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3pl Report Paper

Outsourcing Logistics Report Outsourcing Logistics – The latest trends in using 3PL providers January 2005 For further details please contact: Laura Goddard [email protected] com US Toll Free: 1 800 814 3459 ext 321 Rest of World: +44 (0) 207 375 7231 Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 1 Outsourcing Logistics Report Table of Contents: I II III IV V VI VII Introduction …………………………………………………….. ………. Survey overview ……………………………………………. …………. 3 Overall use of 3PL services ……………………………. ………….. 4 Key drivers in outsourcing logistics to a 3PL ……. ………….. 5 Overall performance of 3PL providers ………………….. …. …. 6 Will companies increase their use of 3PLs ……………… …… 7 What percentage of companies not currently using 3PLs are planning to use a 3PL in the future …….. …………. 8 VIII IX Overall industry implications and conclusions …….. ……. …. 9 Outsourcing Logistics 2005: Best Practices for Managing 3PL Relationships Conference …………………………. … 11

Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 2 Outsourcing Logistics Report I Introduction The 3PL industry has been growing at a steady rate, and it’s clear that more and more industry verticals are seeing real benefits from outsourcing their logistics operations to a third party. Manufacturers and retailers are continually pressured to reduce transportation costs, which has created an opportunity for companies that are able to provide more favorable rates and increase overall supply chain efficiency.

Recent statistics have even shown that shippers’ logistics costs have been reduced when outsourcing to 3PLs at an average of more than 15% in North America! However, it is still a difficult decision for many to outsource. So what are the key reasons ‘shippers’ choose to outsource and how do they rate the value of their contracts? eyefortransport conducted the Outsourcing Logistics Survey from December 2004 to January 2005. This survey was timed to coincide with the eyefortransport Outsourcing Logistics 2005: Best Practices for Managing 3PL Relationships conference, April 25-26 2005 in Chicago.

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Much of the data gathered in this report will be discussed and debated at the conference. For more information on the eyefortransport survey results or the conference, contact Laura Goddard at [email protected] com, 1 800 814 3459 ext 231 or +44 (0) 207 375 7231. II Survey overview 173 logistics professionals from manufacturing and retail companies responded to the survey, which was conducted by eyefortransport. Responses were solicited in a targeted email campaign that included select trade associations, industry related databases, and other highly specific groups.

Respondents were asked a number of questions, to establish: the percentage of companies currently using 3PL services, what percentage of their overall logistics operations are outsourced, what the key drivers were and the overall performance of 3PLs. They were also asked how much they plan to increase logistics outsourcing in the future and whether they see 3PLs as supply chain suppliers (service providers) or supply chain partners. Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. yefortransport. com/outsourcelog 3 Outsourcing Logistics Report III Overall use of 3PL services Based on the responses to the survey, it is clear that manufacturers and retailers consider 3PL services to be a viable option.

A strong 79% are currently using 3PL services for their logistics operations, which is in line with other industry reports. However, it is interesting to see that shippers rarely outsource 100% of their logistics operations to a 3PL provider. % of total logistics operations outsourced to a 3PL 0% 25% 20% 15% 10% 5% 0% 0-20% 20-40% 40-60% 60-80% 80-100% N/A Only 14% of respondents said that they outsource 80-100% of their total logistics operations, while 34% use 3PLs for between 40 and 80%. Overall, 1 in 4 respondents outsources less than 20% of their logistics operations to 3PLs. Is this is a sign that shippers are hesitant to allow too much ownership of their supply chain to outside companies, or that they prefer to bring the expertise into their own logistics division?

Concerns over integrating the two businesses into a successful working relationship and ensuring mutually viable contract terms could also be factors in the decision against outsourcing a large percentage of key business operations. Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 4 Outsourcing Logistics Report IV Key drivers in outsourcing logistics to a 3PL Given that 4 out of 5 companies are using 3PL services, what are the key reasons behind using a 3PL?

The survey aimed to uncover some of the common drivers for outsourcing logistics. Key drivers in choosing a 3PL Relevant Very Important Reduce Costs Increasing customer satisfaction Increasing speed of services Improving Supply Chain Management Reducing staff headcount Globalising your supply chain Increase efforts on core competencies Lack of in-house skills 0% 5% 10% 15% 20% 25% 30% 35% The percentage of respondents who selected “reducing costs” as either “relevant” (14%) or “very important” (17%) in their choice to outsource logistics was equal to the objective of “increasing customer satisfaction”.

