ceo qa2010 11 copia

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Released February 2011

3PL CEO Q&As 2011 – Strategies for the New Reality


Contents

9th 3PL Summit & Chief Supply Chain O!cer Forum .......................................................................................................... 3

Introduction ............................................................................................................................................................................................. 4

CEO Interviews

John Williford, President, Global Supply Chain Solutions and Greg Swienton, Chairman and CEO of Ryder System, Ryder ............................................................................................. 5

Hermann Ude, CEO, DHL Global Forwarding & Freight ....................................................................................................... 7

Craig Simon, President & CEO, FedEX SCS .................................................................................................................................. 8

Heiner Murmann, President & CEO, Schenker Inc ................................................................................................................ 10

Joey Carnes, Chairman & CEO, MIQ Global .............................................................................................................................. 11

Andy Smith, President and Chief Operating O!cer, Kenco Logistic Services ........................................................ 13

Robert Gi"ord, EVP Global Logistics, Ingram Micro Logistics ........................................................................................ 15

Jeremy Davidson, Managing Director, NYK Logistics ......................................................................................................... 17

William J Wascher, President & CEO, SEKO Worldwide ....................................................................................................... 18

Lucas Kuehner, MD, Panalpina USA ............................................................................................................................................. 20

Sam Polako", President, TBB Global Logistics ....................................................................................................................... 21

Karl Meyer, CEO, 3PD Inc ................................................................................................................................................................... 22

Christopher Connor, Deputy CEO, Wallenius Wilhelmsen Logistics ............................................................................ 24

Paul Little, CEO, Toll Holdings ........................................................................................................................................................ 25

Dick Kane, CEO, Kane is Able .......................................................................................................................................................... 26

Daniel Kirk, CEO, Big Dog Logistics ............................................................................................................................................. 27

Dan Sanker, CEO, Casestack ............................................................................................................................................................ 28

Ken Hazen, President & CEO, CTSI-Global ................................................................................................................................ 30

About eyefortransport ..................................................................................................................................................................... 31

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Interested in the views and strategies of 3PL CEOs and the Heads of supply chain from their biggest customers? Attend the:

9th 3PL Summit & Chief Supply Chain O!cer ForumJune 21-23rd, 2011 – Hilton Hotel, Atlanta

The World’s largest event for 3PL providers & users – Exploit industry mega-trends to fortify key relationships and maximize pro#t The 3PL Summit – co-located with the Chief Supply Chain O!cer Forum – will reveal how you can adapt your business to meet the requirements of the new economic era, drive renewed growth and gain market share.

Learn how the world’s most prominent 3PLs are positioning themselves in a time of growth, change, and "erce competition. Discover the real needs of your most desired customers, how they expect to be sold to, and how to build a pro"table longterm relationships with them.

Visit www.3PLsummit.com for more information and to book your place alongside these executives:

Supply Chain Executives Speaking include: John Welling, VP Supply Chain Innovation of Wal-Mart

Nick Blaway, SVP Supply Chain of Feeding America

Cheryl Brown, VP Global Operations & Supply Chain of Hewlett-Packard

Brian Watson, Head of Global Supply Chain of Lonza

Dennis Omano#, SVP Worldwide Supply Chain, Manufacturing, Facilities of McAfee

Kevin Wrenn, SVP PC Business and Product Operations of Fujitsu Microelectronics

Alejandro Enciso, VP Supply Chain of Baxter

Reese Delorey, VP Global Supply Chain Management of Lockheed Martin

John B. Sorci, VP Global Operations of Symantec

Steve Sigrist, VP Supply Chain - Walmart Division of Newell Rubbermaid

Steve Shelley, SVP Supply Chain Management of Schreiber Foods

Phil Hendricks, VP Supply Chain Americas of Gambro

John Macksood, VP Logistics & Network Planning of Dominos Pizza

Frank Diaz, SVP Distribution & Logistics of PriceSmart

Owen Mitchell, Global Head of Procurement of Pearson

David Bedding"eld, VP Supply Chain Management of Meyer Sound Labs

Tim Riordan, VP Supply Chain of Interface

George Kavorkian, VP Supply Chain Operations of O!ce Depot

Wendy Kleefeld, VP Supply Management of ARCOP (Arby’s)

Rob Bourriague, VP Operations of Slam Brands

Tom Dadmun, VP Supply Chain Management of Adtran

Marcel Frielinck, VP Global Equipment Supply Chain of Xerox

Jill Marcotte, Chief Supply Chain O!cer of Dealer Tire

Dave Presley, VP Supply Chain of REI

Christopher Smith, Director of Supply Chain Planning of Shure

Charles W Kantz, VP Logistics & Warehousing of Bakers Footwear

Scott Degroot, Director of Supply Chain Strategy of KimberlyClark

Brian McClure, Director of Global Procurement & Supply Chain of MeadWestvaco

Tim Fullick, Director National Operations of Brother International

Mani Janakiram, Director of Supply Chain Strategy of Intel

Oswaldo Salazar, Director of Strategic Sourcing & Supply Chain of Winn-Dixie Stores

Contact Charlie Howard on 1800 814 3459 ex. 7506 or [email protected] for more information or to book, including group bookings

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Senior 3PL Executives include:Craig Simon, CEO of FedEx SCS

Heiner Murmann, CEO USA of DB Schenker

Leo Suggs, CEO of Greatwide Logistics

Jack Holmes, President of UPS Freight

Matt Ryan, President Americas of CEVA Logistics

Kazuo Ishizuka, CEO of NYK Logistics

Scott McWilliams, CEO of OHL

Tom Sanderson, CEO of Transplace

Art Smuck, President of GENCO-ATC

Gerald Perritt, COO of UTi Integrated Logistics

Peter Knapp, President of International Logistics of Jacobson Companies

Robert Gi#ord, EVP Global Logistics of Ingram Micro Logistics

Dennis Schoemehl, CEO of LMS Logistics

John Ferguson, CEO of SCI Group

Dick Kane, CEO of Kane is Able

John Wagner, President of Wagner Industries

Ron Cain, CEO of TMSi

Nikhil Sathe, CFO of Kelron Logistics

Register quoting ‘QA2011’ and save an extra $100 if

booked before March 1st on www.3PLsummit.com

For more free industry resources visit www.eft.com For more free industry resources visit www.eft.com

Introduction

2011 is a year of great promise and signi"cant uncertainty for the 3PL industry, and all those who depend on and work with 3PLs. For the CEOs of these companies, this means confronting a new reality in the economy, in the needs of their customers, and in the mind-set of their own workforce.

Developing a leadership strategy to not only cope with but also strive within this new reality is paramount. In this series of executive interviews, we asked the CEOs a set of questions designed to reveal the key strategies they are using to confront this tumultuous market. For some it is an opportunity, for all it is a new test of leadership ability.

The aim of the interviews is to shed light on the fundamental business strategies that CEOs are using and which can be applied to careers and businesses across the industry: ways of "nding opportunity in times of change, leading a team in a hard-to-predict economic environment, and adding value and enhancing a career in one of the most challenging eras for 3PLs and all foundation businesses.

The interviews with these 18 executives represent the views of the CEOs of some of the largest 3PLs in the industry. They reveal the personal views, fears and key business philosophies of key industry players, and focus as much on past performance as future strategy.

In this second edition of the series, we focus on industry challenges and mega-trends: the game-changing issues that we all face, the lack of infrastructure investment and how we can tackle it, the ways the 3PL industry can and should promote itself and its value, the "ght against commoditization, the advantages of various ownership structures, and what question they would ask of fellow CEOs. The answers are sometimes surprising, sometimes humorous, and always revealing of the men behind the brands.

We hope you "nd the interviews useful, and encourage you to share them with your colleagues and industry contacts who may also bene"t from the insight herein.

For more information on the interviews, our 3PL Summits in Atlanta and Antwerp (where 3PL CEOs and key customers gather and speak), or any questions, please contact me on the details below. A brief description of eyefortransport follows the interviews.

Katharine O’Reilly

Executive Director

eyefortransport

Tel: +44 207 375 7207 / 1800 814 3459 ex.7207

Fax: +44 207 375 7511/ 1800 814 3460

email: [email protected]

web: www.eft.com

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As a CEO, what do you see as your three biggest challenges over the next couple of years?

Greg Swienton: The "rst thing I see as a challenge will be our ability to e#ectively and successfully accelerate organic growth. To help us achieve this we will be focusing on improved customer service, continuous improvement in our operations, and innovation in new product development to help generate new business. The second challenge will be people and leadership development. This means ensuring we have the bench strength to meet the long-term needs of our business and cultivating future leaders. The third biggest challenge will be making sure that we are accurately assessing the general economic environment for the right timing to make asset investments.

Where do you see the biggest opportunities for 3PLs?

Greg Swienton: The biggest opportunity is for continued penetration of large organizations that are already leveraging the expertise of a third party provider. In addition, there is great opportunity for expansion into smaller and medium sized companies who have yet to realize the value of logistics outsourcing in today’s complex and costly environment.

Do you feel the industry needs more or smarter investment in transportation infrastructure? Is enough being done to demonstrate the importance of these improvements to an industry like logistics, which underpins the economy?

Greg Swienton: Yes, the U.S. needs both more and smarter investments in transportation infrastructure. Not only is this an area that could have yielded great stimulus returns, it is a critical foundation that will be necessary for this country to compete in the global marketplace. It’s extremely important that leaders in our industry allocate time to work with the government to address challenges we are facing with infrastructure – from the ports to the roads to the intermodal connectors. The U.S. infrastructure is not getting the attention it needs to deal with the amount of commerce that is $owing through the country. We are facing gridlock in most of our major cities because of lack of investment in infrastructure. We have to continue to create awareness and lobby our legislators to address this issue.

Some recent ad campaigns have drawn attention to the ways logistics providers promote themselves. What more do you believe should be done to promote the LSP industry?

John Williford: 3PLs need to be clearer about the value we can provide. There’s a history of 3PLs saying they can pretty much do anything and do it better than customers. This is probably as much a strategic issue as it is an advertising issue.

Our recent market survey found that both 3PLs and their customers feel that relationships have taken a step back from strategic partnership towards commodity services in the aftermath of the recession. How do you ensure that strategic relationships are maintained in a very competitive and price-driven market?

John Williford: Customers want to see new ideas that deliver value. When you do that, your relationship is usually pretty good. When you don’t, that’s when you probably complain that your customer doesn’t treat you as a partner.

John Williford

President, Global Supply Chain Solutions

Greg Swienton

Chairman and CEO

Ryder

www.ryder.com

Gregory T. Swienton is Chairman and Chief Executive O!cer of Ryder System, Inc. Mr. Swienton joined Ryder in June 1999 as President and Chief Operating O!cer, a position he held until becoming President and Chief Executive O!cer in November 2000. A member of Ryder’s board of directors since June 1999, Mr. Swienton was named its chairman in May 2002. Prior to joining Ryder, Mr. Swienton was Senior Vice President of Growth Initiatives at Burlington Northern Santa Fe Corporation (BNSF).

John H. Williford is President, Supply Chain Solutions for Ryder System, Inc. A member of Ryder’s Executive Leadership Team, he is responsible for management, operations, sales and marketing, and the "nancial performance of Ryder’s Supply Chain Solutions and Dedicated Contract Carriage business segments. Mr. Williford joined Ryder from Golden Gate Logistics LLC in Palo Alto, California, where he held the position of President, Chief Executive O!cer and Founder. Before forming Golden Gate Logistics, Williford was the Founder, President and Chief Executive O!cer of Menlo Worldwide.

What is your growth strategy in the next year, and how will you distinguish yourself from competitors?

John Williford: At Ryder, we’re working on two main things. First, we’re challenging ourselves to push execution to the point where Ryder is clearly di#erentiated. For example, we’ve added a signi"cant number of Lean Six Sigma resources. We’ve also developed a Lean template for all of our DCs. This is a new, exciting approach to warehousing that we’ve applied across all of our locations and industry groups; it gets our people involved in "nding creative solutions to cut lead time, increase "ll rates and continuously improve the operation. Second, we’re developing new, specialized services in each of our key industry groups: Automotive, Hi-tech/Electronics, Retail/CPG & Industrial. For example, for the Retail industry, we recently announced new services for Purchase Order management and Consolidation in Asia.

Describe the one most important strategy decision that you have made in the last 18 months?

John Williford: Getting our vertical industry groups to work as strategic business units that use deep expertise in that industry to develop specialized services that create more value for customers.

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Do you feel that environmental sustainability capabilities have the potential to be a key di"erentiator, and will customers really put this ahead of price?

Greg Swienton: The potential is there when the environmental bene"ts also yield bottom line returns. I don’t think we are at a place yet, at least in the U.S., where environmental capabilities will be a top priority for most customers when it comes to the supply chain decision process. The capabilities are important, and with tougher regulations, often required. But coming out of an extremely di!cult economy, businesses have to ensure they make the most of every dollar spent. When they have a choice, a great majority of customers are not yet willing to make the additional "nancial investments to pay for environmental preferences. For those who are willing and able to do so, Ryder has a breadth of environmentally-sound equipment and solutions to help drive both operational e!ciencies and emissions/energy reduction.

How is your ownership structure an advantage for your future growth?

Greg Swienton: Ryder’s structure has a number of bene"ts. As a large, publicly held company with rea!rmed strong credit ratings, we have great access to capital. In periods of growth, this is an important advantage. Another advantage is the fact that Ryder, in addition to having a Supply Chain Solutions business, also has a Fleet Management Solutions division. We have an underleveraged balance sheet and can actually accelerate investment due to the support that comes from our balance sheet.




DHL is logistics where others claim to love logistics!


There have always been both needs in the market. Some customers only want to leverage the buying power of a Forwarder where others seek advice and operational support. DHL is happy to provide both.


In consumer oriented markets you see the need for greener, better documented supply chains evolving fast. Deutsche Post DHL was the "rst logistics provider to set itself a target to increase its carbon e!ciency by 30% by 2020 and 10% by 2012. We have the product portfolio to achieve the target through mode management, better carrier management and innovative services.


Our shareholders have always supported us to work e!ciently on our strategic agenda. At the same time, we have a very solid "nancial basis.

What question would you ask other CEOs of 3PLs?

Which of your customers are not satis"ed and would want an o#er from DHL?

Hermann Ude

CEO

DHL Global Forwarding & Freight

www.dhl.com

Hermann Ude serves as the Chief Executive O!cer of DHL Global Forwarding, Freight and has been a Member of the Deutsche Post DHL Board of Management since March 2008. He joined Deutsche Post AG in 1998. He was appointed CEO of DHL Freight in 2006.


Supply chain directors face increasing complexity – more markets to serve, more sales channels to satisfy and increasingly di#erentiated requirements within the various industries. On top of that, regulatory and transparency requirements are becoming more impactful. DHL’s truly global network in combination with a very deep understanding of its customers’ requirements and industries makes it unique. This enables us to simplifying the lives of our supply chain managers considerably and allows them to focus on the creation of value in their respective markets.


During the economic crisis we stayed customer focused, in fact we supported them on the cost challenges they were facing. At the same time, we introduced a global performance improvement program and together with our customers developed agendas to improve along their pain points.


1. Fast-moving enterprises in a global economy need a partner that takes the burden of complexity away from them – this requires even greater personal commitment from our team and even better management tools.

2. Whether we like it or not: Greening logistics will be an imperative for many years to come. Getting CO2 measured and having the right instrument for optimization at hand will be critical.

3. The macro-economic environment remains unstable; nobody knows exactly what will happen next and when it will happen – thus we have to stay $exible...


Shippers are demanding solutions that are customized to their speci"c needs or the needs of their industry. These services, the IT features and the end2end view is what carriers and integrators can not provide to the same extent as 3PLs.


I do not see a speci"c challenge or need there.

