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Consulting

Technology

Outsourcing

Providing total solutions, rather than advice.

Utilizing the latest technology to enable and generate new business opportunities for you.

Creating value by delivering lifecycle solutions and bottom line results.

Bringing value-based solutions to our clients to help build bridges for the future.

We quantify our results so you see the value.

Consulting

Technology

Outsourcing

Relationships

Improved Profitabilit

y

Driving hard for our clients

Decades of experience

Routinely achieve 8% to 12% savings for our clients

Achieved as much as 50% savings in LTL categories

Utilize best practices in the industry

“Big Four” Consulting at a competitive cost

Warehouse, Distribution, Transportation, Logistics – Our Core Competency!

Implementation

Obtain visibility into enterprise spend to identify and prioritize sourcing activities

Use Best in Class methodology and templates to reduce effort for client

Customized application of RFP’s to uncover underlying category economics

Unlocking unrealized potential by letting carrier bid on strengths

Iterative bid analysis uncovers “what if” scenarios Review carrier consolidation opportunities Supported by comprehensive complement of analytic reports to

ensure feasibility

Track implementation and actual savings, based on initiative recommendations

Identify secondary savings opportunities through sustained focus on quality

Highlight non-compliance and savings leakage for immediate remediation

Sourcing Process

Transport Sourcing Methodology

BaselineData Prep

Proposal Collection

Bid Analysis

Transportation

Management

Typical Scenario After six to eight months, actual savings can fall short of expectations by >40%

Time

Savin

gs Savings shortfall

due to weak compliance tracking

Savings erosion due to weak category

management

Projected Annualized Savings

Impl

emen

tation

Sav

ings

Projected savings can erode rapidly without ongoing maintenance after implementation

Carriers don’t accept tendered loads Non-compliant carriers used

New lanes emerge as supply chain partners change their networks

Volumes shift as loads are optimized

Transport Support

Strategic Alignment

Relationship

Leveraged

Drivers of Provider SelectionDrivers of Provider Selection

Consolidation of requirements amongst carriers

Operational integration based on historical successes

Systematic matching of changing capacities and capabilities

NotesNotes

This is an iterative and evolving

process

Timely progression through the

appropriate stages is key for deriving

incremental benefits

The majority of carrier relationships

surveyed are being managed on the

relationship level today

This is an iterative and evolving

process

Timely progression through the

appropriate stages is key for deriving

incremental benefits

The majority of carrier relationships

surveyed are being managed on the

relationship level today

Pro

gre

ssio

n

Emphasis on building relationships with a few core carriers

Significant opportunities are uncovered when transportation has been managed based on strong relationships

Broad Strategic Sourcing Experience Supported numerous teams with services

that provided combined savings in excess of $200 million

Deep Transportation Sourcing Expertise Sourced over $1 Billion of global spend,

generating an average savings of 14% per initiative

Routinely advise strategy consulting firms, journalists, and analysts in transportation sourcing

Collaborative Carrier Approach Methodology produces long-lasting carrier

relationships Frequent accolades from carriers validate

collaborative approach

Recent Results

Result Result

International Air & Ocean

$3 million spend

TMG saved $700,000

NA Truckload $7 million

spend TMG saved

1.5 million

Result Result

LTL $15 million

spend Saved 23%

Inbound Freight

Converted terms

TMG saved 15%

WHY TMG?

Step 1 Step 2 Step 3 Step 4

Step 5

BaselineSpend

Components

SelectSourcingStrategy

DevelopProvider

Base

SelectImplementation Approach

Negotiate and

SelectProviders

IntegrateProviders

BenchmarkPerformance

Step 6 Step 7

7-Step Sourcing Methodology

Baseline Database

5.Award notificationsNegotiate agreements

1. Baseline Spend

4.Implementation ApproachFacility ProfilesRFI/RFPSavings Calculations

2. Site interviews

Data and Systems review

Sourcing Strategy

3. Develop Provider Base

6.Company AnnouncementIntegrate Providers

7.Organize KPI’sBenchmark PerformanceTrack Savings

Deeper into Sourcing Methodology

InputsOutputs

Cost-effective coordination of moving of the right material in sufficient quantities from manufacturing to storage.

Movement from storage centers to on-time delivery to customers

How Does TMG Implement Optimization?

Help client design and implement their physical distribution infrastructure: Detailed design of the “inside and outside the four walls” Helping clients address changes in their environment

Take in account factors such as: Postponement cross-docking Increased customer demands for accuracy, speed, value-added

services and flexibility

What is Distribution & Warehouse Optimization?

