Navigating your supply chain from strategy through implementation. Supply Chain & Logistics Solutions

Navigating your supply chain from

strategy through implementation

Strategy through implementation

to save time, reduce costs and mitigate risk.

Supply Chain & Logistics Solutions

Our clients face many challenges today. Economic uncertainty, volatile fuel costs, increasing customer service requirements and global complexities, to name a few, all play a critical role in your real estate decisions. That’s why, at Jones Lang LaSalle, we make it our job to understand your entire business—not just your real estate needs—to save you time, reduce costs and mitigate risk. 50.3% 21.8% 9.5% _7.8% 4.3% _{2.7% 2.2% 1.2%} 0% 10% 20% 30% 40% 50% 60%

Transportation Inv entory Labor Customer Serv ice Rent Admin Supplies Other

Source: Exchange, Inc.: Logistics Cost & Service Report

Logistics typically accounts for 80% of the operating costs.

Real estate typically accounts for less than 5%.

Supply chain

consulting

Real estate

advisory

Taxes and economic incentives

Corporate

capital

markets

Project and

development

services

Facilities

management

Energy and

sustainability

solutions

• Network strategy • Inventory optimization • Transportation management • Workforce analysis • Logistics outsourcing • Facility design • Supply chain visibility • Performance metrics

No other fi rm offers expertise in so many disciplines for its clients

resulting in profi t-enhancing, cost-saving outcomes.

• Location selection • Brokerage • Local market expertise • Competitive landscape

• Analysis & modeling • Negotiations • Application & documentation • Monitor & tracking

• Lease vs. buy analysis • Debt & equity

fi nancing • Accounting, tax and

fi nance expertise • Build-to-suit fi nancing • Sale leasebacks • Facility planning • Design & construction management • Value engineering • Cost, schedule &

quality control

• Driving cost savings • Experience with

multiple facility types • Engineering operations resources and expertise • Intelligent reporting and communication interfaces • Sustainable strategies • Baseline and benchmark portfolio performance • Portfolio-wide Energy/Sustainability Management programs

Our integrated approach

Jones Lang LaSalle’s delivery model differs from traditional brokerage or consulting fi rms by integrating supply chain strategy with proven implementation services that save time, reduce costs and mitigate risk. We offer a full range of professional services including supply chain consulting, real estate advisory, tax and economic incentives, corporate capital markets, project and development services, facilities management and energy and sustainability solutions to expedite implementation and maximize return on investment.

Network strategy

• Objectively evaluate cost and service related trade-offs of various supply chain networks

• Utilize sophisticated, leading-edge network optimization tools • Identify alternative supply chain scenarios and test for sensitivity to changes in cost, service, capacity and workforce constraints

• Provide fact-based recommendations from our analysis on how best to service your clients at the lowest-landed cost

Inventory optimization

• Map inventory fl ow, positioning and true carrying costs • Leverage technology and work closely with our clients to develop process improvements, accurate lead-time forecasting models and service-level analyses

• Serve as an objective advisor, providing information on the optimal balance between service and inventory levels to maxi- mize effi ciency without sacrifi cing service

Transportation management

• Identify and drive savings to one of the largest cost components in the supply chain through both tactical cost reductions and strategic operating improvements

• Utilize strategic transportation planning software and proactive improvement techniques to identify areas of opportunity for savings by modal allocation, lane effi ciency, available capacity and alternative transportation

Logistics outsourcing

• Provide unique market insight and sound decision making to your organization’s outsourcing process

• Analyze supply chain operations and procedures along with your requirements to make objective evaluations and, if applicable, selection of outsourcing candidates • Help maximize savings and implement successful partnerships through informed negotiation

Location selection

• Minimize the impulsive nature of real estate decisions by fi rst prioritizing the operating considerations across the supply chain • Employ a proven multi-tiered elimination process for location selection • Maximize the value of location selection through thoughtful logistics analytics and integrated business and economic incentives negotiations

Workforce analysis

• Mitigate risks and maximize savings through the quantifi cation of workforce sustainability, productivity and cost

• Assist in developing key workforce evaluation criteria to benchmark against best-in-class locations

