Here are the latest logistics job openings available from the logistics job board
Top 10 3PLs
Inbound Logistics recently released the results to their annual Top 10 3PL excellence awards. These are the top 10 third party logistics providers as voted by nearly 4,000 professionals in the logistics industry. Inbound Logistics also released their annual Top 100 3PL providers list which includes large, medium, and small logistics providers.
Top 10 Third Party Logistics Providers for 2006
1. UPS Supply Chain Solutions
2. Ryder Logistics
3. C.H. Robinson
4. Schneider Logistics
5. DHL and Exel
6. Transplace
7. BAX Global
8. Penske Logistics
9. BNSF Logistics /Menlo Logistics (tie)
10. Landstar Logistics
Logistics Mergers & 3PL Consolidation
Ask one person they’ll tell you one thing, ask another they’ll feel the exact opposite.
Do 3PL mergers have a positive or negative reaction on service to outsourced logistics clients? Here are two different articles, from two different logistics publications, with two different stances.
Logistics Today
Logistics Mergers Don’t Help Customers
Global Logistics and Supply Chain Strategies
Consolidating 3PLs Benefits Customers
Selecting a Logistics Provider without an RFP
While RFPs can be a great way to gather additional information on logistics companies and receive competitive bids from a number of companies, they can also have the potential to become a colossal waste of resources for both your company and the 3PL providers participating. In fact some logistics companies will not even participate in exhaustive RFPs; this is particularly true for companies that are known for issuing yearly benchmarking exercises.
If you are going to issue an RFP consider limiting the distribution to only 3-5 companies. By doing extensive preliminary research select which providers will fit your needs and then consider issuing a succinct Request for Quote to these select companies. Need to find out more information on companies? Review their website, visit trade magazine sites and directories and then contact the companies electronically or give a business development or sales rep at each company a call to really understand each logistics providers strengths and unique service offerings.
Before making those initial contacts make sure you understand your program inside/out and in great detail. Every company is different so it’s important to give your 3PL a good idea of what your program looks like and how it runs. Usually the more information you can provide the better the rates will be because it limits the amount of assumptions that need to be made in the engineering/pricing process. Here are a number of things that 3PL providers would typically like to know that will enable them to generate a proper quote.
- Product(s) Description
- Average Monthly Inventory: # of pallets/skids/rolls; # of cases
- Average case weight
- Average cases per pallet
- Average SKUs in inventory
- Product Stackability
- Pallet Dimensions
- # of inbounds received per year
- # of outbound orders per year
- Are the shipments coming in on rail, truck, LTL small parcel?
- Locations/Lanes for shipments/pickups
- Technology requirements: EDI, RF Scanning, RFID?
Let’s Hear it for Medium Sized Logistics Companies
It seems like every month you hear about another major 3PL merger or acquisition; strengthening or creating yet another massive 300 pound Gorilla, supply chain management conglomerate. But according to Michael Stolarczyk, a business development director at Exel Logistics, small to mid-market regional logistics providers are still viable and very much in demand.
Some clients outsourcing logistics services to 3PL providers feel that they can get better results by using one or even a number of different niche logistics companies. With smaller logistics providers some customers feel that they get more specialized attention and have access to top management figures that aren’t always as accessible when working with the big guys.
There are also other great advantages to working with a “lean, mean” third party logistics provider that focuses on a few regions for it’s public warehousing and transportation offerings. These include working with companies that specialize in servicing your particular industry, product or lane segment.
It is important to assess your company’s needs before making a decision what type of 3PL to outsource your services to. While a smaller or medium sized provider might be perfect for one company a large global provider may be the right fit for another. Be sure to use due dilligence when evaluating your needs.
3PLwire also has a good write up on the use of small/medium sized 3PLs : part 1, part 2
source: Niche Logistics Companies Play Important Role
Logistics Costs Increase
According to a recent report in Logistics Today the year 2005 marked the largest increase in logistics costs in the history of the State of Logistics Report.
The reports claims that logistics costs increased by a whopping $156 billion. The majority of this increase came on the transportation side.
Representative Rosalyn Wilson noted that:
Greater efficiency must be extracted from logistics networks to counter many of the effects of the rising costs which means the U.S. must do more to improve its transportation infrastructure. Ports must be modernized, private investment in rail infrastructure must be encouraged, and additional lane miles must be added to highways as well as establishing truck-only lanes to improve efficiency.
