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Home » Continuing to Add Logistics Value in a Commodity-centric Environment

Continuing to Add Logistics Value in a Commodity-centric Environment

August 8, 2013
SupplyChainBrain

If 3PLs try to compete based on cost they are effectively shrinking the playing field and limiting options for themselves and their customers, says Spudic. "If a customer relationship is based strictly on price and the concept that my solution is basically the same as that of Company B or Company C, we are all just going through a revolving door," he says. "It may be here today, out tomorrow and back in the next day."

Instead, 3PLs need to provide a more personalized service, with solutions that are aligned to individual customer's strategies and goals, he says. This includes being honest with customers when their needs are not a good match for a 3PL's capabilities, he says. "Offer a different solution, even if that means partnering or forming an alliance with another organization. Don't try to shrink down the playing field or put a round peg into a square hole."

3PLs also need to be more pro-active about introducing new solutions, rather than waiting for the customer to make requests, he says. "If we are continually in a reactive role, that's when things can become commoditized. I think the 3PL must always be the driver in a solution-based scenario."

This means that 3PLs need to be ahead of the curve in terms of market trends, he says. "Whether it is anticipating changes in capacity or of rate fluctuations, 3PLs have to react quickly and offer responsive solutions upfront, without waiting for customers to say "˜we need this.'"

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Keywords: supply chain, it supply chain, supply chain management, it supply chain management, supply chain management it, supply chain management scm, value chain, value chain it, 3pl, third party logistics, logistics management, logistics & supply chain, logistics services, supply chain solutions, logistics it solutions, supply chain planning, supply chain systems, supply chain services

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Air Cargo Global Supply Chain Management Business Strategy Alignment Supply Chain Visibility SC Planning & Optimization Logistics Global Logistics Logistics Outsourcing Ocean Transportation Transportation & Distribution
KEYWORDS 3PL Air Cargo Business Strategy Alignment Dimerco Express Global Logistics Global Supply Chain Management Greg Spudic IT supply chain IT supply chain management Logistics logistics & supply chain logistics IT solutions logistics management logistics management: global logistics Logistics Outsourcing logistics services Ocean Transportation SC Planning & Optimization supply chain Supply Chain Management supply chain management IT supply chain management SCM Supply Chain Planning supply chain services supply chain solutions supply chain systems Supply Chain Visibility Third Party Logistics Transportation & Distribution Value chain value chain IT
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