Major 3PL Fuels Growth with AGI

Profile American Port Services (APS) is a leading third party logistics provider for major high-volume retailers, manufacturers and shippers. Delivering “one-stop-shopping” supply chain and logistics capabilities for the nations largest companies, APS offers a full range of services including multi-modal transportation management, fleet management, warehousing, cross-docking, export-packing facilities and supply chain tracking from overseas, through the port, to the end destination. APS’ proven legacy and strength in logistics enables the company to deliver high quality services that address the specific needs of each and every client. By leveraging the latest logistics expertise, solutions and technology, APS creates “mission-specific” facilities for multiple clients across more than 4 million square feet of distribution and warehouse space in Houston, Savannah, Charleston and Norfolk. Challenge Globalization in the midst of greater variability and complexity across the supply chain has forced logistics services providers like APS to seek new levels of flexibility and visibility across their operations to remain competitive. To position itself for growth with the major retailers, APS realized it needed to become a logistics leader. This meant ramping up supply chain capacity to improve operational efficiency, expand service offerings and gain visibility into critical information across the supply chain. After deploying new warehouse and yard management (WMS/YMS) packages in early 2003, APS was still very limited in handling the high-volume, multi-channel demands of today’s retailers. Because they were relegated to manual, inefficient processes in many areas, APS could not deliver the return on investment (ROI) or flexibility of services they needed to be a single-source provider for the big box retailers. Key issues included poor visibility and limited access to real-time supply chain information, which hampered APS ability to efficiently forecast or plan

Increased supply chain efficiencies and visibility enable leading logistics services provider to boost revenues with the ‘Who’s Who’ of Retailing including Wal-Mart, Target and Kohl’s.

“We needed to think outside box – beyond the four-walls and across the supply chain. A warehouse management system was just not enough to address the needs of our large customers. We needed a comprehensive set of new systems, processes and technology that could offer immediate business benefits to our growing customer base.”

- George Powers CEO, APS

RESULTS:

• Significant revenue growth through new major customer acquisitions

• Flexible business model enabling expanded service offerings and the ability to address emerging industry and regulatory initiatives

• Real-time information pipeline proving faster, more accurate decision-making capability

operations to streamline costs, optimize resource utilization, and alert customers on order or shipment status. In addition, APS was concerned about their ability to address evolving industry and regulatory requirements such as radio frequency identification (RFID) and traceability of shipments and products. After a thorough search for a strategic partner with extensive retail logistics experience, APS turned to AGI Worldwide to help them optimize current and future supply chain investments, grow revenue opportunities and differentiate themselves from other outsourced logistics providers. Solution After a thorough assessment of existing capabilities against market drivers, AGI worked with APS to identify, define and deploy flexible supply chain processes, software and technology that would set them apart from other logistics providers. From enabling flexible business models and creating an information pipeline to implementing real-time location services (RTLS) and radio frequency identification (RFID) technology, AGI provided the comprehensive supply chain expertise and support to enable APS to drive critical retail initiatives. AGI designed a variety of initiatives around industry best practices to ensure flexible business models that would be responsive to customer and market requirements as they change. At the core of the IT infrastructure, AGI redesigned APS’ host processing system into a framework that provided significant quality, performance and service enhancements capable of handling high volume, multi-channel order and shipment processing. The new framework ensures reliable delivery and processing of massive EDI, host and WMS data. With a comprehensive team of facility design specialists, integration experts, process analysts and developers, AGI worked to optimize APS’ WMS, YMS and other supply chain investments beyond basic system upgrades. They were able to test and deploy system changes while maintaining the flexibility to react to inter-project challenges to minimize disruption to APS’ daily operations. In the end, AGI’s optimization efforts resulted in the redesign, development and implementation of over 20 new and improved distribution processes. To provide global event management and 24x7 visibility into inventory, order and shipment information, APS deployed AGI’s VizTrack solution. Re-branded TotalView for APS, APS now has a solution that integrates their supply chain systems with partner, supplier and vendor systems for a complete supply chain-wide view of critical information and events. APS customers also have a personalized view through a robust and secure web interface of their own pertinent logistics information. AGI also stretched the limits of leading edge technology for APS by deploying state-of-the-art RTLS technology in APS’ 60-acre cross- docking facility in Savannah in order to better serve the world’s largest

“AGI understands the drivers of our industry, our business and our systems, and their expertise has enabled us attract major retail customers. We can leverage multiple new systems, processes and technologies that offer immediate business benefits to our clients.”

- George Powers CEO, APS

“Global access and reporting puts critical supply chain and financial information in the hands of the decision-makers immediately, allowing APS and our customers to focus on making the best decisions for the business.”

- Ty Cobler VP Operations, APS

retailer. They deployed a full-featured, flexible system with Wi-Fi and active RFID to track over 1,000 container/trailer spaces within three meters and integrated this system with APS’ existing yard management solution. Additionally, AGI helped APS conceptualize and deliver a solution to address the growing RFID requirements of its customers. AGI pulled together the software, hardware and integration components to make RFID a reality for APS. Prior to AGI, APS only had a small help desk for desktop and minor warehouse management support. AGI fortified APS’ IT strategy with an interim CIO and who developed a professional team capable of supporting current and future supply chain investments in a cost-effective manner.

Results Significant Growth with the Retail ‘Who’s Who’. Armed with a supply chain to continually meet the demands of the world’s largest retailers, APS experienced immediate benefits by further enhancing business with the world’s largest retailer and signing a host of new customers from the ‘Who’s Who’ of retailing. In 2004, these new major retail customers combined for $61.2B in revenues and 6,585 stores. Flexible Business Model Expand Services, Enables Compliance. APS is now able to get a new major retail customer up and running with customized services in less than thirty days. This ability to quickly and cost-effectively respond to customer and market requirements is due to the flexibility of its business model. By optimizing business logic across tightly integrated supply chain processes and systems from the order to the warehouse and beyond, APS can deliver the right services to the right customer at the right time both now and in the future. This includes emerging industry and regulatory compliance requirements including RFID and traceability. Real-Time Information Pipeline. With AGI’s VizTrack, APS and their customers have real-time visibility 24x7 across the supply chain enabling faster, more accurate decision-making. With the ability to configure service levels, business rules and key performance indicators (KPIs) by customer, APS has dramatically improved efficiency, accuracy and the ability to efficiently and cost-effectively address clients’ needs. With configurable alerts and automated transactional information on events, APS can notify customers in advance of any potential service issues further streamlining planning and operational costs for APS, as well as strengthening APS’ partnership with their retail customers. Foundation for Growth. APS now has a solid supply chain foundation with the right people, processes and systems to effectively drive current and future growth.

“AGI has given us the knowledge and tools we need to more effectively and efficiently manage our business. We have finally become what we have strived for years to achieve, a “one-stop-shop for logistics services for the nations’ largest retailers.”

- George Powers CEO, APS

ABOUT AGI WORLDWIDE

AGI Worldwide is a leading global provider of supply chain execution (SCE) solutions and services. We provide clients with a full range of consulting and technology implementation services helping to improve operational and logistics performance. We have extensive experience in a wide range of services, including strategic planning, solution design and development, software selection and implementation, process re-design and improvement, as well as existing systems integration. Our consultants are experienced in a diverse set of industries, consulting activities, and various packaged software implementations. For more information, please visit www.agiworldwide.com.