CombineNet Webcast 2012: Delivering Better Transportation Procurement to Your TMS Environment

Speakers and Agenda


Greg Holt Director of Product Marketing Topic Introduction and Case Studies Rob Achtzehn Director of Account Development A Look at Transportation Sourcing Best Practices

and How Advanced Sourcing Solutions Can Complement your TMS

CombineNet Company Overview

Established in 2000.

Global: Offices in Pittsburgh, PA; London, UK; Hamburg, Germany. Partners for Latin America, Middle East, APAC

Customers: Global 2000 spanning CPG, Food & Bev, Retail, Manufacturing, Transportation, and more

The Company The Technology Customer Value


Capture >2X spend under E-Sourcing management Address complex spends with advanced functionality Fast implementation and broad adoption for any type of user Nearly 100% see full payback after 1st sourcing event

Best of Breed Solutions that improve Strategic Sourcing Software-as-a-Service (SaaS) delivery model for ease of adoption and scale Easy integration into your environment to complement existing applications

We Do this for Companies Just Like Yours


A Wide Variety of Customers across All Industries

http://www.mcbride.co.uk/

http://www.crowncork.com/

http://www.maersk.com/

Best of Breed E-Sourcing Solutions


CombineNet Spend

Analysis

CombineNet Contract

Management

CombineNet ASAP

Create RFxpress for E-RFX or E-Auction

Bid Expressive Bidding® Expressive Feedback Event Management

Award Scenario Analysis & Bid Optimization

Supporting End-to-End E-Sourcing for All Spend Categories with Advanced Technology Solutions

Increasing Spend Under Management

>1,000 e-sourcing events conducted annually

E-Sourcing Suite user since 2007

Adopted CombineNet in Jan. 2011

More than 2X Increase in Corporate Spend Managed between years 1 and 2

$7.5 Billion E-Sourced in 2012

(projected)

E-Sourcing Suite CombineNet

0

1

2

3

4

5

6

7

8

2010 2011 2012

$ Billion in Spend Managed Annually


Large European Conglomerate

Advanced Sourcing Events within CombineNet ASAP

Very broad application across the enterprise

Transportation is still one of the largest focus areas of E-Sourcing events in CombineNet ASAP


Transportation 42%

Direct Materials

21%

Indirect Materials

13%

Packaging 12%

Services 12%

Customer Events by Category: January 2011 - June 2012

CombineNet ASAP for Transportation Sourcing

400+ Transportation Sourcing Events per Year

More than $30 Billion in Annual Transportation Spend

All Modes: Truckload/IM, LTL, Ocean, Airfreight, Parcel, Multi-mode

Shippers, 3PLs, Freight Forwarders and Logistics Consultants of all sizes, across all industries, use CombineNet ASAP

Best in Class e-Sourcing for Transportation


Best-in-Class Transportation Sourcing


Transportation Sourcing Best Practices

Leverage as much of your network as possible – Show carriers all the opportunities that exist within your business

– Enable carriers to match their network/assets to yours

– Enable carriers to pick and choose which pieces of the business they want, and express how they can best support that business

Focus on balancing rates with the capacity, service levels, & carrier mix that suits your business

Find the right mix of carriers based on business strategies & needs

Evaluate the impact of regional or lane-level decisions on your network as a whole

As much as possible, reduce sourcing cycle time and implement results quickly

– Time is money!


Challenges of Transportation Sourcing

Consolidated spend is a large, complex challenge

– Potentially 1,000’s of individual lanes; 100’s of carriers

Regionalized decisions vs. center-led team/strategy – Business unit/regional rules & preferences

– Site rules

– Customer delivery requirements

– Incumbency preferences

Balancing cost/coverage/service levels/strategic carrier decisions – Rates – Capacity – Transit time

What’s the right number and mix of carriers – At the Network & Lane level – Price compression between primary and secondary carriers on high volume lanes

Internal resources constrained – focused on daily execution

Not supported by standard technology tools


CombineNet ASAP

Advanced Sourcing in Transportation

Carrier Measurement

• Flexible RFI • Assessing Carrier Capabilities, Equipment, Drivers, Carbon Footprint,

Insurance, DOT Ratings

Expressive Bidding

• Expressive, Creative & Alternative Bids • Equipment type, transit time, mode, capacity, service, volume

offers/discounts

• Total Cost of Ownership Models • Rates, assessorials, fuel…

Scenario Analysis & Optimization

• “What If?” Scenario Models • Regional preferences, network-wide contracts, corporate business goals

• Robust Reporting on Impact of Decisions


CombineNet Customers’ Strategies


Consolidating Freight Spend for Negotiation Leverage

• Network-wide bids vs. regional bids • Outbound + Inbound shipments • Common carriers, dedicated, LSPs, NVOs • Dry, Refrigerated, Bulk, Container, Intermodal

Mode Switching

Explore options for moving from LTL to Truck to Intermodal to Rail; Review mode-

mix for Ocean and Air

Review Carrier/Network Options

For efficiencies, service & equipment alternatives

Carrier Collaboration: Understanding Business Strategies & Needs

Look for mutual value/win-win opportunities that match your shipments with their assets

and existing business

• Continuous loops/ backhauls/ multi-stop • Carrier business/expansion plans • Utilize imbalance between inbound/outbound & import/export in certain regions

Scalability

Responsiveness to changes in volume

Transportation Sourcing: TMS vs. Advanced Sourcing


TMS Benefits: Operations Execution

Cost savings through automated carrier selection, route planning and load consolidation.