Distribution & Warehouse Optimization

Distribution operations account for the largest segment of assets in the supply chain, and the second largest segment of cost.

1. Distribution Strategy: Channel strategy performs customer driven market segmentation, quantifies cost to serve, optimizes go-to-market strategies, service requirements and associated distribution capabilities; network strategy rationalizes current distribution network

2. Warehouse Management Systems: Focuses on execution capabilities of warehouse, enabling distribution capabilities and integrating with other supply chain partners and providing transaction backbone

3. Distribution Design: Improves processes such as cross-docking and consolidated distribution, picking and dispatching

4. Performance Management: Enhances human performance through and short term and continuous improvement efforts

Distribution & Warehouse OptimizationFour key components

What comprises TMG’s Distribution & Warehouse Optimization Solution?

TMG is one of few firms that offer a comprehensive “cradle to grave” solution set.The solution incorporates:

Distribution Strategy: Channel requirements and desired capabilities definition, master distribution plan development, benchmarking/assessment, operating model definition, supply chain configuration

Warehouse Management Systems: Selection and implementation of WMS solutions

Distribution Design: Detailed facility design for new & retrofitted facilities, facility expansion

Performance Management: employee performance/measurement, operations management, slotting, equipment maintenance, vendor compliance

Distribution & Warehouse Optimization

Traditional Warehouse Integrated Distribution Center

Characteristics

Client: Storage Depot Isolated, discrete operation-functional Inflexible, production orientedNo value addedProblem: One dimensional

Flow- through distribution center- extension of suppliers. Integrated into cross-enterprise supply/demand chain. Resilient, geared to agile manufacturing. Products customized, made floor-ready Solution: Linkage of strategy, people, processes and technology

Facilities

Large centralized Up to half of storage space wastedStorage-oriented use of space

Fewer, smaller, focused on regional marketsMaximized space utilizationLanding point for imported product, merge cross-dock unit, plus value-added service area

People/Organization

Individuals working alone in a single functionExecutives on single-discipline career trackExcessive bureaucracy/supervision

Multifunctional teamsExecutives cross-trained to manage total business, make knowledge-based decisionsEmpowered workers, few management levels

Technology

Legacy systems, not integrated with vendorsEmphasis on assets – inventory, transportation, warehousingTraditional/rigid order management

Integrated networks, distributed architectureEmphasis on information, instant feedback real-time readouts of business pulse pointsAdvanced system provides full-span logistics visibility to implement agile distribution

Dramatic, Measurable Results

Order-handling cycle time, Shipping accuracy, Customer lead-timeWarehouse/distribution space, Inventory-record accuracy, Damaged and defective goods, Worker productivity, Cost of moving product

Twice as fast, Up to 20 percent better, 50 percent better, Improved 10 to 20 percent, 99.9 percent, down 75 percent, Up 5 to 40 percent, Down 10 to 20 percent

Distribution & Warehouse Optimization

What are the client benefits of TMG’s Solution? Increased volume (e.g. improved order fill rates) Reduced freight and indirect labor/warehousing costs Optimized physical network / facilities Leveraged new and/or alternative distribution channels Reduced customer service & order management costs Improved customer service (shorter lead times, more accuracy, value added services) Reduce Finished Goods inventories Optimize AP and AR Improve Asset Utilization and Rationalization

 

Distribution & Warehouse Optimization Clients

TMG has some of the best industry experts available known for logistics supply chain and strategy practice

TMG approach involves clients as part of our team that is trained with our winning formula

TMG takes an ongoing process to uniquely position client distribution facilities in a constant state of improvement, not in a constant state of flux

TMG shares implementation methods with top WMS vendors that have proven abilities in:

Fast-track operations implementation Reliable operations performance delivery Seamless integration between physical infrastructure and

information systems Designed-in worker usability Structured employee learning and process ownership

Why Hire TMG For Distribution & Warehouse Optimization?

What is the implementation timeframe?   Studies are 4 to 12

weeks

Process Implementation 12 to 18 weeks

Technology Implementation 4 to 18 weeks

Who are the client decision-makers?  VP Materials VP Logistics VP Supply Chain

645 N. Michigan Avenue, Suite 800 • Chicago, IL 60611Phone: 312.280.1380 • Fax: 312.751.0313

Email: info@tmginconline.comwww.tmginconline.com

Learn more about freight studies and our solutions.