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I see a number of challenges for FedEx SupplyChain. The "rst is lowering the cost to serve smaller customers, who increasingly make up a larger share of the GDP each year. Often times, these companies’ supply chains struggle to compete against their larger counterparts strictly due to economies of scale. In our business, where technology plays such a large role, small customers are sometimes left out because the IT integration costs outweigh the bene"ts of change. We are working on ways to reduce these integration costs to put small customers on the same playing "eld as larger ones.

Other challenges we will face include rising employee health care costs, increasing energy costs and an uncertain regulatory environment.


I think the constant change in the underlying playing "eld o#ers 3PLs their greatest opportunity. Change may come from high growth in a particular industry (such as medical devices) or from a volume decline during a downturn (like industrial manufacturing). Growth or decline means that manufacturers need to either expand or shrink their supply chains. 3PLs are better suited to absorb this supply chain dynamic because we serve multiple customers with varying volume levels.

Change can also be in the form of new government regulations, like the proposed general sales tax in India or the proposed changes for transporting embedded lithium batteries in the U.S. The 3PLs that develop the most e#ective solutions to their customers’ new challenges will be the ones that gain the most.


It’s obvious from the recent study released by the U.S. Chamber that the nation’s transportation system is not keeping pace with demand. This deteriorating infrastructure translates into the need for more facilities, trucks, planes and employees – all of which increase the costs that 3PLs pass onto their customers. We continue to join industry e#orts to lobby Congress and the administration to pass legislation to fund much-needed highway, transit and aviation improvements so that we can begin to reverse this sizeable drag on our economy.


Executives from the logistics industry need to consistently talk to the market and relay relevant industry expertise. Through an active dialog, logistics service providers will build con"dence and awareness of logistics solutions. But that must be backed up by $awless execution on the part of logistics providers, because with great execution comes customer satisfaction and loyalty – and concrete proof of how we’re making a di#erence.

Craig Simon

President & CEO

FedEX SCS

www.fedex.com

Prior to his current position, Simon served as Vice President of FedEx Solutions for FedEx Services. In this role, he led a team of logistics and business consultants who worked with FedEx Sales, Operations and Automation to design and execute supply chain solutions tailored to each customer’s needs. Simon’s focus included developing resources to create improved e!ciencies and competitive advantages in the sales process.

Before joining FedEx in 1999, Simon was a business advisor for Andersen Consulting, where he worked with Fortune 500 companies focusing on supply chain strategy development and operations improvement e#orts in the consumer products, retail, food and high-tech industries. In addition, he developed a successful health care information start-up company in the Silicon Valley.

Simon earned two degrees from the University of Notre Dame, including a Bachelor of Science in Mechanical Engineering and a Bachelor of Arts in History. Simon is certi"ed in production and inventory management (CPIM) from the American Production and Inventory Control Society (APICS). He and his family live in Memphis, Tenn.


Our growth strategy is to continue to integrate existing FedEx SupplyChain capabilities in North America, Europe and Asia with new services in emerging markets. It is a natural tie-in with FedEx Express, the world’s largest express transportation network. FedEx Express connects more than 220 countries and territories, usually within one to two business days door-to-door. Combining the FedEx SupplyChain logistics network with the superior FedEx Express transportation networks in these markets gives us an advantage that cannot be easily matched. It not only makes sense, it is what our customers are telling us they want and need.


Our strategic decisions during the last 18 months have supported our belief that great companies can emerge from economic downturns better than they were before. While we tightened our belt to weather the reduced volume from some industry segments, such as automotive, we also increased our investment in IT and operational capacity in less a#ected markets like medical devices and high-tech service parts. By doing so, we improved service to our existing customers and added capabilities to attract new ones.

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Throughout the economic downturn, we never deviated from our practice of forging and maintaining a strategic alliance with every customer. If anything, we actually stepped up our e#orts to expand two-way dialogue with every customer and ensure that we’re delivering the most value possible through regular business reviews. We know that if we want to maximize each customer’s return on investment, it’s imperative that we focus on continuous improvement and search for ways to enhance their bottom line.


FedEx has long practiced “practical environmentalism”, using innovation, collaboration and leadership to create environmental bene"ts that also have business bene"ts. We believe that customers overwhelmingly support our ongoing initiatives to reduce the environmental impact of our daily business operations because they share this commitment to sustainability and becoming more responsible companies.


As part of the FedEx organization, we not only have access to superior transportation networks worldwide, but we also bene"t from our parent company’s "nancial strength as well. This access will enable us to continue to help our customers expand into emerging markets. It also provides us with the unique ability to integrate across the FedEx organization to execute on solutions that meet the evolving demands of our customers.




There is absolutely a need for signi"cant investment, not just in traditional infrastructure, but in technologies and approaches that will allow quantum improvements in e!ciencies, carbon emissions, and product $ow. Investments such as these will always be a challenge due to their shear size and the limited understanding by the public and Congress of the potential impact.


Basic informational strategies that demonstrate to the voting public the tremendous impact and value of logistics issues to their lives can go a long way – over time – in making the discussion about infrastructure priorities more real and personal for them and therefore, more important.


In an environment such as we have recently experienced, managers and companies are forced to focus more directly on cost savings – thus the pressure on pricing. We have been successful in enhancing partnerships and collaborative behavior during this period precisely because it is the most e#ective method of reducing total cost and improving the service o#ering to the consumer. Our customers have responded to this approach by honoring us with several awards in recent months.


As is demonstrated by the number of people driving hybrid cars, the installation of wind and solar energy "elds, and the other choices that consumers are making, sustainability is, and will increasingly be, a key di#erentiator. We are all responsible to each other for the future of our communities and our environment and we can frequently save money at the same time. Our company is deeply committed on a global basis to o#ering sustainable solutions to our customers.


Not having to answer to Wall Street for monthly and quarterly earnings provides DB Schenker the opportunity to make sound, long-term investments and economic decisions. We also have an extremely solid capital backing to allow us to make investments that are the right things for our customers’ businesses, but that they cannot make for themselves. Our company has a growth strategy that is supported by our parent with investment in key markets around the world.


When do you get a chance to sleep?

Heiner Murmann

President & CEO

Schenker Inc

www.dbschenkerusa.com

Mr. Murmann has been President and CEO of Schenker, Inc. since 2003. He has responsibility for the entire DB Schenker Americas region which includes North and South America.

He began his career with DB Schenker in 1990 as an international trainee. After several corporate roles in Canada, he was named President and CEO of Schenker Canada Limited in 1999.

Mr. Murmann has a B.A. from the University of British Columbia, Vancouver, B.C. Canada. He is domiciled in Toronto and is married with "ve children.


Even as the supply chain industry has su#ered from signi"cantly reduced volumes over the past eighteen months, DB Schenker has aggressively invested in hiring people with specialized skills, IT system improvements, and process enhancements.


We have refocused and restructured our North American domestic transportation o#ering into a more integrated, cost-e#ective model that meets the time-de"nite needs of today’s shippers and allows them to optimize their shipping more easily.


I hope that our most signi"cant challenge will be to keep up with the growth in our business that we believe we will see. It is of utmost importance to ensure that both our existing customers and our new customers continue to receive world class service and an ongoing focus on continuous improvement. On the transportation side of the business, there will be increasing pressure on pricing and capacity in ocean freight and domestic trucking. Finally, we will be challenged by our customers, and theirs, to develop innovative supply chain solutions that address their continually evolving markets.


Our customers increasingly need to focus on their core businesses, opening opportunity for 3PLs to expand to non-traditional functions in a partnership environment.

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1. Recognizing and responding to market conditions. We took a very disciplined approach to our operations and expenditures as we weathered the economic recession and recovery. Therefore, one challenge we face will be maintaining that discipline as economic conditions improve and our business grows.

2. Disciplined growth. As a growth company, our goal is not to grow for growth sake but with purpose and vision. We are in a unique position to model MIQ Logistics to meet the next generation of supply chain challenges. Speed, $exibility and reliability will continue to drive changes in sourcing locations, technology requirements and e!ciencies. MIQ Logistics is not burdened with a legacy structure, which enables us to be much more $exible and responsive to embracing change.

3. Managing changes in capacity - both internationally and domestically. As everyone knows, there have been dramatic changes in capacity over the last couple of years. Moving forward there are a number of dynamics that will come into play that have the potential of impacting the $ow of cargo: 1) volume increases, even a modest increase has the opportunity to outpace available cargo space; 2) material shifts in sourcing; 3) the potential shifts in trade-lane volumes due to the decline/shifts of military moves which currently provide balance in many international lanes.


I’ll speak for MIQ Logistics and say we see the biggest opportunities are: 1) increased activity with existing customers; 2) participating in growth markets, i.e. India, China, and Latin America; 3) meeting industry and customer requirements by providing innovative and repeatable solutions to drive improvements in their supply chains. Necessity continues to be the mother of invention. For example, $at screen TVs and smaller technology products are requiring a change in packaging handling to reduce damage. We will continue to focus on long-term relationships with our customers, which lead to a better understanding of their business and the identi"cation of additional ways we can improve supply chain performance through our portfolio of services.


When referring to transportation infrastructure, we commonly think of roads, bridges, etc. While improvements in these areas are warranted, from our point of view the bigger issue is the growing gap in U.S. port technology, congestion and costs, when compared to Asian and European ports. U.S. labor work rules and lagging port throughput automation are adding costs to supply chains and gradually placing U.S. companies at a competitive disadvantage.

Joey Carnes

Chairman & CEO

MIQ Logistics

www.miq.com

As chairman and chief executive o!cer of MIQ Logistics, Joseph L. Carnes is responsible for the overall global performance of the company. MIQ Logistics specializes in international freight forwarding, customs brokerage, transportation management, truckload services and dedicated warehouse and ful"llment services in North America, Latin America, Europe and Asia. Along with a global network partners, it provides services in and between more than 80 countries supported by over 5,000 in-country logistics professionals. Carnes joined the company at the time of its acquisition in 2010.

Before coming to MIQ Logistics, Carnes was president and CEO of BAX Global Inc., a $3 billion global supply chain company with over 15,000 employees. He joined BAX in 1999 as president U.S. and Canada, and played an integral part in transforming the company into one of the leading supply chain providers in the industry. With the company’s sale to Deutsche Bahn AG in 2006, Carnes was responsible for overseeing the integration of BAX Global and Schenker AG with a speci"c focus on customer integration and network capabilities.


Our primary strategy will be to continue to grow organically by expanding our relationships with our existing account base. The recession and subsequent sluggish recovery has created challenges for our customers, resulting in them turning to MIQ Logistics for creative supply chain solutions to help drive e!ciencies. We will continue our strategy of seeking to "rst understand our customers’ needs, then develop the right solutions utilizing our broad portfolio of services, and execute with reliability and accountability.


Without doubt, the most important development was taking the company private by securing the right "nancial partner. Our partnership with Austin Ventures has given us the $exibility and nimbleness to better respond to our customers’ needs in the evolving landscape of supply chains.

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The risk with advertising is oversimpli"cation of the challenges in global commerce and misperceptions about the commitment necessary to design and execute meaningful solutions. However, I do believe in the business proverb that a rising tide lifts all boats. Through brand advertising we are raising awareness of the role of logistics in a#ecting bottom line results. With this awareness, we are already seeing more attention given to the study, analysis and application of supply chain management principles and techniques at business schools and industry conferences.


To the contrary, we feel our relationships with customers have helped us weather the economic recession. Certainly, to compete with others in the industry, we must be cost competitive and push for operational e!ciencies. At the same time, customers must be able to rely on their partners and trust that their partners will do the right things for their business. Therefore, for MIQ Logistics, it’s not a question of either/or. We must continue to strengthen our customer relationships and we must remain cost competitive.


This is another question that doesn’t have an either/or answer. Today, environmental sustainability is a standard part of any business opportunity. Customers are requiring their service providers to help them meet their own company green initiatives. Fortunately, we have delivered green solutions since the inception of our organization. We do this by providing customers with more e!cient ways to manage their supply chains – optimizing routes, optimizing capacity – as well as by supporting environmental sustainability initiatives. We select carriers which comply with emission standards, we are an EPA SmartWay member, we are recipients of the SmartWay Environmental Excellence Award and we still deliver bottom-line results for our customers.


Being private and having a strong partner in Austin Ventures allows MIQ Logistics more $exibility to focus on longer term initiatives versus putting so much of our focus on each quarter. Austin Ventures have been active investors in the supply chain and logistics area for over 25 years and take a long-term perspective to their investments. As a result, we have the "nancial backing and ownership structure to be more nimble and $exible in the marketplace and also in quickly responding to customer needs.


What "nancial and economic indicators are they using to forecast the future? The last several years have eliminated history as being a good indicator of the future. What keeps me, and I trust others, up at night is how and where to deploy our capital resources. Obviously, staying closely aligned to customers’ needs is a big part of the equation, but I believe they too are looking for help in dealing with the impact that changes in demographics, the impact of emerging markets, and the increased costs and threats of security measures are and will continue to have on the design and execution of their supply chains.

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Andy Smith

President and Chief Operating O!cer

Kenco Logistic Services

www.kencogroup.com

Andy Smith is President and COO of Kenco Logistic Services, LLC, Kenco Transportation Services, LLC. He has been in the logistics and warehousing industry since 1989. He assumed the role of COO in 2004 and added the President title in January 2008. Andy joined KENCO in 1999 as Director of Sales and Marketing until his promotion to Vice President of Operations in 2000. In his current role as President and COO, Andy has overall responsibility for the corporate management of all facilities. His key responsibilities include corporate direction for customer and employee communication, development and implementation of a quality system, and the "nancial success of the logistics operations. He is responsible for managing 25(+/-) million square feet of warehouse space, approximately 4,000 associates, and 100+ buildings across 30 states.

Prior to joining Kenco, Andy held positions with Philips Consumer Electronic and Harrison Ful"llment Services, where he primarily focused on cost containment, decisive team leadership, excellent customer service, inbound sales center management, and the establishment and maintenance of a positive and success-oriented workplace. While at Kenco, he developed an activity based costing and work measurement productivity program that is being used as the Best Practice for all Kenco sites to control costs and associate productivity.

Andy holds a BS degree in Management from The University of Tennessee at Chattanooga. Active in the industry, Andy is a member of the Council of Supply Chain Management Professionals (CSCMP), the Warehousing Education and Research Council (WERC), the International Warehouse Logistics Association (IWLA), and participates in the University of Tennessee Supply Chain Forum.


Kenco will intensify its focus on what has always set it apart: developing new ways to streamline our existing customers’ supply chain; creating a smart approach to their evolving challenges; and selecting prospects that "t our strategic strengths. We’ve never just “stayed put”—we’re always "nding a new process that addresses whatever the economic climate.


For years, Kenco has been committed to 6 Sigma, but we have also adopted Lean as our driving principle. Lean brings value to our customers by fully engaging each and every one of our associates in the continuous improvement process.


1) Rising healthcare costs

2) More trucking regulation

crucial.

shortage. Economic growth and less hours to drive per day will extend that shortage and mandate a network redesign.

3) Increased transportation costs


The biggest opportunity is to combine the integration of incremental improvements with system-level improvements. It is di!cult to maintain gains on an individual line level, so sustainable continuous improvement relies on delivering both types of innovation and improvement—incremental and systemic. The second opportunity is coordination across silos to leverage the bene"t of each supply chain component.

Another opportunity is to maintain employee loyalty while containing or lowering costs in an increasingly challenging environment. Employee performance is a key factor in achieving customer satisfaction and retention. Developing new ways of compensating their dedication and motivation will be critical.


Yes, I agree that Government policy should provide for a long-term and forward-thinking funding process to ensure improvement of our transportation infrastructure. The current yearly appropriations patchwork is not su!cient to develop long-term investment planning by infrastructure builders. The quality of our road, bridge, rail, water and air assets determine the e!ciency of the U.S. supply chain which deserves more emphasis from the State and Federal governments, as well as the private sector.


Continuing to work with CEOs and CFOs to demonstrate the value of a robust supply chain which enhances product value while improving the customer’s competitive advantage.

