Growing Health and Fitness Provider
Client Needed:
• Visibility and execution of inbound goods into gym openings• Vendor management and pro-active communication• Reduce Shrinkage• Minimize delivery window upon turnover to less than 3 hours
Delivered Value:
• Eliminated shrinkage by consolidating and completing inventory audits prior to final site delivery
• Improved organization and flow on day of delivery by having an associate on-site on day of delivery at each gym opening
• Reduced delivery window on turnover day to <2 hours
Koch Logistics client since January, 2007
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Leading concessionaire of baggage cart, locker and other guest services
Client Needs:
• Improved service, visibility and execution
• Manage delivery site restrictions
• Communication with install teams
• Support site returns
Delivered Value:
• Improved level of service
• Project summary ensures timely follow up and service reporting
• Pro-active visibility allows their resources to focus on other areas of the business
Koch Logistics client since January, 2008
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Strategic Growth Areas
• Project Management
• Expanding Presence Nationally• Nashville
• Chicago
• Dallas
• Atlanta
• Launch of Koch Maritime
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We Add Value Through….
Our Experience & Track Record• Over $30M in annual revenues attributed to this type of work
• Multiple network models and modes supported
• Over 99% On-time delivery performance measured to the date and hour
We Understand the Impacts of Missed or Delayed Shipments• Overtime costs for labor
• Store opening delays and lost sales
Our Ability to Incorporate Additional Services• Installation, Merchandising, Inventory and Construction Management
Software, Heavy Equipment & Manpower Coordination and Dedicated Operations
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About Northern Tool
• Over 18,000 products sold and supported
• Sales channels include:• Catalogue
• Website
• Store (Over 60 stores in 11 states)
• European operation in Portsmouth, United Kingdom
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Make the Connection
Minimize interruptions and maximize sales with Koch Logistics
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