40-3 |
Third party logistics (3PL) |
P. A. CROSBY, CGR Management Consultants, 1901 Ave. of the Stars, Ste. 1900, Los Angeles, CA 90067-6020 Who wants to fuss around with warehouses and trucks anymore? Who want to operate their supply chains anymore? In fact, some companies are outsourcing their entire logistics, production, and computer departments! Times are a changing, even though America’s percent of logistics outsourcing is at under 3% of total logistics costs, estimated to be nearly 30% of GDP, if inventory costs are included. It is not your old shipping department anymore. Food manufacturers, wholesalers, and retail chains across the country are transforming their supply chains into outsourced juggernauts! Using the services of “third party” logistics firms (previously known as trucking, rail, and warehouse companies, or freight forwarders) optimizing the supply chain service to the customers and cost to market are objectives that are changing the look of today’s food, grocery, and foodservice companies. The search is on, and the right mixes of insourcing and outsourcing is different for different companies, and each market segment has different requirements to be competitive. What will be achieved, in some cases, lower costs, higher service, protection from organization, and the ability to focus on core competencies, whether they be R&D, marketing and sales, or store operations. The value provided is a more streamlined supply chain, less risk, higher service, more expertise, and resulting higher revenues and profits. Shouldn’t you consider supply chain outsourcing? Pete Crosby, with over 20 years of consulting to food companies operating in all parts of the food supply chain, will discuss what concepts have been successful at other companies and what is in store for the future of outsourcing logistics in the future.
Session 40, The wisdom of outsourcing and the virtual office in the new millennium (Part 1)
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