13




Kenco continues to build its reputation as a trusted partner that is more than a tactical provider. We are working with customers to transition to a vested outsourcing model as developed by the University of Tennessee and the United Stated Air Force. Vested outsourcing creates a win-win relationship. It supports setting quanti"able objectives, creating well de"ned contracts, and developing incentives to balance the risks and rewards of supplier innovation.


We feel that sustainability must focus on social, environmental and economic aspects to succeed. Sustainability is a di#erentiator, but will rarely trump price and service.


We are privately held and we invest in operational excellence. We are not pressed to report quarterly earnings or meet private equity "rm requirements.


What is the ownership structure and long-term investment strategy for your company?

14




A key opportunity is in becoming a strategic partner for our customers, helping them become more successful and pro"table. Our market research indicates that customers want more than an outsourcing relationship with 3PLs; they want a business partner that fully understands their business and market, providing solutions that contribute to their success. To meet these needs, we are enhancing customer engagement through specialized account professionals, while continually investing in systems and infrastructure to make our supply chain more e!cient and productive.


Ingram Micro Logistics is unique, as it has the infrastructure and "nancial support of the world’s largest technology distributor as its parent company. Our "ve advanced logistics centers (ALCs) in the US can serve all markets of the country typically within a 2-day ground transportation window, so transportation challenges are relatively minor. The transportation infrastructure in the US is superior to most parts of the world but it will need to be maintained and improved if the US is to maintain and advantage in this area.


Promotional e#orts by some of the industry’s largest companies create a halo e#ect by educating the market about the bene"ts of logistics. This bene"ts the smaller players and others that are unable to invest in advertising and promotion. I welcome the attempts to build awareness.


Our goal is to be fully aligned with our customers’ business models and needs, ensuring that we contribute to their success. Our services have evolved over the years, expanding from classic pick, pack and ship in the early days to specialized customization, such as industry-speci"c capabilities, made-to-order packaging and gift wrap. We also expanded beyond our core technology niche to serve a greater variety of accounts in retail, toys and specialty businesses, o#ering them access to the world-class logistics developed for the demanding technology market. The alignment with our customers’ needs and markets, combined with greater $exibility and customization, help us mitigate the risk of commoditization.

Robert Gi"ord

EVP Global Logistics

Ingram Micro Logistics

www.im-logistics.com

Robert Gi#ord serves as executive vice president, global logistics of Ingram Micro Inc. Based at the company’s headquarters in Santa Ana, Calif., Gi#ord has comprehensive responsibility and oversight for all elements of the company’s distribution centers and supply-chain operations throughout the world, including the Ingram Micro Logistics fee-for-service business unit. He joined the company in June 2010.

Gi#ord has more than 30 years of experience in operations and supply-chain leadership. Most recently, he served as senior vice president, global supply chain for Ecolab Inc., a Fortune 500 manufacturer and distributor serving the hospitality, institutional and industrial markets. He led all aspects of the company’s supply chain globally, optimizing 37 manufacturing plants and 84 distribution sites, while integrating dozens of acquisitions during his six-year tenure. Prior to Ecolab, Gi#ord was the vice president of worldwide logistics for the Hewlett-Packard Company, where he was responsible for more than $2 billion in logistics operations encompassing everything from contracts to compliance to vendor selection and transportation. He joined HP following the 2002 acquisition of Compaq, where he spent seven years in manufacturing and supply-chain management. Gi#ord holds an MBA from Texas A&M University and earned a bachelor’s of science degree in manufacturing management with a minor in industrial technology from San Jose State University.


Our Ingram Micro Logistics business, which is the 3PL subsidiary of Ingram Micro Inc., is planning for a year of solid growth. This growth will be generated by dual paths: greater penetration into our existing technology and e-commerce markets; and expanding beyond our roots into new verticals in which our unique capabilities provide a competitive advantage. A key di#erentiator from competitors is the strength of the parent company, which is the world’s largest technology distributor. Ingram Micro Inc. has 30 years of experience, serves nearly 200,000 customers and has generated more than $30 billion in revenues during the last 12 months.


For the Ingram Micro Logistics business, a key strategy decision was expanding internationally earlier this year. The subsidiary has been operating in North America for more than 10 years and we believe that this experience, along with the broad capabilities of our global infrastructure, provide unique value to existing and potential customers.


The most signi"cant challenges are often related to the world’s economies and business demand. Beyond the macro-economy, my focus is on creating a high-quality, yet e!cient, supply chain. As a result, the three signi"cant challenges often fall into the broad categories of demand, investment and e!ciency.

15



We believe that sustainability capabilities can indeed be a di#erentiator. For us it is a deeply held belief that to conduct our operations in the most sustainable way possible is the right way to do business. We also know that many of our large customers and suppliers require a measurable focus on sustainability, governance and social responsibility, with a disciplined process for reporting and monitoring progress. Those unable to comply may lose valuable partnerships, which may have a negative impact on the ability to compete. In addition, a commitment to sustainability could also be a valuable marketing tool when targeting environmentally-conscience partners. There will be some customers who place sustainability ahead of price, but it is premature to measure the "nancial impact of this attitude at this time.


The strength of Ingram Micro is an advantage, as it provides a solid "nancial foundation and a compelling value proposition in terms of experience, capabilities and breadth. Ingram Micro Logistics has the support of a Fortune-100 company that serves hundreds of thousands of customers in nearly 100 countries, with more than 30 years of experience – that sends a powerful message.


What keeps you up at night?

16




To remain close to one’s customers, to share their objectives for cost reduction and higher services levels and to be proactive in "nding solutions.


Not until the Western economies genuinely emerge from recession and people feel more secure about jobs and growth.


We believe that there is a bene"t in being a ‘pure play’ quoted logistics company closely associated with a major provider of shipping and air freight services. It should be able to attract capital more easily and motive sta#.


How can we really improve returns on capital employed in contract logistics?

Jeremy Davidson

Managing Director

NYK Logistics

www.nyklogistics.com

Jeremy Davidson joined the NYK Group 1990 with a brief to develop a Logistics Division from scratch where he has been Deputy Managing Director for Europe for over 10 years. Prior to NYK he was Director of Business Development at Christian Salvesen and held various management positions in the Agribusiness and Fine Chemical industries in South America and Europe. He holds an MBA from INSEAD and quali"ed originally as a Biochemist.


NYK recently announced its decision to combine all logistics and global forwarding activities into a single quoted entity – Yusen Logistics. This step underpins the Group strategy to seek growth by exploiting its strong global network by o#ering the full menu of integrated services.


To downsize warehousing-based business and expand in international forwarding.


Improve revenue growth and pro"tability in Europe; Maintain cost-competitiveness; Follow our customers into the growing markets in E Europe and Central Asia.


International forwarding and logistics - particularly China and SE Asia.


There have been important infrastructure investments over the past 15 years in Continental Europe that have bene"tted the logistics industry. It is now the turn of Eastern Europe to do likewise.


As a business-to-business activity, it is important for the industry to connect with the public at large by emphasizing its commitment to environmental responsibility, lower carbon footprints and the social usefulness of what it does.

17




1. Leveraging the signi"cant investment in information technology capabilities that have proven to di#erentiate SEKO from many competitors in order to generate a return on investment.

2. Increasing the talent level throughout the organization through acquisition, retention and development of our human resources. People are the key. A great strategy means nothing without talented and motivated people to execute and follow through. We’re committed to developing our talent at SEKO Worldwide to support our vision of industry leadership.

3. Maintaining a customer focus in every position and at every station within the organization. Hearing, understanding and reacting to the “voice of the customer” will guarantee results at SEKO. As companies experience growth, they tend to become much more internally focused... focused on their needs, their issues, their processes, etc., and the focus shifts away from the source of their success, the customer. Being aligned with our customer is the optimal position.


The biggest opportunity for 3PLs is leveraging their ability to provide customized solutions – especially regarding unifying transportation, supply chain and information technology. They have the chance to impact the client’s competitive position and balance sheet through productive improvement.

3PLs have the unique capability of full supply chain visibility. If this is optimized e#ectively through information technology and JIT transportation solutions, it can allow us to assist clients in managing costs through inventory management and asset reduction. Also, companies that are staying on top of emerging markets create new logistics challenges, and in turn, new opportunities for 3PLs.


This is a huge question – U.S. infrastructure needs have changed dramatically in the past 20 years because of the shift to o#shore and maquiladora manufacturing, and due to a shift in population centers in the U.S. The capacity of our infrastructure to support measurable economic growth is a concern. This was a big topic in the 2008 election, but not enough action, attention or resources have been dedicated to our infrastructure since. Public education would be useful. The $ow of everyday materials and household products from the manufacturer to the public is largely misunderstood. The average citizen has little conception of the rail, highway, airport and waterway infrastructure needed to support our daily lives.


The majority of the general public has no idea what the term logistics really means. It is a long-term investment but awareness and education about logistics begins with our young people. The industry needs to be more actively engaged at the middle and high school levels. Education and awareness – via guest speakers, literature, videos and even curriculum – begin where people start to consider career choices, and learn the way logistics impacts success in business. This is how we can get the general public to understand our industry and its value to our economy.

William J Wascher

President & CEO

SEKO Worldwide

www.sekologistics.com

Since joining SEKO in 1982 as director of accounting and IT, Wascher has played an integral role in building the company from a single-o!ce, Chicago freight forwarder to a highly respected, quarter-billion dollar global logistics provider with 50 U.S.-based o!ces and nearly the same number in 40 other countries. He also served as SEKO’s CFO before becoming president and CEO in 2002.

With a deep knowledge of the shipping industry and SEKO, Washer has remained a champion of and visionary for SEKO’s growth – through changed ownership, corporate culture and business models. Wascher is driven by a personal commitment to SEKO’s strategic partners and employees and states one of his greatest motivations is to succeed where others have failed. Prior to joining SEKO, Wascher was assistant controller for Marina Bank, audit o!cer at the Bank of Elk Grove, business software consultant for United Telecommunications and senior systems analyst for Admiral Home Appliances.


There are four parts to SEKO’s immediate growth strategy:

1. Account retention. We are energizing our focus on client needs and developing customized solutions in order to exceed the expectations of our current clients. Servicing those clients who have already trusted SEKO with their business is the foundation to our growth.

2. We’re in the process of creating a world-class Global and National Account sales team that will leverage the unique capabilities of SEKO Worldwide. This team is our face and voice in the market and has the task of driving a strategic sales e#ort. SEKO is making a solid investment in our sales presence and our Strategic Partners support it.

3. We plan for a strong dedicated launch in our de"ned vertical markets, such as government, pharmaceuticals and medical technology.

4. We will continue to aggressively expand into new markets as opportunities dictate.


Fully committing our organization to a healthy growth strategy was a very important strategy decision ensuring our prosperous future. The concept of growing is easy to describe as a strategy decision, but can be most di!cult to execute. Committing to growth requires e#ectively managing ongoing change throughout the company at every level. It requires a signi"cant daily commitment.

18



We make strategic relationships part of our culture at SEKO…a true relationship cannot be reduced to a buzzword or marketing campaign, you have to live it. All relationships and partnerships are driven and nurtured by the value they create for the parties involved. Externally, this begins with the sales process where client needs are properly de"ned and communicated. A proper needs assessment with the client develops a stronger alignment, which means greater value achievement, resulting in a stronger relationship. Everyone is under tremendous pressure to save money. You must quantify to a client the value you have created so that it is recognized as real money. When value propositions are converted to real dollars, pricing pressures are reduced.

In turn, our consultative sales approach assists in overcoming the challenge of this mentality.


Environmental sustainability is smart business. Long term it helps businesses reduce costs and improve competitiveness.

A customer will typically not put environmental sustainability ahead of price. In the long-term, however, environmental sustainability allows you to reduce your cost basis and your price to the client.


Our strategic partners are entrepreneurs and passionately focused on their local markets. They are directly rewarded for building their businesses. They don’t have to wait on the boss to give them a raise. They focus on their people, their clients, grow their business and reap the rewards. This model attracts the most aggressive, growth-oriented talent. Because our strategic partners are business owners, they have a built-in enthusiasm for their clients and success. Because of our ownership structure, we are surely in a position with advantage for future growth.


What tools or processes do you utilize to assist you in being the thought leader for your organization?

19




Expansion of infrastructure is a challenge for any developed country (particularity interests, e.g. noise of planes versus airport expansion, cost, etc.).


I am not sure that the industry as such needs to be promoted further.

Each LSP has their own marketing concepts. Generally I "nd LSPs can improve further by focusing on what the customer is looking for, rather than promote their service attributes.


This is a development I personally cannot con"rm for Panalpina in the U.S. As a matter of fact, the recessionary pressure generally has lead to a more strategic valuation of supply chain management


More and more customers require to see what we are doing and how we can help them to continue to act environmentally responsibly. We see signi"cant di#erence between industries – O&G and healthcare are probably a few years ahead.


The fact that a controlling stake of our company is held by a shareholder who puts long-term growth ahead of quarterly results allows us to develop customer relationship by investing with a long-term strategy in mind.


How have other CEOs adapted their strategy and business model after the 2009 recession and ‘freight cli# ’. Why will these changes prove successful in 2011?

Lucas Kuehner

MD

Panalpina USA

www.panalpina.com

Lucas Kuehner is Managing Director of Panalpina USA, with its U.S. head o!ce in Morristown, NJ. Prior to this role Lucas was head of Operations for Panalpina USA for three years. He held various positions in process improvement and IT in the U.S. and at Panalpina’s global head o!ce in Basel, Switzerland, prior to that. Lucas has an MSc in Logistics and SCM from Cran"eld University (UK), and a BA in Business and Economics.


End-to-end solutions combining AFR / OFR / SCM capabilities with a vertical industry sales approach / focus on key accounts with global service needs.

Di#erentiators: Leverage of our global network and local presence / unique combination of own controlled and commercial capacity providing $exibility and scalability.

Distinguishers from competition: Unique approach from supply chain optimization through implementation (we have the credentials of execution).


Di!cult to boil it down to one decision, but I think key is our continuous and gradual investment in sales and SCM as part of our strategic focus of providing end-to-end solutions to our key accounts.


1. Manage the company under a new reality of higher (freight) volatility.

2. Resist margin pressure by providing value added services.

3. Continue to diversify our client portfolio.


Provide excellence in customer service as customers exercise choice in who they work with.

3PLs need to enhance their customer relationships and make sure they are seen as strategic business partners in the eyes of their most valuable customers.

3PLs need to identify and act on opportunities to innovate and safe cost for their customers. This requires specialization and an excellent understanding of the customer’s business, as well as the competitive and supplier environment.

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I have long been a supporter of smarter investment in U.S. transportation infrastructure. Until a paradigm shift occurs, the U.S. will continue to "nd itself in the position of repairing ancient roads and bridges instead of investing in the future. Imagine a maglev train carrying product to market faster and damage free in “air-ride” mode. Ideas like this could set the U.S. apart as a world leader.


Perhaps general education as to its value to the everyday consumer. If more people understood the industry, then our elected representatives might feel compelled to make sure that all appropriated tax dollars reach the intended purpose.


We are sensitive to the needs of the customer to keep costs down in a prolonged recessionary period. TBB strongly believes that the commoditized relationship will prove to be short-term. We work hard to understand the customer’s business objectives and a variety of other key factors. This knowledge, imparted in a trusting relationship, enables TBB to craft strategies that can be built and managed over the long haul to help the customer succeed.


I do believe that environmental sustainability will make a de"nitive mark on the industry. Every business has core values. For some, core values will drive decisions in support of sustainability over price.


TBB is a privately held, third generation, family-owned company. We are entirely non-asset based. TBB does not believe in a “one size "ts all” solution when using supply chain as a competitive weapon as opposed to a series of managed cost centers. If we are to truly design, build and manage supply chains to our customers’ advantage, we must be unencumbered by physical assets with an ROI $oor. For these reasons, TBB feels that we are uniquely situated to assist SME companies as they venture outside the comfort zone of conducting business as normal, whether it be here in America or around the world.