Process efficiency gains with the automation of global freight movement and the ability to better adapt to changes. Improved asset utilization. Service performance management in real-time. Access to historical carrier performance and cost information.


TMS solutions provide a number of operational benefits

Sourcing with TMS: The Limitations

Good enough for collecting rate information, but what about engaging carriers in real negotiations?

Carrier capacity is often an afterthought in the sourcing process – evaluated after bids are collected and analyzed

Service and Equipment mirrors what is available in the execution system, but how can your carriers add value?

Simultaneous analysis of all key decision criteria (Capacity, Service, Sustainability, Mode Conversion, Safety/Risk, etc.) is non-existent, so how do you get the “Big Picture”?


Strategic sourcing capability is often an extension of shipment tenders or spot buying functionality

Advanced Sourcing Complements TMS


Enables carrier collaboration with Expressive Bidding

– On lanes, alternate service/mode/equipment/O&D pairs – Capacity on a lane, region, and network level – Volume discounts and carrier-defined packages

Price compression tools to reduce rate variability on lanes between primary and secondary carriers

Powerful, Flexible and Efficient Bid Analysis and Optimization

– All key decision criteria and savings levers considered at one time

Extensive & efficient negotiation support

Reporting capabilities that quickly provide clear insight into Cost Tradeoffs, Stakeholder Alignment, Negotiation priorities & Routing Guide Development

Easy data migration to/from TMS

Process Control: Launch same RFX structure on like events

Flexibility: Easily configurable to incorporate outside data

Customer Success Story Examples


Case Study: AstraZeneca

Customer since: 2011

Initial project: Global Air-Ocean Freight

Strategic initiative to transition more product from air to ocean

“The additional insight we were able to capture and use in negotiations thanks to CombineNet ASAP would not have been possible before with other solutions, especially in the accelerated timeframe and global scale of this spend category.”

James Shaw, Global Lead, Freight & Logistics, AstraZeneca

1,000 + global lanes.

95% of volume on 250 lanes.

Special handling requirements, including temp-control.

12% + savings.

70% reduction in sourcing cycle time.

10% mode switch from air to ocean.

Key Stats Global biopharmaceutical company.


Case Study: Bayer

Bayer MaterialScience AG global ocean tender performance improvement.

Customer since: 2009

Initial project: Transportation - Global Ocean Tender sourcing

Growth: Continue to extend/expand CombineNet for ocean sourcing.

Benefits delivered:

23% in savings over prior bid rounds.

50% time reduction to manage data and process: Tender executed in 2 months vs 4.5.

Awarding based on multiple criteria.

Supports global strategy while considering regional requirements.

One interface to the carriers.

“CombineNet lets sourcing teams concentrate on the analysis of differentiated scenarios instead of mainly managing the data and process.”

– Lars Blüthner, Lead Ocean Buyer, Bayer MaterialScience AG

Nearly 80,000 containers in 2010.

4 regions, 3 subgroups, and 3 silent partners.

45 carriers involved.

15,000 bids to manage.

Key Sourcing Stats


Case Study: SABMiller plc

One of world’s leading brewers with 200 beer brands and 70,000 employees in 75 countries.

Customer since 2011

Initial Projects: Aggregate ground transportation (2,500 lanes); and improve Ocean freight (up to 30,000 TEU of standard containers)

Results:

– Road Freight: 8% savings and achieved one consolidated sourcing process

– Ocean Freight: 10% savings and major efficiency gains

“With more data under one tender event, there was the need to support the process with a strong e-sourcing solution. We chose CombineNet based on its intuitive handling of large data sets, the flexibility in defining tender variables, and the strong analytical engine to assess and visualize different implementation scenarios." – Flavio Gall, Global Category Director – Freight and Fleet, Trinity Procurement/ SABMiller

Road Freight

(mostly FTL)

Ocean Freight

Spend Under Management


Next Steps

Download the CombineNet ASAP Transportation Solution Kit

www.combinenet.com/TransportationKit

Read the latest Transportation Sourcing Case Study:

“SABMiller Brews Up Impressive Transportation Sourcing Improvements with CombineNet”

http://www.combinenet.com/resource-center/index.php


http://www.combinenet.com/TransportationKit




Next Steps

Download the CombineNet ASAP Transportation Solution Kit

www.combinenet.com/TransportationKit

Read the latest Transportation Sourcing Case Study:

“SABMiller Brews Up Impressive Transportation Sourcing Improvements with CombineNet”



Questions & Discussion Contact Us www.combinenet.com [email protected] 1-877-293-5480

http://www.combinenet.com/TransportationKit




mailto:[email protected]



CombineNet Webcast 2012: Delivering Better Transportation Procurement to Your TMS Environment

Technology

Transcript of CombineNet Webcast 2012: Delivering Better Transportation Procurement to Your TMS Environment