bill stankiewicz copy 2010 georgia logistics summit ken bianco jcb
TRANSCRIPT
VP Commercial Operations - JCB
Ken Bianco
Company History
Mr. JCB builds his first product (a tipping trailer) out of a small garage in the United Kingdom.
In 1953 JCB invents the backhoe loader, a staple in the modern workplace, and continues to expand production through the 60’s
JCB begins to export its machines as demand grows. JCB also introduces the telescopic handler.
JCB further expandsits range to include the Fastrac, the world’s fastest tractor.
JCB invents the Monoboom skid steer with a side entry for unmatched safety.
JCB begins production on its new engine and Savannah, GA is the new home for JCB USA.
65 Years in the making…
JCB Worldwide – 18 Manufacturing Facilities
JCB’s Product Range
Over 300 Products
Products Range from 500kg to 46 tons!
The Best Selling Backhoe and Telescopic Handler in the World
Fully Integrated JCB Drive-Train
WE BUILD OUR OWN:• Axels• Engines• Transmissions• Rams• Chassis• Cabs• Arms
About 95% of the BHL is Built By JCB
JCB in Savannah, GA – 10 Years as a Local Manufacturer
The JCB HMEE
2010 North American Dealer Network
JCB NORTH AMERICA84 Dealer219 Locations87% Market Coverage
Export History From Savannah (Through 2008)
YEAR 2005
590
2006
849
2007
1611
2008
1352UNITS
COUNTRIES: Panama, Mexico, Chile, United Kingdom, Guatemala, Venezuela, Colombia, Jamaica, Malaysia, Ecuador, Australia, South Africa, Thailand, Indonesia.
The Next Generation Skid Steer – Made in Savannah
NEW GENERATION JCB SKID STEERSavannah designed, engineered, built and shipped globally
Why Savannah, GA.
Location, Location, Location…
PORTS• Savannah• Brunswick
JCB Logistics & Supply Chain
Why Georgia?
BENEFITS• Airport / Ports• I 95• Rail (CSX, Norfolk Southern)• Services to all Major Foreign Ports• Diverse Economy• Excellent Climate• State Encouragement• Right Demographics
Why Georgia? - Construction Equipment Growth Potential (2000-2005)
150% - 200%100% - 150%
75% - 100%50% - 75%25% - 50%
GLOBAL LOGISTICS
Current Inbound / Outbound Flow
SUPPLIER CUSTOMER(Dealer)
INBOUND OUTBOUND
INCOTERMS - EXWORKSINCOTERMS – LANDED CIF
Future Inbound / Outbound Flow
SUPPLIER CUSTOMER(Dealer)
INBOUND OUTBOUNDINCOTERMS - EXWORKS INCOTERMS – LANDED CIF
LLP
Supply Chain Control | Visibility | Reduce Congestion | Standardize Packaging
NORTH AMERICA LOGISTICS
North American Challenges
• Fluctuating Diesel Prices• Changing Government Regulations• Rising Port Fees (i.e. 4% per year)• Rising Warehouse Fees• Road Congestion and Safety
North American Challenges – Load Optimization Matters
HEAVYLINE
High MarginEx. $2000 TruckloadP/Unit Cost = $2000
COMPACT
Lower MarginEx. $2000 TruckloadP/Unit Cost = $500
COMPACT
Lower MarginEx. $2000 TruckloadP/Unit Cost = $2000
North American Challenges - Transport
• New EPA Requirements• New Engines Reduce Soot / NOx• New Engines Heavier / Costly (+14k)• $6k More per 100k Miles to Operate
North American Challenges – Customs Compliance / Anti-Terrorism Compliance
C-TPAT (Customs Trade Partnership Against Terrorism)
• Facilities Security / Pre-Employment Verification / Inbound Cargo Screening• Compliance Beneficial – Upfront Setup Burden – Backend Benefits
ISF (Importer Security Filing)
• Importer Electronically Submit Advanced Cargo Info to US Customs• Significant Change in Supply Chain Security• JCB Experience has Been Positive but Still a Significant Investment inTraining / Education / Systems
North American Initiatives – Supply Base Localization
10 Hour Spin
4 Hour Spin
60% of Localized Content Within 10 Hour Spin
North American Initiatives - Freight Consolidation
NORTH CAROLINA SAMPLE• Current Transport: 3276m p/ week• 5% of the Purchase Price
North American Initiatives - Freight Consolidation
NORTH CAROLINA SAMPLE• Future Transport: 900m p/ week• 2.7% of the Purchase Price• $600k Savings per Year• 114k Less Miles per Year• Transition to Returnable Packaging
High Georgia Port Utilization
Halifax
Baltimore
Georgia Ports - 63%
Galveston
Tacoma
Hueneme
The Future – Local Manufacturer to Global Exporter
Backhoe Across America