Although the need to increase the speed of services wasn’t as high as the first two drivers, it still ranked as “very important” (15%). This confirms that shippers continue to predominantly view 3PLs as tools for reducing costs and improving their basic logistics services. On the other hand, the aim of “improving supply chain management” only rated “very important” for 10% and the need to concentrate on core competencies was “very important” to only 12%.

This seems to suggest that, despite many 3PLs now marketing themselves as total logistics providers with a range of capabilities and supply chain expertise, these are not yet the core reasons shippers use 3PLs. The opportunity to improve overall supply chain management systems and give shippers more time to concentrate on the non-logistics related aspects of their business, have yet to become the top reasons for contracting a third party. Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 5

Outsourcing Logistics Report V Overall performance of 3PL providers Once the decision has been taken to outsource to a 3PL, shipper satisfaction levels are good. A total of 81% of respondents selected “good’, “higher than expected” or “outstanding (4%)”. In comparison, only a total of 19% were less than pleased with their 3PL contract. Overall performance of current 3PL Outstanding Higher than expected Good Lower than expected Poor 0% 4% 12% 65% 15% 4% 10% 20% 30% 40% 50% 60% 70% Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. yefortransport. com/outsourcelog 6 Outsourcing Logistics Report VI Will companies increase their use of 3PLs Given the relatively low number of businesses using 3PLs for a large percentage of their total logistics needs, it is useful to try to predict if this may change in the future. Since the majority of those currently using 3PLs are getting a “good” to “outstanding” service, it would seem natural that they plan to increase their reliance on 3PLs. Increasing use of 3PL services Possibly, 54% Very likely, 19% Unlikely, 27%

Although 27% of respondents said it was “unlikely” that they would increase their use of 3PLs, a total of 73% were at least considering this move, with 1 in 5 rating it as “very likely”. Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 7 Outsourcing Logistics Report VII What percentage of companies not currently using 3PLs are planning to use a 3PL in the future For those companies that have chosen not to outsource to a 3PL, the survey asked if this current status was likely to change within the next 5 years.

Respondents who currently favor in-house logistics, were also asked if they had previously used a 3PL and decided against future outsourcing as a result. If you don’t currently use a 3PL, do you plan to outsource your logistics operations to a 3PL in the future? Previously outsourced, now favour in-house, 21% Within a year, 32% Not likely, 26% Unsure, 11% Within 2-5 years, 11% In total, 43% of respondents were considering using 3PLs for their logistics operations and the highest percentage of the group (nearly 1 in 3) are looking into using a 3PL “within a year”.

With 11% of respondents being “unsure” just over 1 in 4 said they thought it “unlikely” that they would outsource in the future (26%). Nearly 1 in 5 respondents who have used 3PLs in the past are now favoring inhouse logistics operations. This could reflect companies that used 3PLs at some stage but found very little value gained, or the complexity of the contract and ownership of the supply chain meant 3PLs could not offer enough (in terms of savings or expertise to risk another contract). Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. yefortransport. com/outsourcelog 8 Outsourcing Logistics Report VIII Overall industry implications and conclusions The over-arching theme is consistent with other industry reports and points to an increasing market for companies that are able to provide third party logistics for the purpose of reducing costs and increasing customer satisfaction. 3PL customers are generally happy with the level of service they’re getting, with the majority keen to outsource more of their logistics to 3PL providers in the near future.

In fact, across the board the rapid growth of 3PLs is clear, with nearly 3 out of 4 of current 3PL customers considering an increase in outsourcing. Just under half of those not currently using a 3PL are also showing an interest in 3PL services for the future. Despite a largely positive feedback on 3PL performance, there are clearly still some reservations on outsourcing. Of those who currently don’t outsource their logistics operations, just over 1 in 5 were companies who were previously 3PL customers but, for undisclosed reasons, now choose not to use 3PLs.

This could reflect a failure from either side on expectations. If the initial terms in the contract are clear but then those objectives are not met, there is an obvious drop in satisfaction from 3PL customers. In addition, where the manufacturer or retailer is looking for a total supply chain logistics provider but the 3PL does not fulfill this expectation, the fault could be on the side of the customer. Obviously 3PLs must be sure they can meet their contract objectives and shippers must be clear on their demands.

