Archive for Logistics Outsourcing
Oliver Williamson, a Professor Emeritus at the University of California Berkley and co-recipient of the 2009 Nobel Prize in Economics, published a paper in April 2008 titled “Outsourcing: Transaction Cost Management and Supply Chain Management” in the Journal of Supply Chain Management. Williamson’s area of expertise is transaction cost economics. The paper is far more focused on theory than practice, and is not an easy read by any means… Continue reading
Back in November, I conducted a series of think tanks at The Logistics & Supply Chain Forum, organized by Richmond Events, on maximizing the value of 3PL-customer relationships. Forty-three logistics and supply chain executives, from various manufacturing and retail companies, participated in these sessions. ARC also conducted a web survey, with the support of Richmond Events, on the same topic. More than 100 logistics and supply chain executives… Continue reading
Transform Your 3PL Relationships in 2010
· CommentsLooking for a work-related New Year’s resolution? How about transforming the way you establish and manage your outsourced logistics relationships with 3PLs? As I have written many times before, many 3PL-customer relationships, particularly those that are in their fourth or fifth year, seem to be stuck in a rut. Yes, in most cases these relationships are going okay, cost targets are being met and service levels are acceptable, but… Continue reading
What is the State of the 3PL Industry?
· CommentsTwo annual reports focused on the third-party logistics (3PL) market were released last month, and the research results were presented at the Council of Supply Chain Management Professionals (CSCMP) annual conference. The 16th Annual 3PL CEO Survey, sponsored by Penske Logistics and authored by Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University, is based on responses from 35 third-party logistics CEOs across North America… Continue reading
Of all the supply chain and logistics topics we have written about over the past nine months, our postings on performance-based outsourcing (PBO) have been among the most popular (see “Performance-based Outsourcing in Logistics” and “Performance-based Outsourcing: What’s in It for ‘We’?). The reason is simple: many third-party logistics providers (3PL) and their manufacturing and retail customers want to break free from the rut they find… Continue reading
While worldwide economic growth and trade activity has declined over the past year, some regions—including the Middle East and Africa—are faring better than others. According to the World Trade Organization, GDP growth in the Middle East and Africa in 2008 was 5.7 and 5.0 percent, respectively. While these growth rates are down from the previous year, they greatly outpace GDP growth in the United States (1.1 percent) and the European… Continue reading
Drawing the Line on Logistics Outsourcing
· CommentsI read a very interesting blog posting this week by Ben Gomes-Casseres in Harvard Business (“Outsourcing: Where Will You Draw The Line?”). Here are some of the key points that he makes in the piece, none of them new or groundbreaking, but they’re worth recalling nonetheless.
- The main reason many companies outsource is to focus on “core competencies.” But Ben argues that “the question to ask is
You Might Need A Supply Chain Intervention If…
Posted on Dec 18 2009 | By Carl Fowler · Comments (0)A certain comedian from the South has achieved great fame with an act based entirely on a series of “You might be this, if that” jokes. He enjoys poking fun at those who don’t take stock of the obvious to solve their problems. Minus the chastising and the humor, however, it’s the same practice of self awareness that is critical for those logistics professionals who are uncertain about whether their… Continue reading