Agenda Company Overview Transportation and Distribution Network International Transportation
Ocean Freight Go to Market Strategy Key Factors in Carrier Selection Alliance Influences
Manage RFP Decisions
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Company Overview 214 Selling locations in eastern U.S. Privately held by two equity firms
Compete with all forms or retailers Clubs, Grocery, mass retailers, on-line
Target customer is the “Smart Saving Family” Savvy, price sensitive shopper Loyal consumer
Value proposition must be clear Own brands offerings at great everyday value Personalized promotions across multiple categories
Supply Chain efficiencies are critical Move product quickly and just in time Factor all cost aspects to drive optimal costs
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Company Overview - Transportation Dry Distribution Centers to Club Deliveries Dedicated fleets at each DC Fixed delivery schedules established for each Club Reverse logistics management
Vendor to Distribution Centers and Clubs
Backhaul shipments on dedicated fleets Customer pick up programs to improve margin All modes of transportation Direct to Club scheduling and delivery support
Ecommerce Parcel and large item deliveries from MA DC Vendor drop ship programs 4
Company Overview - Distribution Centers •
Cross-Dock vs. Warehouse
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Speed to Market Merchandise Shipped within 24 Hours Just in Time Inventory Inventory Accuracy
Club Ready for Sale Positive Received Display Ready Packaging Tailored Delivery Times
Company Overview - Imports International Transportation Import 6,200 FEU - sourcing area expanding All-water services into east coast • NY/NJ, BOS, JAX, SAV
Port to port rate structure Coordinate dray process Manage trade compliance Century Distribution Systems • Origin operations • PO management and supply chain visibility • Compliance management ( C-TPAT, Classification, ISF, Testing, VGM, etc.)
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Ocean Freight Go to Market Strategy Annual Request for Pricing • Leonard Green & Partners affiliated companies participate • Every company’s needs met, leverage award as much as possible
• Best practice discussions, market insight, contract management
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Key Factors in Carrier Selection and Award Incumbency and previous year’s service Non-proven carrier must be more aggressive on pricing Tough for carrier to justify premium pricing….but other factors in play Equipment size offerings; account representation; billing history; space protection options; responses to problems; data accuracy
Assume carriers will allocate at MQC/52 Award MQC close total projected annual volume Consider specific space protection options beyond that based on forecasting accuracy for the carrier
Allocate some portion to NVOCC Consistent volume in heavy lanes Lower volume or new origins Specific equipment needs
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Key Factors in Carrier Selection and Award Vessel Sharing Alliances are significant factor in award decisions Lower cost structure for carriers Improved service options for shippers
Balance Carrier awards across Alliances Increase sailing options and transit times Allow better flow into our distribution centers
Challenges Data integrity of sailing can be different across partners Uncertainty with changes in Alliances and what services will be offered Ability for Alliance partners to operate if a carrier fails
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Manage RFP Decisions Be accountable to the RFP award Understand the market conditions and react as needed Forecast demand and callout specific needs or changes Start with MQC/52 allocation per carrier as a basis and manage from there Periodically review performance of shipper and carrier and understand market conditions Address issues immediately – both sides
Maintain consistent business with trusted NVOCC Rely on origin operations to manage to your needs to their abilities