The survey pressed the respondents one step further and asked them if they saw 3PLs as an integral part of their operations and a real supply chain partner or if they simply viewed 3PLs as supply chain suppliers (service providers). The results of the grapgh on page 10 reflect the 3PL-users’ understanding of this business relationship and the 3PL’s role. Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog Outsourcing Logistics Report Do you see your 3PL as a service provider or a supply chain partner? 60% 50% 40% 30% 20% 10% 0% Service provider Supply chain partner 56% 44% The largest percentage (56%) selected “provider”. This could indicate some hesitancy on the part of the 3PL-user to fully integrate 3PLs into their supply chain strategy, preferring to maintain strict boundaries. It could be argued, however, that both sides would get more out of the relationship if they focused on a closer business strategy.

Given the range of services that 3PLs now offer and the satisfaction from current 3PL-users, perhaps those companies who set up strategic partnerships with 3PLs will benefit most for the future of the third part logistics provider. Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 10 Outsourcing Logistics Report IX Outsourcing Logistics 2005: Best Practices for Managing 3PL Relationships Conference

The eyefortransport Outsourcing Logistics 2005: Best Practices for Managing 3PL Relationships conference will take place April 25-26 in Chicago. This event will bring together senior logistics executives from different industry verticals to discuss 3PL adoption, selection, contract negotiation and relationships. Topics up for discussion, analysis, and questioning will include: • Assessing if outsourcing is the right choice for your company • Top tips on RFQs and industry advice on tackling the selection process to ensure the best 3PL for you! Setting incentive schemes and remuneration – profitable contracts and ROI • The benefits of using a 3PL for supply chain technology and tips for smooth integration …and much more! Learn from special, exclusive presentations and executive panels and join in the discussions at intimate round table sessions. Attend the Chicago event to benchmark your current 3PL contracts against your peers and make the most of the unprecedented networking opportunities with speakers from leading manufacturing and retail companies – such as Target, Rolls Royce, Owens Corning, Nestle, Intel, Kellogg, Levi Strauss, Sysco, Supervalu, Ingersol

Rand. See the website for full speaker details. For more information on attending, exhibiting or sponsoring this event, contact Laura Goddard at [email protected] com, 1 800 814 3459 ext 231, or +44 (0) 207 375 7231 Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 – Hyatt Regency McCormick Place, Chicago, IL www. eyefortransport. com/outsourcelog 11 Register NOW and SAVE $300! ????????? Outsourcing Logistics 2005 25 – 26th April • Hyatt Regency – McCormick Place, Chicago, USA Come away with the answers you need! Industry Presentations, 6 Panels, 9 Roundtables, 2 Workshops & 7 hours Networking time! Best Practices for Managing your 3PL Relationships The must-attend event for logistics executives working with 3PLs! Learn to successfully select 3PLs, negotiate contracts, ensure smooth operations and evaluate performance The ONLY event to give you in-depth knowledge of the 5 KEY topics! 3PL selection and contract negotiation – What are the key factors to consider when renewing existing 3PL contracts and selecting new 3PLs? – Hear the secrets to setting up successful contracts

Learn from more than 20 industry leaders • • • • • • • • • • • • • • • • • • • • • The Home Depot, Director of Operations, Tim Wilkerson Rolls-Royce, 3PL Program Manager, Jill Barnett Intel, Global 3PL Sourcing Manager, Ashley Hall Ingersol Rand, Global Transport & Logistics Director Bob Newcom Target, Business Partner Mgt Group, John Bauer Nestle, Head of Ocean Transports EMEA, Georgios Skopelitis Levi Straus, Distribution Director, Brian Wehner Supervalu, VP Supply Chain, Mark Foster Alcan, Director of Logistics, Linda Green Sysco, GM – Supply Chain Services, Gene Klein Titan Steel, Int.

Logistics Manager, Damon Gunter Owens Corning, Global Leader – Transportation Affairs John Gentle Kellogg’s, Director NSD Distribution, Christian Lahti Sara Lee Bakery, VP Supply Chain Optimization, Kevin Krigline Darden Restaurants, Supply Chain Initiatives, Jonathan Zakary Riddell, VP – Supply Chain Operations, Charles Whitmer Oakley, Director of International Operations, Jim Addison Andrew Corporation, Director – Global Logistics & Transport, James Lamb Hickory Farms, National Logistics Manager, Matt Alloway Agere, Director – Global Logistics & Compliance, Simon Powell Solectron, Senior Director – Global Logistics Frederick Hartung

