Navigating your supply chain from strategy through implementation. Global Supply Chain & Logistics Solutions Capabilities

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1 Navigating your supply chain from strategy through implementation Global Supply Chain & Logistics Solutions Capabilities

2 2 3 61% of companies struggle to bridge the gap between strategy and implementation and many companies simply lack the capabilities to deliver on the strategy. Monitor Deloitte 2016 report Helping pin your supply chain strategy to the ground Your supply chain network manufacturing plants, warehouses and distribution centers faces challenges like never before. In light of increasing freight costs, global complexities, more demanding customer service requirements, new e-commerce challenges and risk management considerations, it has never been more important to plan and execute supply chain strategy/operations. JLL has been a pioneer among real estate service providers in offering a dedicated, in-house supply chain consulting discipline since WE ARE A $6 + BILLION WITH ROOTS STRETCHING BACK TO OUR FOUNDING IN LONDON IN 1783 OUR 60,000 EMPLOYEES S E R V E CLIENTS NATIONS Importantly, JLL was the first to integrate our vast consulting experience in developing supply chain strategies with a full range of implementation services.

3 4 5 Our success in helping clients with their industrial real estate needs and supply chain networks was built on the understanding that it is far more than real estate. Given that as much as 80% of the operating costs are in logistics freight, labor and inventory it is critical to have a deep understanding of the supply chain in order to be a trusted business advisor. Transportation 50.3% JLL: A thought leader spanning two centuries and three continents JLL bolstered its supply chain capabilities with two strategic global consulting firm acquisitions in Paris and Tokyo. Our supply chain consulting professionals are complemented by the full resources of the JLL platform to deliver the most optimal solutions to meet your business objectives. We have more than 135 dedicated, in-house supply chain specialists to support your needs with teams that cover the Americas, Europe/Middle East and Asia Pacific regions. Inventory 21.8% Labor 9.5% Logistics typically can account for of the operating costs 80% Customer Service Rent Admin 7.8% Supply Other 4.3% Real estate typically accounts for less than 5% 2.7% 2.2% 1.2% Supply Chain Consulting: Regional Leadership JLL has developed an integrated approach that links your supply chain strategy with proven implementation services to help you save time, money and mitigate risk. Supply chain strategy Labor analytics Tax and economic incentives Capital markets Real estate advisory Project development services Energy and sustainability solutions Richard Thompson Americas Chicago Patrick Remords Europe/Middle East Paris Hiroyuki Suzuki Asia Pacific Tokyo We take pride in challenging our clients in a constructive way about their operations and being viewed as industry thought leaders. JLL has long-term working relationships with leading supply chain industry organizations, academics and consultants, as well as commercial real estate associations. We recruit experienced industry professionals and put them through a variety of rigorous supply chain training programs to stay abreast of the latest industry challenges, trends and developments to ensure we are in a position to be a more thoughtful business advisor.

4 6 7 Strategy through implementation services JLL s delivery model integrates supply chain strategy with proven implementation services and was designed to save you time, reduce costs, improve service and mitigate operational risk. Current state baseline Our supply chain consulting services include: Network strategy Evaluating the entire supply chain network and providing the needed facts to make the most optimal long-term decisions. Objectively evaluating cost- and service- related trade-offs of various supply chain networks. Utilizing sophisticated, leading-edge network optimization tools to model operating scenarios, and testing them for sensitivity to changes in cost, service, capacity and workforce constraints. Inventory optimization Transportation cost reduction Mapping inventory flow, positioning and true carrying costs. Leveraging leading modeling tools to develop process improvements, accurate lead-time forecasting models and service-level analyses. Providing information on the optimal balance between service and inventory levels to maximize efficiency without sacrificing service. Analyzing and identifying areas of opportunity for transportation savings one of the biggest operating costs for any industrial company. Utilizing strategic transportation planning software and proven techniques to identify areas of opportunity for both tactical, more immediate savings ( low-hanging fruit ) as well as more strategic, longer-term savings benefits associated with recommendations in areas such as modal allocation, lane efficiency, available capacity and alternative transportation solutions. Identifying and driving savings to one of the largest cost components in the supply chain through both tactical cost reductions and strategic operating improvements. Providing fact-based recommendations from our analysis on how best to service your clients at the lowest-landed cost. Optimal future state

