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Consulting
Technology
Outsourcing
Providing total solutions, rather than advice.
Utilizing the latest technology to enable and generate new business opportunities for you.
Creating value by delivering lifecycle solutions and bottom line results.
Bringing value-based solutions to our clients to help build bridges for the future.
We quantify our results so you see the value.
Consulting
Technology
Outsourcing
Relationships
Improved Profitabilit
y
Driving hard for our clients
Decades of experience
Routinely achieve 8% to 12% savings for our clients
Achieved as much as 50% savings in LTL categories
Utilize best practices in the industry
“Big Four” Consulting at a competitive cost
Warehouse, Distribution, Transportation, Logistics – Our Core Competency!
Implementation
Obtain visibility into enterprise spend to identify and prioritize sourcing activities
Use Best in Class methodology and templates to reduce effort for client
Customized application of RFP’s to uncover underlying category economics
Unlocking unrealized potential by letting carrier bid on strengths
Iterative bid analysis uncovers “what if” scenarios Review carrier consolidation opportunities Supported by comprehensive complement of analytic reports to
ensure feasibility
Track implementation and actual savings, based on initiative recommendations
Identify secondary savings opportunities through sustained focus on quality
Highlight non-compliance and savings leakage for immediate remediation
Sourcing Process
Transport Sourcing Methodology
BaselineData Prep
Proposal Collection
Bid Analysis
Transportation
Management
Typical Scenario After six to eight months, actual savings can fall short of expectations by >40%
Time
Savin
gs Savings shortfall
due to weak compliance tracking
Savings erosion due to weak category
management
Projected Annualized Savings
Impl
emen
tation
Sav
ings
Projected savings can erode rapidly without ongoing maintenance after implementation
Carriers don’t accept tendered loads Non-compliant carriers used
New lanes emerge as supply chain partners change their networks
Volumes shift as loads are optimized
Transport Support
Strategic Alignment
Relationship
Leveraged
Drivers of Provider SelectionDrivers of Provider Selection
Consolidation of requirements amongst carriers
Operational integration based on historical successes
Systematic matching of changing capacities and capabilities
NotesNotes
This is an iterative and evolving
process
Timely progression through the
appropriate stages is key for deriving
incremental benefits
The majority of carrier relationships
surveyed are being managed on the
relationship level today
This is an iterative and evolving
process
Timely progression through the
appropriate stages is key for deriving
incremental benefits
The majority of carrier relationships
surveyed are being managed on the
relationship level today
Pro
gre
ssio
n
Emphasis on building relationships with a few core carriers
Significant opportunities are uncovered when transportation has been managed based on strong relationships
Broad Strategic Sourcing Experience Supported numerous teams with services
that provided combined savings in excess of $200 million
Deep Transportation Sourcing Expertise Sourced over $1 Billion of global spend,
generating an average savings of 14% per initiative
Routinely advise strategy consulting firms, journalists, and analysts in transportation sourcing
Collaborative Carrier Approach Methodology produces long-lasting carrier
relationships Frequent accolades from carriers validate
collaborative approach
Recent Results
Result Result
International Air & Ocean
$3 million spend
TMG saved $700,000
NA Truckload $7 million
spend TMG saved
1.5 million
Result Result
LTL $15 million
spend Saved 23%
Inbound Freight
Converted terms
TMG saved 15%
WHY TMG?
Step 1 Step 2 Step 3 Step 4
Step 5
BaselineSpend
Components
SelectSourcingStrategy
DevelopProvider
Base
SelectImplementation Approach
Negotiate and
SelectProviders
IntegrateProviders
BenchmarkPerformance
Step 6 Step 7
7-Step Sourcing Methodology
Baseline Database
5.Award notificationsNegotiate agreements
1. Baseline Spend
4.Implementation ApproachFacility ProfilesRFI/RFPSavings Calculations
2. Site interviews
Data and Systems review
Sourcing Strategy
3. Develop Provider Base
6.Company AnnouncementIntegrate Providers
7.Organize KPI’sBenchmark PerformanceTrack Savings
Deeper into Sourcing Methodology
InputsOutputs
Cost-effective coordination of moving of the right material in sufficient quantities from manufacturing to storage.
Movement from storage centers to on-time delivery to customers
How Does TMG Implement Optimization?
Help client design and implement their physical distribution infrastructure: Detailed design of the “inside and outside the four walls” Helping clients address changes in their environment
Take in account factors such as: Postponement cross-docking Increased customer demands for accuracy, speed, value-added
services and flexibility
What is Distribution & Warehouse Optimization?
