Transcript Multi-Client, Multi

Multi-Client, Multi-Modal
Logistics: The Driver of the NAFTA
Trade Corridor
November 08, 2013
Our company profile
Financial Highlights (FY13)
Revenues:
$4.6 billion
Net Revenues:
$1.6 billion
Adjusted Operating Income:
$84 million
Adjusted Net Income:
$41 million
Comprehensive Global Network
21,000+ employees
313 owned Freight Forwarding locations
in 272 cities in 59 countries
Service2 Lines
Operate in 26+ million ft2 / 2.4+ million
m
180 UTi leased and 65 client-owned Contract
Logistics centers
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Our company profile
Industry Verticals
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Aerospace & Defense
Automotive
Chemical
Consumer & Retail
Cruise
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Fashion & Apparel
Hi-Tech
Pharmaceutical & Healthcare
Projects, Mining, & Energy
Key Services
• Distribution
• Transportation Management
• Air & Ocean Freight Forwarding
• Contract Logistics
• Customs Brokerage
• Supply Chain Consulting
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Distribution – We offer comprehensive services and
solutions for your unique supply chain requirements
Transportation Management
Order Management
Network Engineering & Optimization
Management
uOptimize SM
Truckload (TL)
Less that Truckload (LTL)
uBook (LTL) SM
Intermodal
Truckload (TL)
Services
Specialized Transportation
Intermodal
Dedicated
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Logistics as the Driver for the New Trade Corridor
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Mexico’s Moment
“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%
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More than 90% of trade under free trade agreements; including more than 50 Countries.
2013 Predictions
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Unemployment and inflation to continue downward trend
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Increase in near shoring activity.
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Projected growth of 3.0% to 3.5% in 2013 and by over 3.5% in 2014
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Industrial production expected to continue as the main driver for growth
Near-Sourcing: The Mexico vs. China Benefit
Drivers of Near-Sourcing
Lower Freight Cost
Other Key Factors
» Free and Preferential Trade
11%
16%
30%
Improved Speed-toMarket
» Fewer Supply Chain Disruptions
» Better Quality Control
Lower Inventory Cost
18%
Agreements
25%
» Improved intellectual property
security
Time-Zone Advantages
» Competitive Workforce and Labor
Cost
Improved Cultural
Alignment with North
American Managers
Source: AlixPartners
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» Stable Currency
Automotive Leading the Way…
Source: IHS Automotive
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Multi-Modal, Multi-Client
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
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UTi Distribution
Your Transportation Partner with Solutions
Manages all modes of service around the world
and throughout North America
Operates a flexible network of assets and nonassets 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
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