An intellectual exchange amongst peers is always a welcome exercise. None of us has a crystal ball. The questions would need to revolve around the future as we understand it through the eyes of our customers.

Sam Polako"

President

TBB Global Logistics

www.tbbgl.com

Samuel R. Polako# is president and third-generation co-owner of TBB Global Logistics (www.tbbgl.com). He has 35 years of experience with the company, which his grandfather founded in 1946. Since joining TBB in 1975, Sam has played an integral role in growing the company from 12 employees to a team of 100 that provides total supply chain management services for small to medium-size companies looking to strategically position themselves for growth using supply chain as a competitive weapon.


For a 65-year-old company that specializes in helping the SME customer, the answer is easy. TBB’s value proposition provides that continuous evolution will keep us in position to continue assisting the SME customer with relevant supply chain technology and strategy, all built to scale. TBB di#erentiates itself and will grow by designing, building and managing end-to-end supply chain functions.


Engaging in the assessment process to position TBB as a supply chain technology resource for the SME customer.


First and foremost would be staying in touch with the evolving state of entrepreneurship in America. The new breed of American entrepreneur will shift from the 40 something executive who, after working 20 years for large company X, becomes disenchanted with the rat race and risks everything to start his or her own business. The new breed of entrepreneur will be young business students coming right from the college classroom into the business world. The second would be staying at the leading edge of new technology and making sure we have the right mix to meet the dynamic needs of our customers. Last but not least would be wrapping our arms around the global marketplace in order to better serve our customers. As the world gets smaller, SME customer will need to seek opportunity outside the U.S. TBB continues to seek new methods of serving client supply chain needs outside the U.S. market.


Outsourcing will continue to be the land wherein miners seeking gold nuggets go. The secret remains in which services will be in demand and how to bring it all together in a seamless, technologically advanced portfolio for the new entrepreneurs.

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Many companies are coming out of the recession with initiatives that have been put o# for several years, and they’re going to be anxious to get them implemented as soon as possible. In many cases, they’ll be able to implement their plans considerably faster by using 3PLs, especially larger ones that already have facilities, processes or personnel in place.

3PLs are also going to be highly useful to companies that need to increase their shipping activity but are wary of making an extensive capital or human resources commitment just yet.

And in this cost-conscious business world, any 3PL that can demonstrate how it can help companies cut costs without compromising quality is going to "nd a very receptive audience.


I don’t think there’s a logistics professional out there who believes our country’s current investment in infrastructure is adequate, especially given the condition of our roadways, railways and other transportation arteries.

Nearly half of our highways are already congested, and studies show that this congestion costs the U.S. economy $78 billion each year, including 4.2 billion lost hours and 2.9 billion gallons of fuel. And the Federal Highway Administration (FHA) estimates that congestion may increase trucking costs by anywhere from 20 percent to 250 percent per hour. Plus, approximately one-third of our country’s major roadways are in poor condition, according to the American Society of Civil Engineers, and that adds operating costs of about $400 per truck per year.

Although there’s been a fair amount of media attention being paid to this issue in recent years, I’m not sure the average taxpayer is fully aware of just how much transportation a#ects his or her life – and why it’s important to make sure our country protects and expands its transportation assets.


My background is in operations and engineering rather than marketing, so I’ll defer to CEOs with marketing backgrounds on this question.


First of all, I think we have to accept that some 3PL relationships will always be price-driven. It’s just the nature of the beast. But that doesn’t mean that an outsourcing logistics relationship inspired by cost-cutting can’t turn into something even more strategic. We’re always working hard to educate or remind our clients about the importance of a strategic approach to their last-mile delivery – and to show them the values besides greater economy that we can bring to the table.

Karl Meyer

CEO

3PD Inc

www.3pd.com

Karl Meyer is founder and chief executive o!cer of 3PD, a $300 million company that is one of North America’s largest focused delivery providers. As such, he has played an instrumental role in making millions of deliveries for a range of retailers, manufacturers and building supply companies. An engineer by training, he began his logistics career on the shipper side, "rst as a project manager and then as corporate delivery manager for Home Depot. While there, he played an instrumental role in helping Home Depot transition its multi-billion delivery business from an in-house to an outsourced delivery model. He holds a bachelor’s degree from Embry-Riddle University.


After spending our "rst 10 years establishing a market leadership position in dedicated last-mile delivery – and setting up the industry’s "rst truly national service o#ering in that sector -- 3PD is launching two additional last-mile service o#erings. 3PDirect allows companies to ship goods to any business location the in the lower 48 states on a pay-per-use, as-needed basis. And 3PDesktop o#ers businesses the opportunity to use the same systems and processes that our company employs on behalf of its delivery clients for use within their own private $eet operations.

As a result, we’ll be able to leverage our technology platform, scale and people to o#er services (and last-mile excellence) to a much broader market.

Regardless of which 3PD service shippers choose to use, our value proposition includes our exclusive last-mile focus, our ability to deliver nationally consistent services and our industry-leading approach to customer service and quality assurance. We’re the only company out there providing real-time customer feedback and same-day exceptions management, and we believe it goes a long way towards helping our customers protect their brands and retain their customers. Our tools and processes are truly di#erentiators.


We made a deliberate decision to continue investing in and developing innovative technologies and customer service processes. I believe it’s a key reason why we managed to grow even in a tough economy and why we’re now poised to claim a greater share of the last-mile and logistics market as the economy recovers.


Gaining traction for our two new product o#erings. Staying $exible and agile as we grow. And maintaining and improving the strong value proposition we o#er.

22



I don’t think sustainability is going to be a di#erentiator. I think it’s going to be a requirement, because everyone is justi"ably concerned with reducing carbon footprints, and the transportation industry’s is among the largest in the world.

And in terms of which will take precedence – price or environmental sensitivity - there are many cases where companies really don’t have to decide, because there’s often a strong correlation between environmental sensitivity and cost-e!ciency, so there are many times when 3PLs can promote both. For example, we’ve developed ways to help our customers signi"cantly reduce the number of redeliveries they have to make by using a combination of inexpensive pre-delivery reminders such as automated pre-calls, e-mails and even text messages; we also use routing to help them build more cost-e#ective deliveries. Both practices also reduce carbon emissions.


When we formed 3PD Holding (the company that owns us) in 2006, it was the beginning of a highly productive relationship with Arcapita, a multi-billion company with a strong commitment to operational excellence.

Since then we’ve had the "nancial and geographic latitude we needed to build a national solution, establish industry-leading processes and move our capabilities in new directions – all of which bode well for our future growth.


How can we help you integrate last-mile and specialty cartage into your service o#ering?

23




It’s always been our belief that our customers (auto and heavy equipment manufacturers) should focus on design, manufacturing and sales – and leave the logistics of factory to dealer distribution to a third party. Within that context signi"cant opportunity remains.


The logistics industry, and the transportation infrastructure that underpins it, has historically been grossly underappreciated within the U.S economy. It’s a huge task to move the needle on this, but I’m hopeful that the tide could be staring to turn on this front.

A recent speech by John D. Porcari, Deputy Secretary of the U.S Department of Transportation, has given me hope that we can make progress on this enormously complex but crucial issue. Common sense needs to trump politics, thus it’s encouraging to see leaders in government, like Mr. Porcari, who understand how all the dots are connected.


WWL is really a niche player in that we focus primarily on the automobile and heavy equipment industries. We don’t rely much on advertising in a mass-market sense, but instead we direct our energy towards "nding integrated solutions to each customer’s unique requirements.


Listen and learn. Sense and respond. You can complain all you want about the unfairness of the whims of your client or industry base, but if you aren’t continually adapting you are in for a rough ride.


Yes. I believe that responsible companies will seek out and favor transportation and logistics suppliers that prioritize and invest in sustainable solutions.


Between our two owners, we have 225 years of commitment to transportation and logistics activites. You could say that logistics is “in the soul” of WWL. This puts building for the future at the forefront of everything we do.

Christopher Connor

Deputy CEO

Wallenius Wilhelmsen Logistics

www.2wglobal.com

Connor joined Wallenius Lines in 1994 in the U.S. as vice president of sales and marketing. When Wallenius Lines and Wilhelmsen Lines formed Wallenius Wilhelmsen Logistics in July 1999, he was named executive vice president of Region Americas.

Connor relocated to the company’s global corporate headquarters in the summer of 2001 and took up the position of head of the Commercial division in August 2001. He became chief operating o!cer of the company’s Ocean Services division in March 2002, prior to being appointed president of Region Americas in 2004, and CEO in 2010.


WWL’S core strategy — “Factory to Dealer” — is in and of itself a distinguishing factor versus our traditional ocean carrier competition. That being said, growth in 2011 will occur in two ways:

1. Gain additional volumes over our current network by leveraging the capabilities we have across the "nished vehicle logistics network.

2. Building out our network further (additional port- or plant-based technical service centers and/or expansion of ocean-based trading into new or emerging networks), in order to attract new volumes.


Expanding the scope of our Technical Services business to include, not just automobiles, but also construction, mining and agricultural equipment.


As the fog and mist from the global economic crisis continues to clear, I’m focused on:

1. People – Do we have all the right people “on the bus” and is our alignment as good as it needs to be in order to execute for success?

2. Economics – The crisis has forced OEMs to really stay lean with inventory levels. One impact of this occurs in our Technical Services businesses. Reduced inventory means that income once earned through storage agreements is mostly lost. Historically, storage was a central ingredient of the economic model – manufacturers asked for it, and you had to have the capacity for it. If the Technical Services business model is to remain viable in the longer-term, this lost income needs to be re-introduced as part of Basic Services charges. This is just one example of where the realities of the new economy have changed the game.

3. Environment & Environmental Regulation – There are signi"cant regulatory changes looming with regard to emissions control areas (ECAs) that will impact the ocean transport business. It’s important that carriers and shippers talk openly about these impacts, and reach common ground on both the cost and service consequences that these regulations will bring.

24



Without knowing the ad campaign you are referring to, your question is too general. However, the signi"cant reduction in supply chain inventories post GFC, coupled with the growing trend towards a B to C solution, will signi"cantly change the way the industry needs to promote itself.

Toll has realised the importance of brand and promoting ourselves as one business since growing our operations outside of Australia. We have recently embarked upon a rebrand initiative which will see all of our businesses come together under the same brand and unite as ‘One Toll’ to our customers.


Our experience has shown that where we are able to clearly add value for a customer along their supply chain (strategic relationship) there is far less risk of being commoditised.


Environmental sustainability is an ongoing issue for Toll. As a major transport operator, we have a commitment to the communities in which we operate.

This year we have publicly stated our commitment to the environment through the launch of our Smarter Green program. This will look at the Group’s sustainability and identify smarter ways of working. We hope this will cut our emissions and therefore save money; costs savings which we hope to be able to pass on to our customers.

I think customers will continue to look at price, service level and innovation when selecting suppliers, but our environmental awareness I hope will support us in being a point of di#erence.


The public ownership structure of Toll has made it easier to obtain funding needed to "nance growth.


I believe the question that should always be asked of transport and logistics companies is to clearly articulate their point of di#erence, in other words, their ability to add value, improve e!ciency and therefore reduce costs for a customer.

Paul Little

CEO

Toll Holdings

www.toll.com.au

Mr Paul Little became Toll Holdings’ Managing Director in 1986, when he was largely responsible for arranging the Management Buy Out from Peko Wallsend Ltd.

Mr Little won the inaugural Trans-Tasman Business Leader Award in 2005, the CA / Zurich Business Leader Award in 2002, and has led a team that has achieved signi"cant growth for all Toll Holdings shareholders since well prior to the Group listing in 1993. In 2008, Mr Little was awarded the Doctor of Business honoris causa by RMIT University.

In 2010, Mr Little was awarded an O!cer of the Order of Australia for service to the development of the transport and logistics industries and service to the community through philanthropic support of sporting and medical research organisations.


Our strategy is to continue growing aggressively in our chosen markets via M&A, organic growth and to optimise the opportunities for outsourcing. Inside Toll, organic growth will typically grow at twice GDP.


To continue our aggressive M&A growth strategy throughout the GFC was a key strategic decision for the group.


1. To grow our various businesses o#shore and by so doing, increasing our capacity, networks and revenue outside of Australia.

2. Improving margins and returns in Australia to match the pre GFC levels achieved by the group.

3. Lift the company’s level of o#shore shareholders, particularly in key countries where Toll is growing quickly.


The company’s biggest opportunities lie in ful"lling its strategic global growth ambitions using Asia as our springboard.


We see signi"cant opportunities in the US that aren’t necessarily contingent on further and smarter investment in infrastructure in that country.

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The biggest opportunity is in innovation and providing customers with a transportation model of lowering their costs through consolidation, better utilization of cube and reducing empty miles. Reducing transportation expenses and carbon footprints through collaboration among shippers.


The U.S. certainly needs improvements in the infrastructure to improve the $ow of goods throughout. Investment into infrastructure in both roads and high-speed rail will be a wise investment. Investment into the major ports to allow e!cient access for truck and rail will be critical in the years to come.


I believe the best way that Logistics Service Providers can promote themselves is through positive results and incredible service. As a service provider and it is our job to continue to deliver world-class service while partnering with our customers and reducing costs. Reputation is earned on a daily basis.


It is incumbent upon providers to continue looking for ways to add value throughout the entire supply chain. Providers need to be focused from a customer’s perspective which requires subject matter expertise going well beyond the “four walls.” Leading customers as opposed to following or reacting is a mind-set change which must be instilled.


Sustainability will be a very large di#erentiator but not command a premium. The provider that can demonstrate sustainability at the same or better value will overwhelmingly secure the assignment in a competitive environment.


Privately held companies are not subject to the “Wall Street” pressures of quarterly pro"tability and returns. Decisions can be made in the best interest of the relationship and long-term outlook. Being a family-owned, privately-held company, along with our rich 80 years history and strong positive culture with associated values, allows us to be agile and $exible. Decision-making processes always put relationship needs "rst.


What they feel is a fair rate of return for the services they provide and how do they go to market to obtain that return.

Dick Kane

CEO

Kane is Able

www.kaneisable.com

Richard P. Kane is President and Chief Executive O!cer for Kane Is Able, an award winning third party logistics provider. Dick has over 35 years of experience in operations with a tenacious commitment to driving sales, pro"t and market share growth.

Dick is responsible for guiding the strategic direction of 12 corporate entities and maintaining full accountability for the P&L for 18 distribution facilities totaling over 8.5 million square feet located throughout the United States. Dick is an innovative leader for an executive team and sta!ng of over 1200 associates. He is known for his ability to envision and create successful outcomes in all key performance metrics (marketing, sales, "nancial management, operational management and customer service.) Mr. Kane is a respected visionary with a solid reputation for leveraging organizational competencies and creating a motivated, productive work environment.

Dick graduated with a B.S. from The University of Scranton. Dick is Chairman of the Board with Marywood University and is a Board Member and past Chairperson for Penn & Northeast Regional Railroad Authority. Dick’s professional a!liations include Kings’ College Family Business Forum, Vistage International CEO Group, Warehousing Educational Research Council (WERC), International Warehouse Logistics Association (IWLA) and Council of Supply Chain Management Professionals (CSCMP).


Our growth strategy is to continue to provide exceptional service, quality, and consistency to our customers. To align our services to support our customers in achieving their strategic goals. We focus on continuous improvement, innovation, and driving costs out of the supply chain. Our goal as a service-oriented solution provider is to simplify our customers supply chain needs so they can focus on their core business. Growth will be organic and very selective acquisitions.


Responding to the market condition of the past two years, while aggressively taking cost out of, not only our operations, but working with customers to lower their costs through innovation and productivity. Our decision to focus on the CPG sector has allowed us to gain speci"c expertise and lead our customers to higher value supply chain solutions. This decision brought focus to our organization in hiring, selling, marketing, and systems expertise.


