Sohail M. Ahmed August 2010

Olayan’s Center of Supply Chain Excellence (OCSCE)

...Do Better Tomorrow

...What You Do Best Today

Why Centralizing the Logistics & Purchase?

• To better understand the core service requirement of the Group• To better understand the strength of the Global 3PLs• Having a greater buying power• Having greater service levels• Effective & single point service information acquisition from the 3PLS• Clear information flow within the group pertaining to any failure or price issues• Equal chance for all 3PLs to prove their credibility• Opportunity for the group to avail identical services and prices

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1. Volumes & Lanes Acquisition 2. Major Lanes & Service Requirements & Issues3. Time Sensitivity & Major Carriers Relation &

Management4. Prices & Block Rates Assurances5. Freight Forwarders Strengths, Weaknesses,

Opportunities & Threats Requisition.6. Freight Forwarder Selection Criteria

Freight Forwarders Appointment Strategy

Volumes & Lanes Acquisition

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Major Lanes & Service Requirements & Issues

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Time Sensitivity & Major Carriers Relation & Management

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Prices & Block Rates Assurances

This will ensure project based volumes are negotiated wisely with the 3PLs.To ensure that the prices are negotiated with the 3PLs based on the volume provided thus extending the group with a better buying power.Rates to be confidentially managed within the group and to be made available only to reconcile for any future disputes with the 3PLs.

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Freight Forwarders Strengths, Weaknesses, Opportunities &

Threats Requisition.To acquire from each major global 3PL the SWOT analysis on their presence worldwide and within the KSA.This will enable the group to understand the longevity of service acquisition from each 3PL.This will enhance the assurance for the group at the time of doing the selection of 3PL.

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Freight Forwarder Selection Criteria

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Thank You

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