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Collaborative Supply Chain Discussion of Opportunities & Challenges

Collaborative Supply Chain Discussion of Opportunities & Challenges. Agenda. ES3. ES3 is a third-party logistics provider focused on the consumer packaged goods (CPG) industry ES3 is a leading provider of collaborative warehousing

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Collaborative Supply Chain Discussion of Opportunities & Challenges

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  1. Collaborative Supply ChainDiscussion of Opportunities & Challenges

  2. Agenda

  3. ES3 • ES3 is a third-party logistics provider focused on the consumer packaged goods (CPG) industry • ES3 is a leading provider of collaborative warehousing • ES3 services all classes of trade for the CPG industry with facilities across the US • ES3 manages one of the country’s largest CPG transportation networks providing inbound services as well as outbound services to retail distribution centers and stores • ES3 develops and delivers innovative, automated solutions

  4. Future Value Chain 2020 Building Strategies for the New Decade The Consumer Goods Forum: 400+ manufacturer and retailer participants Capgemni, HP, Microsoft www.futurevaluechain.com

  5. Future Value Chain 2020 4 Objectives Essential for CPG Success Tech-enabled consumers Sustainability Health & WellBeing Shared Supply Chain

  6. Savings 30% Why Shared Supply Chain is a Big Deal? Service 4% 50% Sustainability

  7. ES3 Supply Network Now Future Value Chain 2020

  8. Shared Supply Network Requires Collaboration • Collaboration requires balance • Balance is achieved through: • Shared governance of value creation • Equitable sharing of savings • Common goals • A neutral third-party provides the structure, systems, and security that enables collaboration

  9. Collaborative Warehousing Benefits • Elimination of a distribution center and leg of transportation saves more than 30% of supply chain costs • Savings of $0.54 to $0.781 are shared with partners 1 Based on A. T. Kearney analysis, July, 2010 and The GMA 2008 Logistics Survey

  10. Collaborative Warehousing Benefits • Smaller economic order quantity • Faster order delivery cycle

  11. Collaborative Warehousing Benefits • ES3’s facility is about 35% more efficient than a conventional facility • Elimination of a retail distribution center and transportation leg bring carbon savings to more than 50% • Consumer gets fresher product

  12. ES3’s Collaborative Solutions

  13. All Northeast retailers across all channels ES3’s Collaborative Solutions D2SSM Single Manufacturer Consolidation

  14. Retailer Experiencewith D2S (Direct-toStore) Walt Lentz

  15. Ahold USA – ES3 Services by Banner Single-manufacturer truckloads from ES3 manufacturers Daily delivery of multi-manufacturer truckloads through ES3’s Consolidation program Cross-dock of pallets selected for stores 50% of stores serviced by ES3’s D2S program 100% of stores serviced by ES3’s D2S program

  16. Walt Lentz Video

  17. Retailer Experiencewith Consolidation Joe Hurley

  18. Giant Eagle - Overview

  19. Manufacturer Experiencewith D2S & Consolidation Sandy Scott

  20. ConAgra- Overview

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