Efficient day-to-day operations – What are the secrets to establishing a successful working relationship with your 3PL provider – clear instructions, good communication and sensible expectations Tapping into 3PL capabilities – Hear how Owens Corning and Levi are taking advantage of their 3PL’s technology – How to exploit the newest supply chain technology without the hefty price tag! – Top tips on using a 3PL to increase the efficiency of your overseas operations, help ease you into new profitable markets and overcome infrastructure, cultural and political obstacles Evaluate your 3PL provider Best practices for measuring and evaluating 3PL performance – Find out which KPIs are right for your company – Discover the key warning signs that indicate it’s time to change your 3PL provider The future of your 3PL Relationships – Find out if you are using an optimum number of 3PLs – steps for successfully reducing your number of 3PLs – Should you be using a 4PL/LLP? – Hear from Nestle about a successful and innovative alternative to using 3PLs Get practical advice from industry experts: • • • • • • Cliff Lynch, President, C. F. Lynch & Associates Richard Armstrong, President, Armstrong & Associates Ken Ackerman, President, K. B.

Ackerman Company John Caltigirone, Vice President, The Revere Group John Coates, President/CEO, The Fennimore Group Mike Erickson, President/CEO, AFMS And many more! Official Media Sponsors: Organized and Researched by: ????????? ????????? Open NOW for the FULL PROGRAM… Download SURVEY online at www. eyefortransport. com/outsourcelog/report. shtml Cost reduction remains the largest driver for outsourcing – Find out what should be driving YOUR company’s use of 3PLs! A recent eyefortransport industry study noted that despite 4 out of 5 of companies using 3PL providers, only 14% are using them for the majority of their logistics operations.

It also noted that the key driver for choosing to outsource logistics remains “cost reduction”. With 3PLs offering more and more services, are you getting the most out of your 3PL contract and how can you ensure improved operations and performance in the future? Attend eyefortransport’s Outsourcing Logistics 2005: Best Practices for Managing 3PL Relationships conference to learn from the top logistics executives directly responsible for managing their 3PLs in the industrial, hi-tech, retail, food, FMCG and apparel verticals. Letter from the Chairman:

Few informed supply chain professionals would suggest that outsourcing is not a meaningful force in their industry, and it is expected that it will become even more so in the future. As the activity increases, however, so do the issues. There is much more emphasis on the outsourcing of supply chain management systems. The list of traditional logistics service providers now contains names of companies that were unheard of a few years ago. After years of discussion and writing about them, we finally have begun to see true global outsourcing arrangements.

Up until recently, there were any number of firms that had operations in foreign countries, but in most cases their logistics activities were confined to the countries in which they were located and those in close proximity. Today, we routinely move products back and forth throughout the world. To some firms outsourcing has become more important internationally than it has been in the U. S. Finally, logistics service contracts are becoming more sophisticated and are placing more pressure on the relationships to provide process and cost improvements and share these benefits with the client.

Join us in Chicago and gain insights from both users and providers on the implementation and management of successful outsourcing relationships. This April in Chicago you will hear from more than 20 industry leaders, from companies including: • Target • The Home Depot • Levi Strauss • Supervalu • Sysco • Owens Corning • Sara Lee Bakery • Darden Restaurants • Kellogg’s and many more! • • • • • • • • • Ingersol Rand Nestle Intel Alcan Titan Steel Rolls-Royce Riddell Oakley Hickory Farms eyefortransport is renowned for providing an environment in which attendees learn and business gets done!

Via exclusive presentations, interactive roundtable sessions and unprecedented networking opportunities, the eyefortransport conference will answer all your questions on the key issues for working with 3PLs. Cliff Lynch, President C. F. Lynch & Associates Topics up for discussion, analysis, and questioning will include: • What are the key factors to take into account when renewing 3PL contracts or using 3PLs for the first time? • What are the secrets to working efficiently with your 3PL providers and getting the most out of the relationship? The benefits of using a 3PL for supply chain technology and tips for smooth integration • How to take advantage of 3PL’s local knowledge to improve and expand global networks • Best practices for measuring and evaluating 3PL performance • Alternatives to outsourcing! … and much more Main drivers in choosing a 3PL Reduce Costs Increasing customer satisfaction Increasing speed of services Improving Supply Chain Management Reducing staff headcount Globalising your supply chain Increase efforts on core competencies Lack of in-house skills 0% 5% 10% 15% 20% 25% 30% 35%

Relevant Very Important Graph taken from the eyefortransport Outsourcing Logistics Report – January 2005 REGISTER NOW! CALL 1 800 814 3459 Day 1: Monday 25th April – Morning PANEL: Find out if your business is ready for a 3PL – Determine which aspects of your logistics operations are ripe for outsourcing Statistics in a recent industry survey show that 80% of companies are using 3PL services. However, only 1 in 7 use them for the majority of their logistics operations.

