LOGISTICSCOSTIMPROVEMENTPOTENTIALRE-ENGINEERINGTECHNIQUES1SRMLogistics,Inc(StephenRMcCleary,Pres)?2012COSTofFREIGHTThecost($)offreightisgenerallybetween4%to8%ofacompaniesGrossSalesFreight($)is5.5%*ofGrossDomesticProduct(GDP)intheUnitedStatesWiththelargestmodebeingtruckload{2010-$520Bn**}Either:Parcel(Ground)Less-than-Truckload(LTL)TruckloadCommercialCarriersPrivateFleetsDedicated-ContractCarrierServicesInter-modalTOFC–TraileronFlatcarCOFC–ContaineronFlatcar*Source:APICSModule3,ManagingCustomer&SupplierRelations,pg74**Source:DCVelocity,March2011,pg512SRMLogistics,Inc(StephenRMcCleary,Pres)?2012ANNUALSALEStoTRANSPORTATIONSPENDtoMANAGINGFREIGHTRemoved$36MMfrom$270MMinfreightcoststhrough:ReengineeringStrongerTariffsBetterContractNegotiationsFocusedRoutingGuidesSALESTRAFFICSPENDPOTENTIALSAVINGS(4%to8%ofSales)(13%ofTrafficSpend)?