Professional Documents
Culture Documents
Kyle Sera Amy Irvine Scott Andrew Carrie Schmidt Ryan Lancaster
Overview
What are 3PLs Why use them Tips for implementation of 3PLs 4PLs
Transportation Based
Services extend beyond transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Non-leveraged 3PLs use assets belonging solely to the parent firm. Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS Logistics
Warehouse/Distribution Based
Many have former warehouse and/or distribution experience. Examples: DSC Logistics, USCO, Exel, Caterpillar Logistics, IBM
Forwarder Based
Very independent middlemen with forwarder roles. Non-asset owners that provide a wide range of logistics services. Examples: AEI, Kuehne & Nagle, Fritz, Circle, C. H. Robinson, Hub Group
Financial Based
Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston
Information Based
Significant growth and development in this category of Internet-based, business-tobusiness, electronic markets for transportation and logistics services. Examples: Transplace, Nistevo
Logistics?
Logistics: Managing the flow of information and goods inbound from suppliers and outbound to customers. Why be good at this? Core competency?
Save time
Help expand
No roads
Allows you to focus on your strengths Dont get spread too thin Can ensure delivery times can help a company run leaner
Management Focus
Furthering your company Consider potential benefits and drawbacks 3pls can increase profitability Can you be a 3PL to someone else?
Levels of Outsourcing
Transactional Outsourcing: Based on transactions, with no long term contracts and no bonding between the 3PL and the outsourcing company. Tactical Outsourcing: Outsourcing on a long term basis with negotiated contacts and integrated IT systems to facilitate free information flow and create supply chain visibility.
Strategic Outsourcing: Based on long-term relationships with successful outcomes, 3PL companies become partners in supply chain management and establish transactional transparency.
3PL Defined
Some say all or a significant part Some say at least one part Businesses that provide one or many of the following logistics services: Transportation Management Public/Contract Warehousing Distribution Management Freight Consolidation
Uses its readers to conduct vote Over 300 companies nominated with 3,000+ votes Top 3 this year:
Transportation provider gets product from point A to point B Could be considered a 3PL Just one function of logistics 3PL provider assists in multiple functions
Why you want to select the right provider the first time Only about 65% of companies believe their provider is doing a good job. 55% of logistics outsourcing contracts end in 3-5 years The source had a list of 14 key tips for success, but we are going to focus on the 5 most important issues.
Know what your outsourcing strategy is. It needs to be well thought out and measured against in house solutions and capabilities. SWOT analysis. As a company you should understand the strengths, weaknesses, opportunities and threats of outsourcing logistics, rather than keeping them in house.
2) Do your homework.
Do a comprehensive study
Clearly document advantages, challenges, costs and benefits.
Document expectations
Set down expectations in clear terms and include current costs.
Tips Continued
Tips Continued
4) Create an Implementation Strategy
4PL Providers
Manage and direct the activities of multiple 3PLs, serving as an integrator Refinement on the idea of 3PLs 4PLs are not asset based like 3PLs Assembles and manages the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions
One stop transport and logistics supplier Work with suppliers and customers
Questions?
Sources
3PL definition: http://accuracybook.com/glossary.htm Top 10 3PL providers: http://www.inboundlogistics.com/3pl/awards.shtml Successful 3PL implementation: http://logistics.about.com/od/thirdparty/a/uc041805a.htm Sangam, VK. (2006). Implementing Third Party Logistics. Retrieved May 5th, 2006. From Massey University, About Business and Finance website: http://logistics.about.com/od/thirdparty/a/uc041805a.htm Red Prairie: http://www.redprairie.com/Industry%20Solutions/Third%20Party%20Lo gistics.aspx Class lecture slides: http://logistics.about.com/od/thirdparty/a/uc041805.htm