This panel will help you assess the extent that your business should engage 3PLs? Hear different perspectives from both retail and manufacturing companies • Tips on evaluating your supply chain to recognize the optimum time to outsource • How to determine which logistics operations are ripe for outsourcing – the key signs to look for • Outsourcing is not always the best policy – how to realize when to keep operations in-house • What external factors should you take into consideration?

Find out what influence geography, politics, economics, company culture and technology should have on your outsourcing decision Mark Foster Vice President – Supply Chain, Supervalu Linda Green, Director of Logistics, Alcan Charles Whitmer Vice President – Supply Chain Operations Riddell Matt Alloway National Logistics Manager, Hickory Farms John Caltigirone Vice President and Global Practice Leader – Supply Chain Strategy The Revere Group (moderator)

Kellogg’s Case Study: Negotiating 3PL contracts and finding a sustainable coststructure for both parties • Learn from the Kellogg’s experience – Hear how they negotiated their 3PL contracts to ensure a realistic cost-structure, for both them and their 3PLs • Minimize potential problems and conflicts by ensuring your contracts are foolproof and watertight – Make clear who is accountable and responsible for every eventuality, including wage increases, union action and external supply chain disruption • Top tips that will fully prepare you for the negotiating table Christian Lahti Director NSD Distribution, Kellogg’s

PANEL: How to assess the performance of your 3PLs and measure the overall success of your outsourcing decision Evaluating the outcome of your logistics outsourcing decision and measuring your 3PL’s performance is different for every organization. However, there are certain best practices and tools that translate across all industries and companies.

In this panel you will hear innovative ideas from leading companies across 5 different industry verticals that you can implement in your business • How to clarify objectives, choose the right performance measures and implement them successfully for comprehensive business performance management • Learn to identify any gaps or redundancies in your KPI set • Find out how you can measure company morale • What is a realistic time-frame for reaping significant rewards – how soon can you expect real cost reduction, increased service levels, improved customer services and successful systems integration? How to use your KPIs to determine whether to renew 3PL contracts Tim Wilkerson Director of Operations, The Home Depot Gene Klein, General Manager of Supply Chain Services, Sysco Simon Powell Director of Logistics & Compliance, Agere Jim Addison Director of International Operations, Oakley Jonathan Zakary Strategic Supply Chain Initiatives Darden Restaurants Ken Ackerman President, K. B.

Ackerman Company (moderator) PANEL: Your guide to pricing and incentive schemes that really work – direct from leaders in the apparel, hi-tech and aerospace industries • Top tips on establishing workable pricing structures, setting realistic goals and implementing gain share techniques • Ensuring that the relationship doesn’t sour! How to set incentives that keep the relationship moving forward • Hear he latest innovations in 3PL pricing and incentive schemes • Renewing contracts: How to ensure you pay the market rate! Ashley Hall Global 3PL Sourcing Manager, Intel Jill Barnett 3PL Program Manager, Rolls Royce Brian Wehner Distribution Director, Levi Strauss Richard Armstrong President, Armstrong & Associates (moderator) Ingersoll Rand Case Study: How to select the right 3PL for your needs • Hear firsthand from a global, diversified manufacturer with revenues of $9. billion, how to successfully evaluate and select the perfect 3PL for your specific and complex needs • Find out the tools and strategies Ingersoll Rand used to ensure they made the right decision • Discover the challenges and rewards Ingersoll Rand are currently encountering, as they implement two specific 3PL contracts for a TMS system that will move them forward in 2005 and 2006 Bob Newcom Global Transportation & Logistics Director Ingersoll Rand Owens Corning Case Study: How do you evaluate and measure your 3PL providers?

Owens Corning employs more than 17,000 people and has manufacturing, sales and research facilities including joint venture and licensee relationships in more than 30 countries on six continents. • Find out the criteria Owens Corning uses to successfully evaluate and measure the performance of multiple 3PLs around the globe • How to constantly revise your KPIs to match your changing business, with the full support of your 3PL providers John Gentle, Global Leader Transportation Affairs, Owens Corning Don’t get distracted by note-taking!

