Archive for Performance-based outsourcing
Why?
A simple one-word question is all it takes sometimes to bring about change. Earlier this year, at the CSCMP Europe 2010 Conference, Deborah Lentz, Vice President Customer Service and Logistics, Kraft Foods Europe included the following graphic in her presentation (sourced from “2016 Future Supply Chain,” Capgemini & GCI Global Commerce Initiative):
[caption id=”attachment_4329″ align=”aligncenter” width=”300″ caption=”Source: “2016 Future Supply Chain,” Capgemini and GCI Global Commerce Initiative (click to… Continue reading
Back in February, I wrote a piece on courage, trust, and patience in logistics where I relayed the following story:
I recently came across a Fortune 500 company that could have saved millions of dollars in transportation costs by putting its freight out to bid. But after much internal debate, the company decided to honor its current rates with carriers. Why?… Continue reading
As you might recall, this past February we held a seminar on performance-based outsourcing (aka vested outsourcing). We had a great lineup of speakers, including folks from Whirlpool, Del Monte Foods, Penske Logistics, Transplace, Unipart Logistics, and a former executive from Thermadyne Holdings. Kate Vitasek, author of Vested Outsourcing: Five Rules that Will Transform Outsourcing was the keynote speaker.
Well, thanks to the folks at SupplyChainBrain, we… Continue reading
I’ve been on a Depeche Mode kick the past few days. This happens to me at least twice a year, where I just can’t get enough (pun intended) of their songs. One of my favorites is “Everything Counts,” a song I’ve lost my voice singing countless times at their concerts. The song begins with these lyrics:
The handshake sells the contract
From the contract, there’s no turning… Continue reading
In February, we published a report on “Maximizing the Value of 3PL-Customer Relationships” (available to ARC clients only). The content was based on think tanks we conducted at The Logistics & Supply Chain Forum organized by Richmond Events in November 2009. 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… Continue reading
Buying Supply Chain Outcomes, Not Software
· CommentsOver the past year, we’ve been discussing how performance-based outsourcing (aka Vested Outsourcing) has the potential to transform 3PL-customer relationships. But can the principles that underpin PBO also transform the way companies procure supply chain and logistics software and the way they work with software vendors?
I believe the answer is yes, but only if software vendors are willing to augment their product offerings with managed services—and if… Continue reading
On Courage, Trust, and Patience in Logistics
· CommentsI recently came across a Fortune 500 company that could have saved millions of dollars in transportation costs by putting its freight out to bid. But after much internal debate, the company decided to honor its current rates with carriers. Why? The company knows that capacity will tighten again down the road, and when that day comes, it expects its carriers to maintain their commitments to them and not… Continue reading
This Week in Logistics News (Feb 8-12)
· CommentsAfter months of planning, we finally held our seminar on performance-based outsourcing (PBO) in Orlando this week. Great presentations from Kate Vitasek (whose book “Vested Outsourcing: Five Rules that Will Transform Outsourcing” was just published) and representatives from Whirlpool, Del Monte, Penske Logistics, Transplace, and Unipart Logistics. Equally informative were the discussions the attendees had during the think tank sessions. In the days and weeks ahead, Steve Banker… Continue reading
