The 3PL PerspectiveBrian McDill

9th September 2010

Norbert Dentressangle

• 29,200 employees

• €3.2bn overall group revenue

• 40,000,000 ft2 warehousing space

• 11,000 vehicles

• Top 3 European logistics provider

• Growing business with operations in 16

countries

Logistics Transport

• Warehousing • Transport solutions

• Customisation of product • Pallet distribution

• Reverse logistics • Contract distribution

• All sector multi specialist LSP

• International groupage

• Dedicated transport solution

• Large Tanker Fleet

• E-fulfilment 1988

1992

1998

2002

2006

92 M €

760 employees 265 M €

2 850 employees

647 M €

7 300 employees

1 053 M €

11 500 employees

1 608 M €

14 600 employees

3 107 M €

29 600 employees

2008

UK Logistics Organisation

Scale & Solutions

• Warehousing7m ft2 space

• Reverse logistics

−Dedicated−Shared User−Automated−Manufacturing

− Returns management

− Recycling WEEE− Reprocessing

• Transport3,000 vehicles5,000 drivers

−Dedicated−Specialist− Two man−Value Add−High Value

• Asset Management

−Asset management tracking

• Cages• Trays

−Pallets−Carbon footprint management

• Bonded / wet bond • Value Added

• e-fulfilment− Large-scale operations−End to end solutions

• Aviation Logistics• Integrated system

delivery• Technical Design /

Build

Customers

Brian McDill

• 35 years experience of 3PL

• Operated at all levels, and across diverse sectors

• Involved in responding to over 3500 tenders

• Experience in automated, dedicated and shared-user logistics

• Built many long term relationships

Procurement

'Procurement is the process of acquiring goods,

works and services, covering both acquisition from

third parties and from in-house providers. The

process spans the whole life cycle from

identification of needs, through to the end of a

services contract or the end of the useful life of an

asset. It involves options appraisal and the critical

'make or buy' decision.'

'Procurement is the process of acquiring goods,

works and services, covering both acquisition from

third parties and from in-house providers. The

process spans the whole life cycle from

identification of needs, through to the end of a

services contract or the end of the useful life of an

asset. It involves options appraisal and the critical

'make or buy' decision.'

A few interesting facts

The majority of Supply Chain Directors evaluate their existing supply chain model & consider alternative approaches at least once a year.The majority of Supply Chain Directors evaluate their existing supply chain model & consider alternative approaches at least once a year.

Supply Chain Directors explain that through employing a single 3PL for their pan-European logistics requirements could reduce costs through economies of scale and promotes more frequent business relations between the client and 3PL

Supply Chain Directors explain that through employing a single 3PL for their pan-European logistics requirements could reduce costs through economies of scale and promotes more frequent business relations between the client and 3PL

Over one-third of Supply Chain Directors in 2009 would consider outsourcing their entire European supply chain management to a 3PL.

Over one-third of Supply Chain Directors in 2009 would consider outsourcing their entire European supply chain management to a 3PL.

MORE WORK FOR PROCUREMENTMORE WORK FOR PROCUREMENT

Source: European Supply Chain Director Survey 2009, Analytiqa

A Good Competitive Process…

… from a 3PL perspective

Good quality dataClear communication channelsSite visitsStrategic relationships with cross functional teams Make sure data and volumes are representative

Requirements

Cultural fitOperational excellenceHigh quality serviceOperational efficiencyTap into 3PL entrepreneurial flairBusiness fitHave a fair contract that works for both parties

Non disclosure agreementRequest for informationInvitation to tenderShortlistPresentationCommercial negotiationDecisionImplementation

Process Outcome

A Good Tender Document…… from a 3PL perspective

Introduction Let us understand your business

Objectives Tender objectives, scope, approach, cultural expectation

Data Aim to give one full year, be detailed and representative

Product Characteristics

Good quality data and product details

Logistics Characteristics

Warehousing – dedicated or shared user

Requirements for Logistics Service

Picking, Co-packing, IT, QHSE, KPI’s, Transport, Supply Chain

Pricing Structure Rates, Continuous Improvements, Implementation

Contract Terms Duration, Open / Closed Book

How Procurement Adds Value

Relationships: 3PL & Procurement

A successful relationship is key to the entire tender process from provider selection to implementation, enabling…

A successful relationship is key to the entire tender process from provider selection to implementation, enabling…

… selection of the ‘right’ providers for inclusion in the process, enabling working with partners who are financially robust

… strategic relationships with cross functional teams, procurement and operations

… your chosen 3PL to showcase corporate competencies

… 3PL entrepreneurial flair and innovation

… operational excellence

… continuous improvement

… selection of the ‘right’ providers for inclusion in the process, enabling working with partners who are financially robust

… strategic relationships with cross functional teams, procurement and operations

… your chosen 3PL to showcase corporate competencies

… 3PL entrepreneurial flair and innovation

… operational excellence

… continuous improvement

Do’s & Don’ts

A Look at the Future…

Technological advancement:

e-Auctions

Global and pan European

procurement

3PLs offering procurement

service in conjunction

with 4PL products

Reduction in contract duration:

transactional and agile

procurement

Procurement: Promotes competitor

collaboration

Modular procurement: cherry picking

And Finally, Key Messages…

Relationship is key:Engage with 3PLs

Compare and contrast similar operations

Allow 3PLs to access your business

… from a 3PL perspective

Overall – ensure all areas are aligned

Any Questions

Bringing people closer to their dreams

www.norbert-dentressangle.com