Purchase your copy of the Delegate Audio CD (at the special delegate rate of $250 or as part of a conference package) which includes: • Complete audio recordings of every main session, including workshops • Complete set of Presentations • Timed program, attendee list, exhibitor and sponsor information The CD is designed as a user-friendly source of information for yourself and colleagues who are unable to attend – Simply insert the CD and the timed program will appear to walk you through the audio and visual PLACES LIMITED – CALL eyefortransport NOW! 800 814 3459 Day 1: Afternoon Roundtables Take this unique opportunity to discuss 9 different crucial topics affecting 3PL users today! Don’t miss out on this chance to ask questions, benchmark and get advice on your key concerns from conference speakers and fellow attendees. Each roundtable discussion will last for approximately one hour and will be led by one to four influential industry experts. These discussions are completely interactive and will provide you with ample opportunity get the answers you need, in a highly focused, small group environment. Acquiring technology through the use of logistics service providers – Tailored IT systems, RFID, etc Frank Riva Industry Development Director, EPC Global Mark Foster, VP Supply Chain, Supervalu 6 Specific considerations for retailers when selecting and working with a 3PL Richard Armstrong President, Armstrong & Associates 7 2 Specific considerations for manufacturers when selecting and working with a 3PL Jill Barnett 3PL Program Manager, Rolls Royce How security-conscious is your 3PL – Who has the responsibility and accountability for security?

Gene Klein, General Manager of Supply Chain Services, Sysco 8 3 Specific considerations for food and beverage companies when selecting and working with a 3PL Jonathan Zakary Strategic Supply Chain Initiatives Darden Restaurants How to manage a global outsourcing relationship John Coates, President and CEO, The Fennimore Group 4 5 9 Outsourcing reverse logistics to a 3PL Brian Wehner Distribution Director, Levi Strauss Specific considerations for the hi-tech industry when selecting and working with a 3PL Ashley Hall Global 3PL Sourcing Manager, Intel

Outsourcing logistics accounting functions (Auditing, Inventory, Freight Payment) Mike Erickson, President/CEO AFMS Logistics Management Group For complete speaker details and updates please check the website at www. eyefortransport. com/outsourcelog Does your company provide logistics services to manufacturers and retailers? Sponsorship, Exhibition & Advertising Opportunities If you provide third party logistics make sure you attend this event to hear what 3PL customers – and potential 3PL customers – want from you!

Find out shipper’s key concerns and demands to better market your services to your customers. Take it a step further and ensure your services are available to the audience by participating in the program as an event sponsor! If you provide technology and consultancy solutions, make sure you attend this event to stay ahead of the market trends. Hear what shippers need, that 3PLs don’t provide. Go one better and get involved in the exhibition or conference sessions to raise wareness of supporting technology and alternatives to using 3PLs. Exhibitors will benefit from a co-locating event – the 7th North American Technology Forum – to give you twice the number of attendees to network with. For more information see www. eyefortransport. com/natech Whether you’re looking to develop new business, maintain relationships or raise awareness of your company’s activities, we have a range of packages to suit your goals. Contact Sid Ladapo for more information at: email: [email protected] om call US Toll Free: 1 800 814 3459 ext 335 Rest of the World: +44 (0)20 73 75 7213 SPECIAL OFFER ON REPORT Get 40% off the “2005 North American 3PL Report” • Normally $1795, Outsourcing Logistics attendees can purchase the report combined with the full conference pass and delegate CD (worth $1845) for just $2790 – SAVE $850 • Book before February 18th to knock an extra $100 off! His report is your most comprehensive guide to the latest trends, opportunities and challenges facing 3PL providers and their customers.

Get the background you need on what 3PLs can offer you and how your peers rate their 3PL experiences! Includes: • Over 80 tables, charts and illustrations • 100 companies interviewed and benchmarked • Value-added service and individual benchmarking of over 50 3PLs • Strategic review and profiling of top 25 North American 3PLs • Ranking of the top 60 3PLs in North America, based on revenues • Ranking of main 3PLs based on profit margins • North American 3PL market size and growth potential broken down by industry segment

BOOK EARLY AND SAVE $300 Register before the 4th of March and you’ll get $300 off any of the packages! “I attend a fair amount of conferences and events all over the world, and I found eyefortransport to be extremely well organized, friendly, efficient, and extremely professional in the management and delivery of this event! ” eyefortransport delegate at recent event – Dent R Follweiler, Manager of Global Logistics for Victaulic