Top 10 3PL vote
Every year for it’s July issue Inbound Logistics, one of my favorite trade publications servicing the third party logistics industry publishes its “Top 10 3PL providers” based on feedback from their annual “3PL excellence survey.”
Well now is your chance to have your say in the survey. If you are a professional in the logistics industry or even better a 3PL customer head over to their 2006 3PL Excellence Survey to cast your vote for the logistics company that has put forth top notch supply chain management this year.
Increasing Roles for 3PLs
3PL wire featured a great article in Global Services magazine entitled What Can Logistics Do For You? which discusses the increased roles that third party logistics providers are taking on in company’s supply chains.
New roles 3PLs have ventured into include:
- asset recovery and recycling management
- field-tech support
- on-site repairs
- preventative maintenance
- returns and repairs management
- service parts logistics
- reverse logistics
- after market services
Logistics and Warehousing in the Media
This is a quote from a recent article by Hiawatha Bray a Reporter for The Boston Globe
“Don’t bother me with a pitch for a story that would never, ever appear in the Boston Globe. This is a newspaper, not a technical trade rag. Your hot new breakthrough in supply chain management may wow them at the next convention of the International Warehouse Logistics Association, but the readers of the Boston Globe won’t give a rip. So keep it to yourself, okay?”
Looking at this statement I wonder why supply chain management and warehousing are not given more mainstream business news coverage. Third Party Logistics services are those which can be and are utilized by just about any company producing products or raw materials.
Maybe news releases on innovations in the storing and trucking of goods is not as exciting as the latest PR blitz by Google offering some new service that only a small percentage of the population will actually use, but if it is not already, logistics should be considered of vital importance to the business community.
Logistics and Supply chain management are not some fad. They are necessary business processes. But maybe the reason I’m writing this is because this site is an “online technical trade rag.”
Third Party Logistics Contracts
According to an interview I recently came across with Rob O’ Byrne at the Logistics Bureau, many companies are dissatisfied with their Third Party Logistics (3PL) provider.
Robs mentions that the majority of companies that have used his consulting services over the last ten years, feel that their providers “don’t understand them, and don’t respond to their needs.” Typically when he starts working with them they have had it with their 3PL and are looking for assistance in moving on to a new relationship. While this is an option, it is also worth working to rebuild and re-evaluate the relationship with your existing provider.
Open communication will always be one of the most important things to maintaining a third party logistics contract. This is something that needs to be worked on by both parties.
Rob mentioned that 90% of cases where 3PL contracts are underperforming it is not always solely the logistics providers fault. Many times logistics contracts are awarded without taking the proper steps to understand the details of the logistics program.
One of the biggest problems that typically happen in 3PL relationships is that companies provide inaccurate information regarding their programs and in return the Logistics provider doesn’t budget accurate resources.
Logistics Services are quoted using very strict criteria, and it is essential for 3PL’s to have accurate inventory information to bid on. When data supplied during the RFP process turns out to be inaccurate or understated, this is typically when problems arise, but this is also the time when open communication helps the most.
Logistics companies by their very design exist to provide flexible services. Inventory fluctuates and 3PLs are ready to react. But when the program completely deviates from how it was initially quoted, the contract needs to be revisited or the relationship has a chance of deteriorating very quickly.
According to the Logistics Bureau there are six key areas to focus on when evaluating a failing 3PL contract.
“1. Commercial arrangements – firstly, how is the contract resourced and costed? And secondly, what pricing mechanism is in place to ensure cost visibility as well as incentives for operational improvement.
2. Contractual arrangements – are the expectations of the customer clearly articulated in the contract, along with appropriate Key Performances Indicators (KPIs)? Does the contract term fairly reflect the required investment and commitment? What are the business risks involved in termination?
3. Service and cost performance – what has been the real performance of the contract, when compared to expectation? What has contributed to under performance?
4. 3PL processes – is the 3PL adopting appropriate processes in fulfilling the contract? Can these be jointly improved?
5. IT systems – are there IT issues that impact the performance of the contract and are there some easy fixes that can be employed?
6. The customer/3L relationship – at both the operational and account management level are there issues with the relationship? These might be due to a mismatch of culture, or more often due to individual clashes.”