33 3PL: If, When, and HowIf - there is strategic advantage to do so an a positive contribution to EVA.When - there are opportunities to take advantage of consolidation opportunities and/or specialization of work.How - partner relationship management.
37 Food Service Profile Strengths Private fleet with 343 tractors and 517 trailersSlow movers consolidated in single facilityFixed routesBackhauls designed into 20% of fixed routesManagers evaluated on cases per truck, collisions, error rateGFS controls 70% of inbound freight, carrier selectionFormal carrier evaluation & monitoring processDynamic routing systemOn-board positioning and reroutingSome inbound consolidation planning90% inbound trailer utilization
38 Transportation Management System Case Example U.S. Chemicals
43 Long-Term Design Principles There is justification for an integrated TMS incorporating freight, container, and shipment management.SAP will not be the long-term solution provider. Current TMS vendors are moving too fast and have a higher commitment to transportation solutions. Logistics is not a SAP priority.SAP interface development = custom development in time and expense.Vendor developments are leading to consolidated applications functionality and industry solutions.The long-term solution design should be based on justifiable best, not current T&D practices and strategies.
45 TMS Team Organization Executive sponsor from the user community. User-IT teams for each TMS functionality family (i.e. FM, CM, SM, DS).IT Team Leader to be Project FOCUS liaison.T&D Team Leader to be Common Process liaison.Subject matter expert facilitator to assist IT & T&D team leaders.
46 TMS Transaction Database & Data Warehouse Design Based on transportation objects (i.e. carriers, containers, orders, shipments, etc.)Relational and consistent with IT Standards (i.e. ORACLE, Sybase)Data Warehouse fields should parallel transaction database fields where possibleSingle-point data entry and on-line data integrity audits
47 TMS Strategic Decisions: Outsourcing, SAP, CDI, CDE, BOB Vendor and package review to focus on large TMS providers, and alternative links with Internet applications, outsource providers, and carrier/freight forwarder applicationsEvaluation of budget, time, risk, and benefits of each functionality development alternative (i.e. outsourcing, status quo waiting for SAP solution, internal custom development, external custom development, and best-of-breed package implementation)Custom development vendor candidates should have at least 50% of required functionality already developed and verifiable operatingStrategic partnerships with outsource and/or custom development vendorsFollow Amoco corporate guidelines for evaluating and selecting development direction
48 ExerciseOur biggest opportunity for improvement in transportation & distribution is: ________________________________________________________________________________________________________________________________________________________________________________________________