The need to manage and reduce
costs is nothing new. And the
centralization of logistics services and automation offered by 3PLs have enabled companies to bundle
and outsource complex logistics functions, leading to more efficient operations
and in many cases, allowing the companies to capitalize on the 3PLs
infrastructure, resources and relationships.
All good so far, right?
The problem arises when those
companies begin to view the 3PL as a commodity provider rather than a strategic
partner. “The recent white paper, “Unpacking Risk Shifting: A White Paper
Challenging Unreasonable Risk-Shifting in the Transportation Industry,” written by what could be
viewed as a collection of logistics “all-stars,” including academics, 3PLs and
shippers, and consultants, makes the argument that the relationships have swung
too far toward commoditization and away from strategic partnerships. Companies “…want innovation and investment by
3PLs, with 3PLs reluctant to deliver, citing how ‘razor thin margins and short-term
commodity-based contracts create a disincentive for 3PLs to make investments.’”1
That’s
bad for both sides of the transaction:
3PLs may turn away business, or even go out of business. Companies may not be able to find a 3PL
willing to work with them. Both sides
lose.
Contrast that with a more
balanced relationship that builds on the success of both the company and the
3PL. As a strategic partner, your 3PL is in a position to invest in the
future, supporting the success of both organizations. They can be the innovative solution provider
that your company relies on, rather than just the folks who get the package
from point A to point B. When the next
crisis or amazing opportunity arises, will you have a strategic 3PL partner to help
you solve the problem or capitalize on that great new opportunity?
Talk to Vision today, to learn how we can be
your strategic 3PL partner, building
a future together. Vision Consumer Products Fulfillment has decades of
experience and industry expertise in consumer products fulfillment
services. No matter who your customer
is, we treat your customer as our own.
We know what makes a raving fan out of an individual customer, as well
as what makes a business partner trust you with their business. Call or email us to learn how. We’re certain we’ll be the best fulfillment warehouse partner you
have ever had!
1http://www.logisticsmgmt.com/article/shifting_risk_and_meeting_in_the_middle_could_serve_as_key_to_shipper_3pl_r
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