charlotte, north carolina april 7, 2009 - mhi · 2009. 4. 17. · mhia warehousing charlotte, north...
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MHIA
WarehousingCharlotte, North Carolina
April 7, 2009
Phone: +1-608-873-8929Website: www.3PLogistics.com
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©Copyright 2009 Armstrong & Associates, Inc.2
� Founded in 1980
� Supply Chain Market Research and Consulting Services
� Current Research:
� 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
About Armstrong & Associates, Inc.
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©Copyright 2009 Armstrong & Associates, Inc.3
http://www.3plogistics.com/Site_Visits.htm
Click on the links below to view case studies completed previous years.
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©Copyright 2009 Armstrong & Associates, Inc.4
Largest Commercial Warehousemen in North America(Ranked by Millions of Square Feet)
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©Copyright 2009 Armstrong & Associates, Inc.5
Largest Refrigerated Warehousemen in North America(Ranked by Millions of Cubic Feet)
*Atlas Cold Storage was purchased by VersaCold Group in 2007.Source: 2007 International Cold Chain Directory, IARW
*
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©Copyright 2009 Armstrong & Associates, Inc.6
Warehousing Rates
Vacancy (12-31-08)
20 MSF1Q09
107 MSF3Q07
Construction
9.1%National
13.3%Inland Empire – LA
9.8%Dallas
10.3%Chicago
12.6%Atlanta
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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%
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©Copyright 2009 Armstrong & Associates, Inc.8
EBIT Comparisons (VAWD)
11.0%10.0% 10.0%
9.5%8.5%
3.6%2.9%
-2.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
GENCO Jacobson UTi CAT
Logistics
Kenco DHL Exel Kuehne +
Nagel
CEVA
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Expected and Actual EBIT Margins (%)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
< 0 0–4.9 5–9.9 10–14.9 15–19.9 20–24.9 25 or >
% o
f C
as
es
Expected
Actual
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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 12.4
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©Copyright 2009 Armstrong & Associates, Inc.11
GSCM Value-Added Services & Capabilities
Transportation Management/ForwardingCargo Insurance
Carrier Contracting/Brokering/Freight PaymentCustoms Brokerage/ACE/C-TPAT/FAST
Duty DrawbackIncoterms Management – EXW to DDP
Letters of Credit/Negotiable BOLsMerge-In Transit
NVOCCProject Logistics
Project ManagementTransportation Execution
Transportation Network Planning/Optimization
Warehousing/Cross-dockingBonded Warehouse
Home DeliveryInstallation/Removal
JIT/KanbanKitting/Pick & Pack
Light Manufacturing/AssemblyReverse Logistics
Small Package/FulfillmentWMS
Both – 3PL/4PL4PL/Lead Logistics Provider
Call CentersConsolidation/Deconsolidation
Consulting/Process ReengineeringEDI
Financial ServicesFood Grade/Temperature Controlled
HazmatPurchase Order Management
Internet Supply Chain VisibilityInventory/Vendor Management
ISO CertificationPool Distribution/Cross-docking
Radio Frequency/RFIDSecurity Processes
Sourcing
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Frequency of Value-Added Services
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©Copyright 2009 Armstrong & Associates, Inc.
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
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©Copyright 2009 Armstrong & Associates, Inc.14
UPS SCS Laptop Repair
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UPS 757 at Worldport Dock
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CEVA Global Footprint
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CEVA Sector/Service Focus - Sample of Customers
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CEVA International Logistics Solutions (ILS)
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UKMEA
37%
Mainland
Europe
31%
Asia Pacific
6%
Americas
26%
DHL Regional Revenue Split
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UTi airfreight forwarding pallet ready for loading
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TELUS Mobility clamshell packaging operation
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Penske’s Sao Paulo Multi-Client Warehouse
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Menlo Operated Clean Room
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GENCO - Sample of Customers by Solution
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©Copyright 2009 Armstrong & Associates, Inc.25
� North America’s 3rd 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 500manufacturers, retailers and U.S. government agencies
� Formal process to provide initial and ongoing value
GENCO’s Differentiators
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ATCL&E Accessory Packaging
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Cat Logistics Sagamihara Distribution Center
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Cat Logistics Japan Operations
Loading a Truck for Local Delivery
Packaging Line Auto-bagging of Parts
Three-level Central Mezzanine
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Thank You!
Stoughton Wisconsin OfficeRichard Armstrong
Armstrong & Associates, Inc.100 Business Park Circle
Suite 202Stoughton, WI 53589 USA
1-608-873-8929
Milwaukee Wisconsin OfficeEvan Armstrong
Armstrong & Associates, Inc.10401 West Lincoln Avenue
Suite 207West Allis, WI 53227 USA
1-608-268-5860