For more information – www. eyefortransport. com/outsourcelog Day 2: Tuesday 26th April – Morning Nestle Presentation: Alternatives to outsourcing your logistics to a 3PL You’ve listened to the opportunities and heard advice from executives from key manufacturing and retail companies, but what if you decide 3PLs aren’t the way forward for your company? What if you currently outsource but think it’s time for a new strategy? Learn how the world’s biggest food and beverage company, with factories and operations in almost every country, has moved forward with efficient IT systems to coordinate its global supply chain • Hear how they have successfully rolled-out a tailored IT system as an alternative to contracting 3PL services • What advantages and disadvantages did they experience by using enhanced IT instead of a 3PL for their global transportation? How to determine if 3PLs are not the right solution for you Georgios Skopelitis Head of Ocean Transport EMEA, Nestle Day 2: Afternoon Workshops These interactive workshops will give you the chance to hear from industry experts about key trends in the market and, most importantly, voice your concerns to those in the know. Use this opportunity to ask the experts the questions that you need answered. WORKSHOP ONE

PANEL: The pros and cons of using your 3PL as a technology provider • Hear the detailed benefits of using a 3PL to provide you with supply chain technology – Cheaper start-up and running costs, faster implementation, less headcount and more advanced systems • Find out the drawbacks of using a 3PL to provide you with supply chain technology – Less control, less flexibility, being overcommitted to one or a small group of providers • What are the secrets to getting the most out of your 3PL’s IT capabilities? • Learn how to smoothly integrate technology from your 3PL into your dayto-day operations and your existing legacy systems? Can 3PLs support your move towards full RFID capability or is the deployment and management of this technology best kept in-house? John Gentle, Global Leader Transportation Affairs, Owens Corning Glen Bradley, IT Director, Levi Strauss Gary Allen, North American Distribution Leader, Capgemini (moderator) What to do if it goes wrong? Renowned industry experts, Cliff Lynch and Ken Ackerman, will take you through the potential pitfalls of outsourced logistics and how to deal with contract failures • How can you safeguard your logistics operations by having a ‘get-out’ plan in place? Don’t find yourself under-prepared and tied to a failing contract – Attend this workshop to guarantee you have all the information and knowledge you need to remain firmly in control of your outsourcing relationship Clifford Lynch President, C. F. Lynch & Associates Ken Ackerman President, K. B. Ackerman Company PANEL: Too many 3PLs! Should you reduce the number of your 3PL providers or use a 4PL? Is the scope of your business resulting in a fragmented supply chain and multiple 3PL contracts for different regions, business units etc?

Hear from the panellists how they tackled the burgeoning number of 3PLs they used • How to determine the optimum number of 3PLs you should be using • What are the pros and cons of using a multitude of 3PL providers – Greater expertise and cost-reduction or a decline in efficiency and limited negotiating power • Find out what your options are for reducing the number of 3PLs you use to a more manageable network • What are the advantages of hiring a 4PL provider to oversee your total supply chain needs and manage your 3PLs? Discover the common indicators that make the decision to hire a 4PL inevitable John Bauer, Business Partner Management Group Manager, Target Corporation Kevin Krigline, VP Supply Chain Optimization Sara Lee Bakery Group Frederick Hartung, Senior Director – Global Logistics, Solectron Corporation David Stubbs, Executive Vice President & General Manager, KN LeadLogistics Cliff Lynch President, C. F. Lynch & Associates (moderator)

PANEL: How to use 3PLs to benefit from increasing globalization…Entering new overseas markets and sourcing cheaper materials made easy Executives from Titan Steel, a leading international processor and distributor of steel with offices in the Americas, Europe and Asia; and Andrew Corporation, a global communications manufacturer with sales of $1. 84 billion will share their experiences of working internationally with 3PLs • If establishing overseas operations, find out the pros and cons of using local 3PLs vs one of the big global providers • Top tips to get the most from your 3PL’s overseas apabilities • China, India and Eastern Europe are key growth markets – How can you best work with 3PLs to overcome poor transport infrastructure and make your supply chain in these areas as efficient as your home market? • Best strategies for using your 3PLs to manage compliance, cultural differences and local business practices Damon Gunter, International Logistics Manager, Titan Steel James Lamb, Director – Global Logistics & Transportation, Andrew Corporation John Coates, President and CEO The Fennimore Group (moderator) WORKSHOP TWO

Overview of the industry and analysis of future 3PL trends and services Capgemini will share their findings from the 9th annual 3PL study, which surveyed a range of 3PLs and their customers to find out more about key opportunities and future trends. Hear the strengths and weaknesses of current North American 3PLs and find out how to fully optimize the 3PL-customer relationship Gary Allen, North American Distribution Leader, Capgemini “As usual eyefortransport put on an excellent event… tracks and breakout sessions were on the mark and very informative.

