Logistics & Supply Chain Management Overview Dr. Dale S. Rogers Center for Logistics Management University of Nevada Logistics Study Meeting 25 January 2010 Carson City, NV EXHIBIT I - LOGISTICS Meeting Date: January 25, 2010 Document consists of 36 pages. Entire Exhibit Provided. A.T. Kearney 82/7478 1
2 Agenda Background Employment Statistics Supply Chain Management Logistics Site Selection
U.S. Jobs by Industry 1999-2009 25000 20000 15000 10000 Construction Manufacturing Information Financial Professional & Business Services Education & Health Services Retail Transportation & Warehousing 5000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: http://data.bls.gov/pdq/servlet/surveyoutputservlet 3
Reno-Sparks Jobs by Industry 1998-2008 50 45 40 35 30 25 20 15 10 Construction Natural Resources & Mining Manufacturing Transportation & Utilities Professional & Business Services Financial Information Retail Hospitality Government 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: http://data.bls.gov/pdq/servlet/surveyoutputservlet 4
Las Vegas Jobs by Industry 1998-2008 300 250 200 150 100 Retail Trade Transportation and Utilities Information Financial Professional and Business services Education and Health Services Hospitality Government Wholesale Trade Manufacturing 50 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: http://data.bls.gov/pdq/servlet/surveyoutputservlet 5
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Supply Chain Management 7
Consumers/End-customers 8 Future of Competition 1 2 1 2 n 1 1 n 1 n 1 2 2 1 n 2 3 n 3 n 1 n n 1 2 n 1 1 n n My Supply Chain vs. Your Supply Chain
9 CUSTOMER RELATIONSHIP MANAGEMENT CUSTOMER SERVICE MANAGEMENT DEMAND MANAGEMENT ORDER FULFILLMENT MANUFACTURING FLOW MANAGEMENT SUPPLIER RELATIONSHIP MANAGEMENT PRODUCT DEVELOPMENT AND COMMERCIALIZATION RETURNS MANAGEMENT
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Electronic Contract Manufacturers 12
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14 Complexity & Consolidation Focal Firm
$100 a Barrel Oil? 15
Logistics 16
U.S. Logistics Costs 2003-2008 Source: Roslyn Wilson, CSCMP, June 2009 17 17
U.S. Logistics Flows 18
{ 19 The End-to-End International Supply Chain Manufacturer Inland Transportation Ocean Goods terminal Head office Vendor warehouse / import centre Retail Distribution Centre Outlet Outlet
Global Players International Contract Manufacturers Warehousing Air Freight Global Logistics Outsourcing Express/ Small Package Logistics Management Truck Transportation Ocean Carriers 20 20
Logistics Services & Capabilities Product Life Cycle Management Lead Logistics Provider (LLP) Integrated Logistics Vendor Management Lean/JIT Inventory Management Global Trade Services Payment Auditing/Processing Logistics Process Reengineering Inbound Logistics 21 21
Warehousing-Based Services & Capabilities Pick/Pack Fulfillment Subassembly Vendor Managed Inventory Crossdocking Location Services (site selection, real estate) DC Management 22 22
Competitors Kenco FedEx Genco UPS OHL CEVA Warehousing Based Firrms DSC Logistics Saddle Creek Exel UTI Kuehne & Nagel 23 23
Transportation-Based Services & Capabilities Last Mile Small Package Air Cargo Equipment/D rivers LTL Fleet Acquisition Truckload Dedicated Contract Carriage Intermodal Bulk Rail Ocean 24 24
BNSF Rail System Map 25
Union Pacific Rail System Map 26
2009 Top 50 World Container Ports 1. Singapore (Singapore) 2. Shanghai (China) 3. Hong Kong (China) 4. Shenzhen (China) 5. Busan (Korea) 6. Dubai (UAE) 7. Ningbo-Zhoushan (China) 8. Guangzhou Harbor (China) 9. Rotterdam (Netherlands) 10. Qingdao (China) 11. Hamburg (Germany) 12. Kaohsiung (Taiwan) 13. Antwerp (Belgium 14. Tianjin (China) 15. Port Kalang (Malaysia) 16. Los Angeles (USA) 17. Long Beach (USA) 18. Tanjung Pelepas (Malaysia) 19. Bremen-Bremerhaven (Germany) 20. New York-New Jersey (USA) 21. Laem Chabang (Thailand) 22. Xiamen (China) 23. Guangzhou Harbor (China) 24. Tanjung Priok (Indonesia) 25. Jawaharial Nehru (India) 26. Hanshin (Japan) 27. Tokyo (Japan) 28. Colombo (Sri Lanka) 29. Valencia (Spain) 30. Yokohama (Japan) 31. Gioia Tauro (Italy) 32. Ho Chi Minh (Vietnam) 33. Felixstowe (UK) 34. Algeciras bay (Spain) 35. Jeddah (Saudi Arabia) 36. Port Said (Egypt) 37. Salalah (Oman) 38. Lianyungung (China) 39. Manila (Phillipines) 40. Nagoya (Japan) 41. Santos (Brazil) 42. Durban (South Africa) 43. Georgia Ports (USA) 44. Barcelona (Spain) 45. Sharjah (United Arab Emirates) 46. Le Havre (France) 47. Port Metro Vancouver, British Columbia (Canada) 48. Melbourne (Australia) 49. Marsaxlokk (Malta) 50. Ambarli (Turkey) Source: The Journal of Commerce, August 3, 2009 edition. 27
World Logistics Flows 28
Site Location 29
7 Facilities - $2.50 per Gallon 30
10 Facilities - $3.50 per Gallon 31
11 Facilities - $7.50 per Gallon 32
12 Facilities - $7.75 per Gallon 33
Impact of Large Fuel Cost Increase on Logistics Infrastructure 34
Impact of Large Fuel Cost Increase on Logistics Infrastructure 35
36 End Of Presentation Extra slides follow