National Logistics Management

1. How has the internet revolutionized the 3PL industry?

The development of the internet has allowed the creation of a new 3PL type called non-asset based 3PL. A non-asset based 3PL is unique because of the following:

• Acts as a service integrator and is not restricted to using any particular warehouse or transportation company in providing services to its clients

• Inherently unbiased in its decision making because of their unlimited freedom to work with the diverse transportation/warehousing companies

• Allows for automation of more complex transactions

• Allows optimization & activity-based costing tools to the transportation companies

• Aids to minimize transaction and transportation costs for the shippers

• Provides shippers with transportation procurement tools

• Provides shippers with global tracking, management of freight payment, oversight of customs management and landed costs assessments

• Increases freight density across the transportation company’s carrier base by utilizing unused capacity

• Provides value-added logistics management services such as internet-based load tendering, carrier availability notices, routing solutions, etc

• Provides a faster medium of payment which better utilizes capital for the carriers

• Provides a method to monitor real-time status of shipments which allows for better scheduling

2. As suppliers move toward 3pls, which players in the industry will benefit and which players will lose?

The players in the industry that will benefit are those capable of:

• Offering a wide range of services i.e. a “one-stop shop” of inventorying, order management, warehousing, customs clearance, inventory ownership, and intermodal transportation

• Globalizing services due to our increase in imports and exports as well as the emerging markets of China and India

• Maintaining talented management

• Providing customer satisfaction through:

o Asset visibility

o Ease of use

o On-time delivery

o Value (lower cost or best value)

o Trust

o Flexibility