Multi-Client, Multi-Modal Logistics: The Driver of the NAFTA Trade Corridor November 08, 2013
Dec 17, 2015
Multi-Client, Multi-Modal
Logistics: The Driver of the NAFTA Trade Corridor
November 08, 2013
Our company profile
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Revenues: $4.6 billion
Net Revenues: $1.6 billion
Adjusted Operating Income: $84 million
Adjusted Net Income: $41 million
Service Lines
21,000+ employees
313 owned Freight Forwarding locations in 272 cities in 59 countries
Operate in 26+ million ft2 / 2.4+ million m2
180 UTi leased and 65 client-owned Contract Logistics centers
Financial Highlights (FY13)
Comprehensive Global Network
Our company profile
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•Distribution
•Transportation Management
•Air & Ocean Freight Forwarding
•Contract Logistics
•Customs Brokerage
•Supply Chain Consulting
Key Services
• Aerospace & Defense• Automotive• Chemical• Consumer & Retail• Cruise
• Fashion & Apparel• Hi-Tech • Pharmaceutical & Healthcare• Projects, Mining, & Energy
Industry Verticals
Distribution – We offer comprehensive services and solutions for your unique supply chain requirements
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Management
Services
Transportation Management
Order Management
Network Engineering & Optimization
uOptimize SM
Truckload (TL)
Less that Truckload (LTL)
uBook (LTL) SM
Intermodal
Truckload (TL)
Specialized Transportation
Intermodal
Dedicated
Logistics as the Driver for the New Trade Corridor
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“Mexico has enviable economic stability and a forecast for growth, improved social mobility, and an emerging middle class.”
-The CS Monitor» Free market economy in the trillion dollar class
» Contains a private sector dominated mixture of modern and outmoded industry and agriculture
» Expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports
» Per capita income is roughly one-third that of the US; income distribution remains highly unequal
» Since the implementation of the NAFTA, Mexico's share of US imports has increased from 7% to 12%
» More than 90% of trade under free trade agreements; including more than 50 Countries.
Mexico’s Moment
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• Unemployment and inflation to continue downward trend
• Increase in near shoring activity.
• Projected growth of 3.0% to 3.5% in 2013 and by over 3.5% in 2014
• Industrial production expected to continue as the main driver for growth
2013 Predictions
Drivers of Near-Sourcing
Source: AlixPartners
30%
25%18%
16%
11%
Lower Freight Cost
Improved Speed-to-Market
Lower Inventory Cost
Time-Zone Advantages
Improved Cultural Alignment with North American Managers
Near-Sourcing: The Mexico vs. China Benefit
Other Key Factors» Free and Preferential Trade
Agreements
» Fewer Supply Chain Disruptions
» Better Quality Control
» Improved intellectual property security
» Competitive Workforce and Labor Cost
» Stable Currency
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Automotive Leading the Way…
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Source: IHS Automotive
Traditional Model» Partnerships between truckers and customs brokers in the US and Mexico,
working without data correlation or visibility, resulting in problematic, finger-pointing
Improved 3PL Service Solutions» Multi-Modal Options
• The Intermodal advantage – harmonized weight limits, cost benefits, and hassle free
» Co-located customs brokerage groups
» Distribution centers near primary border crossings
• Consolidation and deconsolidation points
» Collaborative multi-client freight consolidation
• Opposites attract – finding the right with and cube mix to fill a box
• Green – reduced transportation demand = less fuel consumption
• Getting ahead of the tight capacity curve
Multi-Modal, Multi-Client
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UTi Distribution Your Transportation Partner with Solutions
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Manages all modes of service around the world and throughout North America
Operates a flexible network of assets and non-assets to develop new innovative services and solutions whether simple or complex
Provides cost saving opportunities for both large and small clients
UTi Distribution is the solution for all your ground transportation requirements
throughout North America