Food and Beverage Transportation: 5 Tips for Sourcing Excellence
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Transcript of Food and Beverage Transportation: 5 Tips for Sourcing Excellence
Welcome!Welcome!Welcome!Welcome!Welcome!Welcome!Welcome!Welcome!
Copyright © 2013. CombineNet, Inc.
AgendaAgendaAgendaAgendaAgendaAgendaAgendaAgenda
Greg Holt, Director of Product Marketing, Greg Holt, Director of Product Marketing,
CombineNet
– Introduction
CombineNet’s Role in Transportation Sourcing– CombineNet’s Role in Transportation Sourcing
Jessica Fenlon, Manager, Professional Services,
CombineNet
– 5 Tips for Transportation Sourcing in Food and – 5 Tips for Transportation Sourcing in Food and
Beverage Companies
Copyright © 2013. CombineNet, Inc.
CombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company OverviewCombineNet Company Overview
Established in 2000.
The CompanyThe Company The TechnologyThe Technology Customer ValueCustomer Value
Capture >2X spend under E-Best of Breed Solutions that Established in 2000.
Global: Offices in
Pittsburgh, PA; London, UK;
Capture >2X spend under E-
Sourcing management.
Address complex spends
with advanced functionality.
Best of Breed Solutions that
improve Strategic Sourcing –
holding 21 U.S. patents.
Hamburg, Germany.
Partners for Latin America,
Middle East, APAC.
with advanced functionality.
Fast implementation and
broad adoption for any type
Software-as-a-Service (SaaS)
delivery model for ease of
adoption and scale
Customers: Global 2000
spanning CPG, Food & Bev,
Retail, Manufacturing,
Transportation, and more.
broad adoption for any type
of user.
Nearly 100% see full payback
after 1st sourcing event.
Easy integration into your
environment to complement
existing applications.Transportation, and more. after 1st sourcing event.
Copyright © 2013. CombineNet, Inc.
Some of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s CustomersSome of CombineNet’s Customers
Includes 16 of the Largest Food & Beverage
Manufacturing Companies
Copyright © 2013. CombineNet, Inc.
Best of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed EBest of Breed E--------Sourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing SolutionsSourcing Solutions
Supporting End-to-End E-Sourcing for All Spend Categories
with Advanced Technology Solutions
Copyright © 2013. CombineNet, Inc.
CombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation SourcingCombineNet ASAP in Transportation Sourcing
~600 transportation sourcing events per year – more than $15 billion in annual transportation spend
We will help you reduce costs in logistics sourcing!
annual transportation spend
Average savings of 10% on spend size – and 100% ROI after your first event
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
Copyright © 2013. CombineNet, Inc.
How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?How can CombineNet help you?
Carrier Measurement
• Flexible RFI• Flexible RFI
• Assessing Carrier Capabilities, Equipment, Drivers, Carbon Footprint, Insurance, DOT Ratings
Expressive BiddingExpressive Bidding
• Expressive, Creative & Alternative Bids
• Equipment type, transit time, mode, capacity, service, volume offers/discounts
• Total Cost of Ownership Models• Total Cost of Ownership Models
• Rates, assessorials, fuel…
Scenario Analysis & Optimization
CombineNet ASAP
• “What If?” Scenario Models
• Regional preferences, network-wide contracts, corporate business goals
• Robust Reporting on Impact of Decisions
CombineNet ASAP
Copyright © 2013. CombineNet, Inc.
How Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet TodayHow Customers Use CombineNet Today
Consolidating Freight Spend for
Negotiation LeverageMode Switching
Explore options for moving from LTL to Truck
• Network-wide bids vs. regional bids
• Outbound + Inbound shipments
• Balancing common carriers, dedicated, LSPs
• Combining Dry, Refrigerated, Bulk,
Explore options for moving from LTL to Truck
to Intermodal to Rail;
Review mode-mix for Ocean and Air
• Combining Dry, Refrigerated, Bulk,
Container, Intermodal
Review Carrier/Network Options
Carrier Collaboration: Understanding
Business Strategies & Needs
Look for mutual value/win-win opportunities For lane efficiencies, service & equipment
alternatives, carrier scalability to volume
changes
Look for mutual value/win-win opportunities
that match your shipments with their assets
and existing business
• Continuous loops/ backhauls/ multi-stop• Continuous loops/ backhauls/ multi-stop
• Carrier business/expansion plans
• Utilize imbalance between
inbound/outbound & import/export in
certain regions
Sustainability
Evaluating carrier/fleet fuel efficiency, network
carbon footprint, mileage reduction options carbon footprint, mileage reduction options
Copyright © 2013. CombineNet, Inc.
5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food 5 Tips for Sourcing Excellence in Food & Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation& Bev Transportation
Copyright © 2013. CombineNet, Inc.
