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The Intermodal and Supply Chain Challenge

The Intermodal and Supply Chain Challenge. April 30, 2001 Peter V. Coleman Vice President. e-Logistics. Great Ideas But We Have Not Executed Well …… Why?. e-Logistics. Where the Disconnect Has Been and Opportunity Lies. Decision Support Systems. Supply Chain Visibility. Data Connectivity.

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The Intermodal and Supply Chain Challenge

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  1. The Intermodal and Supply Chain Challenge April 30, 2001 Peter V. ColemanVice President

  2. e-Logistics Great Ideas But We Have Not Executed Well …… Why?

  3. e-Logistics Where the Disconnect Has Been and Opportunity Lies Decision Support Systems Supply Chain Visibility Data Connectivity Data Capture / Internal Visibility Operational Execution “We believe the Internet provides the platform and impetus for supply chain integration. For the first time, supply chain visibility and data connectivity are finally possible on a cost-effective basis.”

  4. Decision Support Systems Interchange Physical / Technology Operational Execution e-Logistics The Intermodal Tree

  5. e-Logistics “We must become more efficient as costs continue to rise and physical barriers to supply chain growth are reached.”

  6. e-Logistics Unfortunately Logistics Spend is Not Decreasing ($ in billions) Logistics represented 10.4% of GDP in 1999 compared to 9.8% in 1990. Source: Survey of Current Business, U.S. Statistical Abstract, Transportation in America, ENO Transportation, Cass Information Systems.

  7. 95 e-Logistics “The 95 Corridor gives us a glimpse of the future.”

  8. e-Logistics Roadmap For Getting There Connectivity Collaboration Optimization Evolution

  9. e-Logistics Logistics Services Stock Performance vs. Market Source: FactSet, Banc of America Securities LLC.

  10. e-Logistics Intermodal Case Study - J.B. Hunt Intermodal In partnership with eight major railroads, JBHT operates a large intermodal network (over 21,000 containers), with volumes exceeding 600,000 loads annually Source: FactSet, Company reports and Banc of America Securities LLC.

  11. e-Logistics Future Challenges • Weakening financial performance • Continued commoditization of offerings • Capital intensity • Waning investor interest • Reduced access to capital

  12. e-Logistics What The Government Can Do • Re-regulate or further de-regulate • Partnerships • Other forms of encouragement

  13. “The is the customer.” e-Logistics My Takeaway The supply chain is an interwoven chain of participants, so any initiatives or strategies must be inclusive.

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