5 Tips for Improving Food and Beverage Transportation Sourcing

Welcome!

Copyright © 2013. CombineNet, Inc.

Agenda

Greg Holt, Director of Product Marketing,
CombineNet
– Introduction
– CombineNet’s Role in Transportation Sourcing

Jessica Fenlon, Manager, Professional Services,
CombineNet
– 5 Tips for Transportation Sourcing in Food and
Beverage Companies


CombineNet Company Overview

The Company The Technology Customer Value

Established in 2000. Best of Breed Solutions that Capture >2X spend under E-
improve Strategic Sourcing – Sourcing management.
Global: Offices in holding 21 U.S. patents.
Pittsburgh, PA; London, UK; Address complex spends
Hamburg, Germany. Software-as-a-Service (SaaS) with advanced functionality.
Partners for Latin America, delivery model for ease of
Middle East, APAC. adoption and scale Fast implementation and
broad adoption for any type
Customers: Global 2000 Easy integration into your of user.
spanning CPG, Food & Bev, environment to complement
Retail, Manufacturing, existing applications. Nearly 100% see full payback
Transportation, and more. after 1st sourcing event.


Some of CombineNet’s Customers
Includes 16 of the Largest Food & Beverage
Manufacturing Companies


Best of Breed E-Sourcing Solutions
E-

Supporting End-to-End E-Sourcing for All Spend Categories
with Advanced Technology Solutions


CombineNet ASAP in Transportation Sourcing

We will help you reduce costs in logistics sourcing!
~600 transportation sourcing events per year – more than $15 billion in
annual transportation spend

Average savings of 10% on spend size – and 100% ROI after your first event

All Modes:
Truckload/IM, LTL, Ocean, Airfreight, Parcel, Multi-mode

Shippers, 3PLs, Freight Forwarders and Logistics Consultants of all sizes,
across all industries, use CombineNet ASAP


How can CombineNet help you?

Carrier Measurement
• Flexible RFI
• Assessing Carrier Capabilities, Equipment, Drivers, Carbon Footprint,
Insurance, DOT Ratings

Expressive Bidding
• Expressive, Creative & Alternative Bids
• Equipment type, transit time, mode, capacity, service, volume
offers/discounts
• Total Cost of Ownership Models
• Rates, assessorials, fuel…

Scenario Analysis & Optimization
• “What If?” Scenario Models
• Regional preferences, network-wide contracts, corporate business goals
• Robust Reporting on Impact of Decisions
CombineNet ASAP


How Customers Use CombineNet Today

Consolidating Freight Spend for Mode Switching
Negotiation Leverage
Explore options for moving from LTL to Truck
• Network-wide bids vs. regional bids to Intermodal to Rail;
• Outbound + Inbound shipments
Review mode-mix for Ocean and Air
• Balancing common carriers, dedicated, LSPs
• Combining Dry, Refrigerated, Bulk,
Container, Intermodal
Carrier Collaboration: Understanding
Business Strategies & Needs
Review Carrier/Network Options
For lane efficiencies, service & equipment Look for mutual value/win-win opportunities
alternatives, carrier scalability to volume that match your shipments with their assets
changes and existing business
• Continuous loops/ backhauls/ multi-stop
• Carrier business/expansion plans
Sustainability • Utilize imbalance between
Evaluating carrier/fleet fuel efficiency, network inbound/outbound & import/export in
certain regions
carbon footprint, mileage reduction options


5 Tips for Sourcing Excellence in Food
& Bev Transportation


5 Tips to help Food & Beverage
Transportation Buyers

1) Evaluate Carrier Support for Seasonality
2) Review Dry and Temperature Controlled Equipment
Options
3) Use a Carrier Scorecard as Part of Carrier Evaluation
4) Consider Load Weight per Lane
5) Ensure Carrier Capacity Commitments


Tip #1: Evaluate Carrier Support for
Seasonality
Your Challenge:
In sourcing events, seasonality changes can have big
impacts on monthly demand and capacity
Consumer Demand:
– “We want whole turkeys at Thanksgiving”
Growing Seasons:
– “It’s difficult to find some fresh vegetables during the winter in
the North”

Solution:
Display Seasonality changes as Lane Information and
collect carrier capabilities


Sourcing with Seasonality in
CombineNet
Display Monthly Demand Patterns

Collect Monthly and Peak Capacity in your
CombineNet sourcing event:


Tip #2: Review Dry and Temperature
Controlled Equipment Options
Your Challenge:
Buyers with Dry and Temp controlled truckload often source
separately
– Data collection, bidding process, and analysis is time consuming
– Separate internal teams but similar corporate sourcing
requirements

Solution:
Combine Dry and Temp into one bidding event
– Similar contract expiration dates
– Attractive bidding opportunity for carriers
– Significant internal time savings
– Brokers and 3PL’s should be invited to the event


Sourcing Dry and Temperature
Truckload in CombineNet
Collect the right bids for the right lanes


Tip #3: Use a Carrier Scorecard

Your Challenge:
Quantifying RFI responses for unbiased comparisons
Maintaining a record of carrier capabilities and
preferences throughout analysis