• Test prospective locations through competitive labor interviews, predictive economic-psychographic analytics, future wage progressions, workforce availability and historical organized labor activity

Facility design

• Conduct cube utilization studies, product fl ow analytics, truck fl ow analysis, trailer parking confi guration analysis and security and theft prevention strategies to design innovative distribution facility layouts • Provide alternative automated material handling solutions

Supply chain visibility

• Develop a best-in-class tool to provide a repository of real-time data on inventory status, an interactive operational system to execute critical decisions on accelerating or decelerating the fl ow of product predicated on demand, and alerts on service performance and cost liabilities

Performance metrics

• Review internal operations and cost structures to develop metrics reporting that monitors cost-effective service by benchmarking your key performance indicators

• Assist in establishing the critical balance between cost

effectiveness, service and profi tability by identifying and developing the most effective operational performance metrics for your business

Supply chain consulting services

Our dedicated Supply Chain & Logistics Solutions team helps clients grow profi tability

by combining supply chain consulting with proven implementation services.

Our clients say it best

Strategy through execution

“From day one, Jones Lang LaSalle had a very strategic approach and took the time to understand our business and culture – translating our operational needs into the right overall solutions for us.”

Stefan Jacoby, President & CEO Volkswagen Group of Americas

Comprehensive approach

“Jones Lang LaSalle is comprehensive and results-oriented in their approach. From initial business needs assessment through project implementation, they always ensure that all areas of our supply chain are analyzed and optimized. They are a true business partner for us.”

Bob Wickett, Director, Supply Chain KAO Brands Company

Supply chain expertise

"JLL was able to compliment our project team with specifi c tools, proven method-ologies, and the supply chain optimization modeling expertise to provide a fact-based, objective analysis to support our long-term direction and decision making process as well as the capabilities to support imple-mentation."

Michael Gielink, Director of Manufacturing & Supply Chain

Akzo Nobel

Overcoming a challenge

“Matching our transportation, labor, and real estate requirements was a diffi cult project. Jones Lang LaSalle was consistently patient, tolerant and imaginative in coming up with the best possible solutions. Their willingness to bring in additional outside resources demonstrates their extraordinary lack of ego that makes working with them such a pleasure.”

Jodi Dalton, Real Estate Manager, Walgreen Co.

Innovative solutions

"JLL's Reverse Location Selection analysis was incredibly valuable in understanding the "bigger picture" surrounding our real estate asset. We vercomingwere extremely impressed with JLL's supply chain consult-ing team. We are now able to quantify the value of our asset from the perspective of a corporate user/buyer so to maximize our return on investment.”

Ed Konjoyan, Vice President

Our thought leadership stands out

Our team of in-house subject matter experts combine supply chain consulting and diverse industry expertise, along with leading-edge tools and technologies, to deliver creative solutions to complex operational challenges. We work closely and collaboratively with you to provide specialized knowledge and r resources.

We partner with the leading supply chain industry organizations, such as the Council of Supply Chain Management Professionals (CSCMP), Warehouse Education Research Council (WERC), and Association of Operations Management (APICS), as well as leading academic institutions on topics that put us constantly at the forefront of the critical business issues impacting our clients.

25.13% 30% 5% 10% 15% 20% 25% 8.88% Spring 2011 Myth vs. reality Many people believe that the United States has lost its longtime global edge in manufacturing. They lament that U.S. manufacturing jobs have been outsourced in recent decades to countries such as China, India, Mexico and Vietnam, to name a few. Many believe that most everything is now made overseas (or soon will be) due to lower labor costs. The perception is that the United States’ manufacturing superiority is forever shattered. Part of the assumption is true: The fact is that the number of manufacturing jobs in the United States has been steadily declining over the past 40 years. Manufacturing employment in the United States, as a percentage of total payrolls, has decreased from 25 percent in 1970 to just 8 percent today. One in six United States factory jobs has disappeared since the start of 2000. +RZHYHULWLVLQVXI¿FLHQWWRMXGJHPDQXIDFWXULQJVWUHQJWKVROHO\E\MRE count. By many other measures that mean more to long-term operational DQG¿QDQFLDOVXFFHVVWKH8QLWHG6WDWHVLVOHDGLQJWKHSDFN7KH United States has not lost its manufacturing edge; the advent of global FRPSHWLWLRQDQGHPHUJLQJPDUNHWFRPSHWLWRUVKDVPHUHO\sharpened it. 7KHFRQFOXVLRQ²WRSDUDSKUDVH0DUN7ZDLQ²LVWKDWUHSRUWVRIWKH death of U.S. manufacturing are greatly exaggerated. This paper H[DPLQHVVHYHUDOH[DPSOHVDQGNH\VXFFHVVIDFWRUVDVZHOODVWKH WUDGHRIIVWRFRQVLGHUZKHQPDNLQJPDQXIDFWXULQJVRXUFLQJVLWH selection decisions.

