How to become a 3PL leader of added value services

January 12, 2018 | Author: Anonymous | Category: Engineering & Technology, Industrial Engineering, Logistics
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Added value services in Logistic Driving forces and barriers for developing and providing value added services

“How to become a 3PL leader of added value services ?”

SUMMARY • Frame of reference • Service management in logistic

• Make or buy • 3PL • Analysis • 3PL positioning • Value added in logistic • Development of added value services • Forces and barriers • Conclusion

FRAME OF REFERENCE

Service management in logistic

Customization High Low

Basic service package consists of core and supplementary services

Customized core service

Customized augmented service

Service management

Standard core service

Low

Standard augmented service

Differenciation

High

Value-added services as services adding extra feature, form or function to the basic services

Make or buy

Importance to the customers High Low

Three reasons such as the lack of capability, scale and ability and lack of capacity to perform it within the organization Total solutions provider High value

Game changers

Extremely high value

Positioning Vendors

Low value

Low

Specialists

Medium value

Uniquesness of offerings

High

Low

Complexity

High

3PL positioning

Low

Asset specificity

High

ANALYSIS

Customer adaptation High Low

EXAMPLES for 3PL’s

Low

Problem solving general ability

High

Customer adaptation High Low

EXAMPLES for PRODUCERS

Low

Problem solving general ability

High

POSITIONING OF 3PL PROVIDER

Value added services in 3PL Basic logistics  Transportation • Network-based transport • Emergency transport • Transportation management  Warehousing • Storage • Order picking • Inventory management  IT-services • EDI • Tracking and tracing

Value-added logistics  Value-added services (physical handling)

• • • • • • • • • •

customer-focused service direct delivery cross-docking labeling repacking adding usage instructions promotion-focused service making point-of-sale displays adding advertising material to the product package shipping of promotion materials

 Manufacturing-focused service

• •

postponement assembly

 Time-focused service • just-in-time • sequenced just -in-time  Basic service • reverse logistics • aftersales service • spare parts • quality control  Administrative services • Purchasing of material • Order processing • Invoicing • Export/import operations • Consulting • Customer support • Telemarketing • Custom clearance • Certification (Tapa, AIO, ISO)

Value added services in 3PL

Added value

The earlier the 3PL is participating in the supply chain, the most added value he can bring

Manufacturing

Final assembly, etc.

Packaging, Display, Building, etc.

Supply Chain

Warehousing and Distribution

METHODOLOGY

How to become a 3PL leader of added value services solution ?  Define your strategy • Choose which king a actor you want to be and include VAS in your long term business plan • Make pro-activeness a value of your company : « Think » as important as « Do »  Prepare your team • Develop your expertize • Reinforce your client relationship • Lead a common team of technical experts, account manager and commercial team  Master the complexity • Develop your tools to handle customized solution as your standard, at a competitive cost  Treat your investment connected to added value services differently than your core business investments

• Added value and profit are proportional

DEVELOPMENT OF VAS : Innovation Who takes initiative for developing value added services ? How is development of value added services done ? Process/support team Internal innovation

Key account manager Multi customer related innovation

Innovation Customer related innovation

Single customer related innovation

Commercial team Innovation at the beginning of the relationship episode

Company spirit Reactive innovation

Innovation in an ongoing relationship

Company strategy Proactive cost improvement

Proactive innovation Proactive performance improvement

DRIVING FORCES & BARRIERS

What are the driving forces in the development and providing of value added services ?  Meet customer’s demand  Lock-in customer  Be more competitive and attractive to the customer  Warehouse is the suitable place in the supply chain to perform added value services  Task that nobody wants to do (customer, customer’s customer, specialist in providing particular service)  Changes in customer business and outer environment : Economical reasons can be a driving force for 3PL firms to provide value-added services (man hour cost, better possibility to plan work force, etc.)

DRIVING FORCES & BARRIERS

What are the barriers in the development and providing of value added services ?  High costs are a common barrier for service development. Necessity of too big investments in providing value-added services, as well as requirements from customer’s side to extensively customize value-added service  Problems with establishing successful organizational learning  Lack of trust and communication derived from not enough close relationships between the 3PL provider and customers  Lack of proactiveness from the 3PL provider’s side

• •

Lack of proactiveness can result from, for example, 3PL providers themselves being more oriented towards doing than thinking Also depend on logistics seen as a less important development area from the customer company’s point of view.

DRIVING FORCES & BARRIERS

What are the barriers in the development and providing of value added services ?  The difficulty for the 3PL provider to coordinate offering of so many different value-added services  Accept the probable necessity to work with external partners  The possible lack of expertise in the area of service which can result in service of low quality can be seen as a barrier in such extent that somebody needs to pay for the costs of acquiring necessary expertise to ensure quality.

CONCLUSION

How to become a 3PL leader of added value services solution ?

Strategy

Team

Tools

Budget

RESULTS

RESULTS

This strategy has been implemented in the core of FM Logistic and this where we are now :

FM added value services plant

Sered – Bratislava plant in numbers VAS

FM added value services plant Basic logistics  Transportation • Network-based transport • Emergency transport • Transportation management  Warehousing • Storage • Order picking • Inventory management  IT-services • EDI • Tracking and tracing

Value-added logistics  Value-added services (physical handling)

• • • • • • • • • •

customer-focused service direct delivery cross-docking labeling repacking adding usage instructions promotion-focused service making point-of-sale displays adding advertising material to the product package shipping of promotion materials

 Manufacturing-focused service

• •

postponement assembly

 Time-focused service • just-in-time • sequenced just -in-time  Basic service • reverse logistics • aftersales service • spare parts • quality control  Administrative services • Purchasing of material • Order processing • Invoicing • Export/import operations • Consulting • Customer support • E_commerce • Custom clearance • Certification (Tapa, AIO, ISO)

Contact details

Further questions, clarification, curiosity ?

Jan Drzik

Brice Rouanet

Plant manager Email:[email protected] Mobile: +421 907 784 424

Solution Center manager CZ/SK Email:[email protected] Mobile: +421 917 550 074

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