Title. Michael Levans, Logistics Management Group Editorial Director, Supply Chain Group
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1 Michael Levans, Logistics Management Group Editorial Director, Supply Chain Group Chris Brodeur, Air Canada Cargo Global Surface Transport Manager Title January 2012 Steve Banker, ARC Advisory Group Service Director, SCM Mike Joseph, LeanLogistics Manager, Client Services
2 Join the Conversation! Twitter Hashtag #GlobalTMS Title @LeanLogistics
3 Agenda Logistics Management Introduction ARC Advisory Group Efficient Global Logistics Air Canada Flying to New Heights with Global TMS Overview of Air Canada Cargo & Transportation Transportation Challenges TMS Benefits Summary LeanLogistics Snapshot Q&A
4 Efficient Global Logistics Steve Banker Service Director, SCM ARC Advisory Group
5 Globalization: Fact vs. Fiction Efficient Global Logistics 5 ARC Advisory Group
6 Is Global Trade Growing or Shrinking? Growing Shrinking 6 ARC Advisory Group
7 Globalization Bounces Back 7 ARC Advisory Group
8 But Trade is Below the Historical Trend Line 8 ARC Advisory Group
9 Factors Driving Globalization Global Supply Chains Labor Arbitrage Tax Efficient Supply Chains Prices for Primary Commodities Extraordinary Growth of Trade in Developing Asia Trade growth is Correlated with GDP Growth What Does This Mean for Transportation Professionals? 9 ARC Advisory Group
10 Merchandise Trade 10 ARC Advisory Group
11 How will your pattern of global shipments shift within the next 2 years? We are planning for more global inbound shipments We are planning for more global outbound shipments We are planning for fewer global inbound shipments We are planning for fewer global outbound shipments Other (We don t make global shipments or global shipments will stay roughly the same). 11 ARC Advisory Group
12 Evolution of Global Transportation Approaches Facility by Facility Centralized Regionally Centralized Globally Mode dependent approach Automation & Outsourcing Manual Tools Transportation Management System Global Trade Management System Outsource Planning and/or Execution 12 ARC Advisory Group
13 People and Process Issues Trade Compliance & Transportation are often not well integrated International transportation requires a different domain knowledge Total Landed Costs are what matter, not unit costs Certainty usually matters more than speed Supply Chain Risk Management becomes more important Think Point to Point, not Port to Port 13 ARC Advisory Group
14 Think Point to Point, not Port to Port! 14 ARC Advisory Group
15 The ROI of TMS Buckets No <2% 2-4% 5-7% 8-10% >10% Increased Usage of Preferred Carriers 32.7% Most Common Largest Possible Better Procurement Negotiations 42.3% Most Common Largest Possible Lower Cost Mode Selections 30.8% Most Common Largest Possible More Fully Loaded Equipment 44.2% Most Common Largest Possible Better Routing 30.8% Most Common Largest Possible Reduction in Carrier Overcharges 38.5% Most Common Largest Possible 15 ARC Advisory Group
16 Global Compared to Domestic TMS Buckets No <2% 2-4% 5-7% 8-10% >10% = Increased Usage of Preferred Carriers 32.7% Most Common Largest Possible = Better Procurement Negotiations 42.3% Most Common Largest Possible < or= Lower Cost Mode Selections 30.8% Most Common Largest Possible < More Fully Loaded Equipment 44.2% Most Common Largest Possible < or= Better Routing 30.8% Most Common Largest Possible > Reduction in Carrier Overcharges 38.5% Most Common Largest Possible 16 ARC Advisory Group
17 Thank You. For more information, contact the author at or visit our web pages at 17 ARC Advisory Group
18 Flying to New Heights with Global TMS
19 Air Canada Overview Canada s largest full-service airline Largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada Serves over 32 million customers annually Founding member of Star Alliance, the world s most comprehensive air transportation network
20 Transportation Overview Air Canada Cargo Air Canada s cargo services division Provides direct cargo services to approximately 175 Canadian and International destinations, including Europe, Asia, South American and Australia Air Canada trucks to an additional 155 global destinations Chris Brodeur, Global Surface Transport Manager Manages relationships between all trucking carriers & Air Canada Build new carrier relationships Provide trucking industry insights and guidance
21 Transportation Challenges Lack of Stability Lack of Standardization Poor Visibility
22 TMS: A Global Approach Global Transportation Management System Settlement Technology: Complete pre-payment audit and freight payment capabilities Procurement Technology: Manages entire procurement planning process
23 Benefits Summary Visibility Collaboration Financial Customer Service Globalization
24 Results Increase of Transportation Spend Reduction in Carrier Overcharges More Fully Loaded Equipment Time Due to More Automated Processes Lower Cost Mode Selection Better Procurement Negotiations
25 LeanLogistics TMS Platforms 1990 s Model 2000 s Model Advanced Model 50% Dissatisfied 85% Over Budget 50% Nearly 2x Budget
26 DOWNLOAD FREE WHITEPAPER FREE WHITEPAPER REVEALS: Return on Investment for Transportation Management Systems by Steve Banker, ARC Advisory Group To download, visit:
27 Q&A DOWNLOAD FREE WHITEPAPER To download, visit: Thank you to our webinar Host, Speakers, & Sponsor! For a webinar recap, visit Twitter hashtag @ARC_Advisory 2012 Webinar recording & slides will be ed to you shortly after the webinar.
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