Supply Chain Execution
Management. Performance. Implementation
3PL RFP Management & Implementation
- How can we ensure that we absolutely make the right choice in the selection of a 3PL?
- What risk mitigation techniques should we deploy in rolling out the transition to a 3PL solution?
- How should we structure pricing that is an incentive to the 3PL but also supports non-performance financial impacts?
- How do we drive a performance driven contract with our 3PL?
- What are the benefits of us owning our own real estate in this arrangement?
- What should be the performance scorecard used to help manage the performance of the services?
- What are some of the transition strategies that could be used to ensure the human resource considerations are managed for success?
- What should the communication strategy be with our employees?
- How does the efficiency of our distribution operations compare when benchmarked to other similar operations?
- What would be the roadmap and set of activities to improve these efficiencies and in what time frame can they take place?
- What tactics can I use in controlling better inbound planning to our DC’s and how can I leverage the inbound carriers to provide visibility?
- How does my inbound and outbound freight spend compare to other similar benchmark volumes and spend?
- How can I leverage specific WMS or TMS capabilities to improve performance and efficiency and what would be the approximate investment that would be required?
Each scenario is different and requires expert assessment and problem solving. We’ll meet with you to explore the issues and develop a plan for success.
Transportation Spend Management
Macro trends are emerging from these dramatic changes in rising transportation and logistics costs and these trends will impact how buinesses will have to manage their supply chains in the future.
Macro Trend #1: Network Optimization Modelling to Balance Transportation Costs vs. Inventory Investment / Deployment and DC Facility Costs
- As Transportation is often as much as 70% of total logistics costs, centralized distribution systems, depending on a “high miles” network is not optimal
- Companies need to examine their Distribution Network (Sourcing / Inventory Deployment Points / Customer Ship To’s) to determine with high cost transportation what an optimal network may look like, cost and understand potential impact to service change.
Macro Trend #2: Greater Use of 3PL’s Infrastructure / Assets to Enable Inventory Deployment Closer to Consumed Use
- Companies will need to use the assets of others (Transportation providers / 3PL’s) to enable deployment of inventory closer to its point of use and rely on these external assets to enable lower transportation costs and efficient inventory deployment
Macro Trend #3: The majority of companies do not collect and maintain key transportation data
- Many companies do not have a transportation management system (TMS) that effectively captures key transportation data, volumes and costs. This inability will not support accurate budgeting or reporting on transportation spend
- The transportation services industry are collecting your data for their billing purposes
- Companies need to work with their transportation providers to ensure transparency on volumes, weights, dimensions and costs, to better understand trends and distribution patterns
5 questions that will help develop a successful and cost effective transportation management program.
- How do we compare when we benchmark our current spend, volumes and shipment characteristics to other similar best practice businesses?
- What is the best process to professionally represent our company to the transportation service provider marketplace to leverage our spend and volume?
- What negotiation strategies should we deploy to ensure we maintain a high level of quality yet ensure we receive fair market pricing?
- What technical strategies can we use to offset fuel surcharges and accessorial charges and be able to monitor any impacts on an immediate basis?
- Which are the carriers that we should be dealing with and who can bring the best informational and performance monitoring tools?