5 8 9 Site selection Gaining an understanding of your operational objectives, service requirements and other business drivers specific to your company. Employing a proven multi-tiered elimination process for location selection, which provides a practical and analytical perspective on key decision criteria including logistics/freight cost, labor/workforce, taxes and incentives, real estate availability and cost, utilities, business climate, capital markets and project development services. Applying a comprehensive, fact-based approach to understanding the cost/service trade-offs associated with the most optimal site selection decision. Third-party logistics (3PL) outsourcing strategy Bringing unique market insight and sound decision making to your organization s outsourcing process. Analyzing supply chain operations and procedures along with your requirements to make objective evaluations on make vs. buy or outsource vs. own/lease operate. Empowering you to make the most informed decisions to support your operation objectives regardless of your strategy to own/operate or outsource by maximizing savings or helping you implement successful 3PL partnerships. Performance assessments Performing operational assessments of your facilities as well as supply chain networks. Tailoring assessments to meet your needs and answering your key questions. Conducting performance assessments in the form of: A warehouse audit focused on layout, design, lighting, racking, material handling equipment, systems/technology, etc. Utilizing our proprietary Supply Chain Select SM assessment tools to model various aspects of your distribution network and answer questions such as, Are we in the right location? and If we Facility design + implementation Helping you understand how to get the most capacity out of your physical assets. Analyzing facility layout and design, cube utilization studies, automated material handling solutions, product flow analytics, truck flow analysis, trailer parking configuration, security and theft prevention strategies. Crafting recommendations into site-specific plans to address real-world constraints. Vetting each aspect of the master plan by providing a rigorous business case evaluation and risk assessment. added a second distribution center, where would it ideally be located and what would be the Defining and executing actionable next steps. associated costs/benefits?

6 10 11 Our proprietary Reverse Location Selection (RLS ) Our clients say it best Prospective tenants are evaluating facilities and making site selection decisions based primarily upon non real estate considerations. An understanding of key supply chain considerations proximity to customers/suppliers, labor/ workforce, tax/incentives potential, etc. is critical in identifying the most efficient and effective location. Though supply chain considerations are the primary drivers of industrial site selection decisions, properties continue to be evaluated and marketed primarily on price and undifferentiated real estate attributes such as dock doors, trailer parking, ceiling heights, etc. Strategy through execution for Volkswagen From day one, JLL had a very strategic approach and took the time to understand our business and culture translating our operational needs into the right overall solutions for us. Stefan Jacoby, President & CEO Location selection for Vente-Privee.com JLL is our supply chain advisor since the beginning of Vente-Privée. They have set up and implement our logistics and are still with us to improve it. Ilan Benaim, Co-founder Network modeling expertise for Akzo Nobel JLL was able to complement our project team with specific tools, proven methodologies, and the supply chain optimization modeling skills to provide a factbased, objective analysis to support our long-term direction and decision making process. For corporate occupiers, JLL s proprietary Reverse Location Selection (RLS ) analysis enables us to evaluate how a facility or location compares to other alternatives from a service/cost perspective. For investor/developers, we assess a property using the same supply chain decision-making criteria as prospective tenants to help you execute an integrated marketing strategy focused on the business value of a specific real estate asset to a targeted user audience. Michael Gielink, Director of Manufacturing & Supply Chain Manufacturing and distribution site selection for New Belgium Brewing We needed a firm to help us locate a site for our new 200,000 square foot manufacturing and distribution facility, and JLL delivered. Their strategic approach involved analyzing the business elements of logistics, labor, real estate and tax incentives for our new $115 million brewery, and layering on our cultural commitments to sustainability within a livable/workable community. In the end, we found the perfect place where we can have it all. JLL helped New Belgium Brewing balance the needs of our customers, our company, our coworkers and their families; that s real value. Kim Jordan, Co-founder & CEO

7 12 For more information, please contact: Patrick Remords Head of Supply Chain Consulting, EMEA 40, 42 rue de la Boétie Paris France Rich Thompson Head of Supply Chain Consulting, Americas 8755 West Higgins Road - Suite 750 Chicago, IL U.S. rich.thompson@am.jll.com Hiroyuki Suzuki Head of Supply Chain Consulting, APAC 5-7 Sanbancho, Chiyoda, Tokyo Japan hiroyuki.suzuki@ap.jll.com About JLL JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit #