supply chain consulting - jll chain/sc... · using the same supply chain decision-making as a...
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Supply Chain & Logistics Solutions | 2017United States
Supply Chain Consulting Practice
Supply Chain consulting
It's much more than real estate...
JLL | Supply Chain Consulting Practice
TeamLet's pin down your supply chain strategy
Our Supply Chain & Logistics Solutions team is at the forefront of supply chain trends, focused on delivering top-down supply chain strategy balanced with ground-up execution to help achieve our client’s operational objectives.
In addition to our regional leads, our team boasts 150 in-house supply chain experts across the U.S.
150 in-house supply chain experts
JLL | Supply Chain Consulting Practice
We know this. In fact, logistics – freight, labor and inventory – account for up to 80% of operating costs. It’s our priority to understand your business’s supply chain so that we can be confident in our role as your trusted advisor.
This understanding is what has made us so successful in helping clients like you optimize their needs. By bolstering proven implementation services with flexible supply chain strategy, you save time and money, and minimize risk.
Operating costs
60%
50% 50.3%
9.5%
21.8%
7.8% 4.3% 2.7% 2.2% 1.2%
40%
30%
20%
10%
0%
Transportation
Inventory
Labor Customer Service
Rent Admin Supplies Other
80%Logisticscan typically account for
<5%Real estatecan typically account for
Gary YatesNationalLabor & Demographic Analytics
Mac HewettNationalLA / Inland Empire
Andrew LewisNorthwestSalt Lake City
Elizabeth JonesCentralDallas
Lee AllenEast Coast Charleston
Supply Chain SelectSM
Rich ThompsonNational lead Chicago
Practice lead
Walter KemmsiesNational Ports, Airports & Global Infrastructure
Bob SilvermanNationalFacility Sizing, Design & Layout
Ben Medina, PhDNationalNetwork Strategy
Network StrategyWhen it comes to recognizing the power of supply chain strategy, we were the first to the game.
Today, supply chain networks face unprecedented challenges, from rising freight costs and global complexities to increasingly demanding customer service requirements and new e- commerce challenges. Add risk management, and it can be demanding.
We integrate our unparalleled experience in dynamic supply chain strategy, proprietary data, tools and technologies with a full range of implementation services – helping you achieve your ambitions each and every day.
nations80
firmrevenue
$6.8Bemployees70K
founded
London in 1783
JLL has been a pioneer among real estate service providers in offering a dedicated, in-house supply chain consulting discipline since 1997.
Starboard Supply Chain SelectSM - Supply Chain Snapshot
Supply Chain SelectSM - Reverse Location Selection (RLS™)
Supply Chain SelectSM - Location-Site Selection Network Strategy
ObjectiveFast and tactile way to simulate your
supply chain in real time with minimal client provided data
High-level location selection analysis performed to aid in client
decision making process
Investor/owner/developer-focused assessment of a property
using the same supply chain decision-making as a potential
prospective tenant
Multi-tiered location selection process encompassing
logistics/freight costs, labor/workforce, real estate costs,
and economic incentives
Comprehensive analysis to provide fact-based recommendations for
long-term network decisions
Benefit Quick cost assessment & visualization of multiple scenarios
Minimize Average Weighted Distance (AWD) to determine
optimal solution
Enable a strategic, integrated marketing strategy focused on the business value of a specific
asset to a targeted audience
Find the most optimal site through an objective,
360-degree approach to cost/service tradeoffs
Full optimization model inclusive of network, transportation costs, inventory, and facility
layout
Timeframe Immediate 5 - 7 business days 1 - 2 months 1 - 2 months 3 - 6 months
Cost No cost to client - part of JLL Platform No cost to client - part of JLL Platform Subject to scope Subject to scope Subject to scope
Tools Starboard Solutions "Navigator" - Web based network strategy
Logistix Solutions "Logix" - Licensed network strategy tool
used to optimize distribution and network design
LogixJLL Proprietary Scoring Model
Esri
LogixProprietary Real Estate and
Labor ModelEsri
Cutting-edge network optimization software leased on a per case
basis
Select clients
Spectrum of service offerings
Our solutions are tailored to your needs. Whether you are looking at your entire network, or just one strategic location, we can help build the framework for your decision making.
JLL | Supply Chain Consulting PracticeJLL | Supply Chain Consulting Practice
* Supply Chain SelectSM is a proprietary service marked offering from JLL.
Optimizing a distribution network
Service Level: 1.92 DaysAWD: 1,149 miles
Service Level: 1.03 DaysAWD: 615 miles
Service Level: .70 DaysAWD: 415 miles
Supply Chain Select: JLL’s in-house Supply Chain Modeling Optimization Software
Below model shows a national retail & e-commerce company’s current distribution model and potential alternatives and their effect on the supply chain
Current State Current State + 1 new DC Current State + 2 new DC’s
We understand your business is more than just real estate…
Current state network Optimal with 2 DCs Optimal with 3 DCs
Service level: 1.92 daysAverage weighted distance: 1,149 miles
Service level: 1.03 daysAverage weighted distance: 615 miles
Service level: .70 daysAverage weighted distance: 415 miles
Case studies (additional materials available upon request)
Starboard Third-party logistics company
Reverse Location Selection (RLS™) National beverage manufacturer
JLL | Supply Chain Consulting Practice
Situation: The customer wished to consider the implications of closing one of their existing distribution centers and possibly opening a new one.
Objective: Reduce inbound supplier costs.
Solution: JLL, the client and their customers collaborated and identified an optimum solution that considered both data from the model and a number of qualitative factors, such as risk and availability.
Results: Inbound costs reduced by $350,000 per year. Customer service costs were unaffected. Inventory and complexity was consolidated into two distribution centers.
Situation: JLL was hired for the disposition of a location in the Southeast U.S. The facility no longer fit the companies operational needs, but still had usable equipment and improvements relevant to the specific use.
Objective: Compare the location and facility to other locations around the region which a user requirement entering the market might consider viable.
Solution: The RLS model compared total operating cost and scores each location based on workforce demographics, inbound and outbound transportation costs, wages, real estate costs, and economic incentives.
Results: The model reaffirmed the local JLL team’s BOV and gave the client confidence in the optimal direction for marketing and executing on the disposition.
Supply Chain SelectSM - Snapshot Life sciences corporation
Network Strategy $6B global food ingredient company
Situation: The client needed one distribution center to be located in one of four major cities to serve their customer’s nationally. Every delivery needs to reach the end destination within 24 hours’ or the product will expire, so some shipments would need to be shipped next-day air.
Objective: Minimize costs.
Solution: Created a model that maximized the potential ground shipment locations within the 24-hour window from each city, thus minimizing the annual shipping costs.
Results: Helped the company move forward on that location, allowing the local JLL brokers to work towards executing the real estate transaction on their behalf.
Situation: The client had grown both organically and through acquisition to over $1 billion in revenue in the U.S. Operated the acquired companies as autonomous business units (6) with over 50 warehouses/DC’s across the country and recognized the resulting inefficiencies. After a highly competitive process, JLL was hired to lead the Distribution Network Strategy consulting engagement.
Objective: Identify supply chain synergies across the company to drive cost reduction and service improvements.
Solution: Analyzed cost and service impact of 53 warehouse locations across the domestic United States. Utilizing i2 Strategist network modeling software, created a baseline of the current state distribution network. Tested and validated various scenarios ranging from 3 to 7 regional distribution center locations to improve service at lower landed cost. Implemented our recommendation of a 5-DC network.
Results: Identified over $20MM in freight savings, $5MM in labor and real estate savings and $250K in inventory reduction opportunities in addition to a one-time $4.8MM reduction in inventory.
Supply Chain SelectSM - Site Selection National apparel retailerSituation: JLL was approached over their historical service provider to examine a move vs. renew scenario on their upcoming warehouse lease.
Objective: Examine whether a move would drastically impact their shipping .
Solution: Initially performed Supply Chain Snapshot, but ultimately executed a full-scale Site Selection model as we dug deeper. We compared their current location to 6 other regional locations with respect to annual facility rent, inbound drayage costs, local labor costs, relocation moving costs and outbound transportation costs.
Results: The model solidified JLL as a true partner in their real estate decision-making and gave the client the confidence to make a decision on a long-term commitment.
JLL | Supply Chain Consulting Practice
jll.com/supplychain
About JLLJLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $55.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
©2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Rich ThompsonInternational Director +1 773 458 [email protected]
Elizabeth JonesSenior Associate+1 214 438 6190 [email protected]
Ben Medina, PhDExecutive Consultant+1 847 922 [email protected]
Mac Hewett Vice President +1 909 467 6902 [email protected]
Dr. Walter KemmsiesManaging Director +1 443 452 1506 [email protected]
Bob Silverman Senior Vice President +1 917 386 4741 [email protected]
Lee AllenManaging Director +1 704 804 [email protected]
Andrew LewisSenior Associate+1 404 955 [email protected]
Gary YatesVice President+1 404 995 2438 [email protected]