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EXEL PLC BACKGROUNDCreated 2000, through the merger of MSASWorlds largest 3rd provider freight management and contract logistic services.44% of sales came from freight management 53% from contract logistics Exels extensive experience lead them to develop:-new services like in-store logistics-new business model called Lead Logistics Partner.HAUS MART BACKGROUNDOne of Germanys leading retailers of home textiles, housewares, home accessories.30% sales came from private-label merchandise70% sales came from brand-name merchandise

RELATIONSHIP BETWEEN EXEL PLC & HAUS MART

Exel first assigned contracts with HM in 1980Exel handle freight management of private-label productsIn 2002, Exels business development and solution design teams started working on Haus MartIn 2003, HM awarded the management of its five of six DCs to Exel

Outsourcing freight management and contract logistics to 3rd providers Why ?Companies should:- focus on core business - build competitive advantage in the market - consider warehousing and transport of the inputs and outputs

3rd logistic provider can:- negotiate prices- minimize costs in supply chain- collect, update, analyze about inventory levels, sales, routes, ect. - reduce errors and improve reliability of supply chains