Solution:
Prioritize most important internal factors through
weights for question and answer
Set the weights before any carrier responses are
received


Carrier Scorecard – RFI Questions

Add scoring weights to your RFI Configuration


Carrier Scorecard – Using Scores in your
CombineNet Scenario Analysis
We’ll help you set up Carrier Scorecard calculations
for analysis:


Tip #4: Consider Load Weight per Lane

Your Challenge:
Shipping heavy items that weigh-out before the truck cubes-
out
Carrier equipment weight varies, especially when using a
refrigeration unit

Solution:
Display current Average Load Weight as Lane Information
Collect carrier’s Load Weight in your CombineNet eRFP


Load Weight per Lane in the RFP
Lane information and bid collection in
CombineNet

Transform carrier capacity to account for
higher or lower weights
Avg Load Carrier Load Carrier Transformed
Weight Weight Capacity Capacity
46,000 46,000 50 50
46,000 45,000 50 48.9
46,000 47,000 50 51.1


Tip #5: Ensure Carrier Capacity

Your Challenge:
Carriers quote across the network, not knowing what might be
awarded
Carriers have capacity limits that cannot be expressed lane-by-
lane

Solution:
Collect lane level capacity, including seasonality limits
Collect summary capacity to model overarching limits


Modeling One Level of Carrier Capacity

Lane-level Capacity
Origin Origin Dest City Dest Annual Capacity
City State State Volume
Atlanta GA Wichita KS 156 150
Total: 446
Atlanta GA Overland Park KS 175 296
Atlanta GA Norfolk VA 468 400 Total: 1,244
Atlanta GA Richmond VA 451 844

Carriers have capacity limitations for each lane
– Wichita Volume: 156 loads
– Carrier Capacity: 150 loads
But by only considering lane-level capacity, buyers cannot
determine realistic limits for carrier awards across the network

You can Ensure Carrier Capacity!
Using Multiple Levels of Carrier Capacity ensures that
Carriers can handle all of the awarded loads

Origin to Destination State Capacity

Capacity Bid by the Carrier

Confirming Capacity at
Overall Capacity across the Network Multiple Levels


Solutions for Food & Beverage
Manufacturers


CombineNet’s Strategic Sourcing Solution for
Food & Beverage Manufacturers

Advanced E-Sourcing Technology + Content & Services You Need to
Achieve World-Class Success!
CombineNet ASAP® – Our industry- Food & Bev Best Practices Center –access to
leading best-in-class e-sourcing platform a wide range of best practices solutions,
for creating and managing online RFIs, content and services tailored to the Food &
RFPs, and e-auction events. Key features Beverage Manufacturing industry, including:
include:
• E-Sourcing Template Library
• RFxpress • Premium E-Sourcing Knowledge Content
• Expressive Bidding® • Premium Training
• Expressive Feedback • Event Start-Up Service
• Scenario BuilderSM • Unlimited RFP Readiness Reviews
• Bid Analysis and Optimization • Event Coaching Services
• Reporting and Dashboards • 15% Discount on Other Services


Case Study: European Truckload

World’s 2nd Largest Brewing Company
- Consolidated European Freight Key Facts
Using CombineNet ASAP enabled 2,500 lanes. 8% + savings.
consolidation across all regions,
Mostly Full Truckload Retained 80% of
creating a better overall picture of
(FTL) incumbent carriers
what was available for
suppliers/carriers: Inbound/Outbound Single sourcing
– Encouraged carriers to pick and between breweries, event for all of
choose which transportation lanes warehouses, customers Europe
to bid on
– Enabled carriers to leverage their “With more data under one tender event, there was the
assets to best meet SABMiller’s need to support the process with a strong e-sourcing
needs with Packaged Bids and solution. We chose CombineNet based on its intuitive
Conditional Offers handling of large data sets, the flexibility in defining
tender variables, and the strong analytical engine to
Using CombineNet’s Expressive assess and visualize different implementation
Feedback provided carriers with scenarios.”
guidance on their competitiveness Flavio Gall, Global Category Director for Freight and Fleet, Trinity
during bidding Procurement


Case Study: Ocean Transportation
Event Metrics
– # of Lanes: 800
– # of Carriers: 45
– Spend Size: $15M

Key Benefits:
– Able to conduct a Global event while ensuring regional requirements
and preferences
Temperature controlled containers for 20% of lanes
Bids collected were based on a lane-defined container type
Some regions required All-in Rate, others required separate Fuel Surcharge
– Carrier total-value evaluated through Non-price data
Carrier preferred Origin and Destination ports
Number of transshipments
Total transit time
Annual Capacity commitments

Result: Regional preferences achieved 18% savings

What Next?

Learn more about CombineNet’s solution for Food &
Beverage companies
– Download our Strategic Sourcing Information Kit
Found under the Resources tab on the Webinar console


Thank You.
Questions & Discussion
www.combinenet.com
info@combinenet.com
Phone: 412-471-8200


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