Articles

Partnership

Justin Woulfe

Performance-Based Negotiations: Simulation as Support for Decision-Making

Performance-based logistics (PBL) contracts have the potential to reduce cost to the buyer, while also increasing capability. This is contingent on the right set of metrics and cost targets being developed to ensure the right contractor incentive. Today, less than five percent of work performed in both government and private sectors is under PBL deals. […]

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Crafting Logistics Provider Contracts That Cover All the Bases

Before committing to a logistics service provider partnership, logistics managers must ensure they understand all the contract’s parameters. One way to accomplish this is by outlining the terms of the agreement before signing the contract. George Muha, regional director of third-party logistics service and solutions provider Transportation Insight, offers this advice on key factors to […]

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Christopher P. Mazza

Connectivity-Visibility-Optimization: Three Keys To a Successful Supply Chain Trading Partner Network

2013 has been called the Year of the Network by numerous supply chain and transportation industry thought leaders. A well-oiled trading partner network allows one-to-many and many-to-many partners to collaborate and communicate using a single source of truth garnered from real-time information. Harnessing this collective power provides a competitive advantage as well as the flexibility […]

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John Paugh

Redefining the Race to Profitability Through Innovation

Every manufacturer, supplier, and U.S. business is feeling the effects of today’s tough economic conditions. It has never been more important to control costs and operate efficiently. The pressure is on for manufacturers to reduce waste, and operate in a truly lean manner. These facts are even more prevalent in the automotive sector, where profitability […]

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How to Foster a Long-Term 3PL Partnership

How to Foster a Long-Term 3PL Partnership

When companies begin working with a third-party logistics provider (3PL), they are generally looking to address a functional pain point. The partnership is transactional and fills an operational gap. But the true value of 3PL partnerships can grow infinitely greater when shippers take a long-term approach that focuses on sustainable gains rather than short-term savings. […]

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Keith Biondo

3PL Partnerships: From Tactical to Strategic

It was déjà vu all over again as I sorted through the responses to this year’s Top 10 3PL Excellence Awards survey and 3PL Perspectives research. Like last year, and the year before, and the year before that, a sizable percentage of survey respondents said they select logistics partners based on their ability to secure […]

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Felecia Stratton

3PL Partnerships: From Transactions to Trust

In business context, transactional relationships are often laden with legal conditions—unlimited liability, implied agency, utmost good faith. Even with assurances that a partner will do the right thing, it all comes down to costs and consequences. For many years, the supply chain operated in a similar fashion. Third-party logistics providers (3PLs) demonstrated their value by […]

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Gaining More From 3PL Relationships

Whether your third-party logistics (3PL) service provider is a niche player or a global behemoth, you can take steps to draw more value from the partnership. Valerie Bonebrake, senior vice president at supply chain consulting firm Tompkins International, offers the following tips for getting your 3PL to do more for you. 1. Become an expert […]

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Dan Lockwood

3PLs: Going Beyond Savings to True Value

Although shipping is an integral and expensive part of daily operations, other considerations often take priority. This may result in unhappy customers, increased shipping costs, and time wasted resolving issues. Companies looking to increase efficiency and maximize shipping dollars often turn to third-party logistics (3PL) providers, one-stop resources that facilitate shipping and logistics needs. 3PLs […]

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How to Evaluate a 3PL Partner

How to Evaluate a 3PL Partner

Shippers, carriers, and even small intermediaries increasingly rely on third-party logistics (3PL) service providers to manage non-core logistics and supply functions, access capacity, and tap technology capabilities. 3PLs create value by pushing the envelope and helping customers reduce costs through tactical improvements, and enhance overall supply chain performance with strategic business process enhancements. Making the […]

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A New Day Dawns for 3PL Partnerships

A New Day Dawns for 3PL Partnerships

Most logistics outsourcers today use an RFQ to select their 3PLs. But that model is outdated and ineffective. A handful of forward-thinking shippers and logistics providers are instead embracing a collaborative outsourcing method, with powerful results.

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Mark Laufer

Balancing Shipper and Carrier Interests

The past two years have been a roller coaster ride for both carriers and shippers. After the financial crisis, carriers dropped their rates to unprecedented levels. Service contracts locked in these non-compensatory rates, and volumes dropped precipitously. Ocean carriers took ships out of service, and capacity cuts were steep and drastic. The financial viability of […]

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Duane Sizemore

Gaining Alignment With Your 3PL is Key to Supply Chain Success

When choosing a supply chain partner, it is essential that goals, expectations and strategy are all in alignment. In order to achieve this synergy, open and honest communication between business partners needs to be in place to move the relationship beyond one of simply executing services to one of real collaboration. Measurement, monitoring, and corresponding […]

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Robert Russo

3PL Partnerships: Finding Your Better Half

Just like people, companies seeking long-lasting relationships need to keep a strategic focus when choosing their “other half.” In the high-stakes world of international shipping, smart companies considering logistics outsourcing for their supply chain needs should carefully consider the question, “How do I choose the right provider?” Here are five tips to help you properly […]

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