5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage 5 Tips to help Food & Beverage Transportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation BuyersTransportation Buyers
1) Evaluate Carrier Support for Seasonality
2) Review Dry and Temperature Controlled Equipment 2) Review Dry and Temperature Controlled Equipment
Options
3) Use a Carrier Scorecard as Part of Carrier Evaluation3) Use a Carrier Scorecard as Part of Carrier Evaluation
4) Consider Load Weight per Lane
5) Ensure Carrier Capacity Commitments5) Ensure Carrier Capacity Commitments
Copyright © 2013. CombineNet, Inc.
Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Tip #1: Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for Evaluate Carrier Support for SeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonalitySeasonality
Your Challenge:
In sourcing events, seasonality changes can have big In sourcing events, seasonality changes can have big impacts on monthly demand and capacityConsumer Demand:
“We want whole turkeys at Thanksgiving”– “We want whole turkeys at Thanksgiving”
Growing Seasons:– “It’s difficult to find some fresh vegetables during the winter in – “It’s difficult to find some fresh vegetables during the winter in
the North”
Solution:Solution:
Display Seasonality changes as Lane Information and
collect carrier capabilities
Copyright © 2013. CombineNet, Inc.
collect carrier capabilities
Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in Sourcing with Seasonality in CombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNetCombineNet
Display Monthly Demand Patterns
Collect Monthly and Peak Capacity in your Collect Monthly and Peak Capacity in your CombineNet sourcing event:
Copyright © 2013. CombineNet, Inc.
Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Tip #2: Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Review Dry and Temperature Controlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment OptionsControlled Equipment Options
Your Challenge:
Buyers with Dry and Temp controlled truckload often source Buyers with Dry and Temp controlled truckload often source
separately
– Data collection, bidding process, and analysis is time consuming
– Separate internal teams but similar corporate sourcing – Separate internal teams but similar corporate sourcing
requirements
Solution:Solution:
Combine Dry and Temp into one bidding event
– Similar contract expiration dates– Similar contract expiration dates
– Attractive bidding opportunity for carriers
– Significant internal time savings
– Brokers and 3PL’s should be invited to the event– Brokers and 3PL’s should be invited to the event
Copyright © 2013. CombineNet, Inc.
Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Sourcing Dry and Temperature Truckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNetTruckload in CombineNet
Collect the right bids for the right lanes
Copyright © 2013. CombineNet, Inc.
Tip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier ScorecardTip #3: Use a Carrier Scorecard
Your Challenge:
Quantifying RFI responses for unbiased comparisonsQuantifying RFI responses for unbiased comparisons
Maintaining a record of carrier capabilities and preferences throughout analysis
Solution:Solution:
Prioritize most important internal factors through weights for question and answerweights for question and answer
Set the weights before any carrier responses are received
Copyright © 2013. CombineNet, Inc.
Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard –––––––– RFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI QuestionsRFI Questions
Add scoring weights to your RFI Configuration
Copyright © 2013. CombineNet, Inc.
Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard Carrier Scorecard –––––––– Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your Using Scores in your CombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario AnalysisCombineNet Scenario Analysis
We’ll help you set up Carrier Scorecard calculations for analysis:
Copyright © 2013. CombineNet, Inc.
Tip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per LaneTip #4: Consider Load Weight per Lane
Your Challenge:
Shipping heavy items that weigh-out before the truck cubes-Shipping heavy items that weigh-out before the truck cubes-
out
Carrier equipment weight varies, especially when using a Carrier equipment weight varies, especially when using a
refrigeration unit
Solution:
Display current Average Load Weight as Lane InformationDisplay current Average Load Weight as Lane Information
Collect carrier’s Load Weight in your CombineNet eRFP
Copyright © 2013. CombineNet, Inc.
Load Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFPLoad Weight per Lane in the RFP
Lane information and bid collection in Lane information and bid collection in CombineNet
Transform carrier capacity to account for Transform carrier capacity to account for higher or lower weights
Avg Load
Weight
Carrier Load
Weight
Carrier
Capacity
Transformed
CapacityWeight Weight Capacity Capacity
46,000 46,000 50 50
46,000 45,000 50 48.9
46,000 47,000 50 51.1
Copyright © 2013. CombineNet, Inc.
Tip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier CapacityTip #5: Ensure Carrier Capacity
Your Challenge:
Carriers quote across the network, not knowing what might be Carriers quote across the network, not knowing what might be
awarded
Carriers have capacity limits that cannot be expressed lane-by-
lanelane
Solution:
Collect lane level capacity, including seasonality limitsCollect lane level capacity, including seasonality limits
Collect summary capacity to model overarching limits
Copyright © 2013. CombineNet, Inc.
Modeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier CapacityModeling One Level of Carrier Capacity
Lane-level Capacity
Origin
City
Origin
State
Dest City Dest
State
Annual
Volume
Capacity
Atlanta GA Wichita KS 156 150
Atlanta GA Overland Park KS 175 296Total: 446
Atlanta GA Overland Park KS 175 296
Atlanta GA Norfolk VA 468 400
Atlanta GA Richmond VA 451 844
Total: 446
Total: 1,244
Carriers have capacity limitations for each lane
– Wichita Volume: 156 loads– Wichita Volume: 156 loads
– Carrier Capacity: 150 loads
But by only considering lane-level capacity, buyers cannot determine realistic limits for carrier awards across the networkdetermine realistic limits for carrier awards across the network
Copyright © 2013. CombineNet, Inc.
You You You You You You You You cancancancancancancancan Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!Ensure Carrier Capacity!
Using Multiple Levels of Carrier Capacity ensures that
Carriers can handle all of the awarded loads
Origin to Destination State CapacityOrigin to Destination State CapacityOrigin to Destination State CapacityOrigin to Destination State Capacity
Capacity Bid by the CarrierCapacity Bid by the Carrier
Confirming Capacity at
Overall Capacity across the NetworkOverall Capacity across the NetworkOverall Capacity across the NetworkOverall Capacity across the Network
Confirming Capacity at
Multiple Levels
Copyright © 2013. CombineNet, Inc.
Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage Solutions for Food & Beverage ManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturersManufacturers
Copyright © 2013. CombineNet, Inc.
CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for CombineNet’s Strategic Sourcing Solution for Food & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage ManufacturersFood & Beverage Manufacturers
Advanced E-Sourcing Technology + Content & Services You Need to
Achieve World-Class Success!Achieve World-Class Success!
CombineNet ASAP® – Our industry-
leading best-in-class e-sourcing platform
for creating and managing online RFIs,
Food & Bev Best Practices Center –access to
a wide range of best practices solutions,
content and services tailored to the Food & for creating and managing online RFIs,
RFPs, and e-auction events. Key features
include:
content and services tailored to the Food &
Beverage Manufacturing industry, including:
• E-Sourcing Template Library
• RFxpress
• Expressive Bidding®
• Expressive Feedback
• Scenario BuilderSM
• E-Sourcing Template Library
• Premium E-Sourcing Knowledge Content
• Premium Training
• Event Start-Up Service
• Unlimited RFP Readiness Reviews• Scenario BuilderSM
• Bid Analysis and Optimization
• Reporting and Dashboards
• Unlimited RFP Readiness Reviews
• Event Coaching Services
• 15% Discount on Other Services
Copyright © 2013. CombineNet, Inc.
Case Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European TruckloadCase Study: European Truckload
World’s 2nd Largest Brewing Company
- Consolidated European Freight
Using CombineNet ASAP enabled
Key Facts
Using CombineNet ASAP enabled
consolidation across all regions,
creating a better overall picture of
what was available for
2,500 lanes.
Mostly Full Truckload
(FTL)
8% + savings.
Retained 80% of
incumbent carrierswhat was available for
suppliers/carriers:
– Encouraged carriers to pick and
choose which transportation lanes
to bid on
Inbound/Outbound
between breweries,
warehouses, customers
Single sourcing
event for all of
Europe
“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
to bid on
– Enabled carriers to leverage their
assets to best meet SABMiller’s
needs with Packaged Bids and 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.”
needs with Packaged Bids and
Conditional Offers
Using CombineNet’s Expressive
Feedback provided carriers with
guidance on their competitiveness Flavio Gall, Global Category Director for Freight and Fleet, Trinity
Procurement
guidance on their competitiveness
during bidding
Copyright © 2013. CombineNet, Inc.
Case Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean TransportationCase Study: Ocean Transportation
Event Metrics
– # of Lanes: 800
– # of Carriers: 45– # of Carriers: 45
– Spend Size: $15M
Key Benefits:
Able to conduct a Global event while ensuring regional requirements – Able to conduct a Global event while ensuring regional requirements and preferences
� Temperature controlled containers for 20% of lanes
� Bids collected were based on a lane-defined container type� Bids collected were based on a lane-defined container type
� Some regions required All-in Rate, others required separate Fuel Surcharge
– Carrier total-value evaluated through Non-price data
� Carrier preferred Origin and Destination ports� Carrier preferred Origin and Destination ports
� Number of transshipments
� Total transit time
� Annual Capacity commitments
Result: Regional preferences achieved 18% savings
Copyright © 2013. CombineNet, Inc.
What Next?What Next?What Next?What Next?What Next?What Next?What Next?What Next?
Learn more about CombineNet’s solution for Food & Learn more about CombineNet’s solution for Food &
Beverage companies
– Download our Strategic Sourcing Information Kit– Download our Strategic Sourcing Information Kit
� Found under the Resources tab on the Webinar console
Copyright © 2013. CombineNet, Inc.
Thank You.Thank You.Thank You.Thank You.Thank You.Thank You.Thank You.Thank You.Questions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & DiscussionQuestions & Discussion
www.combinenet.com
[email protected]@combinenet.com
Phone: 412-471-8200
Copyright © 2013. CombineNet, Inc.