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 Far East / SE Asia
6% 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