Ohio Shippers Conference A 3PL Perspective

Ohio Shippers
Conference
A 3PL Perspective
Corporate Background
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Nationwide Logistics Solution Provider
40 Years of Experience
Privately Owned
Corporate Headquarters: Columbus, OH
$100 Million Annual Revenue
1,200 Employees
4 million square feet of warehouse space
• Integrated Logistics Solution
• Warehousing Services
• Transportation Services
• LTS: Transportation Management
• Dist-Trans: Asset-based Trucking
• Technology Based Solutions
• Commitment to Quality
Locations
Corporate Background
• What you may not know about ODW Logistics:
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ODW ships heart valves using our proprietary WMS under
the tightest QA standards in the industry
The largest Visa/Mastercard approved secured vault in
the world is housed on ODW’s Columbus campus
ODW owns its own staffing agency
Our IT team has 21 people and produces real time reports
published to tablets and mobile devices
ODW has hired more graduates of the LogisticsART
program
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A program funded by a $4.6 million grant from the U.S.
Department of Labor
A Huge Industry
• The cost of logistics in the US was $1.4 trillion in 2011; 7.7% of
gross domestic product (GDP), according to CSCMP’s 23rd
Annual “State of Logistics Report®”.
• US expenditures on logistics are larger than the national GDP
of all but 12 countries. (For example, US logistics expenditures
are larger than the GDP of Mexico.)
• US expenditures on transportation alone ($688 billion) are
larger than the GDPs’ of all but 16 countries (World Bank GDP
data).
A Huge Industry
• The transportation-related workforce in December 2010 totaled
4.24 million people, including those in warehousing, according to
United States Bureau of Labor Statistics.
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This represents 3.2% of the total US workforce.
• In 1980, logistics represented 17.9% of US GDP. Today, it is 7.7%.
• It is estimated that the total logistics costs associated with
delivering a $3.60 box of cereal from the field to the consumer’s
table is about $.37 in the US. The net retail profit is about $.05.
Supply chain’s impact on company
valuation
• Statistical evidence continues to mount suggesting companies
with well-run supply chains continue to outperform other
companies. “Supply Chain Top 25” in 2007 was 17.89%,
compared with returns of 6.43% for the Dow Jones Industrial
Average
• A study by Dr. Thomas Speh of Miami University of Ohio
showed that when a company adopts a new distribution or
logistics innovation, the company’s stock price increases.
What is a 3PL?
A third-party logistics provider (abbreviated 3PL)
is a firm that provides service to its customers of outsourced
(or "third party") logistics services for part, or all of their
[
supply
chain management functions. Third party logistics
providers typically specialize in integrated operation,
warehousing and transportation services
5 Reasons to use a 3PL Provider
• To increase on-time performance and realize efficiencies with
the management of your inventory by using a 3PL provider
that has superior technology and processes than your inhouse operations.
• To take advantage of lower transportation rates provided by
logistics firms that have significant buying power due to the
volume of freight they deal with and their ability to leverage
load consolidation and backhaul opportunities.
5 Reasons to use a 3PL Provider
• To provide supplementary supply chain support to test the
waters in new regional markets or countries where your
company doesn’t currently have a presence.
• If you are a company whose business is seasonal in nature
while cutting back during slower months.
• To quickly build a multi-location distribution network with
lower risk, without the significant capital investment
associated with building out a network on your own.