parcel forum 2010 presentation
DESCRIPTION
This is a presentation that I did for the Parcel Forum. This highlights what I have been able to do at Bakers to reduce transportation cost along with time.TRANSCRIPT
Techniques to gain an advantage
with the BIG Small Package Carriers
Charlie KantzVP Logistics/Warehousing
Bakers Footwear Group
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Speaker’s Background
• 20 years of Retail Logistics Experience
• 15+ years of Working with Small Package carriers
• Expert at bridging the gap between current and innovative.
• Independent consultant (on the side)
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Opportunities to SaveCountry of Origin Labeling
Optimized Distribution
Zone Skipping
Regional Small Package Carriers
CWT Pricing
Freight Audit and Contract Negotiation Specialists
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Assumption Page
• 100,000 packages per year• Average wt 30 lbs per carton• Destinations across the US• Only Business to Business cartons
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Country of Origin Labeling
• What is Country of Origin Labeling?
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The Normal Supply Chain DesignFactories Consol
Center3PL
WarehousesRetailStores
BakersHQ
Bakers Warehouse
Labeled by 3PL in
Coastal DC
Factories in China
prepare goods
Delivered to CFS and
loaded onto containers
Allocations sent to 3PL after arrival
into US
Container arrives in Coastal 3PL
Shipped to Stores
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Origin Labeling
Supply Base
Consol Center
LA 3PL Warehouse
RetailStores
BakersHQ
DELIVERIES
RECEIVEINVENTORY
CARTON LABELS
AVAILABILITY
ALLOCATIONSSHIPMENT
LABELS
OPEN ORDERS
PLD TO SMALL PACKAGE CARRIER
STORE DELIVERIES
Shift Labeling to Shenzhen
Consol CenterXShift Labeling
to Shenzhen Consol Center
X
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Savings Scorecard
• Country of Origin savings($.50) $ 50,000
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Optimized Distribution
• What is Optimized Distribution?
• Benefits?
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Optimized Distribution
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Savings Scorecard
• Country of Origin savings ($.50) $ 50,000 • Optimized Distribution $100,000
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Zone Skipping
• What is Zone Skipping?
• Bakers Zone Skip Program
• Home Delivery into the mix
• Things to keep in mind
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Zone Skip Quick Calc
• Zone 8 30lb box costs $17.17• TL cost $5480 (1000 on truck $5.48/ctn)• Drop location to stores Zone 2,3,4 and 5• Zone 2 $6.34, Zone 3 $7.34, Zone 4 $7.93,
Zone 5 $9.34.• Savings Z2 $5.35, Z3 $4.35, Z4 $3.76, Z5 $2.35• FDX Z-8 $17,170 Zone Skip $13,217.50• Savings $3,952.50 or $3.95/ctn (B/E 770 ctns)
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Savings Scorecard
• Country of Origin savings ($.50) $ 50,000 • Optimized Distribution $100,000• Zone Skipping
$197,625
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Regional Small Package Carriers
• What and Where are they?
• Differences from FDX and UPS
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Savings Scorecard
• Country of Origin savings ($.50) $ 50,000 • Optimized Distribution $100,000• Zone Skipping
$197,625• Regional Carriers(10%) $
38,500
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CWT Pricing
• What is CWT Pricing?
• Benefits to CWT Pricing?
• CWT Pricing vs. LTL
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Savings Scorecard
• Country of Origin savings ($.50) $ 50,000 • Optimized Distribution *$100,000• Zone Skipping
$197,625• Regional Carriers (10%) $
38,500• CWT Pricing (9%) $
34,500Total
$320,625Average $3.20/
ctn
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Freight Audit/Contract Specialists
• What do they do?• Benefits• What to look for?
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Conclusion
Charlie Kantz Bakers Footwear Group
314-621-0699 ext 170