Educating and Connecting the World s Supply Chain Professionals

Educating and Connecting the World s Supply Chain Professionals

CSCMP What We Deliver EDUCATION CAREER RESOURCES CONNECTIONS NETWORKING RESEARCH

EDUCATION BE A MORE EFFICIENT ORGANIZATION WHEN YOU RECEIVE THE MOST RELEVANT AND GLOBALLY MODERN SUPPLY CHAIN EDUCATION Online Courses A convenient and effective way to learn core supply chain topics 1. Supply Chain Management Essentials (SCME) - An innovative online course that covers the fundamentals of supply chain management 2. CSCMP s Supply Chain Quick Courses - Instructional webbased videos with teaching notes including coordinating terminology and definitions, test questions, an answer key, and recommended further studying material

EDUCATION BE A MORE EFFICIENT ORGANIZATION WHEN YOU RECEIVE THE MOST RELEVANT AND GLOBALLY MODERN SUPPLY CHAIN EDUCATION On-Site Education Customized curriculum delivered to your location o Choose an established on-site workshop topic and tailor the content to fit your needs, or o Design content focusing on your organization s needs to create your own curriculum o Established topics include: Change Management Fundamentals of Supply Chain Management Global Supply Chain Management SCM Collaboration Relationship Management Strategic Issues

EDUCATION BE A MORE EFFICIENT ORGANIZATION WHEN YOU RECEIVE THE MOST RELEVANT AND GLOBALLY MODERN SUPPLY CHAIN EDUCATION SCPro Certification A learning path for real world supply chain education. Three level certification includes: 1. Level One Cornerstones of Supply Chain Management 2. Level Two Analysis and Application of Supply Chain Challenges 3. Level Three Initiation of Supply Chain Transformation SCPro Level One is comprised of eight Learning Blocks: o Supply Chain Concepts o Transportation o Demand Planning o Inventory Management o Procurement and Supply Management o Warehousing o Manufacturing and Service Operations o Order Fulfillment and Customer Service

CAREER RESOURCES YOUR ONE-STOP SOLUTION TO FIND QUALITY SUPPLY CHAIN CANDIDATES FOR YOUR ORGANIZATION CSCMP s Career Center A niche site with a niche audience o Viewed by a global audience of more than 118,000 highly skilled supply chain management professionals Student Recruitment Day Save time and expenses when you meet dozens of the top supply chain students from around the world, in one day (at CSCMP s Annual Global Conference)

CONNECTIONS BE MORE VALUABLE TO YOUR CUSTOMERS WHEN YOU CONNECT WITH THOUSANDS OF TOP GLOBAL SUPPLY CHAIN PROFESSIONALS Membership 9,000 supply chain professionals in 50-plus countries 1. Individual Membership o o o o o CSCMP/AME joint membership In-Transition Military Student Young Professional (YP) 2. Corporate Membership o o o Easy choose from three standard packages, or customize a package Flexible transferable, company-owned memberships Personal - a Strategic Account Manager and Innovator (SAMI) will answer your questions and address all of your CSCMP needs

CONNECTIONS BE MORE VALUABLE TO YOUR CUSTOMERS WHEN YOU CONNECT WITH THOUSANDS OF TOP GLOBAL SUPPLY CHAIN PROFESSIONALS CSCMP Roundtables Build your business and industry contacts when you collaborate and connect at local educational activities and events University Relationships Gain connections to leading academia from the top global supply chain programs

NETWORKING BE MORE VALUABLE TO YOUR CUSTOMERS WHEN YOU CONNECT WITH THOUSANDS OF TOP GLOBAL SUPPLY CHAIN PROFESSIONALS Annual Global Conference 3,500-plus attendees from 50-plus countries Network with top FORTUNE 50 companies Learn about the latest research, ideas, and solutions to keep your supply chain effective and competitive 2013 Denver, CO 2014 San Antonio, TX 2015 San Diego, CA International Conferences Singapore January 2014 Annual CSCMP India Conference April 2014

