LOGISTICS – for the dogs! Jeff Gervais CFO Bil-Jac Foods, Inc.
Logistics – for the dogs! LOGISTICS - Finance Perspective • DO NOT SUB-OPTIMIZE ONE METRIC! – Freight as a % of Sales – Warehouse Manpower – Recovery % of Prepay/Add – Expedited Freight – Freight Dollars • People will achieve it, so don’t lock into one!
Logistics – for the dogs! LOGISTICS - Finance Perspective • Logistics and Customer’s Pain Points – Some customers are more concerned with predictability than improvement • Steady earnings vs. variability – Some need every penny – Opportunity to fix price or flex price
Logistics – for the dogs! LOGISTICS - Finance Perspective • Improving Profitability – Prepay and Add structure can be a win-win • You may be able to pass savings to a customer while enjoying additional profits – Executives need to understand the strategy • Cost savings example – Hardware example
Logistics – for the dogs! LOGISTICS - Finance Perspective • Differentiate yourself – Be good at what’s painful for Customers – When you understand the whole chain, you can be flexible in your solution
Logistics – for the dogs! LOGISTICS - Finance Perspective • Continuous Improvement – Utilizing the optimal order quantity seen earlier – Being ahead of your competition with home deliveries or online ordering support – Helping Customers grow into new geographies
Logistics – for the dogs! LOGISTICS - Finance Perspective • How the Customer views your performance – Critical requirements of delivering within a window – How much is 99% OTD worth? – Value of expediting
Logistics – for the dogs! LOGISTICS - Finance Perspective • Moving Upstream – Delivered vendor pricing – Cash / Inventory requirements – Leveraging volume
Logistics – for the dogs! LOGISTICS - Finance Perspective • Ease of business – Face it, companies will do more with you if you make their lives easy. • Present them with savings opportunities • Bail them out of problems • Educate them • Help them win new business
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