The three biggest challenges over the next couple years;

1. Continue to improve the level of innovation in our industry to drive costs out of the supply chain

2. Cost-containment with the uncertainty of healthcare costs

3. Continue growth with expected returns in the current economic environment

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During the economic decline, many companies have approached Big Dog to outsource their logistics and transportation needs with a 3PL and 4PL service. 3PLs like Big Dog, who have build a solid foundation and reputation, are can provide customers with reliable transportation services which will decrease their costs and sta!ng commitments.


Yes, I think the U.S. must invest in repairing the existing infrastructure and develop a long term plan to build an infrastructure that can meet the ever increasing demand. If we choose not to address this issue, our infrastructure will not be able to keep up with demand in the future.


To promote our industry, we must be able to demonstrate its value and stress the $exibility and cost savings that a 3PL can provide to its customer.


As a leading 3PL, we see just the opposite with our customers. Our customers recognize our ability to provide signi"cant cost and overhead reductions to their bottom lines.


Environmental sustainability has become a reality in our industry. Government will increasingly regulate the transportation industry and customers will be forced to address this in their pricing strategy.


Big Dog’s partnership ownership structure gives us the $exibility to address all our customer needs immediately, without a cumbersome and rigid chain of command.


I am always curious and interested in other CEO’s opinions on industry consolidation due to the recession.

Daniel Kirk

CEO

Big Dog Logistics

www.bigdoglogistics.com

Daniel Kirk is the Chief Executive O!cer responsible for providing strategic direction for all the Big Dog Group operating companies, including Big Dog Logistics, Big Dog Airfreight, and Big Dog Expedited. He is the co-founder of Big Dog Logistics and led its expansion and transformation to Big Dog Group, Inc. Mr. Kirk services as a member of the Board of Directors for FrogFire Technologies, Inc. and Big Dog Express, Inc.

Mr. Kirk began his career in operations at Central Freight Lines in Houston, TX. He held various positions in operations and sales for 18 years. Subsequently, Mr. Kirk became Vice-President of Sales for Special Dispatch and eventually became the Vice-President of Sales for all Freight Pool Distribution Services for US Deliveries.

Mr. Kirk has an Associates degree in International/Domestic Transportation from The University of Houston.


Next year Big Dog Logistics will open additional locations with partner companies to brand the Big Dog name. Currently the Big Dog Logistics name and logo are a trusted and recognized name in the logistics and 3PL communities. Our goal is to signi"cantly increase our recognition throughout the United States and internationally to a wider audience.

Big Dog has successfully distinguished itself in the competitive, logistics industry by consistently exceeding our customers’ expectations. We start with a basic model and build it up to meet and surpass each of the customer’s requirements. This is a continually evolving process and we stay on top of the ever changing customers’ needs by training our sta# to do whatever it takes to keep the customer’s goals "rst.


Our strategy during the last 18 months has been to hire additional sta# to capitalize on the trend of many companies who are outsourcing their logistics and transportation.

We are committed to hiring quali"ed sta# and perfecting our team members’ logistics and customer service skills. Our team members take ownership of a customer’s account and learn the subtle points of their business. At Big Dog, we want to contribute to the customer’s bottom line by providing timely and a#ordable service.


1. We plan to grow and expand the Big Dog business at a manageable pace.

2. Meeting our customers’ service demands at the most a#ordable price.

3. Maintaining a pro"table and growing company, as government regulations and taxes increase.

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This question is no small matter. We are competing globally for our children’s futures; their livelihoods and our very way of life. There are too many people that see the next decade as someone else’s, and they don’t realize the implications of that attitude. Leaders in business, academia, and government need to put aside the squabbles, and they need to rebuild the country as though it were an emergency. We need to work together to redevelop the industries where we can compete, develop a sense of real urgency about education and training, and redevelop the infrastructure and technology we will need for the next 30 years. The next century can be a sequel to the "rst American Century. This is a global race; it’s not a game. It is critical that we stay relevant and retain our leadership position.


The emphasis should be placed on technology, collaboration and transparency. But, this needs to occur in ways that are tied directly to actionable, tactical, understandable, practical results. Campaigns should be more about education than promotion; how can we work together to deliver results that drive e!ciency and e#ectiveness. We are an important part of the process that can allow customers and their consumers to have more for less. And, right now, they need more and they have less.


That isn’t what I hear from customers. We have been on a mission to engage customers and partners in functional areas that will make their supply chains better, cheaper and faster. We have tried our best to use the slow-down to prepare for the future. We are continuing to mix new technology with collaboration to prepare for future growth. There are tech areas that seem esoteric, such as social media, powerful hardware and mobile apps, data-to-information, everything-as-a-service, multi-sided business models, etc. They have fancy names that make them seem indecipherable, but we are working with customers to make them translate into better daily operations for real-life warehousing and transportation; making things easier, less costly and taking service levels higher.

Dan Sanker

CEO

Casestack

ww2.casestack.com

Dan Sanker has a 24-year track record of growth in intensely competitive industries, including consumer packaged goods, business services and technology. He received an MBA from the Anderson School at UCLA, and studied at the University of London, IES in Vienna, and Kansai Gaidai University in Hirakata City, Japan. He has been accredited by the UCLA Director Certi"cation Program, and he serves as a Board Member at the Center for Retailing Excellence at the Sam Walton College of Business at the University of Arkansas. Mr. Sanker initiated the industry’s "rst biodiesel program and has been recognized as a “Green Supply Chain Professional to Know.” Prior to founding CaseStack in 1999, Sanker held leadership positions at Procter & Gamble, Nabisco, Deloitte, and KPMG.


During the upcoming years, CaseStack will continue to leverage its competitive advantages which are based on technology-enabled collaboration. CaseStack has developed the people, process and technology to work with trading partners to reduce macro e!ciencies in the overall supply chain. For example, CaseStack has developed retailer-driven consolidation programs where retailers create special orders that are designed to completely "ll truckloads of multi-vendor products. The results include lower transportation costs, reduced fuel consumption, less greenhouse gas emissions and almost zero damage rates. Retailers also enjoy less dock congestion, reduced inventory and industry-leading on-time rates.


Over the past 18 months, the most signi"cant strategic decision we made was to stick to our core strengths. We continued developing new consolidation programs with retailers, and we forti"ed and added to the robustness of our tech platform – all with the advice and assistance of our customers and partners. We made every part of our business more scalable in preparation for the dramatic growth that will occur as the economy returns. Ironically, we have had the best two years of our corporate life at the same time.


The people, process and technology are everything. The challenge is always the same: Find the best people for every function, so they can take us to new highs; improve processes in collaboration with trading partners to constantly reduce the cost structure while improving service; and keep the ever-changing technology easy-to-use on the front end and a fortress of e!ciency on the backend.

In addition, we must always "nd and work with customers, carriers, partners, retailers and others that understand the power of collaboration.


The biggest opportunities are BETWEEN the companies; that is – by sharing, trusting each other and collaborating we can "nd new, better ways to take action that reduces costs and improves service.

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Absolutely. We are working with many of the world’s leaders to transition ‘green’ opportunities into true sustainable business practices (eg consolidation programs, biodiesel & natural gas usage, packaging & process changes, etc.). We’ll often work with consumer packaged goods companies to review their entire supply chains to determine how to reduce the systemic costs in terms of dollars and environmental impact. Sustainability technology is a perfect match for CaseStack – it is a new technology that rests on the basis of tech and collaboration. True sustainability initiatives do not have to put the environment ahead of price; that is an old paradigm. For example, when we collaborate with retailers to combine multiple suppliers’ orders, we signi"cantly reduce greenhouse gas emissions, reduce transportation costs, and improve service. As an industry, we haven’t tapped the surface of the opportunities. Sometimes there are short-term costs to retool, but sustainable practices will ultimately save money – big money. In addition, I have seen "rst-hand the process analysis tends to drive organizations to much higher quality practices.


We are big enough to have the resources that we need, but we are small enough to be very nimble. Our executive team has the complete support of large private equity groups, so we can accomplish in days what we see other companies work on for months.


How can we all collaborate for the good of our customers and ultimately for consumers? That is; how can we leverage our strengths jointly, so we can provide more cost-e!cient services at the highest possible service levels?

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Logistics moves the economy. No one denies the value of transportation infrastructure, but the need for structural renovations and innovations grows with the pace of transit and energy technologies. For decades, the development of transportation infrastructure for commercial use has gone hand-in-hand with its development for public use, due in large part to investment in the U.S. highway system. Recent investments in mass transit have increasingly di#erentiated transportation infrastructure between commercial and public development. We must recognize the needs of both.


LSPs should promote the process and results of logistics. Educating the public on the speci"c functions of logistics can help consumers choose the best solutions for them, rather than choosing a company based on brand identity alone.


To avoid commoditization, CTSI-Global asks questions about the end use of data for strategic planning and spend management throughout the supply chain. Because we provide value by reducing our clients’ expenses, we are generally retained for other services and projects.


Realistically, not everyone prioritizes going green over making green. This is true for shippers and carriers as well as consumers. Although not universally required, some markets demand environmentally sustainable practices and are willing to pay extra for them. These consumers appreciate the shippers and carriers that commit to greener processes, for example, through partnerships with the EPA’s SmartWaySM Transport. Additionally, as innovations in sustainability move bene"ts beyond ecological impact to include cost e!ciency, there will be greater demand among business partners for environmentally sustainable supply chain processes.


As a privately held company, macro-level decisions can be implemented e!ciently without worrying about quarterly earnings reports.


What are your plans for technology advancements and global expansion?

Ken Hazen

President & CEO

CTSI-Global

www.ctsi-global.com

J. Kenneth “Ken” Hazen is President and CEO of the global supply chain solutions company CTSI-Global. Ken earned his B.B.A. from the University of Memphis, and Memphis is home to the company’s global headquarters. He acquired CTSI-Global (then Continental Tra!c Service, Inc.) in 1982; six years later, it was named to the “Inc. 500” and has continued its leadership in industry innovation since. Hazen is the co-author of two industry books including The Role of Transportation in the Supply Chain.


By o#ering both a complete TMS suite of applications and full-service freight bill audit and payment, CTSI-Global is in a perfect position to assist companies with implementing and enforcing a spend management program. With our Software-as-a-Service (SaaS) model, implementation is complete in a matter of weeks. Providing both TMS and FBA&P eliminates redundant processes and costs a fraction of using two providers.

During the next several years, as the importance of Transportation Management Systems becomes more apparent, demand will increase for on-demand TMS. Supply chain managers will want and require a system that will be readily available to them, and providers will be forced to develop true real-time systems. To stay on the cutting edge, CTSI-Global will continue to invest in the latest technologies, improving processes and globalization to support all our clients.


CTSI-Global has found alliance partners who complement and expand our business o#ering. We’ve also made many new enhancements to our applications and platform for all modes of transportation.


The three biggest challenges over the next couple of years are continuing to expand TMS software and practices for our international clients, "nding additional employees with strong logistics backgrounds and adding new o!ces in the U.S. and globally.


The biggest opportunity for 3PLs is partnering with a supply chain solutions company like CTSI-Global. Such a partnership would provide a strategic advantage over competition by helping 3PLs complement their existing operational strengths with a world-class supply chain solution.

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About eyefortransport

Established in 1998, eyefortransport has become one of the leading providers of business intelligence, independent research, news and executive level events for the supply chain & logistics industries.

eyefortransport has two primary focuses: to provide executive networking opportunities in the supply chain & logistics industries, and to deliver industry education through dozens of industry reports, surveys, newsletters, webinars and senior-level presentations.

Our events are designed to complement and enhance the business connections available through our online network, and bring together the industry elite. Regularly attended by CEOs and senior management from the transport and logistics industry and Heads of Supply Chain of major companies, our events focus on current developments and latest trends, and are enhanced by high level, exclusive networking opportunities. More than 15 elite events are held per year in North America, Europe and Asia - check out www.eft.com for more information or get in touch if you’d like to be involved.

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Neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and materials found or o#ered in this document for any particular purpose. We acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. Your use of any information or materials from this document is entirely at your own risk, for which we shall not be liable. It shall be your own responsibility to ensure that any products, services or information available through this document meet your speci"c requirements.

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Interested in the views and strategies of 3PL CEOs and the Heads of supply chain from their biggest customers? Attend the:

9th 3PL Summit & Chief Supply Chain O!cer ForumJune 21-23rd, 2011 – Hilton Hotel, Atlanta

The World’s largest event for 3PL providers & users – Exploit industry mega-trends to fortify key relationships and maximize pro#t The 3PL Summit – co-located with the Chief Supply Chain O!cer Forum – will reveal how you can adapt your business to meet the requirements of the new economic era, drive renewed growth and gain market share.

Learn how the world’s most prominent 3PLs are positioning themselves in a time of growth, change, and "erce competition. Discover the real needs of your most desired customers, how they expect to be sold to, and how to build a pro"table longterm relationships with them.

Visit www.3PLsummit.com for more information and to book your place alongside these executives:

Supply Chain Executives Speaking include: John Welling, VP Supply Chain Innovation of Wal-Mart

Nick Blaway, SVP Supply Chain of Feeding America

Cheryl Brown, VP Global Operations & Supply Chain of Hewlett-Packard

Brian Watson, Head of Global Supply Chain of Lonza

Dennis Omano#, SVP Worldwide Supply Chain, Manufacturing, Facilities of McAfee

Kevin Wrenn, SVP PC Business and Product Operations of Fujitsu Microelectronics

Alejandro Enciso, VP Supply Chain of Baxter

Reese Delorey, VP Global Supply Chain Management of Lockheed Martin

John B. Sorci, VP Global Operations of Symantec

Steve Sigrist, VP Supply Chain - Walmart Division of Newell Rubbermaid

Steve Shelley, SVP Supply Chain Management of Schreiber Foods

Phil Hendricks, VP Supply Chain Americas of Gambro

John Macksood, VP Logistics & Network Planning of Dominos Pizza

Frank Diaz, SVP Distribution & Logistics of PriceSmart

Owen Mitchell, Global Head of Procurement of Pearson

David Bedding"eld, VP Supply Chain Management of Meyer Sound Labs

Tim Riordan, VP Supply Chain of Interface

George Kavorkian, VP Supply Chain Operations of O!ce Depot

Wendy Kleefeld, VP Supply Management of ARCOP (Arby’s)

Rob Bourriague, VP Operations of Slam Brands

Tom Dadmun, VP Supply Chain Management of Adtran

Marcel Frielinck, VP Global Equipment Supply Chain of Xerox

Jill Marcotte, Chief Supply Chain O!cer of Dealer Tire

Dave Presley, VP Supply Chain of REI

Christopher Smith, Director of Supply Chain Planning of Shure

Charles W Kantz, VP Logistics & Warehousing of Bakers Footwear

Scott Degroot, Director of Supply Chain Strategy of KimberlyClark

Brian McClure, Director of Global Procurement & Supply Chain of MeadWestvaco

Tim Fullick, Director National Operations of Brother International

Mani Janakiram, Director of Supply Chain Strategy of Intel

Oswaldo Salazar, Director of Strategic Sourcing & Supply Chain of Winn-Dixie Stores

Contact Charlie Howard on 1800 814 3459 ex. 7506 or [email protected] for more information or to book, including group bookings

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Senior 3PL Executives include:Craig Simon, CEO of FedEx SCS

Heiner Murmann, CEO USA of DB Schenker

Leo Suggs, CEO of Greatwide Logistics

Jack Holmes, President of UPS Freight

Matt Ryan, President Americas of CEVA Logistics

Kazuo Ishizuka, CEO of NYK Logistics

Scott McWilliams, CEO of OHL

Tom Sanderson, CEO of Transplace

Art Smuck, President of GENCO-ATC

Gerald Perritt, COO of UTi Integrated Logistics

Peter Knapp, President of International Logistics of Jacobson Companies

Robert Gi#ord, EVP Global Logistics of Ingram Micro Logistics

Dennis Schoemehl, CEO of LMS Logistics

John Ferguson, CEO of SCI Group

Dick Kane, CEO of Kane is Able

John Wagner, President of Wagner Industries

Ron Cain, CEO of TMSi

Nikhil Sathe, CFO of Kelron Logistics

Register quoting ‘QA2011’ and save an extra $100 if

booked before March 1st on www.3PLsummit.com

For more free industry content visit www.eft.com

Published by

Released July 2010

3PL CEO Interviews – Strategies for Leading Your Company

into the Recovery

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Contents

Introduction ............................................................................................................................................................................................. 2

8th European 3PL Summit & Chief Supply Chain O!cer Forum ..................................................................................... 3

CEO Interviews

Thomas Lieb, Chairman, DB Schenker ............................................................................................................................................ 4

Antony Francis, President, ATC Logistics & Electronics ............................................................................................................ 5

Craig Simon, President & CEO, FedEx Supply Chain ................................................................................................................... 6

Derek Leathers, COO, Werner Enterprises ..................................................................................................................................... 8

Eric Kirchner, CEO, UTi Worldwide .................................................................................................................................................... 9

Eric Wolfe, Vice President & General Manager, BNSF Logistics ................................................................................................ 10

Jim Eckler, President & CEO, SCI Group .......................................................................................................................................... 11

John Pattullo, CEO, Ceva Logistics ................................................................................................................................................. 12

Leo Suggs, Chairman of the Board and CEO, Greatwide Logistics ...................................................................................... 13

Rolf Habben-Jansen, CEO, Damco ................................................................................................................................................... 14

Cli! Otto, President, Saddle Creek Corp ....................................................................................................................................... 15

Geo!rey Bennett, President and CEO, Kelron Logistics .......................................................................................................... 16

About eyefortransport ..................................................................................................................................................................... 17

1


Interested in the views and strategies of 3PL CEOs and the Chief Supply Chain O"cers from their biggest customers?

There’s no better place to meet them, hear their latest insights and delve into the industry’s biggest challenges than the

8th European 3PL Summit & Chief Supply Chain O!cer Forum24-25 November, 2010 – The Conrad, Brussels

The Europe’s largest event for 3PL Providers & Users – Build the relationships that will accelerate your growth in the economic upturn

The 3PL Summit will reveal how you can adapt your business to meet the requirements of the economic rebound, drive renewed growth and gain market share.

Learn how the world’s most prominent 3PLs are positioning themselves in a time of growth, change, and #erce competition.

And, learn how the heads of European supply chains are driving their companies towards recovery with the latest supply chain management strategies and innovations in the co-located Chief Supply Chain O"cer Forum.

Book your place alongside these industry thought leaders:

3PL Summit Speakers:

John Pattullo, CEO of CEVA

Monika Ribar, CEO of Panalpina

Rolf Habben-Jansen, CEO of Damco

Beat Simon, CEO Europe of Agility

Rudi Roex, CEO of Ewals

Wolfgang Niessner, CEO of Gebrüder Weiss

Mike Branigan, CEO of TDG

Christian Leysen, Chairman of Ahlers

Andrew Austin, CEO of Priority Freight

And many more!

Register quoting ‘INT720’ and save an extra $100 if booked before July 28th on www.3PLsummit.com/euOr contact Katharine O’Reilly on +44 (0)207 375 7207 or [email protected] with any questions or for more information

2

CSCO Forum Speakers:

Johan Jemdahl, Vice President Operations EMEA of Cisco

Ulf Harring, Head of Supply Chain of Electrolux

Jaro Caban, Group Supply Chain Director of AROVIT Petfood

Laurence Coudry, European Distribution Organization Supply Chain Director of Johnson & Johnson

Johannes van Osta, General Manager Group Transport & Logistics of JCB Excavators

Kris Van Ransbeek, Vice President Product Supply & Ingredients Business Europe of Chiquita

Tjebbe Smit, Vice President Manufacturing & Logistics of Oce Technologies

Neil Spickett, Group Logistics Director, Eastern Europe of Carlsburg Breweries

David Picton, Supply Chain Operations Director of BskyB

Lars Kjærbølling, Director, Strategic Projects - Global Distribution Logistics of LEGO System A/S

For more free industry content visit www.eft.com For more free industry content visit www.eft.comFor more free industry content visit www.eft.comFor more free industry content visit www.eft.com

Introduction

The last 18 months have proved to be a time of unprecedented challenges for the 3PL industry. For the CEOs of these companies, this means confronting a market in turmoil, a business environment with no precedent, and a workforce in need of con#dent, realistic leadership.

In this series of executive interviews, we asked the CEOs a set of questions designed to reveal the key strategies they used to approach what for many is the biggest business challenge they have faced. For some it was an opportunity, for all it was and is a test of their leadership ability.

The aim of the interviews is to shed insight on the fundamental business strategies that CEOs used and which can be applied to careers and businesses across the industry: ways of #nding opportunity in di"cult times, leading a team through a harsh economic environment, adding value and enhancing a career in one of the most di"cult eras for 3PLs and all foundation businesses.

The twelve interviews represent the CEOs of some of the largest 3PLs in the industry, and represent a unique insight into their personal views, fears and business philosophies. The focus is not just on the last few months of business, but future challenges and opportunities that these leaders, their companies and the wider market will face. We discuss customer satisfaction, business innovation, the shape of the rebound, future growth strategy, and what distinguished their approach to the economic recovery and rebound.

The theme that runs throughout what turn out to be very di!erent responses is the idea of discovering the opportunity within a di"cult business atmosphere. This approach, in all its incarnations, is a lesson that will resound with executives in all parts of the industry and at every level, and which can add as much value in a time of economic upsurge as it can in a downturn.

We hope you #nd the interviews useful, and encourage you to share them with your colleagues and industry contacts who may also bene#t from the insight herein.

For more information on the interviews, our 3PL Summits in Atlanta and Brussels (where 3PL CEOs gather and speak), or any questions, please contact me on the details below. A brief description of eyefortransport follows the interviews.

Katharine O’Reilly

Senior Vice President - Research

eyefortransport

toll free: 1800 814 3459 ext.7207

direct: +44 (0)207 375 7207

email: [email protected]

web: www.eft.com

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We see the biggest opportunities for 3PL’s in emerging markets that are currently not serviced by those organisations. In addition to that there will be tremendous growth opportunities for green solutions.

It seems that all major companies are trying to better understand supply chain risks and strategies for mitigating risks. How can a 3PL provide its customers with greater awareness of risks and the means for their mitigation?

Only 3PL’s have the full supply chain visibility, which enables them to lower risks of all players within this value chain. The information necessary for the #nished product seller can be tracked directly from the raw material supplier.

This quality is backed by the IT-excellence throughout the whole supply chain, which only 3PL’s possess.

What are signi"cant value generators that 3PLs’ services and IT capabilities provide that may be especially magni"ed during economic downturns and the start of rebounds?

Due to this supply chain visibility, 3PL provides are able to measure downturn at very early stage. We saw shrinking growth since November 2007. This information is key for all participants in the supply chain.

Our recent market survey found that shippers as a whole are not satis"ed with their LSPs innovation. In what areas are customers seeking innovation?

Our customers are asking for increased transparency in supply chains, multi-modal solutions and individualization of products. We are working intensely on those topics and have launched recent solutions such as our Integrated Cargo Management Tool, which is a state-of-the-art Purchase Order Management Software.

For certain key industries we have developed industry solutions, which exactly cater the needs of that market (e.g. in semicon/solar sector, aeroparts, automotive, etc.)

What shape do you expect the rebound to take [V, W, U, L, # (‘square-root’ shaped)]?

Can economic developments described in a character? I believe that we are in an upturn, with several push-backs on the way. This increases the need for %exibility.

Excluding yours, what company do you admire most, and why?

For all managers those organizations act as a role model, which are constantly drive innovation and are able to manage their capacities best and according to the market conditions.

Thomas Lieb

Chairman

DB Schenker

www.dbschenker.com

Dr. Thomas C. Lieb, born in Reutlingen, Germany, in 1958, studied business economics. After graduating he obtained his Ph.D. at the Institut für Verkehrsbetriebslehre und Logistik (Institute of Transport and Logistics Studies) of the University of Mannheim.

In 1989 he joined Stinnes AG, Mülheim an der Ruhr, as an assistant to the Board. At the beginning of 1993 he moved to the Air and Sea Freight business unit at Schenker and was appointed to the Board of Directors of the newly established Schenker International Deutschland GmbH, Kelsterbach, in 1994. In November 1998 he became the Regional Manager for Europe/Africa/Near and Middle East at the Head O"ce of Schenker AG, Essen. On 1 February 2001 Dr. Thomas C. Lieb was appointed to the Management Board of Schenker AG, where he is responsible for the global Air/Ocean Freight activities of the group, as well as for Trade Fairs. He also has regional responsibility for the operational business in the Americas and APAC regions. With e!ect from July 1st, 2008, he has assumed the chairmanship of the Board of Management of Schenker AG.

What distinguishes your company’s approach to the rebound?

DB Schenker Logistics has managed the crisis better than most competitors. We have proven to be resilient due to our close customer relationships, which are built on a high industry standard we are setting. In addition new product o!erings, such as DB SCHENKERskybridge (air/sea combination) and our state-of-the art purchase order management “ICM” we are creating additional e"ciencies for our customers.

There are more intelligent ways than being a price crusher.


We have put in place our growth strategy in contract logistics/ SCM, named “Go-for Growth”. This program focuses on speci#c, standardized solutions in four growth sectors automotive, consumer, electronics and industrial. Our industry specialists are designing individual service solution for our customers in these segments.

What is your growth strategy in the next year?

Together with my board colleagues we have just decided on a new growth strategy for the next four years. This program is split into three segments. Firstly we are aiming for growth through optimized sales in existing business. Secondly, our plan is to grow through network completion and extension in emerging markets/ tradelanes. Last, but not least we are planning for growth with new standard solutions along key industries.

As a CEO, what do you see as big challenges for your company over the next couple of years?

In short term our industry has to manage the risen volatility in volumes and rates, which cause risk due to its unpredictability. In the long run globalization tends to diversify. Certain region or industries gain more momentum than others and we need to prepare for these very speci#c needs. Only the large service providers have the ability to assess these trends precisely and at the same time shift attention and capacities to emerging regions and industries

4




The infrastructure exists within 3PLs and that allow quick start up and ramp up. Technology is tailor made to the solution and can be rapidly implemented. Customers will want to focus on marketing and selling their products.


Information and visibility along the supply chain … unfortunately this has been a recurring theme for the last 10 years!


Slow rebound … more of a slow growth linear line … don’t see peaks and dips and don’t see a stop/start either.


FedEx … a great process house … very customer focused. But I am biased because I worked there! CEVA Logistics has the right idea and is integrated the pieces. Some good people too.

Antony Francis

President

ATC Logistics & Electronics

www.atcle.com

Antony Francis is the President of ATC Logistics & Electronics (ATCLE). He has over 30 years of experience in all aspects of global supply chains and logistics serving customers worldwide.

Before ATCLE he was President and COO of Plan Express, Inc., a provider of construction document management and logistics solutions, after serving as acting COO of NewRoads, Inc, a catalog and e-commerce ful#lment provider. Prior to that, he was Vice President of Global Operations at SciQuest.com, the scienti#c internet marketplace. From 1994 to 1998, Mr. Francis was vice president/general manager of the Logistics and Electronic Commerce Division for Federal Express’ European, Middle Eastern and African headquarters. He previously worked for Ernst & Young in Europe, the Middle East and in Africa.

He is a Fellow of the Institute of Chartered Accountants in United Kingdom and a Fellow of the UK Institute of Transport and Logistics. He is a Member of the Society of International Business Fellows (SIBF); is a Member of the Board of North Texas Commission; and sits on the Board of Trustees of Dallas Opera.


We have used the time when volumes have been slow and below expectations to retool some of our production process in the reverse and test and repair area. In addition we have added two new key features of service: transportation management and FTZ capability in DFW.


Broaden out of the pure wireless handset market into other areas such as set top boxes.


Continue to expand in the wireless and set-top box, cable verticals and begin expansion into medical. Expand into 2 regions geographically. Also, strengthen our feature set and invest in the technology to enable that.


Keep operating margins at historical levels. Maintain CAGR of revenue above the 18% rate.


As companies come out of the recession, they will seek to outsource logistics as a non-core competence and we will leverage that.


One issue as companies have reduced inventories over the past year is that they have stretched supply chains to the almost breaking point. A small change in their supply base can send a shudder downstream and cause the chain to rupture with horrendous results and loss of market share as competitors quickly grab the open space.

5



I see a number of challenges for FedEx SupplyChain. The #rst is lowering the cost to serve small customers, who increasingly make up a larger share of the GDP each year. Often times, these companies’ supply chains struggle to compete against their larger counterparts strictly due to economies of scale. In our business, where technology plays such a large role, small customers are sometimes left out because the IT integration costs outweigh the bene#ts of change. We are working on ways to reduce these integration costs to put small customers on the same playing #eld as larger ones.

Other challenges we will face include rising employee health care costs, increasing energy costs and an uncertain regulatory environment.


I enjoy being in the supply chain business because I love solving challenges. New problems arise for all supply chain professionals on a regular basis because of the ongoing changes in the underlying playing #eld. It is this constant change that o!ers 3PLs their greatest opportunity.

Change may come in the form of high growth in a particular industry (such as medical devices) or in the form of volume decline during a downturn (like industrial manufacturing). Growth or decline means that manufacturers need to either expand or shrink their supply chains. 3PLs are better suited to absorb this supply chain dynamic because we serve multiple customers with varying volume levels.

Change can also be in the form of new government regulations, like the proposed general sales tax in India or the proposed changes for transporting embedded lithium batteries in the U.S. The 3PLs that develop the most e!ective solutions to their customers’ new challenges will be the ones that gain the most.


Security risks are increasing at an alarming rate, especially in the high-value logistics arena. It used to be that security risks were higher in developing countries than in developed ones. Now, supply chains are at risk in every part of the world.

At FedEx SupplyChain, we put a premium on keeping our customers’ inventory safe. Of course, security is front and center for all of our employees, but we also apply state-of-the-art technology to mitigate risk. For example, FedEx Innovation Labs has developed a new product called SenseAwareSM to continuously monitor products during all transportation and distribution points, including during %ight on FedEx aircraft. This active device uses RFID and is the only one of its kind approved for use by the FAA. FedEx SupplyChain will use SenseAware for our customers that place a high premium on product safety.


Flexibility is the greatest value generator that a 3PL can provide during any change in growth patterns, especially during the downturn we just experienced. For 3PLs that provide “multi-client” services, %exibility is built into what we do.

As I mentioned before, not all industries were a!ected the same. This holds true for companies within the same industry, too. Whether it’s our hub-based, multi-client warehousing or our FedEx® Transportation Management, our customers bene#t because we can %ex resources across multiple operations.

In terms of IT, the notion of multi-client holds true as well. Maintaining world-class IT infrastructure requires ongoing investment. These costs can be daunting when a manufacturer or distributor needs a new Warehouse Management System, for example. FedEx SupplyChain invests heavily in IT so our customers don’t have to. We bene#t from the economies of scale that we achieve by putting these systems to work for multiple customers.

Craig Simon

President & CEO

FedEx Supply Chain

www.fedex.com/us/supplychain/main/

Simon joined FedEx in 1999 as director of FDX eSupply Chain Services.He later became vice president of FedEx Solutions, with teams responsible for designing and implementing service and logistics solutions and for supporting FedEx Sales with resources, processes, and tools.

Before joining FedEx, Craig spent eight years with Andersen Consulting (now Accenture), providing supply chain strategy development and operations improvement e!orts to Fortune 500 companies in the consumer products, retail, food and hi-tech industries.He also developed a successful health care information start-up company in Silicon Valley.

Craig holds two degrees from the University of Notre Dame: a Bachelor of Science in Mechanical Engineering and a Bachelor of Arts in History.Craig is certi#ed in production and inventory management (CPIM) from the American Production and Inventory Control Society (APICS).


FedEx is truly a global enterprise, so our company has a large window into the current economic conditions – both domestically and internationally – and how both are expected to rebound. As part of a large global integrator, FedEx SupplyChain was one of the #rst 3PLs to observe the economic drop o! and one of the #rst to see the early signs of recovery. Therefore, we were better positioned than most to accelerate our growth initiatives. In fact, because of our investment in future growth, we have increased our revenue during the last 18 months.


Our strategic decisions during the last 18 months have supported our belief that great companies can emerge from economic downturns better than they were before. While we tightened our belt to weather the reduced volume from some industry segments such as automotive, we also increased our investment in IT and operational capacity in less a!ected markets like medical devices and high-tech service parts. By doing so, we improved service to our existing customers and added capabilities to attract new ones.

We did not see a reduction in our customers’ expectations during the recession. On the contrary, our customers relied on us to help them navigate the downturn. We accomplished this objective very well during the last 18 months. Even more importantly, our investments will pay dividends for our customers and FedEx SupplyChain going forward.


Our growth strategy is to integrate existing FedEx SupplyChain capabilities in North America, Europe and Asia with new services in emerging markets. It is a natural tie-in with FedEx Express, the world’s largest express transportation network. FedEx Express connects more than 220 countries and territories, usually within one to two business days door-to-door. In addition, FedEx Express has launched domestic express services in China, Mexico and India in recent years. Combining the FedEx SupplyChain logistics network with the superior FedEx Express transportation networks in these markets gives us an advantage that cannot be easily matched. It not only makes sense, it is what our customers are telling us they want and need.

6



There are two areas I hear about most when it comes to innovation. The #rst is supply chain visibility and the second is sustainability. Let me give you an example for each one.

Supply chain visibility – Any made-to-stock product requires safety stock inventory to cover the unpredictability of demand and supply. Companies can lower their inventory-carrying costs if they have access to more reliable information. In the case of #eld-based inventory (remote/technician stock), a wide variance exists between companies that have good control over this inventory vs. those that lose track once it is deployed into the #eld. Improving visibility of #eld-based inventory yields reduction in inventories.

To meet that need, FedEx SupplyChain has a #eld-based management service called FedEx Critical Inventory Logistics®. We manage our customers’ inventory in FedEx custodial-controlled locations (FedEx Express, FedEx O"ce, FedEx Trade Networks) and tightly control it using our IT system. We give customers the power to lower costs.

Sustainability – Companies are confused about how to best manage the sustainability of their supply chains. FedEx is taking the lead on many fronts in the sustainability battle.

FedEx currently operates the largest hybrid %eet in the transportation industry, along with one of the largest alternative energy vehicle %eets. We have set long-term goals to reduce aircraft emissions 20 percent by 2020, increase FedEx Express vehicle e"ciency by 20 percent by 2020 and expand on-site renewable energy generation and procurement of renewable energy credits. Through an initiative known as EarthSmart, we engage our team members, customers and business partners to help us reduce the environmental impact of our daily business operations and operate in an increasingly sustainable way.

So, customers want innovation to help them improve the visibility and the sustainability of their supply chains. FedEx understands this and continues to innovate in these areas.


If I could predict this one with any accuracy, I would be in a di!erent job! I can say that our business plans call for a modest recovery in the global economy during calendar year 2010. These expectations hinge upon fuel prices trending along the current market outlook.

I can also say that any business plan we put together has the %exibility to adjust up or down to meet market conditions. While there are limits, we can add capacity if needed or we can reduce expense as well. This is a hallmark of FedEx.


One of my roles for FedEx includes being the market champion for the greater Phoenix area. Every three months, I make customer calls with our local Sales team. My job is to listen to what our customers tell us they need and then take that information back to Memphis. There are 49 other FedEx o"cers who do the same thing around the U.S. We use this customer feedback in determining our priorities for product development and process improvement.

Many customers that I meet with #t the same mold. They have private companies with fewer than 100 employees that started with a new idea to create a customer. Many of these companies began operations in a garage or a living room. They have succeeded because they blend initiative with passion for meeting their customers’ needs. These are the companies I admire.

7




I think as time and the recovery progresses, the largest area of opportunity for 3PL’s will be in their ability to actually execute freight movement on behalf of their customers. During this downturn, we have spent a tremendous amount of e!ort and focus in our logistics businesses on fostering our alliance provider relationships across all modes. In our opinion, it is more opportunistic for us to build and develop techniques for managing and executing the supply chain in ways that protect our customers during varying conditions. The 3PL that can e!ectively manage the process and design, and actually bring comprehensive freight movement capacity and scale will have the most opportunity moving forward.


This is directly related to the previous question. One of the major supply chain risks that we see in the market today is the customer’s or 3PL’s perception that rates and commitments received during multiple bids throughout the last year and a half are going to be honored by all providers moving forward. While they might not be the most popular or easiest decisions, a 3PL’s core responsibility is to manage the logistics strategy and execution with their customers and making cost cuts with a strategic #lter. We continue to work with our customers in building %exibility in their supply chains while minimizing the vulnerability by sharing in the risks with our customers. There are many instances where Werner #nancially and physically mitigates risk exposure on behalf of our customers.


One of the most important aspects of a 3PL is their ability to strategically interpret information and have that translate into tactical execution. Those 3PL’s who are out in front competing for and securing a limited amount of resources will win. We have designed our proprietary Transportation Management Systems to manage very large volumes of transactions in a very e"cient process work%ow. We utilize our systems to engineer the proper load dynamics, quickly push the shipments out to the various modes and carrier bases and ultimately take responsibility of the shipment execution, both domestically and internationally.


What we have heard from our customers, and where we are focusing our continuing application development, is in further enhancement of cross-enterprise functionality and integration between supply chain partners. Because of the e!ect that each node in the supply chain has on cost and service, we have had to continue to expand our value proposition by providing solutions that cross multiple departments, systems, stakeholders and geographies.


If I had to forecast, I would say a “U shaped” type recovery.

Derek Leathers

COO

Werner Enterprises

www.werner.com

Derek J. Leathers is the C.O.O. of Werner Enterprises and the President of Werner Global Logistics. Derek has worked in the international logistics industry for nearly 20 years and was an integral part of many facets of the transportation portions of the NAFTA implementation process throughout the past two decades. Mr. Leathers has served as an advisor for two US ambassadors to Mexico as well as serving on the American Trucking Association’s Cross-Border Advisory Committee for North America. Mr. Leathers was one of the #rst foreign members of Mexico’s trucking association (CANACAR) and has successfully led the launch of multiple new logistics products in low-cost countries. Prior to joining Werner in 1999, Mr. Leathers was Vice President of Schneider National’s Mexico operation, and was based out of Mexico City for several years. Most recently, he helped guide Werner’s expansion into Asia.


I believe the di!erence is, and always has been, our consistency. Our customer-centered approach has been our focus in both strong and weak economies. We place an extremely high value on our customers who remained loyal during the downturn and we will continue to focus our support and commitment to those partners, across our entire scale of solutions, as all types of capacity become increasingly di"cult to secure.


We were committed to staying with our asset roots and our commitment with key customers, while at the same time continuing to expand our non-asset solutions across the globe. The base of our service o!erings lies in our truckload services and we will continue our role as an industry leader. We have also bene#tted from our diversi#cation strategy with our logistics service o!erings both domestically and internationally. For example, this past year we opened o"ces in Australia to support several clients as they expanded their operations. We provide logistics solutions domestically and internationally to these customers and have grown throughout our portfolio of services.


Our growth strategy moving forward will be centered around many of the same principals that have driven our growth for over 50 years ago. With our customer-centric platform, we will continue to focus on our economic performance and leverage our #nancial position within the industry and continue to diversify our service capabilities. I believe we will begin to see a %ight to quality with carriers and asset-backed 3PL solutions as the balancing of supply and demand becomes more pronounced.

As a COO, what do you see as big challenges for your company over the next couple of years?

In my opinion, our biggest challenge will be the continuing default and shrinkage of capacity in the marketplace. Financing in our industry had been readily available in spite of inadequate returns on capital. I think this environment has fundamentally changed #nancing requirements and will have serious implications down the road should we see even a marginal increase in demand. With this increase in demand, another serious challenge that our industry is facing is driver resources. It has been tempered with the economic slowdown, but with current regulatory and economic conditions, this issue will be a critical focus area of Werner Enterprises.

8



Supply chain re design and optimization, people and analytics that provide for proactive recommendations to clients and the operational agility to execute on the recommendations.


Clients expect continuous improvement of service and ongoing cost reductions. Traditional quality systems have served companies well in terms of incremental improvement. Signi#cant improvement comes through innovation, particularly in the areas of inventory velocity/reduction through supply chain design.


I fear we are in for and L or a W.


For Contract Logistics it is the large regional players. GENCO is a good example in NA. They have developed several nice niches, have technology that provides competitive advantage and provide clients with the high touch they expect. No company on a global scale has been able to do these things pro#tably

Eric Kirchner

CEO

UTi Worldwide

www.go2uti.com

Eric Kirchner was appointed the Chief Executive O"cer in January 2009. He has 28 years of experience in the transportation and logistics industry, serving previously as President of Freight Forwarding in UPS’s Supply Chain Solutions division for their global freight forwarding business. Prior to that, he was President North American Forwarding and President Global Transportation Services, and served as co-integration manager and member of the UPS integration steering committee which facilitated the transition of Menlo Worldwide Forwarding. Eric came to UPS in 2004 through their acquisition of Menlo (former Emery Worldwide), where he held various executive positions up to Chief Operating O"cer. During his career, Eric has directed transportation and commercial air and ocean carrier relationships and has also managed contract logistics operations. His roles in operations, sales and marketing, as well as general management, re%ect his extensive experience in managing global customer relationships and overseeing acquisition integration and business process transformation. Eric holds a Bachelor’s degree from Indiana University and has completed the Stanford Executive Program at Stanford University.


Invest in sales, product development and solutions on the revenue side while investing in centralized back o"ce functions to lower unit costs.


Accelerate IT development (4asONE) that will bring the e"ciencies and consistency clients require.


Sell ‘integrated solutions’ that are not as commoditized as stand alone services. Focused/selective selling in taking on new business outside of our established footprint and aggressive local and regional sales that take advantage of scale and route discipline.


Leading the transition from operating the company as a portfolio of companies to a high performance enterprise.


Flawless implementation of new business, consistent execution globally, and client retention.


A thorough and disciplines Advance Quality Planning (AQP) process which is part of a broader Quality Management System.

9



A 3PL can provide leadership in the following areas / ways:

implement best practices for a particular client.

develop predictive models to be used as an advanced warning system, such as providing consistent information for things like ocean lead time booking, or energy prices, or weekly domestic capacity %uctuations, etc.

can eventually become part of an engagement’s critical success factors or key performance indicators.


3PL’s should be able to leverage a number of di!erent sources of information to provide very accurate information on transportation markets, both capacity and costs, and to engage with customers to provide leading information on key trends, which can then be used to drive the client’s strategic planning.


Customers are looking for innovation in the following areas: cost control or avoidance, capacity alternatives, data visibility and access, change leadership, and risk mitigation.


I’m not sure any of those letters are shaped like we expect the recovery to be. I think the approximate symbol “~” maybe most appropriate, with a slight tilt upward!


BNSF Logistics is now part of the Berkshire Hathaway family of companies; I have admired Berkshire Hathaway for many years because of the company’s undeterred record in providing long-term value to shareholders.

Eric Wolfe

Vice President & General Manager

BNSF Logistics

www.bns$ogistics.com

Eric Wolfe has held senior leadership positions with J.B. Hunt Logistics, Inc. (now part of Transplace); Cardinal Logistics, Inc.; and Clicklogistics, Inc.; where he served as Chief Operating O"cer. He assumed the leadership role at BNSF Logistics after BNSF Corporation acquired speci#c assets from Clicklogistics, Inc., in August 2002. Mr. Wolfe holds a Bachelor of Science in Business Administration from the University of Arkansas at Fayetteville and a Master of Business Administration from TCU at Fort Worth.


We were very careful to protect market share and to continue to work hard on delivering exceptional service to our customers, and with the investments listed above, we believe customers will want us to grow with them as they recover from the recession.


We made signi#cant adjustments in our organization to better support customer demand and improve our market responsiveness. We have centralized certain operating units, while adjusting part of our domestic structure to provide more intense focus on customer service and on operating excellence. This was planned during the second half of 2008 and rolled out throughout 2009. We are seeing operating improvements in all phases of our business.


We have focused on certain key verticals and are segmenting these verticals and #ne tuning our approach with a plan to go “downstream” to broaden our customer base. We have improved and developed four sales channels to attack these areas. We also have invested in personnel and technology to support our most rapid growth segment over the last three years and have increased that investment this year. We also continue to increase the size and expertise of our four sales channels that encompass the domestic and international business units.


Restoring growth to historic levels continues to be our primary focus area. Other areas where challenges persist include the ocean rate volatility, the impact of new regulations like CSA 2010, and the ongoing issue of infrastructure investment.


around cost savings, service, and #ll rates.

optimizing supply chains to improve sustainability and reduce the aggregate carbon footprint.

10



The greatest value that a 3PL provides is its ability to turn a client’s #xed cost to variable cost. During times of downturn and rebound, clients need the %exibility that a variable cost model can provide. This is where 3PLs can shine.


Shippers are desperate for innovation to be more competitive. As an extension to that they want exclusivity with these innovations since an innovation isn’t of much use if all of their competitors can o!er the same innovative capability. Historically the 3PL industry has not generated su"cient innovation for its clients. To grow, to succeed, and to increase margins, 3PLs must dramatically increase their innovation quotient. 3PLs are retained by clients as agents of change. 3PLs must live up to that expectation.


The rebound will likely form a bumpy W shape although we are not expecting big bumps. Nevertheless, it certainly won’t be smooth.


I admire the 3PL that beats me the next time. Every deal is di!erent. Every deal is important. Every deal is a message from the market.

Jim Eckler

President & CEO

SCI Group

www.scigroup.org

Jim Eckler is President and CEO of SCI Group Inc. SCI is the parent of three leading Canadian supply chain management services providers: Progistix-Solutions Inc., SCI Logistics Ltd. (including Assured Logistics & AMG Logistics), and First Team Transport Inc. These subsidiaries serve clients such as Bell Canada, Siemens, Xerox, Amazon.ca, Lowes, Rogers, Toys r’Us, Trane, and Canada Post. SCI is a subsidiary of Canada Post Corporation.

Jim’s background includes over 35 years of experience in the supply chain management #eld. His business focuses on developing and operating high performing supply chain outsourcing services for companies that demand complex, high value services.


We believe that the market will demand even greater performance quality from their 3PLs, hence we will focus on overall operational excellence.


Two years ago we re-launched an improved and enhanced Quality Management program designed to extract waste and non-value activity from our business and that of our clients. It’s paying o!.


As a Canadian company we tend to listen to our hockey players. Wayne Gretzky, likely Canada’s greatest player, often advised his players to skate “to where the puck is going to be, not to where it is now”. Our growth strategy has taken a page out of Gretzky’s admonition. As a supply chain service provider, we will focus on sectors with immature supply chains rather than those that are already developed.


The biggest challenge for us, as well as for others in our industry, is the commoditization of the logistics service o!ering. Unless we o!er services that our clients can’t or won’t do for themselves and where our services are di!erent from our competitors, then we are in a commodity business. We must avoid that. We need di!erentiated services.


3PLs must innovate much more. This will lead to di!erentiation and counter the commoditization trend. Historically as an industry we have not introduced nearly enough innovations. Our industry has generally been a follower of best practices rather than a leader. At the same time, our clients are crying for innovation across their businesses and when they outsource to us, we, as an extension of their business, must equally strive for innovation.


3PLs are by intent (and hopefully in fact) more knowledgeable about supply chain matters than their clients. As such, their expertise should be applied to all aspects of risk management. However, 3PLs can only provide this valuable support if all communication lines with clients are fully open and that clients are open to engaging their 3PL on these matters.

