may 2007 transportation best practices
TRANSCRIPT
May 2007
Transportation Best Practices
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Overview of C.H. Robinson Worldwide 102 year Tradition of excellence (founded in 1905) Leading 3PL of transportation, distribution, sourcing and
other supply chain services 2006 gross revenues in excess of $6.5 billion Over 6,700 employees in 214 offices worldwide Over 5.2 million shipments delivered for over 25,000
customers in 2006 Contracts with over 45,000 carriers worldwide Publicly owned and traded on NASDAQ (CHRW)
Ranked 349 on Fortune 500 (Ranked #1 in our industry)
Overview cont’d
…. 4th largest produce / sourcing companies in the North America.
CHRW had it’s beginning in the buying and selling of produce
2006 Sourcing sales were 8.7% of CHRW gross profit
2006 Produce volume, over 90 million
cases sold 430+ employees dedicated to produce
and perishable transportation 28 produce offices in major cities and
growing areas
North American Network
Now OpenYoungstown, OH
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Overview Cont’dWHAT WE DOManage and execute supply chain activities for our customers
Basic Services• Transaction sourcing/transportation
• Product development
• Procurement
• Transportation
• LTL
• Carrier/mode management
Value Added Services• Logistics
• Replenishment
• Facility management
• Business & category analysis
• Supply chain analysis
• Total project management
Driver Availability– Ensuring Capacity Meets Supply
Collaborative Capacity Planning
Product Need Drives Mode
Sustain and Grow the Carrier Base
Driver Availability– (Impact)
Loyalty at a Cost
Volatility of Rates
Supply Issues
Loading – How Best Practices impact efficiency in loading a shipment.
Supply Chain Efficiency
Freshest product to market
Capacity Increases
Unloading – Impact of poor receiving practices
Supply Shortages
Inflated Rates
Rejection Process (Important steps to follow)
Notify All Parties of the Issue
Be Available
Document Everything
Seek Guidance from Peers and Industry Experts
Rejections - How to ensure loads aren’t rejected
Teach/Train the Driver/Carrier
Define Your Expectations
Be Proactive/Over Communicate Your Expectations
PULP EVERY PALLET
Check Product Temps Daily
Rejections - Impact of a rejected load
Sub Par Quality Product in the Marketplace
Rates Increase
Supply Issues/Shortages
Waiting Times – How to communicate delays
Call Carrier to call the shipper/receiver immediately of the delay. Shipper/Receiver to call carrier to provide new pick up/delivery
time and verify new time can be met. Follow up
Follow up with an email/fax reviewing discussion and requesting new pick up/delivery times.
Notice gives customers a chance to fill shortsCustomers require updates so they can either buy product to
cover the orders, halt or reschedule production and advise receiving of delays to limit staffing.
Avoid/limit penalties for missing original delivery times.
Waiting Times – Why communicate?
Lumper and gate fees – Who is responsible?
Unloading responsibilities• Who owns it?
–ReceiverClearly define costs to each carrier prior to negotiating terms
How is unloading paid? (Avoid cash transactions)
Pallet exchange policy