Freight Benchmarking to enhance competitive Ocean Contracting

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1 Freight Benchmarking to enhance competitive Ocean Contracting TPM 2015 MARCH 4 TH, 2015 LONG BEACH

2 1. Market Intelligence Initiative Global Ocean Transport Community, Coverage & Compliance 2. Motives, Deliverables & Benefits 3. NCR: Competitive Advantage by Market Intelligence Case Study 4. Data Needs & Process 5. Questions & Answers TIM CONSULT 2015 Page 2

3 Market Intelligence including Benchmarking enable Savings and strategic Benefits if done in the right Way and by the leading Community We went from «eye-opening» the first year, to «eye-sharpening» in the following years, meaning we are still learning XXX, Head of Ocean Management, Automotive We see the benchmarking project as a major competitive advantage tool in global freight procurement... XX, Vice President Global Logistics, FMCG The decision for participating is easy. We could save 25 US-$ per TEU globally. Not often you come across such a nice potential... XXX, Contract Manager Ocean Freight, Global Logistics, SMCG In the last two years there was a real revolution within the inbound transportation using your analyses You really added value to what we are doing XXX, Manager Strategy & Supply Chain, Automotive TIM CONSULT 2015 Page 3

4 Market Intelligence Initiatives provide comprehensive Network Visibility: All Modes globally and regionally unlocking Savings Potentials and Strategic Optimization Market Intelligence Initiative Scope 2015 NAFTA Road & Intermodal Start 2013 NAFTA Finished Vehicles Start 2015 Latam Road & Intermodal Start 2014 Europe Road & Rail Packaged Start 1999/2004 Europe Road & Rail Bulk Start 2001/2014 Europe Road LTL & Groupage Start 2000/2014 Europe Finished Vehicles Start 2010 Europe Transport Service Performance Start 2012 Europe Warehousing Start 2014 Sub-Sahara & South Africa Road & Intermodal Start 2015 Global Ocean Transport Containers Start 2002 Global Finished Vehicles Deep Sea Start 2014 Asia Road & Intermodal Start 2014 Global Air Cargo Start 2008 Global Courier/ Express/Parcel Start 2009 TIM CONSULT Confidential Information Page 4

5 1. Market Intelligence Initiative Global Ocean Transport Community, Coverage & Compliance 2. Motives, Deliverables & Benefits 3. NCR: Competitive Advantage by Market Intelligence Case Study 4. Data Needs & Process 5. Questions & Answers TIM CONSULT 2015 Page 5

6 TIM CONSULT s Market Intelligence for Optimising Tactical and Strategic Procurement, Strategic Design of Global Value Networks and Supporting Governance Processes Market Intelligence: Applications & Benefits Tactical Procurement Gaps Target rates Quarterly freight indices Savings & performance evaluated Strategic Procurement Best practices Monitor market trends Network with leaders World class procurement strategy Internal Customer Interaction Prove excellence to stakeholders Full compliance Excellence & credibility Value Network Management Map global networks All modes & all regions Rates, costs & service levels Cutting edge know how & tools TIM CONSULT Confidential Information Page 6

7 1. Market Intelligence Initiative Global Ocean Transport Community, Coverage & Compliance 2. Motives, Deliverables & Benefits 3. NCR: Competitive Advantage by Market Intelligence Case Study 4. Data Needs & Process 5. Questions & Answers TIM CONSULT 2015 Page 7

8 NCR: Positioned in Omni-Channel Landscape Charts presented to attendants. Available in direct contact only

9 NCR Network Charts presented to attendants. Available in direct contact only 3/6/2015

10 NCR view of the Market Intelligence Community & discussions The Community is a diverse group Helps us get view points from a variety of industries Lane coverage & volumes are globally comprehensive and valuable The end workshop discussions on market issues are helpful We never agree on topics so we see strong opinions from all sides Each company sticks to the non-disclosure rules, so it protects each other as well NCR Confidential 11

11 Uses of the tools We focus on the web tools to see the lane comparison details The initial benefit is the cost & transit comparison on the specific or regional lane The details contribute to our knowledge base for pricing reviews NCR also uses the tools to find out reasonable costs for new lanes Helps complete network modeling projects for new business or network changes Have made manufacturing decisions based on data from the tool Overall, we use the tools to help focus our costs to the correct levels & keep up with market trends NCR Confidential 12

12 1. Market Intelligence Initiative Global Ocean Transport Community, Coverage & Compliance 2. Motives, Deliverables & Benefits 3. NCR: Competitive Advantage by Market Intelligence Case Study 4. Data Needs & Process 5. Questions & Answers TIM CONSULT 2015 Page 13

13 1. Market Intelligence Initiative Global Ocean Transport Community, Coverage & Compliance 2. Motives, Deliverables & Benefits 3. NCR: Competitive Advantage by Market Intelligence Case Study 4. Data Needs & Process 5. Questions & Answers TIM CONSULT 2015 Page 14

14 Typical first Questions. Information and References available as much and as many as requested in direct Contact Questions Do I get assistance in understanding & making use of results? Or am I left alone with a spreadsheet and abstract KPI? Can I join anytime? When are results made available? How fast can I receive results? Are best-in-class carriers made available to all members? Answers in short Yes, year-round. Form & content on demand Yes, anytime. No relevant delay once data is supplied No, proprietary information 4 Benchmarking of the benchmarkings : How does the TIM Market Intelligence Initiative compare? Largest Community ( 6 mio TEU). Best, global coverage (2,413 port pairs outbound NAFTA/ 2,239 inbound). 13 years track record. Leading methodology. See NCR statement below 5 6 Is this Initiative open to NVO, carriers & other parties? What savings are typically achieved in the first year and in subsequent years? Not this initiative Depends on status, structure, strategy, size. 1-6 % first, % subsequent years 7 Fee level & model. Typical pay-back period? See direct contact. Typically below one month TIM CONSULT 2015 Page 15

15 NCR: Issues we have seen with other options In previous years I have been invited to use other benchmark companies The coverage has traditionally been poor Biggest issue has always been the approach Not focusing on comparable time frames Not confirming data validity Not setting up the results in a usable fashion Not knowing who else was truly in the group All of those meant the data was not reliable NCR Confidential 16

16 Looking forward to our Collaboration! TIM CONSULT GmbH L 15, Mannheim Tel.: +49 (0) Fax: +49 (0) TIM CONSULT Inc. 777 Westchester Avenue Suite 101 White Plains NY Björn Klippel Managing Director Managing Founder b.klippel@timconsult.com Beate Schneider Assistant b.schneider@timconsult.com Tel TIM CONSULT Page 17

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