Navigating your supply chain from strategy through implementation Supply Chain & Logistics Solutions
Strategy through implementation to save time, reduce costs and mitigate risk. Supply Chain & Logistics Solutions Our clients face many challenges today. Economic uncertainty, volatile fuel costs, increasing customer service requirements and global complexities, to name a few, all play a critical role in your real estate decisions. That s why, at Jones Lang LaSalle, we make it our job to understand your entire business not just your real estate needs to save you time, reduce costs and mitigate risk. 60% 50% 40% 30% 20% 10% 0% 50.3% 21.8% 9.5% 7.8% Logistics typically accounts for 80% of the operating costs. Real estate typically accounts for less than 5%. 4.3% 2.7% 2.2% 1.2% Transportation Inventory Labor Customer Service Rent Admin Supplies Other Source: Exchange, Inc.: Logistics Cost & Service Report No other fi rm offers expertise in so many disciplines for its clients resulting in profi t-enhancing, cost-saving outcomes. Our integrated approach Jones Lang LaSalle s delivery model differs from traditional brokerage or consulting fi rms by integrating supply chain strategy with proven implementation services that save time, reduce costs and mitigate risk. We offer a full range of professional services including supply chain consulting, real estate advisory, tax and economic incentives, corporate capital markets, project and development services, facilities and energy and sustainability solutions to expedite implementation and maximize return on investment. Supply chain consulting Real estate advisory Taxes and economic incentives Corporate capital markets Project and development services Facilities Energy and sustainability solutions Network strategy Inventory optimization Transportation Workforce analysis Logistics outsourcing Facility design Supply chain visibility Performance metrics Location selection Brokerage Local market expertise Competitive landscape Analysis & modeling Negotiations Application & documentation Monitor & tracking Lease vs. buy analysis Debt & equity fi nancing Accounting, tax and fi nance expertise Build-to-suit fi nancing Sale leasebacks Facility planning Design & construction Value engineering Cost, schedule & quality control Driving cost savings Experience with multiple facility types Engineering operations resources and expertise Intelligent reporting and communication interfaces Sustainable strategies Baseline and benchmark portfolio performance Portfolio-wide Energy/Sustainability Management programs
Our dedicated Supply Chain & Logistics Solutions team helps clients grow profitability by combining supply chain consulting with proven implementation services. Supply chain consulting services Network strategy Objectively evaluate cost and service related trade-offs of various supply chain networks Utilize sophisticated, leading-edge network optimization tools Identify alternative supply chain scenarios and test for sensitivity to changes in cost, service, capacity and workforce constraints Provide fact-based recommendations from our analysis on how best to service your clients at the lowest-landed cost Inventory optimization Map inventory fl ow, positioning and true carrying costs Leverage technology and work closely with our clients to develop process improvements, accurate lead-time forecasting models and service-level analyses Serve as an objective advisor, providing information on the optimal balance between service and inventory levels to maximize effi ciency without sacrifi cing service Transportation Identify and drive savings to one of the largest cost components in the supply chain through both tactical cost reductions and strategic operating improvements Utilize strategic transportation planning software and proactive improvement techniques to identify areas of opportunity for savings by modal allocation, lane effi ciency, available capacity and alternative transportation Logistics outsourcing Provide unique market insight and sound decision making to your organization s outsourcing process Analyze supply chain operations and procedures along with your requirements to make objective evaluations and, if applicable, selection of outsourcing candidates Help maximize savings and implement successful partnerships through informed negotiation Location selection Minimize the impulsive nature of real estate decisions by fi rst prioritizing the operating considerations across the supply chain Employ a proven multi-tiered elimination process for location selection Maximize the value of location selection through thoughtful logistics analytics and integrated business and economic incentives negotiations Workforce analysis Mitigate risks and maximize savings through the quantifi cation of workforce sustainability, productivity and cost Assist in developing key workforce evaluation criteria to benchmark against best-in-class locations Test prospective locations through competitive labor interviews, predictive economic-psychographic analytics, future wage progressions, workforce availability and historical organized labor activity Facility design Conduct cube utilization studies, product fl ow analytics, truck fl ow analysis, trailer parking confi guration analysis and security and theft prevention strategies to design innovative distribution facility layouts Provide alternative automated material handling solutions Supply chain visibility Develop a best-in-class tool to provide a repository of real-time data on inventory status, an interactive operational system to execute critical decisions on accelerating or decelerating the fl ow of product predicated on demand, and alerts on service performance and cost liabilities Performance metrics Review internal operations and cost structures to develop metrics reporting that monitors cost-effective service by benchmarking your key performance indicators Assist in establishing the critical balance between cost effectiveness, service and profi tability by identifying and developing the most effective operational performance metrics for your business
