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Freight Management and Logistics:

Trends and Opportunities

November 2018

1

• Key Transportation/ Logistics Trends in 2018 and Beyond

• Major Disruptions in the Industry

• Global Sourcing

• Challenges Customers Face

• APL Logistics and Why Us?

• APL Logistics Solutions

Agenda

2

Key Transportation/ Logistics Trends in 2018 and Beyond

New devices and mobile systems

Automation

Leveraging the power of 3PL technologies e.g. TMS

Freight sharing apps

Use of AI

Conversational platforms

Newer and larger ships – excess ocean capacity and lower rates

Supply chain visibility

3

Major Disruptions in the Industry

Source: https://www.pwc.com/sg/en/publications/assets/future-of-the-logistics-industry.pdf

4

Traditional

Consumer

MarketGrowing

Sourcing

Hotspots

Traditional

Consumer

Market

Traditional

Sourcing

Hotspots

Traditional

Sourcing

Hotspots

Traditional

Consumer

Market

Key Consumer Markets

Key Sourcing Hotspots

Traditional

Consumer

Market

Growing

Sourcing

Hotspots

Growing

Sourcing

Hotspots

Emerging

Sourcing

HotspotsEmerging

Consumer

Market

Emerging

Consumer

Market

Emerging

Sourcing

Hotspots

Emerging

Sourcing

Hotspots

Emerging

Sourcing

Hotspots

Emerging

Sourcing

Hotspots

Emerging

Sourcing

Hotspots

Emerging

Consumer

Market

Source: WTO

Key Sourcing Hotspots

5

Adapt to the

brand new order

Leverage

opportunities in

rapid growth

markets

Drive consumer

products

transaction

Keep up with

sub-sector

trends

Challenging Consumer Products

Environment

Emerging

sourcing

hotspots i.e.

Middle East

Advanced

consumer

market i.e.

Europe

Growth of

Advanced and

Emerging

Markets

Satisfy

customer

demands

Cost effective

and sustainable

Reliability

Ability to

integrate into

processes

Competitive

Customers and

Channel Partners

DC to DC

DC to Store

DC to

distributor/dealer

DC to Consumer

Store to DC

Store to Store

Multi-channel

Distribution

Demands

Fast moving

Consistent

growth

Value

Efficiency

Short term

results with long

term

sustainability

Demanding End-

Consumer

Market

We Understand Your Challenges

6

Global logistics specialist in Automotive, Consumer, Industrials and

Retail verticals

Revenues of USD $1.73B and over 6,800 employees

Acquired by Kintetsu World Express (KWE) in May 2015

Headquarters in Singapore and is a standalone business unit

within KWE

APL Logistics at a Glance

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Your Advantage

Comprehensive ToolboxThe Go-

To…

…Logistics

Solutions

Provider

In-Country Expertise

Innovative Solutions

Customer-Focused

Global Network

Specialized Knowledge

8

Ocean LCL/FCL

OceanGuaranteed

Air Freight

Management

International

Freight Management

International Ocean/

Air Transportation

Supply Chain Management – Network Design & Optimization; Solutions Engineering; Lead Logistics Provider

IT Solutions – Visibility; Connectivity; Monitoring; Exception Management; Analytics

Supplier &

Vendor Mgt.

Consolidation

Multi-country

Consolidation

Order Management

Vendor Compliance

Quality Assurance

Packaging/Labeling

VMI

Kitting

Carrier Arrangements

Documentation

Origin Services/

Export Management

Consolidation Final Mile

DeliveryWarehousing /

DCs

Facility Design

D.C. Bypass

Spare Parts Management

Inspection/Configuration

Cross Docking

Packaging And Labeling

VMI

Kitting

Sequencing

Light Assembly

JIT Pickup/Delivery

Warehouse/

D.C. Management

Customs &

Trade

Solutions

Customs House

Brokerage

Deconsolidation

DC Bypass

Local Drayage

Destination Services/

Import Management

Deconsolidation

Distribution

Intermodal Transport

Trucking Services

Dedicated Contract

Carriage

Route Design

Load Optimization

Shipper Collaboration

Carrier Negotiations

Freight Payment/Audit

N. Bound & S. Bound

México Intermodal

Freight Management

Domestic Multi-Modal

Transportation

APL Logistics SolutionsEnd-to-end Logistics Capabilities

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HOW WE SERVE CUSTOMERS

Origin

CFS

Traditional

FOB/FCA

Model

Sourcing Management Solutions

Traditional Sourcing Hotspots

Growing Sourcing Hotspots

Emerging Sourcing HotspotsRaw Material

/Components

suppliers

Factories Finished

Goods

Raw Material Supply Chain Mgmt.

Visibility Visibility

Global geographical coverage and local operational expertise to support your

sourcing in both traditional sourcing origins and emerging sourcing hotspots

Provide manufacturing logistics support/raw material management

Enable visibility through best-of-art and highly integrated supply chain

technology platform

Deploy Control Tower to optimize raw material shipment planning and

collaboration

APL LOGISTICS

STRENGTHS

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HOW WE WORK

Freight Management

Integrated portfolio of freight management services include Ocean/Air

Freight Forwarding, Land Transportation (truck, rail and barge) as well

as Expedited and Time-definite Services with global coverage

Customized to your unique needs for cost and performance, both

standalone service or integrated solutions

Integrated network of premium carriers and state-of-the-art information

technology to offer you competitive rates, faster transit and better

visibility

Origin CFS

Origin

Airport

Origin Seaport

Destination

Airport

Destination Seaport Destination DC Trucking

Cross border trucking

Trucking

TruckingDestination

Freight Train

Station

Origin Freight

Train Station

APLL

LOGISTICS

STRENGTHS

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EMEA SolutionsCase Study – Trans Eurasia Express (FCL Service)

Shorter transit time vs. ocean

Less inventory in transit

Reduced capital cost compared to

sea freight

Secure routing for high value/JIT

type products

Standardized transit times

Increased speed-to-market for end

products

BENEFIT/ADVANTAGES

Risk of piracy in North Indian

Ocean

Long transit time of ocean services

High cost of air services

5,000+ suppliers based across

Asia and Europe

High inventory-carrying costs

Speed to market of products

CHALLENGE

Uses Trans Siberian Railway

First and last mile services

available at origin and destination

FCL shipments

Track and trace services provide

daily status updates en route

Customs clearance and handling

services at origin and destination

SOLUTION

12

Thank You