RESEARCH DRIVE BUSINESS WHEN YOU ARE UP TO DATE ON BEST PRACTICES AND IDEAS WITH CSCMP RESEARCH Annual State of Logistics Report CSCMP Explores CSCMP Global Perspectives CSCMP Hot Topics CSCMP s Supply Chain Quarterly Publications and Video Updates

24 th Annual State of Logistics Report Is This The New Normal? UPDATE CSCMP Annual Meeting Denver, Colorado, USA October 22, 2013 Rosalyn Wilson r.wilson@delcan.com 703-587-6213

Annual State of Logistics Report 2013 Panel Marc Althen President, Penske Logistics Stevan Bobb EVP and Chief Marketing Officer, BNSF Railway Beth Ford EVP, Chief SC and Operations Officer, Land O Lakes Paul Higgins VP SC Solutions, Alliance Shippers, Inc. Deverl Maserang Executive Vice President, Global Supply Chain, Starbucks Kevin Smith President and CEO, Sustainable Supply Chain Consulting Rosalyn (Roz) Wilson Senior Business Analyst, Delcan Corporation

$ Trillions US Business Logistics Costs 0.95 1.03 1.17 1.31 1.39 1.34 1.10 1.20 1.29 1.33 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Logistics Cost as a Percent of GDP 8.5 8.7 9.3 9.8 9.9 9.4 7.9 8.3 8.5 8.5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

The US Business Logistics System Cost is the Equivalent of 8.5 Percent of Current GDP in 2012 Carrying Costs - $2.269 Trillion All Business Inventory Interest Taxes, Obsolescence, Depreciation, Insurance Warehousing Transportation Costs Motor Carriers Truck Intercity Truck Local Other Carriers Railroads Water (International 27, Domestic 7) Oil Pipelines Air (International 13, Domestic 20) Forwarders $ Billions 3 302 130 Subtotal 434 445 202 Subtotal 647 72 35 13 33 37 Subtotal 189 Shipper Related Costs 10 Logistics Administration 51 TOTAL LOGISTICS COST 1,331 May not sum to total due to rounding Up 4.0% Up 3.0% Up 3.4%

Total US Business Inventories 2,500 Billions of Dollars US Recessions 2,000 1,500 1,000 500 0 Source: U.S. Department of Commerce, Census Bureau

Millions of Dollars Inventories Remain High 750 700 650 600 550 500 450 400 350 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 Retail trade Wholesale trade Manufacturing Source: U.S. Department of Commerce, Census Bureau

Interest Rates Remain Low Because of QE3 Source: Board of Governors of the Federal Reserve System

Truck Industry Recap Rates were flat for much of 2012; tonnage up 2.3 percent Truck capacity is tight and utilization rates are at 95 to 97 percent; driver shortage persists with greater problems looming Costs continue to climb, but rates have only inched up Truck sales gained strength, but have not reached replacement levels; used truck prices soared and the supply has dwindled Regulatory issues will affect productivity CSA enforces stricter qualifications, new health requirements, and hair follicle drug testing has reduced the pool of eligible drivers Prospect of EOBRs New Hours of Service rule went into effect July 1

Truck Tonnage Index Source: American Trucking Associations

Class 8 Truck Registrations and Drivers Sources: Bureau of Labor Statistics and R.L. Polk

2012 Recap for Railroads Freight revenue increased 4.3 percent Car loadings were down 3.1 percent Intermodal volume was the second highest on record Ton-miles decreased 1 percent $13 billion capital spending on road and equipment was 16.1 percent higher than 2011

2012 Recap for Maritime Ocean carriers positions are slowly improving Barge traffic on the inland waterways has been hampered by water levels, especially in the summer emergency dredging was needed to deepen channels Volume down because of drop off in coal and agricultural products affected by drought in the Midwest Great Lakes shipping showed signs of recovery in 2012, after several slow years Jones Act in active debate again Maritime infrastructure, especially inland waterways, is in dire need of investment and Congress is formulating a comprehensive waterways package to address the issue

