Freight Benchmarking to enhance competitive Ocean · PDF fileFreight Benchmarking to enhance competitive Ocean Contracting ... Bulk Start 2001/2014 ... Are best-in-class carriers made

Freight Benchmarking to enhance competitive Ocean Contracting

TPM 2015

MARCH 4TH, 2015

LONG BEACH

1. Market Intelligence Initiative Global Ocean Transport –Community, Coverage & Compliance

2. Motives, Deliverables & Benefits

3. NCR: Competitive Advantage by Market Intelligence – Case Study

4. Data Needs & Process

5. Questions & Answers

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Market Intelligence including Benchmarking enable Savings and strategic Benefits –if done in the right Way and by the leading Community

“In the last two years there was a real revolution within the inbound transportation using your analyses… You really added value to what we are doing…”

XXX, Manager Strategy & Supply Chain , Automotive

“We see the benchmarking project as a major competitive advantage toolin global freight procurement...“

XX, Vice President Global Logistics, FMCG

“The decision for participating is easy. We could save 25 US-$ per TEU globally. Not often you come across such a nice potential...”XXX, Contract Manager Ocean Freight, Global Logistics, SMCG

“We went from « eye-opening » the first year, to « eye-sharpening » in the following years, meaning we are still learning…”XXX, Head of Ocean Management, Automotive


Market Intelligence Initiative – Scope 2015

Market Intelligence Initiatives provide comprehensive Network Visibility: All Modes globally and regionally unlocking Savings Potentials and Strategic Optimization

Global Air CargoStart 2008

Global Courier/ Express/ParcelStart 2009

NAFTA Road & IntermodalStart 2013

NAFTA Finished VehiclesStart 2015

LatamRoad & IntermodalStart 2014

Asia Road & IntermodalStart 2014

Global Ocean Transport ContainersStart 2002

Global Finished Vehicles Deep SeaStart 2014

Sub-Sahara & South Africa Road & IntermodalStart 2015

Europe Road & Rail PackagedStart 1999/2004

Europe Road & Rail BulkStart 2001/2014

Europe Road LTL & GroupageStart 2000/2014

Europe Finished VehiclesStart 2010

Europe Transport Service PerformanceStart 2012

Europe WarehousingStart 2014

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Internal Customer Interaction

Prove excellence to stakeholdersFull compliance

Excellence & credibility

Value Network Management

Map global networksAll modes & all regionsRates, costs & service levels

Cutting edge know how & tools

Strategic Procurement

Best practicesMonitor market trendsNetwork with leaders

World class procurement strategy

Tactical Procurement

GapsTarget ratesQuarterly freight indices

Savings & performance evaluated

TIM CONSULT’s Market Intelligence for Optimising Tactical and Strategic Procurement, Strategic Design of Global Value Networks and Supporting Governance Processes

Market Intelligence: Applications & Benefits

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Charts presented to attendants. Available in direct contact only

NCR: Positioned in Omni-Channel Landscape

NCR Network

3/6/2015

Charts presented to attendants. Available in direct contact only

NCR Confidential

NCR view of the Market Intelligence Community & discussions

The Community is a diverse group

Helps us get view points from a variety of industries

Lane coverage & volumes are globally comprehensive and valuable

The end workshop discussions on market issues are helpful

We never agree on topics so we see strong opinions from all sides

Each company sticks to the non-disclosure rules, so it protects each other as well

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NCR Confidential

Uses of the tools

We focus on the web tools to see the lane comparison details

The initial benefit is the cost & transit comparison on the specific or regional lane

The details contribute to our knowledge base for pricing reviews

NCR also uses the tools to find out reasonable costs for new lanes

Helps complete network modeling projects for new business or network changes

Have made manufacturing decisions based on data from the tool

Overall, we use the tools to help focus our costs to the correct levels & keep up with market trends

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Typical first Questions. Information and References available as much and as many as requested in direct Contact

Can I join anytime? When are results made available? How fast can I receive results?

Are best-in-class carriers made available to all members?

Do I get assistance in understanding & making use of results? Or am I left alone with a spreadsheet and abstract KPI?

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2

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4 Benchmarking of the benchmarkings…:How does the TIM Market Intelligence Initiative compare?

Questions

Is this Initiative open to NVO, carriers & other parties? 5


What savings are typically achieved in the first year and in subsequent years?

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7 Fee level & model. Typical pay-back period?

Yes, anytime. No relevant delay once data is supplied

No, proprietary information

Yes, year-round. Form & content on demand

Largest Community ( 6 mio TEU). Best, global coverage (2,413 port pairs outbound NAFTA/ 2,239 inbound). 13 years track record. Lead-ing methodology. See NCR statement below

Not this initiative

Depends on status, structure, strategy, size. 1-6 % first, 0.5-2 % subsequent years

See direct contact. Typically below one month

Answers in short

NCR Confidential

NCR: Issues we have seen with other “options”

In previous years I have been invited to use other benchmark companies

The coverage has traditionally been poor

Biggest issue has always been the approach• Not focusing on comparable time frames• Not confirming data validity• Not setting up the results in a usable fashion• Not knowing who else was truly in the group

All of those meant the data was not reliable

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Looking forward to our Collaboration!

150304

Björn KlippelManaging DirectorManaging [email protected]

Beate [email protected]

TIM CONSULT GmbHL 15, 12–1368161 Mannheim

Tel.: +49 (0)621 150 448-0Fax: +49 (0)621 150 448-99www.timconsult.de

TIM CONSULT Inc.777 Westchester AvenueSuite 101White Plains NY 10604

Tel. +1 914 705-5514www.timconsult.com


Documents

Freight Benchmarking to enhance competitive Ocean · PDF fileFreight Benchmarking to enhance competitive Ocean Contracting ... Bulk Start 2001/2014 ... Are best-in-class carriers made