TOC Europe Shipping Watch
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1 TOC Europe Shipping Watch Jacob Moe Senior Vice President Global Oceanfreight 27 th of June, 2017 Amsterdam
2 A few thoughts on Consolidation good or bad? Digitalization 2 Title of Presentation 4 July 2017
3 Is consolidation a good thing? + -? Less Administration More integration use of Data Product Innovation Competitive Pricing Fewer service options Better Service Partnership (FAK vs NAC) Increased productivity 3 July 4, 2017
4 The real value is moving even further from the core Customer Enterprise Systems Forecast / PO s / Delivery Note / SO s Receipt / Inventory Status / ASN Work / Disruption / Collaboration Orders Supply Chain Execution Demand Expediting Release/Bookings Exceptions Origin Value Supplier Add / Margin Transport Consolidator Standard Documents Execution of Network Service Providers Transportation Status & Service Event Updates Origin Port or Airport International Ocean & Air Transport Destination Port or Airport Destination Transport De-Consol/ Inbound Logistics Center Customer Value Add / Margin Near Real Time Aggregated Updates Order, Shipment, Inventory & Financial Data Workflow Management Collaboration Tools KPI s & Dashboards Reports & Analytics
5 The problem (or opportunity?!) is that 80% of the information is beyond our historical core processes SELLERS LOGISTICS PROVIDERS SCM Technology Toolbox TRANSPORT SERVICE PROVIDERS BUYERS 80% of the information needed to effectively run a global supply chain resides with customer network trading partners Today we operate such in single network solutions e.g. one customer Disruption often gathers data and a platform across and for many e.g. Airbnb
6 Traditional and non-traditional providers and competition Resource Oriented Focus on tactical execution Commodity based services Reactive driven planning Individual shipments, mode and routing Resource oriented provider (2PL) Committed to fill own assets INTTRA Amazon Xenata FreightOS NYSHEX Network oriented provider (3PL) Not neutral, focus on existing network Service Oriented End to end complete customer solution Focus on supply-chain network design Proactive and demand driven planning Optimized volumes across all modes and routes Integrated systems, visibility, BI & analytics Continuous performance improvement Service oriented provider (LLP/4PL) Independent management of network activity Fulfilment of Needs Disruption is ongoing Deeper pockets USD 3B funding in logistics VC in 2016
7 Integration and Visibility isn t new Integration of transportation, inventory management, order fulfillment, financial settlement and e-commerce applications Linking your operations with your service providers Integration of all trading partners Automatic sharing of operating data among processes Most efficient route planning Preventive action automatic alerts Key warehouse management processes automation Benefits to the business: Closer control of procurement, manufacturing and distribution activities Building maximum flexibility into the supply chain Real time visibility of inventory, order and shipment status Distribution network optimization Customer service improvements Cost savings 7
8 But cross industry collaboration and use of data is? Manufacturing support Receipt and management of raw materials and products at source Control Re-packaging Value-added services Inbound Logistics Multi-modal capabilities Time definite services Customs brokerage Web enabled tracking solutions Warehousing & Distribution Centers Dedicated and shared warehousing Distribution network centers Value-added services Outbound Logistics Dedicated and/or shared transportation Ground distribution services Transportation network management Aftermarket Services Spare parts warehousing Spare parts distribution Returns Repairs Reverse logistics Call center services Final Mile Solution Home delivery for finished goods One and two person home delivery After sales set up Installation Reverse logistics Integrated supply chain management 8
9 Example of creating value through partnership Global agreement in Nov AgroGo launches its online B2B platform aggregating agro trading, along with the key services in H2 17. CEVA to provide logistics services on AgroGo In next 24 months, target to cover 800+ lanes and international trade volume $10B+ Agro Traders & Manufacturers (Shippers) Potential to bring structure to the unstructured agro trading business 9
10 Development through increased use and access of data B2bC 10 Title of Presentation 4 July 2017
11 Call me old fashioned relationships still matters 11 Impeccable Execution
12
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