Spring 2011 Myth vs. reality Many people believe that the United States has lost its longtime global edge in manufacturing. They lament that U.S. manufacturing jobs have been outsourced in recent decades to countries such as China, India, Mexico and Vietnam, to name a few. Many believe that most everything is now made overseas (or soon will be) due to lower labor costs. The perception is that the United States manufacturing superiority is forever shattered. Part of the assumption is true: The fact is that the number of manufacturing jobs in the United States has been steadily declining Less is more over the past 40 years. Manufacturing employment in the United Although manufacturing employment in the United States has trended States, as a percentage of total payrolls, has decreased from down for the past 40 years, the achievement which often goes untold is 25 percent in 1970 to just 8 percent today. One in six United States that manufacturing output as measured per employee has increased factory jobs has disappeared since the start of 2000. steadily during the same time frame. It is up 70 percent since 1977. 1 count. By many other measures that mean more to long-term operational improves is that U.S. manufacturing businesses have learned to do more with less. Productivity is at an all-time peak. According to William United States has not lost its manufacturing edge; the advent of global sharpened it. 2 death of U.S. manufacturing are greatly exaggerated. This paper 1. The Centrality of Manufacturing to America s Future Prosperity, New America Foundation, February 14, 2011. 2. The Future of Manufacturing, The Midwesterner: Blogging the Global Midwest, selection decisions. Manufacturing employment as a portion of Real manufacturing ouput per employee Real manufacturing ouput total payrolls 30% $120 1,800 1,590 25.13% $110 25% $100 1,500 20% $80 1,200 15% $60 900 8.88% 605 10% $34 $40 600 5% $20 300 Our clients say it best Strategy through execution From day one, Jones Lang LaSalle had a very strategic approach and took the time to understand our business and culture translating our operational needs into the right overall solutions for us. Stefan Jacoby, President & CEO Volkswagen Group of Americas Innovative solutions "JLL's Reverse Location Selection analysis was incredibly valuable in understanding the "bigger picture" surrounding our real estate asset. We vercomingwere extremely impressed with JLL's supply chain consulting team. We are now able to quantify the value of our asset from the perspective of a corporate user/buyer so to maximize our return on investment. Ed Konjoyan, Vice President Supply chain expertise "JLL was able to compliment our project team with specific tools, proven methodologies, and the supply chain optimization modeling expertise to provide a fact-based, objective analysis to support our long-term direction and decision making process as well as the capabilities to support implementation." Michael Gielink, Director of Manufacturing & Supply Chain Akzo Nobel Overcoming a challenge Matching our transportation, labor, and real estate requirements was a difficult project. Jones Lang LaSalle was consistently patient, tolerant and imaginative in coming up with the best possible solutions. Their willingness to bring in additional outside resources demonstrates their extraordinary lack of ego that makes working with them such a pleasure. Jodi Dalton, Real Estate Manager, Walgreen Co. Comprehensive approach Jones Lang LaSalle is comprehensive and results-oriented in their approach. From initial business needs assessment through project implementation, they always ensure that all areas of our supply chain are analyzed and optimized. They are a true business partner for us. Bob Wickett, Director, Supply Chain KAO Brands Company Our thought leadership stands out Our team of in-house subject matter experts combine supply chain consulting and diverse industry expertise, along with leading-edge tools and technologies, to deliver creative solutions to complex operational challenges. We work closely and collaboratively with you to provide specialized knowledge and r resources. We partner with the leading supply chain industry organizations, such as the Council of Supply Chain Management Professionals (CSCMP), Warehouse Education Research Council (WERC), and Association of Operations Management (APICS), as well as leading academic institutions on topics that put us constantly at the forefront of the critical business issues impacting our clients. Perspectives on global manufacturing site selection Made in America A case for U.S. manufacturing thousands billions
For information concerning Jones Lang LaSalle s Supply Chain & Logistics Solutions team, please contact: Richard H. Thompson Managing Director Jones Lang LaSalle direct +1 773.458.1385 mobile +1 312.810.1099 rich.thompson@am.jll.com www.us.joneslanglasalle.com/industrial or www.us.joneslanglasalle.com/supplychain A collaborative team Jones Lang LaSalle has more than 70 dedicated supply chain and logistics professionals in virtually every major U.S. market. These professionals have a unique combination of commercial real estate, industry and supply chain experience and undergo an intense inhouse training program focused on the latest supply chain trends and strategy accredited by the Council of Supply Chain Management Professionals (CSCMP). Many are members of CSCMP as well as the Warehouse Education Research Council (WERC), and the Association of Operations Management (APICS); collaborate with leading academic institutions; speak regularly at seminars and events; and are quoted in the trade press. Americas EMEA Asia Pacifi c When needed, we draw upon our global resources from Real Estate Advisory, Tax and Economic Incentives, Capital Markets, Project and Development Services, Facilities Management as well as Energy and Sustainability Solutions. Our global, integrated platform allows us to meet your far-reaching needs while a single point of contact ensures quality, consistency and responsiveness. 80 offi ces 535 cities 14 countries 76 offi ces 123 cities 31 countries 64 offi ces 73 cities 14 countries Jones Lang LaSalle Worldwide Jones Lang LaSalle (NYSE:JLL) is a professional services and investment fi rm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the fi rm provides and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and fi nance transactions in 2012. Its investment business, LaSalle Investment Management, has $47.7 billion of real estate assets under. For further information, visit www.jll.com. Jones Lang LaSalle Brokerage, Inc. License # 01856260 Jones Lang LaSalle Americas, Inc. License # 01223413 2013 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.