Third Party Logistics Libby Ogard Prime Focus LLC October 20, 2004
Definitions • Third Party Logistics (3 PL): Outsourcing all or much of a companies logistics operations to a specialized company • Third Party Logistics Provider: A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated or “bundled” together by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers and finished products from manufacturers to distributors and retailers. Among the services which they provide are transportation, warehousing, cross-docking, inventory management, packaging and freight forwarding. Source: Council of Logistics Management
Why Outsource? • 80% of the top 400 US companies operate on a global scale POLAND U. K. MINNEAPOLIS, MINN. FRANCE NEW YORK, NY HAYWARDUS CAL. Hayward PORTUGAL BAHRAIN SPAIN GUADALAJARA, MEXICO GUATEMALA HONDURA S LAHORE, KARACHI, PAKISTAN MEXICO CITY, MEXICO LOS ANGELES, CAL. KOREA MILAN, ITALY FLORENCE, ITALY TURKEY BOMBAY, INDIA NEW DELHI, INDIA EGYPT BANGALORE, INDIA MADRAS, JORDAN INDIA DUBAI SRI LANKA DHAKA, BANGLADESH TIANJIN, CHINA QINGDAO, CHINA DONGGUAN, CHINA SHANGHAI, CHINA GUANGZHOU, SHENZHEN, CHINA TAIWAN ISRAEL DOM. REPUBLIC EL SALVADOR BRAZIL NICARAGUA VIETNAM THAILAND CHITTAGONG, BANGLADESH Madagascar MALAYSIA KENYA HONG KONG PHILIPPINE S SAIPAN SINGAPOR E INDONESIA FIJ I MAURITIUS LESOTHO SWAZILAN D DURBAN LEGEND MERCHANDISING & PRODUCTION SERVICES
Complex Inland Distribution Patterns
Profitability depends on Speed, Reliability and Visibility
Outsourcing - Industry Trends
Outsourcing - Industry Trends Contract Logistics Savings Potential Description Savings Realized Route Design & Optimization Closed Loop Dedicated Operations 10 -15% Mode Conversion 10 -15% Core Carrier Management 5 -10% Rate Negotiation & Audit 4 -5% Inbound Consolidation 20 -25% Reverse Logistics 10 -15% DC Location Realignments 10 -12% Reduced Inventory 7 -10%
FY 2003 Fortune 500 Global 3 PL Gross Revenues by Industry
Customers of 3 PL’s Industry Automotive Technology Retailing Consumer Products Food and Grocery Healthcare Industrial and Elements Other Total Costs Global Costs $98. 2 $156. 4 $98. 6 $13. 6 $32. 2 $38. 4 $179. 7 $63 $678. 3 Costs stated in Billion's of Dollars Domestic Costs $37. 4 $77. 4 $67. 2 $13. 3 $27. 8 $34. 0 $84 $25. 3 $366. 3
Customers of 3 PL’s Percent of Fortune 500 Companies Using 3 PL’s Armstrong and Associates 2004
Buyers of 3 PL Services Customer General Motors Wal-Mart Stores Ford Motor, HP Procter & Gamble General Electric Georgia Pacific, IBM Pepsi. Co, Sears Coca-Cola, Sara Lee, Target, Xerox General Mills Delphi, Safeway # of 3 PL’s Used 37 33 27 20 17 16 13 12 11 10
Services Provided By 3 PL’s Source: Armstrong and Assoc 2004
Top Providers Est. Rev. ($M) 2003 Rank Provider 3 PL 2003 Revenue 1 Excel $8, 300 2 Kuehne & Nagel $6, 900 3 Schenker $6, 400 4 DHL $5, 700 5 P&O Nedlloyd $4, 800 6 TGP/TNT $4, 700 7 Panalpina $4, 600 8 UPS Supply Chain $4, 100 9 Nippon Express $4, 000 10 C. H. Robinson $3, 600 11 Menlo Worldwide $3, 100 12 NYK Logistics $3, 000
10 Commandments of Outsourcing 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Develop a strategy for outsourcing Establish a rigorous provider selection process Clearly define expectations Develop a good contract Establish sound policies and procedures Identify and avoid potential points of friction Communicate effectively with your partner Measure performance and communicate results Motivate and reward provider Be a good Partner
Скачать презентацию Third Party Logistics Libby Ogard Prime Focus LLC
473991d5ed0f7058d34c1107d2011a50.ppt