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TALKING FREIGHT

TALKING FREIGHT. Who is Syngenta?. A world-leading agribusiness focused solely on delivering better food for a better world through outstanding crop solutions. Our Name. “Syn” is derived from Greek, reflecting synergy and synthesis, integration and consolidating strengths.

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TALKING FREIGHT

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  1. TALKING FREIGHT

  2. Who is Syngenta? • A world-leading agribusiness focused solely on delivering better food for a better world through outstanding crop solutions

  3. Our Name • “Syn” is derived from Greek, reflecting synergy and synthesis, integration and consolidating strengths. • “genta” relates to humanity and the individual. It stems from the Latin ‘gens’, for people or community. Syngenta = bringing people together

  4. A Leader in Product Innovation 7% Vegetables & Flowers • Syngenta has an industry-leading portfolio of crop protection and seeds products • Syngenta offers more than 130 crop protection products to give farmers options for challenges they face Field Crops 8% Professional Products 9% Insecticides 14% 23% Fungicides 10% Non-selective herbicides 26% Selective herbicides

  5. Distribution Network • Plants 5 • Public Warehouses 23 • Tollers 34

  6. Distribution Cycle • Channel Sales: • Distributors • Wholesalers • Retailers • End Use Customers: • Farmers • Industrial Users • Government Agencies

  7. Modes of Transport • Rail 3% • Bulk Truck 53% • Truckload 21% • Less than Truckload 20% • Small Package 3% • Cost Efficient Changes to Modes of Transport • Bulk Truck to Rail • Truckload to Trailer on Flat Car • Less than Truckload to Small Package • Truckload to Less than Truckload

  8. Distribution Flow - Package Products Pickup Public Warehouses Distributors Ship Production Public Warehouses Pickup Public Warehouses Distributors Ship Distributors Ship Pickup

  9. Flow of Bulk Bulk Truck Bulk Terminals Carriers Customers Production Carriers Customers Rail Carriers T Customers Production R Bulk Terminals T T T T Carriers Customers Bulk Terminals R – Rail T - Bulk Truck

  10. Trends • Streamline shipping/receiving operations • Extended gate hours • Reduce number of stop offs • Coordinate continuous moves • Analyze public warehouse network: • Balance cost vs. distribution requirements • Add warehouses at plant sites • Increase plant utilization-reduce tolling locations

  11. Trends (cont’d) • Better position inventory across supply chain: “One Touch” • Better forecasting tools • Produce inventory closer to market need • Analyze Outsourcing options • Investigate optimization software solutions • Security Issues

  12. Challenges for 2004 • New Emission Requirements • open issue for carriers • carriers have delayed equipment purchases • Increased Background Screening • may reduce driver pool • may reduce driver eligibility

  13. Challenges for 2004 (cont’d) • Hours of Service • Cost increase • Driver shortages • Carriers will require more drivers • Drivers leave driver pool • Equipment Shortages • Carriers will require more equipment • Emissions related • Bankruptcies • Increased transit times • Congestion • Reduction in free time for loading and unloading • Stricter enforcement of detention fees

  14. Challenges for 2004 (cont’d) • Increase in surcharges: • Fuel • Security • Insurance • Labor • Healthcare

  15. In Summary • Cost Creep • Price increases • Reduction in free time • Surcharges • Capacity Crunch • Number of tender attempts • Length of haul • Haz Mat haulers

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