MHIA. Warehousing. Phone: Website: Charlotte, North Carolina April 7, 2009

Transcription

1 MHIA Warehousing Charlotte, North Carolina April 7, 2009 Phone: Website:

2 Founded in 1980 Supply Chain Market Research and Consulting Services Current Research: About Armstrong & Associates, Inc. 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 2

3 Click on the links below to view case studies completed previous years. 3

4 Largest Commercial Warehousemen in North America (Ranked by Millions of Square Feet) 4

5 Largest Refrigerated Warehousemen in North America (Ranked by Millions of Cubic Feet) * *Atlas Cold Storage was purchased by VersaCold Group in Source: 2007 International Cold Chain Directory, IARW 5

6 Warehousing Rates Vacancy ( ) Atlanta 12.6% Chicago 10.3% Dallas 9.8% Inland Empire LA 13.3% National 9.1% Construction 3Q MSF 1Q09 20 MSF 6

7 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% 7

8 EBIT Comparisons (VAWD) 12.0% 10.0% 11.0% 10.0% 10.0% 9.5% 8.5% 8.0% 6.0% 4.0% 3.6% 2.9% 2.0% -2.0% 0.0% -2.0% GENCO Jacobson UTi CAT Logistics Kenco DHL Exel Kuehne + Nagel CEVA 8

9 Expected and Actual EBIT Margins (%) % of Cases 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% < or > Expected Actual 9

10 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

11 GSCM Value-Added Services & Capabilities Both 3PL/4PL 4PL/Lead Logistics Provider Call Centers Consolidation/Deconsolidation Consulting/Process Reengineering EDI Financial Services Food Grade/Temperature Controlled Hazmat Purchase Order Management Internet Supply Chain Visibility Inventory/Vendor Management ISO Certification Pool Distribution/Cross-docking Radio Frequency/RFID Security Processes Sourcing Transportation Management/Forwarding Cargo Insurance Carrier Contracting/Brokering/Freight Payment Customs Brokerage/ACE/C-TPAT/FAST Duty Drawback Incoterms Management EXW to DDP Letters of Credit/Negotiable BOLs Merge-In Transit NVOCC Project Logistics Project Management Transportation Execution Transportation Network Planning/Optimization Warehousing/Cross-docking Bonded Warehouse Home Delivery Installation/Removal JIT/Kanban Kitting/Pick & Pack Light Manufacturing/Assembly Reverse Logistics Small Package/Fulfillment WMS 11

12 Frequency of Value-Added Services 12

13 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

14 UPS SCS Laptop Repair 14

15 UPS 757 at Worldport Dock 15

16 CEVA Global Footprint 16

17 CEVA Sector/Service Focus - Sample of Customers 17

18 CEVA International Logistics Solutions (ILS) 18

19 DHL Regional Revenue Split Mainland Europe 31% Asia Pacific 6% Americas 26% UKMEA 37% 19

20 UTi airfreight forwarding pallet ready for loading 20

21 TELUS Mobility clamshell packaging operation 21

22 Penske s Sao Paulo Multi-Client Warehouse 22

23 Menlo Operated Clean Room 23

24 GENCO - Sample of Customers by Solution 24

25 GENCO s Differentiators North America s 3 rd 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 500 manufacturers, retailers and U.S. government agencies Formal process to provide initial and ongoing value 25

26 ATCL&E Accessory Packaging 26

27 Cat Logistics Sagamihara Distribution Center 27

28 Cat Logistics Japan Operations Loading a Truck for Local Delivery Three-level Central Mezzanine Packaging Line Auto-bagging of Parts 28

29 Thank You! Stoughton Wisconsin Office Richard Armstrong Armstrong & Associates, Inc. 100 Business Park Circle Suite 202 Stoughton, WI USA Milwaukee Wisconsin Office Evan Armstrong Armstrong & Associates, Inc West Lincoln Avenue Suite 207 West Allis, WI USA