I was particularly impressed with the level of attendees at the event” past eyefortransport event delegate, Brad Ashcraft from Open Harbor EMAIL [email protected] com TO REGISTER CALL US NOW ON 1 800 814 3459 ????????? Outsourcing Logistics 2005 25 – 26th April • Hyatt Regency – McCormick Place, Chicago, USA Register NOW to reserve your place at the roundtable discussions. Places are limited and on a first-come basis! Everything you need to know about outsourcing to a 3PL 3 Key Reasons to attend this event:

Increase your knowlegde of 3PL services to ensure your company gets the best contract and optimum value from the relationship! Your chance to benchmark your services against your peers and stay ahead of industry trends! Unrivalled networking opportunities at the premier strategic event for logistics executives – over 7 hours scheduled into the program! Engage with like-minded people and get all the answers you need! REGISTER NOW! • CALL: 1 800 814 3459 or +44 (0)20 7375 7575 • FAX: 1 800 814 3460 or +44 (0)20 7375 7576 • ONLINE: www. eyefortransport. com/outsourcelog • EMAIL: [email protected] om Manufacturers and Retailers Others* $3190 $1995 $1595 PLATINUM • 2 day pass • Workshops • Delegate CD • 3PL Report • 2 day pass • Workshops $2790 $1595 $1395 GOLD BRONZE DISCOUNTS! DISCOUNTS! DISCOUNTS! EARLY BIRD OFFER: Register before March 4th and save $300 off any package GROUP DISCOUNTS: Get the most out of 9 roundtable choices by bringing colleagues and benefit from $100 off each ticket with a group of 3 or more HOTEL DISCOUNTS: Reserve your place for the Conference and receive a special room discount at the Hyatt Regency McCormick Place (places limited so book NOW! 4 EASY WAYS TO PAY: • PAY ONLINE ON OUR SECURE SERVER: • 2 day pass *Others includes: Non-shippers such as 3PLs, carriers, consultants, solution providers etc YES! Please register me for Outsourcing Logistics 2005 Platinum Mr/Mrs/Ms/Dr: BLOCK LETTERS PLEASE Gold First name: Bronze Last name: Company: Position: Telephone: www. eyefortransport. com/outsourcelog • CREDIT CARD: Pay by Visa, MasterCard, American Express. Purchase ONLINE, CALL 1 800 814 3459 / +44 (0)20 7375 7575 or complete this form and FAX to 1 800 814 3460 / +44 (0)20 7375 7576 It’s easy.

Simply fill in this form, tick the “Invoice” box and fax it to 1 800 814 3460 / +44 (0)20 7375 7576 • INVOICE: CANCELLATIONS: Cancellations received by email on/before 25th March are refundable. For cancellations received after 25th March you will receive a 100% credit to be used at another eyefortransport conference. If you do not cancel and do not attend the conference you are still responsible for payment. You may substitute the name of a colleague at any time. TERMS & CONDITIONS: Please visit www. eyefortransport. com/ outsourcelog for a full list of terms & conditions © Copyright 2005 First Conferences Ltd.

Eyefortransport reserves the right to make changes to the program prior to the event. All rights reserved. www. firstconf. com/legal_notice. html. This document contains original material that is protected by copyright. No unauthorized use of material herein may be made without the prior consent of First Conferences Ltd. eyefortransport is a proprietary creation and trademark of First Conferences Ltd. Fax: Email: Address: Postcode: Country: Payment details (NB: Full payment must be received before the event) Please charge my credit card Amex Visa MasterCard

I enclose a check/draft for $______________ (payable to First Conferences Ltd. ) Please invoice my company. Purchase Order Number: _______________ Authorising Manager: _________________________________________ Card Number: Name on Card: Signature: Expiry Date: • CHECK: Enclose a check/draft (payable to First Conferences Ltd) to eyefortransport, 7-9 Fashion Street, London E1 6PX, UK Payment must be received in full before attendee can access the event. If payment has not been received prior to the event, a credit card guarantee will be taken at registration. Fax this form NOW to 1 800 814 3460

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