Coo Logistics - Mats Enqvist

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CooLogistics, London July 1, 2008 Mats Enqvist, LCL

– ”Closing the gap between producers and retailers” –

Closing the gap ME June 2008

”Closing the gap” • Definition of terms • “Closing the gap” • World trends • LCL today - positioning LCL as LLP • Some conclusions and remarks

LLP? 3PL? 4PL? • • •



LLP = lead logistics provider The operator is not tied to any specific carrier and does not employ its own transport equipment. Acting as a supply chain partner who takes responsibility for assembling and managing the resources, capabilities and technology of its organization with those of complimentary service providers. Utilising a lead logistics partner solution places responsibility and accountability of the management, performance, cost and development of supply chain functions, transactions, systems and logistics suppliers under the umbrella of a single partner.

LLP – success criteria

• Carrier independent • Mode independent • Focused on perishables • Trade independent – global

Closing the gap

In perspective...

The gap in 1988... • • • • • • • •

Producer Cooperative Export board Panelist Importer Wholesaler Retailer Consumer

The gap 2008: • • • •

Producer LLP Retailer/category manager Consumer

Closing the gap • This trend has been driven by leading retailers • Perishable logistics is now where many dry commodities were already 1988 (market driven supply, drip feeding, lean inventory, JIT etc) • Now and before this trend is built on logistic expertise and the management of information • The consumer has come out on top

Closing the gap between producers and retailers

Closing the gap between producers and consumers

Closing the gap

How to do it?

Align with Current trends

Closing the gap OSP/majo 3 Sep 2007

Aligning with World Trends

• Be environmentally conscious

Aligning with World Trends • Less air and trucking, more sea and rail

Aligning with World Trends B R I C T Surface Area

Population

BRICT

39,259,515 km²

2,84 billion

World

148,939,063 km²

6.6 billion

Main Seaborne Imports of Reefer Commodities

West / Eastern Europe 31%

North America 19% Middle East 6%

Far East / SE Asia 32%

Aligning with World Trends • Abundance of varieties sourced from many more places

Aligning with World Trends • Fish/seafood farming will be booming

Aligning with World Trends •Regional Sourcing will change

Aligning with World Trends

• Export / import ’windows’ will narrow

Closing the gap

LCL today

Closing the gap the LCL way a) Bringing producer & retailers together through unique logistic solutions b) Knowing our customer’s business and making them competitive c) Remaining expert in our niche, keeping a passion for perishables d) Independent logistics integrator, LLP, free with respect to carrier and transport mode e) Out-sourcing or procuring non-strategic and in-source strategic services or hard-ware f) Forging alliances/partnerships with service providers in the sea, land, air covering the entire supply chain – share value g) Offering simplicity + transparency, supplying instant information to customer and partners through IT solutions

Conclusions for LCL as LLP 1. The gap is closing - logistics is the bridge! 2. Key #1 is understanding your customer’s business and being alert to market and consumer trends 3. Key #2 is adding value to partners and service providers. 4. LCL is positioned to close gaps between producers and retailers world wide and is confident LLPs will be instrumental in that process

Some final remarks:

• To shippers and retailers: Do not see the LLP as an unnecessary intermediary between yourself and the carrier. Let the LLP challenge your present logistic solutions! • To carriers: Do not look at the LLP as a competitor. To close the gap and bring the customer on board may call for an expert partner who can bring more volume and business in the mutual interest of the carrier and the LLP

Some final remarks:

• To today’s audience: Thank you for listening and remember....

An empty shelf today cannot be filled tomorrow

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