1. The Future of Logistics Logistic & Supply Chain Trends External Forces Optimization Risks Sustainability Technology Equipment Advances Warehousing Modal Trends

2. External Forces “The Past Does Not Reflect the Future” Demographics – urbanization, aging population, shifting wealth and economic power Technology – social media, new communication technologies, “Cloud” based economy Health and Safety – visibility/ accountability for consumers, suppliers, manufacturers Sustainability – scarcity – CO 2, climate change, alternative fuels Regulatory Pressures

3. Consumer Driven  Multiple partners connected  Systems Collaboration  Shared Assets & Competencies Optimization “Trading partners share information in their relationships”

4.  Theft and counterfeit  Higher valued goods  Global Supply  Increase in Fuel Prices  Government Regulation  Sharing of Information  Margin Compression Risks What risks surround supply chain?

5. Sustainability Three Dimensional 1.Environmental - Reduce Carbon Footprint 2.Society – Improved lifestyle 3.Economy - Transportation Efficiency

6. Sustainability Global Strategic Initiatives: Source Locally Long Term Relationships with Suppliers Buy larger quantities from fewer suppliers Keep Operations Lean Reverse logistics Less petroleum dependent supplies / transport lanes Alternative fuels and energy

7. Sustainability Solutions Shared – Infrastructure, transportation, warehousing – Planning, ordering, manufacturing – Recycle, reuse Efficient Assets – Modernize equipment – Green buildings – Alternative fuels (biodiesel), natural gas

8. Sustainability Solutions Alternative Power Units Satellite monitoring system SmartWay Transport Partnership Alaska’s Green Star program Carlile purchased Kenworth’s First Hybrid Tractor in PNW

9. Technology Trends – “Cloud” Utilization Collaborative systems – Accessibly Pads Onboard equipment Freight technology Goals Visibility and accessibility resolving issues Real time and forecasting instead of reacting “Engaging with the user versus talking to the user”

10. Technology -Enterprise Resource Planning ERP Operating systems – Warehouse Management Systems (WMS) – Transportation Management Systems, (TMS) – Global Data Synchronization, Bar-coding, Radio Frequency Identification RFID Electronic Data Interchange Sales and Marketing – Customer Relations Management (CRM) Financial Other Management Systems

11. Collaborative ERP – suppliers – manufacturers – warehousing – logistics – consumer – regulatory agencies Virtual Shared Logistics Management Systems (VSLMS) Collaborative systems

12. Equipment Advances Planes Trucks & Trailers Vessels Trains Terminals Tractor/ trailer bullet train by 2020 Trucks by 2020 Planes by 2020

13. Equipment Advances cont. “Robotics “ They never call in Sick” Automated Equipment – Types: Stationary Gantry Robotic Arms Mobile Automated Guided Vehicles (AGV) – Walk Around Technology – 10 years 30% of warehouse with AGVs

14. LogisticsWarehouse Logistics Warehouse  Future Distribution Centers (DC) – centrally located, fully automated & computer controlled  Order Fulfillment & Automation

15. Networked Warehouse Management Systems – Interact directly with automated equipment – Full visibility to Provider and Supplier – Read / Write Tags – modify on site – Hand Held and Screen Touch Mobiles Logistics Warehouse

16. Modal Trends 3PL Integrated Operations Warehousing / Transportation 4PL trademarked by Accenture – Integrator of Resources Regional hub / distribution into cities E Commerce

17. Conclusion/Questions

18. Sources 2020 Future Value Team Report, “Building Strategies for the New Decade”. Global Commerce Initiatives “Future Supply Chain 2016 Report 2020 Future Value Chain Building Strategies for the New Decade, Capgemini Group 2011 Brad Mitchell President of UPS Distribution and Logistics. Taken from Inbound Logistics Interview with Alison Dennis at Burgerville Tompkins and Associates Next Big Future, Sept 2011 Paul Kellett Robotic Warehouse Report Study of Logistics and Transportation Trends: Navigating transportation’s Bermuda Triangle 20th Annual study of logistics and Transportation Trends (Masters of Logistics). Mary C. Holcomb, Ph.D., and Karl Manrodt, Ph.D., Contributing Editors September 01, 2011 Slide #16 http://www.youtube.com/watch?feature=player_detailpage&v=6xvBj4hBQ9k http://www.youtube.com/watch?feature=player_detailpage&v=6xvBj4hBQ9k AGV slide # 18 http://www.youtube.com/watch?feature=player_detailpage&v=lDyi9Yipt7c http://www.youtube.com/watch?feature=player_detailpage&v=lDyi9Yipt7c The Slide #20 Voice vs http://www.youtube.com/watch?v=BcbhbGRXZRE&feature=player_detailpage http://www.youtube.com/watch?v=BcbhbGRXZRE&feature=player_detailpage