Less is more Although manufacturing employment in the United States has trended down for the past 40 years, the achievement which often goes untold is that manufacturing output—as measured per employee—has increased steadily during the same time frame. It is up 70 percent since 1977.1 2QHUHDVRQXQHPSOR\PHQWUHPDLQVKLJKZKLOHFRUSRUDWHSUR¿WDELOLW\ improves is that U.S. manufacturing businesses have learned to do more with less. Productivity is at an all-time peak. According to William 6WUDXVVVHQLRUHFRQRPLVWDWWKH)HGHUDO5HVHUYH%DQNRI&KLFDJR LWWRRNZRUNHUVWRGRLQZKDWZRUNHUVFDQGRQRZ,Q WKHFDVHRI866WHHOWKHFRPSDQ\FDQGRWKHVDPHZRUNQRZZLWK RQHWHQWKWKHZRUNIRUFHLWRQFHKDG2

Perspectives on global manufacturing site selection

1. “The Centrality of Manufacturing to America’s Future Prosperity,” New America Foundation, February 14, 2011. 2. “The Future of Manufacturing,” The Midwesterner: Blogging the Global Midwest,

-XO\ $34 $120 $20 $40 $60 $80 $100 $110 thousands 605 1,800 300 600 900 1,200 1,500 1,590 billions

Manufacturing employment as a portion of

total payrolls Real manufacturing ouput per employee Real manufacturing ouput

Jones Lang LaSalle Brokerage, Inc. License # 01856260 | Jones Lang LaSalle Americas, Inc. License # 01223413

© 2013 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

EMEA Americas 80 offi ces 535 cities 14 countries 76 offi ces 123 cities 31 countries Asia Pacifi c

For information concerning Jones Lang LaSalle’s Supply Chain & Logistics Solutions team, please contact:

Richard H. Thompson

Managing Director Jones Lang LaSalle

direct +1 773.458.1385 mobile +1 312.810.1099 [email protected]

www.us.joneslanglasalle.com/industrial or www.us.joneslanglasalle.com/supplychain

Jones Lang LaSalle Worldwide

Jones Lang LaSalle (NYSE:JLL) is a professional services and invest-ment manageinvest-ment fi rm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the fi rm provides management and real estate outsourcing

services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and fi nance transactions in 2012. Its investment management business, LaSalle Investment Management, has $47.7 billion of real estate assets under management. For further information, visit www.jll.com.

A collaborative team

Jones Lang LaSalle has more than 70 dedicated supply chain and logistics professionals in virtually every major U.S. market. These professionals have a unique combination of commercial real estate, industry and supply chain experience and undergo an intense in-house training program focused on the latest supply chain trends and strategy accredited by the Council of Supply Chain Manage-ment Professionals (CSCMP). Many are members of CSCMP as well as the Warehouse Education Research Council (WERC), and the Association of Operations Management (APICS); collaborate with leading academic institutions; speak regularly at seminars and events; and are quoted in the trade press.

When needed, we draw upon our global resources from Real Estate Advisory, Tax and Economic Incentives, Capital Markets, Project and Development Services, Facilities Management as well as Energy and Sustainability Solutions. Our global, integrated platform allows us to meet your far-reaching needs while a single point of contact ensures quality, consistency and responsiveness.

64 offi ces 73 cities 14 countries