What Are the Channel Masters Thinking About the Supply Chain?

Transcription

1 What Are the Channel Masters Thinking About the Supply Chain? Moderator: Anne Strauss-Wieder, A. Strauss-Wieder, Inc. Panelists: Michael J. Landsburg, NFI Real Estate Greg Brayman, Phoenix Beverages NAIOP. Do not distribute or reproduce without permission. This session is being recorded

2 The Supply Chain: Operating in a White Water Economy Anne Strauss-Wieder Principal A. Strauss-Wieder, Inc. NAIOP. Do not distribute or reproduce without permission.

3 Supply Chain Drivers and Considerations Us, the empowered consumers The bottom line The globalization and localization of the supply chain Shocks and never again situations Sustainability and profitability How green is my bottom line? Governmental policies NAIOP. Do not distribute or reproduce without permission. A. Strauss-Wieder, Inc.,

4 Shock and Never Again An unexpected shock to the supply chain will make shippers and freight providers radically alter the supply chain. A shock that the industry had not anticipated and caused significant issues. Examples and Results 2002 West Coast Port Closure. Result: Port Diversification 2008 Fuel Price Spike. Results: Increased use of rail, rethinking the location of suppliers, rethinking packaging, rethinking warehouse locations, collaborative shipping, channel/capacity sharing E. Coli and Peanut Butter Recalls. Result: Chain of custody monitoring, more local sourcing, recall logistics. Great Recession. Potential permanent change in consumer spending habits Natural Disaster Disruptions. Result: Diversification of Production Locations (Re-shoring and Near-shoring). NAIOP. Do not distribute or reproduce without permission. A. Strauss-Wieder, Inc.,

5 Re-Shoring and Near-Shoring Production Drivers diversification of locations, logistics costs, labor costs, speed to market, exchange rates Industries with higher logistics costs (potential first wave) heavier products (steel products, vehicle assembly, appliances, wood products, paper p products, furniture). Speed to market (potential second wave) apparel/footwear, some computers/electronics Labor shifting as automation increases and overseas labor rates increase. US Site Considerations: historic strength in the industry, availability of skilled labor, location of markets and suppliers NAIOP. Do not distribute or reproduce without permission. A. Strauss-Wieder, Inc.,

6 Distribution Centers Increased productivity pick to voice. Varied and customized automation. Increased use of energy saving design. Jobs range from highly skilled to hourly unskilled. NAIOP. Do not distribute or reproduce without permission. A. Strauss-Wieder, Inc.,

7 NAIOP. Do not distribute or reproduce without permission. A. Strauss-Wieder, Inc.,

8 Thank you! Anne Strauss-Wieder A. Strauss-Wieder, Inc. NAIOP. Do not distribute or reproduce without permission. 8

9 Michael J. Landsburg Real Estate Manager, NFI Real Estate Michael J. Landsburg has been with NFI since 2005 and is responsible for managing the real estate activities for the company. NFI is a privately held integrated supply chain solutions company that surpassed $1 Billion in revenues in 2011 with a real estate portfolio that encompasses 21 million SF of both owned and leased space. NFI Real Estate acts as a strategic developer, owner, and manager of the highest quality properties in the industrial asset classes due to location, design, quality and flexibility of each property with a measured long term approach. NAIOP. Do not distribute or reproduce without permission. 9

10 NAIOP. Do not distribute or reproduce without permission. Slide 10

11 Company Facts Privately held since 1932 by the Brown family Over 21 million sq. ft. nationwide NFI 2011 Markets Served AUTO 1.0% CONSUMER GOODS 23.7% RETAIL ELEMENT 22.7% 4.1% 2,000 tractors & 6,800 trailers 6,000 employees One of the fastest-growing Third Party Logistics Providers HEALTHCARE 1.0% INDUSTRIAL 19.6% FOOD & GROCERY 27.8% NAIOP. Do not distribute or reproduce without permission. 11

