Professor John Langley publishes 20th anniversary 3PL Study

Relationships are central to the success of 3PLs and their customers, and 3PLs may be thought of as having two critical responsibilities—managing customer relationships that focus on the availability of capable supply chain services and providing or managing the provision of these services. For 3PLs, this means they are not only managing relationships with their direct customers but also with those organizations that have the assets to provide the needed services.

Of relevance to how these relationships are structured and how they progress is whether the shippers view themselves as strategic or tactical buyers of logistics service, or some combination of both. Tactical buyers have developed solutions but utilize 3PLs’ operational services and fulfillment. This year’s survey shows 43% consider their organization to be a strategic buyer, 37% to be a tactical buyer and 20% to be a combination of these.

A Blog Post by Hans Hickler

About 12 years ago, when I was running a Logistics company, I had a series of meetings with Consumer Electronics and mobile phone customers. We were exploring how we could reduce their Supply Chain and Network spend.
I discussed with these customers, the fact that as global logistics companies, we have a lot of insight into the cargo flows of our customers and the reality was as follows:

In many cases, our customers produce their product in the same factories as their competitors, and these products end up in the same store shelves, side by side. From a logistics standpoint, it made absolute sense to consider co-domiciling the product in the only remaining leg of the chain – the ocean container – and thereby optimizing origin, ocean and destination transportation economics. Continue reading A Blog Post by Hans Hickler