Chainalytics Overview

Empowering Fact-Based Decisions Across Your Supply Chain

1 © Copyright 2009 Chainalytics, LLC

Company Overview


Who is Chainalytics?

• Chainalytics formed in 2001

– HQ in Atlanta, GA, with second office in Bangalore, India

– 50 FTEs in US and India

• Two Practice Areas:

– Supply Chain Strategy

– Transportation Planning

Continuous

Analysis

Realize


• Recent Accolades

– “Great Supply Chain Partner” Global Logistics and Supply

Chain Strategies

– Named for five years running: 2004-2008

– “10 Coolest Supply Chain Boutiques”ARC Advisory Group in July, 2007

– “Top 100 Innovations” Supply and Demand Chain Executive

– 2006 Award for Model-Based Benchmarking

– “Pros to Know” Supply and Demand Chain Executive

– Tim Brown (2009), Gary Girotti (2007), Jeff Metersky (2006), Michael Kilgore (2005)


Some of Our ClientsFood and Beverage High Tech/ElectronicsPaper and Forest Products Distribution

Healthcare

Retail Other ManufacturingHome, Office & Consumer


Retail Other ManufacturingHome, Office & Consumer

- 62 of the Fortune 500 - 10 of the World’s 25 Largest Food & Beverage Mfgs- 11 of AMR’s Top 25 Supply Chains - 9 of SCDigest’s Top 10 Consumer Goods Supply Chains- 3 of the 4 Largest Paper Companies - 11 of the 30 Largest US Retailers

.


Extensive Experience With Technology Enablers

Supply Chain Strategy

Transportation Planning

Transportation Management

Inventory Planning

• i2 Supply Chain Strategist (SCS)

• Infor SCM Strategic Network Design & Tactical Planner

• LogicTools LogicNet& LogicChain

• Insight SAILS

Llamasoft Supply

• i2 Transportation Modeler & Transportation Bid Collaboration

• Infor Transportation Planning & Route Planning

• UPS Logistics RoadNet® ,Territory Planner®

• i2 Transportation Planning and Management

• Oracle Transportation Management

• SAP Transportation Management

• Infor SCM Transportation

• i2 Inventory Optimizer

• LogicToolsInventory Analyst

• Optiant Power Chain Inventory

• ToolsGroup Service Optimizer 99+


Chainalytics has very good working relationships with all of the technology providers above, allowing Chainalytics the ability to lease their technology in order to complete our analyses

• Llamasoft Supply Chain Guru

• Optiant PowerChainNetwork Design

• Acorn Enterprise Performance Suite

• Axxom ORion-PI®

• Solvoyo planLMSupply-Demand Optimizer

• Equazion®

• Oco

Planner®

• Descartes Sales & Territory Planner

• JDA Transport RFQ

• Manhattan Associates Transportation Procurement

Transportation Management

• RedPrairieTransportation Management

• Manhattan Associates Transportation Planning & Execution

• JDA Transportation & Logistics Management

99+

• Solvoyo planLMService Level Optimizer


Supply Chain Strategy Practice

• Supply Chain Design

• Supply Chain Segmentation

• Inventory Strategy & PlanningContinuous

Analysis

Realize


�Inventory costs

�Facility costs

�Transportation costs

�Operating costs

�Asset costs

�Customer satisfaction

�Sales growth

�Increased market share

�Levels of service

�Response times

$Superior

Customer

Service

Need analytical framework and decision support tools capable of modeling the complex tradeoffs that exist across the supply chain


� What is the Enterprise Strategy?

� How should the Supply Chain be organized, designed, and

Identify the enterprise-level challenges and opportunities the

Supply Chain must support.

Supply Chain DesignCosts ($)

Transportation Costs• Inbound• Outbound

Network Cost Drivers

Optimal

Risk Adjusted

Overhead


be organized, designed, and operated to enable the Enterprise Strategy to be achieved & sustained?

Engagements address one or more of the following categories:

� Supply Chain Design and Infrastructure Planning

� Strategic Market Planning

� Strategic Master Planning

� Strategic Procurement Planning

Number of Warehouses

Costs ($)

• Outbound

Inventory Costs

Facility Costs

Total Costs

Range of Indifference


Supply Chain DesignGreenhouse Gas Implications

• Environmental issues, particularly global warming, has been attracting considerable attention over the past few years. Combined with unpredictable oil and energy prices many companies have been looking to reduce their energy consumption to reduce operating costs as well as their impact on the environment.

• Chainalytics has the ability to perform GHG modeling as part of a network design engagement supported by the market leading technology solutions. This analysis includes the ability to:

– Calculate a network’s carbon footprint (calculation of GHG) as it currently exists


Emissions vs. Cost

$90

$95

$100

$105

$110

$115

$120

283032343638404244

Emissions (Thousand mt CO2)

To

tal C

ost

($ M

illio

n)

1

23

4

5

6

10

9

8

7

*Number of distribution centers above each

observation in blue

– Determine where GHG reduction efforts can be effected by setting a constraint (limit) on maximum carbon emissions, then using the model to determine the most cost-effective network that will meet the carbon footprint constraint

– Incorporate Carbon Offsets into cost and footprint calculations to optimize where Carbon Offsets should be purchased

• Typically within our engagements the GHG impact of different scenarios is used to help our clients make decisions between different network alternatives when the cost and/or service differences are negligible.


