While we, at WDX, are not a 3PL, we face similar issues in that we must sell not only to the transportation people (whose processes we change and whose jobs we may threaten), and to the IT people (whose territory we invade), and to the financial people (who worry about costs and ROI, as well as audit carrier invoices), but also to the higher level execs who worry about tying operations and processes together with strategic efficiency – people who may know little about logistics.

In the case of 3PL’s, upper management may not understand logistics very well, but they do have a better appreciation for the value of outsourcing, whatever the outsourced function may be: capital expenditure in long-term structural solutions vs. fast and flexible ability to react to change with hired expertise.

While there are challenges in selling upper management, there are advantages too. There is less concern over how it will affect their department, their budget, their people and a better appreciation of the big picture (and the solution is not the same for every picture).

If the sell seems more difficult today, I don’t think what has changed with these times is that these decisions are being now being scrutinized by upper managers who don’t understand logistics, it’s the resistance to major change at all levels that does not have a more compelling ROI than usual. In fact, upper management may be the best place to construct the case for value.

Gary Silver
WDXfreight.com