12 The Evolution of NFI... Integrated, one-stop supply chain solutions partner Regional Nationwide Expansion Global Footprint Regional Trucking Regional Warehousing National network with regional solutions Dedicated fleets with density Transportation Management Cross-Dock Global/Freight Forwarding Intermodal Packaging Consulting Brokerage Solar Real Estate Canada - Distribution - Cross-border shipments - Intra-Canada transportation Cold supply chain WCA partner Dedicated to supply chain efficiency and excellence with more than 80 years of experience. NAIOP. Do not distribute or reproduce without permission. 12

13 NFI Solutions Logistics Warehousing and Distribution Transportation Regional & Dedicated Real Estate Intermodal RoadRail Canada Transportation Brokerage Solar Global Contract Packaging & Decorating Trailer Leasing Consulting NAIOP. Do not distribute or reproduce without permission. 13

14 NFI Locations - Map NAIOP. Do not distribute or reproduce without permission. 14

15 NFI Sustainability Timeline NAIOP. Do not distribute or reproduce without permission. 15

16 Greg Brayman Vice President of Operations, Phoenix Beverages Greg Brayman is vice president of operations for Phoenix Beverages, a 61- year-old privately held company. Phoenix Beverages distributes beer, wine, spirits, and other beverages in New York City, Long Island, and the Mid- Hudson Valley. NAIOP. Do not distribute or reproduce without permission. 16

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18 What We Do Phoenix Beverages is a distributor of Beer, Wine, & Spirits in New York City and the surrounding counties. We sell, pick, and deliver in New York, exclusively, for Heineken, Brooklyn Brewery, Guinness, MillerCoors, SABMiller, Anchor Steam, Georgi Vodka, CAMUS Cognac, and other suppliers. On average, Phoenix makes more than 2500 deliveries each day. Annually, we serve approximately 21,000 customers. NAIOP. Do not distribute or reproduce without permission. 18

19 Operations - Fleet Phoenix/Beehive owns and operates our own fleet, which operates approximately 125 trucks and 22 merchandising vehicles. 111 x 12-Bay Side-loaders Max Cargo Capacity of 18,520 lbs Each Truck can carry a maximum of 597 cases of beer or 451 cases of spirits. Daily Total Capacity 66,000 cases of Beer or 50,000 cases of Wines & Spirits 7 x 10-Bay Side-loaders Daily Total Capacity 7,000 cases of Beer or 5,000 cases of Wines & Spirits NAIOP. Do not distribute or reproduce without permission. 19

20 Operations - Fleet 3 x End-loaders 4 x 14-Bay Side-loaders Daily Total Capacity 2,000 cases of Beer or 2,000 cases of Wines & Spirits There is a maintenance center and repair shop on-site We have the goal of converting our entire fleet to run on natural gas within 7 years. Currently on order, we have 7 proto-type natural gas trucks which will be delivered in March. The tanks are custom designed by our mechanics so we do not lose bay space for tanks and stay within the 35ft NYC limit. NAIOP. Do not distribute or reproduce without permission. 20

21 Operations - Warehouse Phoenix/Beehive has two strategically placed warehouses Bracken Road providing rail service, warehouse, delivery and sales coverage for the Mid-Hudson Valley Brooklyn Piers providing ocean shipping, warehousing, delivery and sales service for Metro New York including Long Island NAIOP. Do not distribute or reproduce without permission. 21

22 Port Operations In 2011, Phoenix Beverages became the Stevedore for the Red Hook Container Port. Due to our large volume of imported beer, we relocated our warehouse in close proximity to the port in NAIOP. Do not distribute or reproduce without permission. 22

23 Warehousing & Operations Complete retrofit of existing warehouse structure in 2010 NAIOP. Do not distribute or reproduce without permission. 23

24 Operations - Warehouse Completely temperature controlled Installation of multi-million dollar Co Generation system supplying 100% of power, heat and refrigeration from Natural Gas 98.2% emissions free NAIOP. Do not distribute or reproduce without permission. 24

25 Panel Discussion NAIOP. Do not distribute or reproduce without permission. 25