US Ports Performance is Mixed in 2012 Source: Individual port reports

Domestic air cargo ton-miles were up 2 percent and international were down 3.9 percent, for a total drop of 3.6 percent Total tonnage declined 2.2 percent 1.4 percent for international and 0.1 percent for domestic U.S. airlines moved more than 48,000 tons of cargo per day Jet fuel prices were up 2.9 percent The growth of cargo space in passenger jet bellies and their relative cost advantage is putting significant pressure on all cargo jets 2012 Recap for Air The cargo jet fleet was reduced by 30 aircraft, yet yield factors deteriorated again 2012

$ Billions US Third Party Logistics Market 160 140 120 100 89.4 103.7 113.6 119.0 127.0 107.1 127.3 133.8 141.8 80 76.9 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Armstrong and Associates

US 3PL Market Segments 2012 Net Revenue Total $63.5 B 4.1% Domestic Transportation Management $6.3 B 5.4% International Transportation Management $17.9 B 1.0% Dedicated Contract Carriage (DCC) $11.4B 4.7% Value-Added Warehousing and Distribution (VAWD) $27.6 B 3.8%

Recent Developments Source: Bureau of Labor Statistics

Only 148,000 Jobs created in September

Truck and Rail Volume in 2013 has Been Mixed Sources: American Trucking Associations and Association of American Railroads

Cass Monthly Freight Index Source: Cass Logistics, Cass Freight Index, January 1990 = 1.0

Peak Season Bump

Freight Summing Up Freight volumes have been increasing slowly and unevenly Trucking industry capacity problem is a serious issue and could hit the tipping point next year Economy Expect continued slow growth GDP around 3 percent Higher inventories could become a drag on the economy While hiring is growing and the unemployment rate is slowly dropping; jobs are not keeping up with population growth and the biggest growth sector is part-time jobs Consumer sentiment had been rebounding, but took a hit during the government shutdown Budget and debt ceiling resolutions put off again

3D Printing is at an inflection point 34 $15+ billion industry by 2017 The lead time for 500 units has been shortened to three days. In the aircraft world, that s quick for certified production parts. Justin Kelly, Kelly Manufacturing Company Functional parts now most prevalent Source: Wohler Associates, Stratasys, Liberty Advisor Group analysis

3D Printing changes everything 35 1. One printer makes many shapes >> No retooling 2. Small footprint manufacturing >> Production everywhere 3. No lead time from design to production >> Instant speed-to-market 4. Skill is in design, not manufacturing >> Anyone can make everything 5. Only make what s required >> No waste by-products 6. No assembly required >> Reduced product complexity 7. Infinite blends of materials >> Better products 8. Duplicate, edit, copy physical objects >> Make what you see 9. Unlimited design space >> Think it, make it! 10. The printer does it all >> Manufacturing complexity is free Source: Melba Kurman: 10 Principles of 3D Printing, Liberty Advisor Group

3D Printing readiness issues Economics o Identify immediate opportunities for 3D Printing to save cost/improve features/increase service on existing product offerings o Map intermediate and long term opportunities for 3D Print conversion Internal factors: products, suppliers, processes, customer sacrifice, etc. External factors: materials, printer capacity/cost, infrastructure, etc. Product Development & Innovation o New part properties o Simplified components o Lighter weight o Repair rather than replacement Organization o Product development and manufacturing integration Re-design for 3D Printing, not traditional production technologies - New part properties based on new capabilities - Simplified components - Lighter weight, etc. Integrate 3D Printers as suppliers in production lines Crowd-sourcing vs. traditional procurement Process re-engineering

Where do I begin? 1.SHOULD I utilize 3D Printing in my supply chain? 2.for WHAT products? 3.WHEN should I do so? 4.and HOW? WHAT to 3D print? Material specifications Volume / demand Design complexity/maturity Product/part availability Cost: end-to-end Customization Supply system complexity Internal factors WHEN to 3D print? Yes External factors Materials availability and cost Size/speed/cost of 3D printers Service Bureau infrastructure Rights management/authenticity Organizational readiness, 37

Thank You Chris Adderton, Vice President cadderton@cscmp.org 3D Printing Sources: CSCMP Member, Liberty Advisor Group www.libertyadvisorgroup.com Contact: Peer Munck, Partner pmunck@libertyadvisorgroup.com 38