The Intelligently-Designed, Connected THE INTELLIGENTLY … · 2018. 3. 6. · =
Joel Sutherland from the Center for Value Chain Research, Lehigh University & OHL, Relationships...
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Transcript of Joel Sutherland from the Center for Value Chain Research, Lehigh University & OHL, Relationships...
All rights reserved, Joel Sutherland, 2010
Executive Workshop: Developing a Flexible Relationship
to Respond Intelligently to the Economic Rebound
8th Annual 3PL Summit June 21-23, 2010
Agenda
Economic Indicators Shipper Feedback – SCLA Conference 3PL’s - Supporting Customers’ Req’ts Interactive Discussion
All rights reserved, Joel Sutherland, 2010
Economic Indicators
All rights reserved, Joel Sutherland, 2010
US GDP Growth
The US GDP is $14.2 trillion or 22.9% of the world economy – the world’s largest. US GDP growth for Q110 revised down to
3%, showing that the recovery may not be as strong as many had expected.
All rights reserved, Joel Sutherland, 2010
US Balance of Trade
The US leads the world in imports while remaining one of the top 3 exporters.
The US balance of trade deficit in April was $40.3B. US trade deficit with China was $19.3 billion – nearly 50% of total.
Total 2010 deficit estimated at a record $1.84 trillion. Represents 12.9% of the economy – highest since 1945. Forecast to decrease in 2011 – but iffy.
Higher fiscal deficits will likely lead to higher taxes.
All rights reserved, Joel Sutherland, 2010
Unemployment
Employers in the US hired fewer workers in May than forecast and Americans dropped out of the labor force - showing a lack of confidence in the recovery.
Consumer spending (needed to increase production) is weak mostly due to high unemployment rates.
It may take a few years to revive 8.5 million jobs lost since the recession began in December 2007.
The federal government added 412,000 jobs.
All rights reserved, Joel Sutherland, 2010
Logistics Indicators
Logistics costs fell to 7.7% of US GDP in 2009 from 9.3% in 2008.
Warehousing costs fell 2% below 2008. Although early 2009 saw warehouses full of inventory, by mid-year
inventories were reduced leaving facilities with empty space.
Transportation costs 20.2% lower than 2008, with all modes of transportation being negatively affected. Trucking had a 9% drop in tonnage carried.
All rights reserved, Joel Sutherland, 2010
Source: CSCMP’s 21st Annual “State of Logistics Report®”
US Logistics Costs - 2009
All rights reserved, Joel Sutherland, 2010
Source: CSCMP’s 21st Annual “State of Logistics Report®”
Looking Ahead
The jury is still out on when the economy will realize a meaningful and sustainable recovery. Understanding your customer’s needs, and
adapting an effective strategy that responds to these needs, is essential in achieving successful and sustainable 3PL-customer relationships.
All rights reserved, Joel Sutherland, 2010
Shipper Feedback
SCLA Conference May 25-27, 2007
All rights reserved, Joel Sutherland, 2010
SC Management Challenges
Economic slowdown/recession recovery Supply chain disruptions – natural & manmade Managing global supply chains Supply chain visibility and event management IT: Internet, web applications, social networking Developing ROI for going “Green” Organizational issues
All rights reserved, Joel Sutherland, 2010
Source: SCLA Annual 2010 Conference
“Best” SC Management Strategies
Customer-driven
Aggressively pursue innovation and creativity
Capitalize on skills of people in every area
Leverage core competencies
Develop solutions, NOT technology (do after)
Inspire competitors to imitate
All rights reserved, Joel Sutherland, 2010
Source: SCLA Annual 2010 Conference
Supply chain accounting/finance (CEO & Wall Street)
KPI’s (more supply chain focused)
Increasing skill requirements (continuous learning)
Using available information technology
Areas for Improvement
All rights reserved, Joel Sutherland, 2010
Source: SCLA Annual 2010 Conference
What SC Leaders Need to Master
All rights reserved, Joel Sutherland, 2010
Strategy, tactics and execution “Push” to “Pull” Lean Cash flow and people management Sustainability and “Green” Collaboration Fundamentals
Source: SCLA Annual 2010 Conference
3PL’s: Supporting Customers’ Changing Requirements
All rights reserved, Joel Sutherland, 2010
3PL’s Can Help Their Customers’…
Contain Supply Chain Costs Increase Supply Chain Visibility Prepare for SC Disruptions Improve Customer Service Expand Globally
All rights reserved, Joel Sutherland, 2010
Opportunity: Develop lean and agile SC capabilities that allow rapid response to customers’ changing needs and
provide variable cost structures that fluctuate with revenues.
Opportunity: Provide effective visibility tools and facilitate the identification, collection, and use of information to
improve supply chain performance.
Opportunity: Become an expert in managing a variety of potential supply chain disruptions. Enhance processes and IT to more effectively monitor and respond to disruptive events.
Opportunity: Facilitate increased coordination, integration, and collaboration with shippers and suppliers, utilizing information
technology, to improve end-customer satisfaction.
Opportunity: Provide end-to-end solutions, including comprehensive visibility and event management, to ensure
reliable service and lowest total supply chain costs.
SC costs are significant and the pressures to reduce costs are severe
Supply chains are global, increasingly complex, and challenging to manage
Effective SC management has a high impact on customer service
SC disruptions can be catastrophic if not planned for
Technology is a game-changer
Takeaways
All rights reserved, Joel Sutherland, 2010
Interactive Discussion
What are YOU doing in each of these areas?
All rights reserved, Joel Sutherland, 2010
Contain SC Costs
Increase SC Visibility
Prepare for SC Disruptions
Improve Customer Service
Expand Globally
Questions?
All rights reserved, Joel Sutherland, 2010
Joel Sutherland Managing Director
Center for Value Chain Research Lehigh University