Supply Chain Segmentation –Portfolio and Policies

Supply Chain Trade Marketing

Operations�Procurement Strategy�Logistics Strategy�Manufacturing Strategy

Revised:

Sales/Marketing� Channel strategy� Pricing strategy� Product/Brand strategy

Portfolio Analysis� Product profitability� Customer profitability� Cost-to-Serve analysis


Revised:�Product portfolio�Customer portfolio�Service offering

Policies & Guidelines� Inventory policies� Distribution network� Roadmap for SC Excellence

Policies & Guidelines� Sales Force strategy� Service strategy� Phase out policies

Trade MarketingSupply Chain


Inventory Strategy & Planning PracticeService Offerings

How aligned are our org,. IT and processes for best-

in-class performance?

Business

Assessment

Which technology solution is best for us?

Vendor Tool

Selection

What level of inventory should we hold?

How should we replenish?

Inventory Policy

Development

What are the characteristics of our

demand and supply? What method should we use to

forecast?

Supply and

Demand Analytics


What measurements should we use to evaluate

performance? How are we doing?

Performance

Tracking

How and where should we deploy our inventory?

Inventory

Deployment

Strategy

How can we get the most from our IT solutions and

business processes?

Value Assurance

What service levels should we target for our stocked

products?

Service Level

Strategy

TechnologyTechnology AnalyticsAnalytics


Chainalytics’ domain expertise helps companies simultaneously streamline operations and reduce transportation costs

Transportation Planning Practice

• Rigorous Fact Based Analysis

• Superior Optimization Competency

• Industry Leading Benchmarking

Realize


Continuous

Analysis


Chainalytics’ Transportation Planning Practice- Services Overview

Diagnostic and Analysis Optimization Modeling Implementation Assistance

Question: How do we significantly improve our transportation performance?

Description: A portfolio of offerings customized to a clients’ specific requirements

Deliverable: A game plan of initiatives to elevate and sustain improved performance

Master Planning


Diagnostic and Analysis Optimization Modeling Implementation Assistance

• Achieving targeted customer service levels• Improving business processes

Regardless of the offering, our objective is to

significantly reduce transportation expense while…

How do our rates compare to market?

Model-Based

Benchmarking

What are today’s optimal market rates, balancing cost and

service?

Transportation

Procurement

What is the optimal TMS choice?

How do we ensure value is realized?

TMS Value

Assurance

How do our practices and systems compare

with best in class?

Practice & Systems

Assessment

What is the optimal deployment of fleet and consolidation

strategies?

Transportation

Modeling

How do we ensure savings are captured

and best practices stay implemented?

Best Practices

Implementation


Transportation BenchmarkingConsortium Membership

• Model Statistics– Over $11 billion in transportation spend

– Over 11.5 million loads

– 62 model participants varying in TL spend from $12M to $500M+

– Covers USA, Canada and in and out of Mexico

– Equivalent to ~ 2.5% of the total North American intercity truckload market

Primary Business Sector(percent of membership)

Membership by Freight Spend


Consumer

Products

14%

Durable

Goods

14%

Other

6%

Retail

12%

Whlsl/

Distrib

8%

Industrial

11%

Beverages

16%

Foods

19%

(percent of membership)

2

10

13

17

8

8

4Over $500M

$250M-$500M

$100M-$250M

$50M-$100M

$25M-50M

$10M-$25M

Under $10M


Differentiators- People, Technology & Experience

• Our staff of experienced supply chain analysis specialists– Our 35+ consultants have worked on 400+ supply chain projects with 200+ clients– 70% of the team possess advanced degrees in a mix of supply chain/logistics, business, industrial engineering, economics,

and operations research

• Proven methodologies– Honed over the last 18 years and successfully applied with hundreds of clients

• Independence & objectivity– We do not own any distribution operations or enabling technology and therefore do not use our consulting expertise to sell

software or logistics services


software or logistics services

• Extensive experience with multi-channel manufacturing, distribution, and retail– Lenovo, Apple, Philips, Hewlett Packard, Lexmark, Corning, Invista, Clorox, Wyeth, Tempur-Pedic, Formica,

MeadWestvaco, Avery Dennison, Nestle, Kraft, Unified Grocers, Macy’s, Sears, JC Penney, and Big Lots

• Use of the right tool for the specific client situation– We maintain relationships with all of the leading optimization vendors and do not align ourselves with any one tool, which

allows us to pick the best solution for each engagement, rather than structure the engagement around the tools we own

• Our infrastructure optimizes our effectiveness in these engagements– We maintain ~20 secure web-accessible servers, pre-configured with optimization software and other enabling tools– In conducting hundreds of supply chain analysis engagements, we have developed a number of data analysis,

transportation rating, facility costing, and mapping tools and techniques that our team members utilize to the benefit of ourclients

Documents

Chainalytics Overview