EXEL PLC Supply chain management at Haus Mart
INDEX
TABLE OF CONTENTS Page No. 1. Executive summary 3 2. Problem (Issue) statement 4 3. Data analysis 4 4. Key Decision Criteria 5 5. Alternatives analysis 6 6. Recommendations 8 7. Exhibits 9
EXECUTIVE SUMMARY
Exel Plc is the world’s largest third party logistics service provider. The company offers variety of services which can be broadly classified into mainly two major groups. * Freight Management * Contract Logistics
Freight management is the upstream part of supply chain where material is handled in bulk. Exel plc takes the responsibility of transporting by freight on customer’s behalf.
Contract logistics groups offer all kinds of logistics solutions except freight management. They include * Warehouse management * Inventory management * Kitting/sub-assembly * DC management * Reverse logistics * E-commerce services.
Exel has demonstrated their expertise in both the service groups and therefore the company is largest logistics provider both in terms of freight management and contract logistics.
Exel plc offers mix of both the service groups in the proportion of 44% for freight management and 53% from contract logistics. The turnover of Exel was 5.1 billion in 2004.(Exhibit 1)The Company has extensive network of 675 locations and 112 countries for freight management and 1600 facilities and 120 countries for contract logistics.
Still Exel has only 2% share from the total spend of its customers on logistics. Thus there is huge potential for growth and expansion. This is only possible if Exel thinks beyond its traditional disaggregated service delivery and enters into integrated service package.
Exel is planning to move from execution to planning with integrated model approach and they wanted to start the joint planning process with Haus Mart.
PROBLEM