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Controlling Logistics Vendors – Strategy And Tactics
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Controlling Logistics Vendors – Strategy and Tactics
Why is logistics management so difficult?
What happens outside the four walls of your business is made complicated by vendors who are masters of their domain and use that specialised knowledge to further their own interest before yours.
If you have ever encountered any of the following problems then this report may be beneficial for you:
- A logistics vendor whose delivery performance is not as per the contract, leading to complaints from the customers.
- Logistics vendor performance reports that are made overly complex with poorly defined terminology and too much data so that your people cannot decipher the real performance which is generally worse than they claim it to be.
- Logistics invoices which cannot be reconciled to a factual record of work done as per your IT systems, so your people are signing off on those invoice in good faith or some assumption or rules of the thumb, rather than on the basis of sure knowledge that the work was done exactly as stated in the invoice.
- Surprise charges frequently showing up in the logistics invoices because newer contingencies cropping up all the time – without being covered in the logistics contracts.
- Logistics contracts which are dense and written in a language that even lawyers cannot fully understand and seem to always favour the logistics companies.
- Conflicting logistics contracts where the bill of lading for the shipment says one thing and the umbrella contact between the two firms says the opposite, or vice-versa
- Logistics vendors actually taking control of your operations to an extent where your people start taking directions from them
- Uncertainty about the influence that logistics vendors’ account managers have over some of your key people, and the reason for the same.
- Discomfort with the overall logistics costs, and with frequent spikes experienced due to minor operational glitches.
This list can go on and on because in the past 35 years of being an integral part of the logistics industry we have seen all these and many other problems in corporations.
If you want to see whether this report will benefit your company or not, read the full description below.
Controlling Logistics Vendors – Strategy and Tactics
It is no secret that not all logistics vendors are ethical and scrupulous. And when you are stuck with one who is not scrupulous, your company can go through hell because so much of your company’s customer perception depends on how your logistics vendor performs.
If the logistics vendors have built inextricable hooks into your business then it will be very hard to get rid of them, no matter how bad is their performance.
And, they will do everything in their power to build those links early into the contract for exactly that reason.
So, what are the secrets to controlling logistics vendors?
- How can you make sure that your logistics vendors perform as per the spirit of the contract, and not just legalese in a very complex contract?
- How can you make sure that you are getting charged a reasonable price for the service?
- How can you make sure there are no surprises in terms of extra charges?
- How can you reconcile the logistics invoices to the contract, and to a factual record of the work performed where a reasonable auditor would accept them as fully reconciled?
- How can you get accurate information about the logistics tasks performed on your behalf, so that you can monitor the performance of the logistics vendors in a reasonable manner?
While it may be impossible to do all this on 100% basis day after day, minute after minute, with the current state of technology, it is becoming a lot easier to do these things to a reasonable level than it was in the past.
This report provides guidelines on how you can combine your experience with the techniques we have used in the past to choose the right logistics vendors, and control the logistics process in your company where vendors work for you and not vice versa.
If you want more information on this report – click here…
ABOUT THE PRINCIPAL AUTHOR
Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek’s journey:
- Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
- Earned a top tier MBA from UNSW at the top of his class.
- Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
- To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
- More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
- 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.