Distribution & Warehouse Optimization
Distribution operations account for the largest segment of assets in the supply chain, and the second largest segment of cost.
1. Distribution Strategy: Channel strategy performs customer driven market segmentation, quantifies cost to serve, optimizes go-to-market strategies, service requirements and associated distribution capabilities; network strategy rationalizes current distribution network
2. Warehouse Management Systems: Focuses on execution capabilities of warehouse, enabling distribution capabilities and integrating with other supply chain partners and providing transaction backbone
3. Distribution Design: Improves processes such as cross-docking and consolidated distribution, picking and dispatching
4. Performance Management: Enhances human performance through and short term and continuous improvement efforts
Distribution & Warehouse OptimizationFour key components
What comprises TMG’s Distribution & Warehouse Optimization Solution?
TMG is one of few firms that offer a comprehensive “cradle to grave” solution set.The solution incorporates:
Distribution Strategy: Channel requirements and desired capabilities definition, master distribution plan development, benchmarking/assessment, operating model definition, supply chain configuration
Warehouse Management Systems: Selection and implementation of WMS solutions
Distribution Design: Detailed facility design for new & retrofitted facilities, facility expansion
Performance Management: employee performance/measurement, operations management, slotting, equipment maintenance, vendor compliance
Distribution & Warehouse Optimization
Traditional Warehouse Integrated Distribution Center
Characteristics
Client: Storage Depot Isolated, discrete operation-functional Inflexible, production orientedNo value addedProblem: One dimensional
Flow- through distribution center- extension of suppliers. Integrated into cross-enterprise supply/demand chain. Resilient, geared to agile manufacturing. Products customized, made floor-ready Solution: Linkage of strategy, people, processes and technology
Facilities
Large centralized Up to half of storage space wastedStorage-oriented use of space
Fewer, smaller, focused on regional marketsMaximized space utilizationLanding point for imported product, merge cross-dock unit, plus value-added service area
People/Organization
Individuals working alone in a single functionExecutives on single-discipline career trackExcessive bureaucracy/supervision
Multifunctional teamsExecutives cross-trained to manage total business, make knowledge-based decisionsEmpowered workers, few management levels
Technology
Legacy systems, not integrated with vendorsEmphasis on assets – inventory, transportation, warehousingTraditional/rigid order management
Integrated networks, distributed architectureEmphasis on information, instant feedback real-time readouts of business pulse pointsAdvanced system provides full-span logistics visibility to implement agile distribution
Dramatic, Measurable Results
Order-handling cycle time, Shipping accuracy, Customer lead-timeWarehouse/distribution space, Inventory-record accuracy, Damaged and defective goods, Worker productivity, Cost of moving product
Twice as fast, Up to 20 percent better, 50 percent better, Improved 10 to 20 percent, 99.9 percent, down 75 percent, Up 5 to 40 percent, Down 10 to 20 percent
Distribution & Warehouse Optimization
What are the client benefits of TMG’s Solution? Increased volume (e.g. improved order fill rates) Reduced freight and indirect labor/warehousing costs Optimized physical network / facilities Leveraged new and/or alternative distribution channels Reduced customer service & order management costs Improved customer service (shorter lead times, more accuracy, value added services) Reduce Finished Goods inventories Optimize AP and AR Improve Asset Utilization and Rationalization
Distribution & Warehouse Optimization Clients
TMG has some of the best industry experts available known for logistics supply chain and strategy practice
TMG approach involves clients as part of our team that is trained with our winning formula
TMG takes an ongoing process to uniquely position client distribution facilities in a constant state of improvement, not in a constant state of flux
TMG shares implementation methods with top WMS vendors that have proven abilities in:
Fast-track operations implementation Reliable operations performance delivery Seamless integration between physical infrastructure and
information systems Designed-in worker usability Structured employee learning and process ownership
Why Hire TMG For Distribution & Warehouse Optimization?
What is the implementation timeframe? Studies are 4 to 12
weeks
Process Implementation 12 to 18 weeks
Technology Implementation 4 to 18 weeks
Who are the client decision-makers? VP Materials VP Logistics VP Supply Chain
645 N. Michigan Avenue, Suite 800 • Chicago, IL 60611Phone: 312.280.1380 • Fax: 312.751.0313
Email: [email protected]
Learn more about freight studies and our solutions.