los angeles transportation club may 14, 2013 scott satterlee c.h. robinson senior vice president
TRANSCRIPT
Los Angeles Transportation ClubMay 14, 2013
Scott SatterleeC.H. Robinson Senior Vice President
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Our people, processes, and technology improve the world’s transportation and supply chains, delivering exceptional value to our customers and suppliers.
+ $11.4 billion in annual gross revenues
+ 42,000 customers
+ 56,000 transportation providers
+ Global network of 11,000 employees in over 275 offices, 32 countries
+ Proprietary technology
+ Founded in 1905; publicly traded since 1997
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Company Overview
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Global Transportation & Logistics Trends
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The Changing World Landscape
*U.S. Census Bureau
+ Rise of technology and social media
+ Access to real-time information
+ Significant population growth+ 7 Billion people on the planet
today*
+ 9 Billion people by 2040*
+ Populations are shifting+ Locations of manufacturers and
where goods are consumed change supply chains
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The Growth of Mega Cities
+ 90% of the earth’s surface is now defined as accessible.
+ 10% is considered remote, or within 48 hours from a major city.
+ Connectivity is the story.
+ Significant population growth, and growth in the number of mega cities, will affect the future of supply chains.
European Commissions Joint Research Center and World Bank
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Why is supply chain volatility increasing?
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Demand Factors
+ Recessions and emerging markets
+ Interdependencies: global consumers, currency fluctuations
+ Lean inventory management practices, more emphasis on capital management
+ Innovation focus, shorter product cycles, obsolescence
+ Sophisticated, automated shippers and consumers
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Why is supply chain volatility increasing?
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Supply Factors
+ Volatility of cost structures+ Capacity production variances, financing challenges, complex ROI
variables
+ Fluctuating fuel prices, energy strategies
+ Labor costs, driver shortages, U.S. pension and healthcare issues
+ Regulatory changes: emissions, HOS, safety, EOBR, trade agreements
+ Aggressive market share strategies and consolidation
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Industry impacts of these trends
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+ Increased demand for:+ Outsourcing
+ Network analysis
+ Changes in origins and destinations (near-shoring/re-shoring)
+ New rate negotiation, contracting strategies
+ Less forward visibility on volumes and rates
+ Greater desire for flexibility and redundancy
+ Increased focus on: + Mode conversion opportunities
+ Risk management
+ Litigation
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The industry is changing
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+ The world is growing and changing faster than ever; so is our industry
+ What we do matters more than ever
+ Increased volatility leads to greater transportation and supply chain opportunities and pressures
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Thank You
© 2011 C.H. Robinson Worldwide, Inc. All Rights Reserved.