11



We are committed to becoming the most admired company in the industry. To achieve this we will need to do an even better job of attracting and retaining top talent. Good people will always be in demand and I see winning this battle for talent as one of our greatest challenges. A key part of this, of course, is growing our existing talented employees to the maximum of their potential and internal training and development activity will be crucial.


I see the greatest opportunity in three areas;

1. To provide integrated contract logistics and freight management services across the length of the supply chain creating economies of scope for customers.

2. To put operations excellence at the heart of everything we do.

3. To improve the level of innovation in our industry.


3PL providers, such as CEVA, are uniquely positioned to help their customers understand risk. We have an end-to-end view of the supply chain and this means we are able to view the supply chain in its entirety and not in silos. This integrated perspective makes it easier to spot potential risks, adapt processes to resolve them and exploit e"ciencies.


The key areas, where the 3PL can provide support include:


Our customers do not have a generally positive view of our industry and one of the regular criticisms is the lack of innovation. In my opinion, to start to see innovation in logistics, we need customer con#dence in the industry; 3PL’s willing to invest in R&D and greater industry education and professionalism. Then there are some basics that must also be in place –we must be delivering operational excellence at all times, supported by strong partnerships with customers including a high degree of responsiveness. Only then will innovation become part of our daily vocabulary.


Given we have operations in over 170 countries worldwide, it is virtually impossible to provide a “one size #ts all” view and I am not good with mathematical shapes!! I would say that we believe that we have reached the worst point and it is likely that, over the next year or so, we will see slow and steady improvements.


There is no one single company. I can think of #ve or six examples of companies who do one or two things really well but I struggle to think of a “paragon” company where I admire everything. In fact this is the trick of benchmarking to learn the best practices from others without necessarily copying everything.

John Pattullo

CEO

Ceva Logistics

www.cevalogistics.com

John Pattullo spent most of his early career working in supply chain management with Procter & Gamble. In 2005, John joined Exel, where he was CEO of the $6 billion EMEA division (freight forwarding and contract logistics). When Exel was acquired by Deutsche Post/ DHL, he then ran the combined Exel and DHL contract logistics business in EMEA. He became CEO of CEVA in August 2007.


As a young Company, CEVA has bene#tted from being agile and %exible enough to adapt our business model swiftly and to make decisions quickly and appropriately. It also meant we were able to work closely with our customers through a di"cult period and support their business needs by providing the same level of %exibility and partnership.


When the economic crisis occurred, we decided to maintain balance between short and mid-term needs and decided to focus on three key priorities:

and global account management to sustain revenue growth above market average.

service our customers better and enhance the skills of our people.

orchestrated, centrally led program to o!set reduced volumes and contain cost.

This approach worked well: our revenue performance was one of the best in our peer group and this approach enabled us to adapt to challenging times and be ready to exploit any upswing as soon as it occurred.


In 2010, our key areas of focus include:

customers who represent over 50% of our total business. In 2010 we aim to increase our share of activity with these customers through further leveraging our entire service portfolio and global presence.

years in terms of growth, but is still a relatively small player in this market. Our aim is to #rmly establish our global ocean product and accelerate growth rates.

for CEVA as the consumer sector is the largest outsourced supply chain segment globally and technology is one of the fastest growing sectors with generally above average margins.

our cost saving program in 2009 and deliver substantial and sustainable incremental cost improvements in 2010.

12



Technology is a key component of a 3PL’s value proposition. For a company like Greatwide, we can use technology and our 24/7/365 Transportation Operations Center to provide visibility of all resources and cross-utilize %eets to create lane balance and elasticity.


In today’s economy, most customers are seeking to increase services (in terms of reducing inventory at a low cost). We think Greatwide has developed a process that better meets this need by creating real-time visibility of our entire %eet, which helps to lower customer cost by providing backhauls in dedicated lanes and the integration of our customers’ network.


I would have to say that I predict a shape between an “L” and a “U.” I don’t believe there is any basis in the economy for a fast uptick, but I do believe we have hit the bottom of the downturn and will slowly and steadily move upward.


There are a lot of great companies today. Greatwide has traditionally had a presence in the grocery industry and we’ve seen the industry come a long way in the last few years. One that I admire in this industry is Walmart. They have developed a model that has enabled them to become the world’s largest retailer and, in the process, minimized the bureaucracy that is often prevalent in large corporations. Walmart has also expanded their product lines and services while maintaining low prices. Their innovation has driven industry trends.

Leo Suggs

Chairman of the Board and CEO

Greatwide Logistics

www.greatwide.com

Leo Suggs joined Greatwide in 2009 as chairman of the board and assumed CEO responsibilities in 2010. He has devoted nearly 50 years of his life to the trucking industry, beginning his career as a warehouseman while in college. Over the last two decades, he has held executive leadership positions with some of the industry’s most prominent companies, including Overnite Transportation, Preston Trucking, Yellow Freight and Ryder/PIE.


We are well-positioned for the rebound in an industry that has been hit hard by the recession. Greatwide Logistics Services is a #nancially stable company with a strong cash position on the balance sheet enabling organic growth and acquisitions.


In November 2009, we acquired YRC Logistics’ Dedicated Contract Carriage division. It was a tuck-in acquisition that expanded both our participation in the food industry and added new product o!erings to our portfolio in the industrial and automotive industries.


We plan to focus on growing our existing customer relationships by continuing to provide them with outstanding service and value, as well as new product o!erings. We have also expanded our sales force with more resources focused on mid-sized companies and continue to look for opportunistic acquisitions.


By far the biggest challenge is the economy. The potential for tightening of capacity and driver resources compounded by the e!ects of CSA 2010 are also challenges facing our company and our industry.


A 3PL with a comprehensive o!ering can provide opportunities unique to customers both large and small. For example, larger customers need %exibility to handle peak periods without idling assets when volumes are lower. A 3PL like Greatwide is able to handle this surge capacity. Additionally, a cost structure like ours provides an economical alternative. Plus, bundling services can create solutions that are not available from traditional providers.


One example of risk mitigation is the conversion of private %eets. A company may not readily recognize the liability risk of vehicle accidents and injuries until it is too late. By using a 3PL, you eliminate this risk to your company. Additionally, private %eets are a large capital expense that requires a substantial amount of cash. Greatwide can help customer mitigate that #nancial risk.

13



The 3PLs need to o!er choices, alternatives and %exibility (at origin, in transit, at destination) beyond what individual carriers can o!er.


what and how to ship when and where are critical to control costs

provide the required visibility to make those choices


There are 2 sides to this coin and this to me is a signal of a not very mature market:

innovation

developing win-win relationships we typically see more innovation/ higher degree of satisfaction with our customers on this


This is very di"cult to say, but at the moment I would probably expect a strong #rst 6 months in 2010 with a softer 2nd half (mainly because some of the fundamentals are still not #xed). In 2011-2012 I expect moderate growth.


Probably K&N and/ or Expeditors because they have been very successful and consistent in executing and delivering on their strategy.

Rolf Habben-Jansen

CEO

Damco

www.damco.com

Rolf Habben-Jansen is the CEO of Damco since 1 January 2009. He is responsible for all of the global activities of Damco, based in Copenhagen. Damco is the new, combined brand of the A.P. Moller-Maersk Group’s logistics activities, currently known as Maersk Logistics and Damco. A division of the A P Moeller- Maersk group, Maersk Logistics has more than 12,000 employees in 90 countries around the world, o!ering third-party logistics and (through the Damco brand) freight forwarding services.

Before joining Maersk Logistics at the beginning of 2009, Dutch national Rolf Habben-Jansen was CEO of DHL Global Customer Solutions, just one of the positions he held in a long career at DHL (including acquired companies).


We have reacted fast last year in taking out cost/ simplifying the organization and as such we are probably one of the few larger companies in the sector that have delivered better results in 2009 as in 2008. Our approach had two phases( 1: Take out cost (Nov 08-Apr 09) and 2: return to growth / from May onwards), and because of this we managed to return the majority of our products to growth as from Q3/ early Q4 – and our volume development in both Airfreight and Oceanfreight was better than the market in 2009.


Be decisive to take out cost and simplify the organization (ie remove 1-2 layers of management, go to one brand etc).


We will continue to build on our strong position in the emerging markets and will make investments in selected market segments where we believe we can grow signi#cantly (ao Reefer, Government services, Airfreight).


continuously improve and grow our business

in a controlled way every year

a period of fairly rapid growth


1. In the Emerging Markets

2. In helping optimizing our customers’ supply chains

14



Flexibility is key. 3PLs have the ability to access and analyze information and then respond quickly to trends, both positive and negative. Integration is also critical. Strong third-party logistics providers are more than just the sum of their parts. They go beyond just transportation or warehousing and really tie in to the whole operation. 3PL partners can see the complete picture and better react to it.


Customers are looking for help in managing costs while improving service to their customers. This is not new phenomenon, but it does become magni#ed during turbulent times.


We are planning for a U-shaped rebound while putting controls in place to guard against a W. We are communicating frequently with our elected o"cials at all levels about the need for policies that support growth.


We always respect companies that are able to prosper while behaving ethically and doing “the right thing” with customers, suppliers, associates and shareholders.

Cli" Otto

President

Saddle Creek Corp

www.saddlecrk.com

As president of Saddle Creek Corp., Cli! Otto is responsible for directing the 3PL’s integrated logistics operations, including warehousing, transportation and contract packaging. Prior to joining Saddle Creek, Otto spent 11 years with CHEP USA, most recently as senior vice president for North American sales. He also has served in various executive management positions in logistics and #nance with Baxter Healthcare and American Can Co. Otto has held leadership roles with various grocery industry associations and the Council of Logistics Management (CLM), served as the national president of the Warehousing Education and Research Council (WERC) and currently serves as vice president, agency relations, for the American Logistics Aid Network (ALAN).


Fortunately, Saddle Creek performed quite well through the downturn, so we’ll maintain a consistent approach through the rebound. We’ll stay focused on delivering excellent service to our customers and secure the necessary resources, both human and physical, to handle an uptick in volume. We’ll also ensure that we have the right resources in place to aggressively pursue emerging opportunities.


Our recent acquisition of California-based ServiceCraft Logistics was a key step for Saddle Creek, enabling us to expand our geographic reach and customer portfolio. It re%ects our strategic focus on bringing our integrated logistics solutions to new markets and providing enhanced coverage and service options.


We’ll continue to focus on organic growth by proactively bringing innovative ideas to our customers and also sharing the value of our integrated solution with new prospects. We’ll also look selectively at acquisition opportunities that complement our strategic o!ering.


As we continue to grow, we must sustain our unique culture with its focus on top-to-top involvement and collaboration. It is a key point of di!erentiation for us. We’ll also focus on expanding brand recognition and communicating our unique value proposition to the industry.


3PLs are well positioned to help companies manage through the rebound by providing the expertise and assets to allow them to stay lean and %exible.


An experienced 3PL can provide insights into strategies and markets, increasing its customers’ risk awareness while allowing them to focus on their core competencies. An asset-based 3PL further alleviates pressure by actually assuming some of the risk.

15



3PL’s in many cases are more focused on having a rigorous contracting and claims management process and a higher level of risk management expertise than their customers. We are sponsoring sessions with transportation legal experts to help our customers follow a step-by-step process to evaluate their individual supply chain risks and, with our support, address the particularly onerous issues.


We o!er the bene#t of an outsourced solution with the investment in technology (software and people knowledge) required to reduce total cost of their supply chain included without additional fees but with the expertise to rapidly and economically implement the solution.


Helping them to identify areas within their organization to reduce complexity and cost and provide leadership in developing green solutions.


Square-root shaped.


In our space one of the competitors we benchmark against is CH Robinson. They have been able to continue to grow pro#ts while maintaining reasonably aggressive pricing. They also have maintained a solid growth rate, much of which appears to be organic.

Geo"rey Bennett

President and CEO

Kelron Logistics

www.kelron.com

In 1976 while attending Montreal’s Concordia University, Geo!rey co-founded a courier company. The company under his direction grew to be recognized as on of the top couriers in that market before selling 10 years later to Dynamex Express where he rose to the position of Director of Operations, responsible for 10 business units and 800 drivers. He followed this up with a senior role at Sketchley Cleaners, where he was responsible for the operation of 17 plants and 160 stores. In 1992 Geo!rey co-founded Kelron which 18 years later generates over $100 million in annual revenues, employing over 125 people in three transportation operations and execution facilities. Geo!rey has also been active in industry a!airs for many years as an Executive Director of the National Transportation Brokers Association.


We’re focused on the further augmentation of existing signi#cant customer relationships or on adding new relationships where we can add real value to the customer’s transportation activities. We are focused in a couple of areas. First we are looking for relationships with customers where their history has shown that they value long-term suppliers and the improvements in performance they can bring beyond transportation cost alone. We’re adding strength to our sales team, investing in developing a higher level of sales management competency. Another big area we are focused on is improving our labour e"ciency while maintaining high performance in our execution processes allowing us to pass our internal cost savings along to our customers.


Signi#cantly increasing our investment in technology to reduce our execution costs while maintaining or improving on our external metrics.


Adding additional competency to our service o!ering to allow us to sell more services to our existing as well as new customers and to add new regional capability to our network of execution locations.


In the part of our business where we function as an intermediary I see continuing margin compression pressure over the next 6 – 12 months as carriers start to increase rates while customers are resistant to accepting them. This will be followed by a return thereafter to a tight capacity market as volume increases. This will be highlighted by signi#cant upward rate pressure, a necessity to allow carriers reasonable #nancial returns on their required investments in new equipment, while adding the new drivers required to operate the equipment.


In tight capacity times we are capacity #nders and e"ciency creators. In more normal markets we bene#t our customers by aggregating capacity and helping customers to remove the barriers within their organizations to supply chain e"ciency.

16


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Interested in the views and strategies of 3PL CEOs and the Chief Supply Chain O"cers from their biggest customers?

There’s no better place to meet them, hear their latest insights and delve into the industry’s biggest challenges than the

8th European 3PL Summit & Chief Supply Chain O!cer Forum24-25 November, 2010 – The Conrad, Brussels

The Europe’s largest event for 3PL Providers & Users – Build the relationships that will accelerate your growth in the economic upturn

The 3PL Summit will reveal how you can adapt your business to meet the requirements of the economic rebound, drive renewed growth and gain market share.

Learn how the world’s most prominent 3PLs are positioning themselves in a time of growth, change, and #erce competition.

And, learn how the heads of European supply chains are driving their companies towards recovery with the latest supply chain management strategies and innovations in the co-located Chief Supply Chain O"cer Forum.

Book your place alongside these industry thought leaders:

3PL Summit Speakers:

John Pattullo, CEO of CEVA

Monika Ribar, CEO of Panalpina

Rolf Habben-Jansen, CEO of Damco

Beat Simon, CEO Europe of Agility

Rudi Roex, CEO of Ewals

Wolfgang Niessner, CEO of Gebrüder Weiss

Mike Branigan, CEO of TDG

Christian Leysen, Chairman of Ahlers

Andrew Austin, CEO of Priority Freight

And many more!

Register quoting ‘INT720’ and save an extra $100 if booked before July 28th on www.3PLsummit.com/euOr contact Katharine O’Reilly on +44 (0)207 375 7207 or [email protected] with any questions or for more information

18

CSCO Forum Speakers:

Johan Jemdahl, Vice President Operations EMEA of Cisco

Ulf Harring, Head of Supply Chain of Electrolux

Jaro Caban, Group Supply Chain Director of AROVIT Petfood

Laurence Coudry, European Distribution Orgaization Supply Chain Director of Johnson & Johnson

Johannes van Osta, General Manager Group Transport & Logistics of JCB Excavators

Kris Van Ransbeek, Vice President Product Supply & Ingredients Business Europe of Chiquita

Tjebbe Smit, Vice President Manufacturing & Logistics of Oce Technologies

Neil Spickett, Group Logistics Director, Eastern Europe of Carlsburg Breweries

David Picton, Supply Chain Operations Director of BskyB

Lars Kjærbølling, Director, Strategic Projects - Global Distribution Logistics of LEGO System A/S

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