Do Not Just Take My Word For It. Get Hold Of Our Book ‘Outsourcing 3.0’ And Make Up Your Own Mind.
Despite Heavy Investment, We See Logistics Companies Continue To Struggle With Customer Satisfaction
When demand is high, customers complain about shortage of logistics capacity, and high prices. They ignore high labour and other input costs.
No matter how well logistics companies integrate themselves within – when the time comes for contract renewal, another tender is rolled out with great fan-fare.
When demand is low, customers are always pushing for lower prices and will switch loyalties for small amounts.
On top of it, scrutiny from consultants is never-ending and intrusive-cutting margin and increasing SLA requirements.
WHAT CAN WE DO FOR LOGISTICS COMPANIES?
When A Large, And Very Important Tender, That You 'Must Win', Is About To Come Out.
When A Lucrative And Large Customer Is Unhappy And You Cannot Figure Out How To Turn Around The Situation.
When The Margins Are Much Lower Than Anticipated.
When You Are Not Winning Enough New Business.
When You Are Looking To Grow Your Company Faster And Stronger.
“We Are What We Repeatedly Do. Excellence Then, Is Not An Act, But A Habit.”
-Aristotle
The shipping and transportation logistics
industry is driven by the domestic as well as international demand for manufactured goods. Profitability of a given company is dependent on how efficiently operations are run, the relationship between the shipper and carrier, and industry expertise. Generally, companies will fit into three main business structures; freight forwarding, customs brokers and fully integrated carriers. Freight forwarding involves arranging the transportation of goods often without contact to the goods or owning any of the transportation equipment used. Customs brokers aid in the facilitation of clearing goods through international customs barriers, and fully integrated carriers combine both aspects of shipping and transportation logistics.
Larger shipping and transportation logistic companies often gain strategic advantage through account relationships as well as having access to much more advanced logistics technologies than smaller companies. Smaller shipping and transportation companies compete by specializing in service to a local market or to a specific country. Smaller companies can also gain advantages by specializing in the transfer of unusual or dangerous goods.
Problem Areas Our Team Has Noted In The Shipping And Transportation Industry Include:
- Inefficient networks
- Poor sourcing strategies
- Waste caused by pushing equipment beyond capacity
- Non-value-adding costs
Global Supply Chain Group‘s extensive background in network optimization, strategic sourcing methods, and lean production ideologies will come together to solve these problems as well as many more.
The Logistics Conundrum
Logistics Companies Invest Billions In Infrastructure
– ships, ports, trucks, railroads, pipelines, and other hard assets cost a lot of money.
Then They Spend Several Billions More In Software
IT systems, tracking and tracing capabilities, POD capabilities, and assorted other capabilities cost an equal amount of money.
Next They Spend Billions In Gaining Trust Of Their Customers
relationship building, events and other activities (let’s not name all of them here).
Yet, All That Effort, In The End, Yields Very Paltry Overall Returns
– especially when you compare those results against all other industries.
WHY ?
If you are in a senior position in this industry, and have ever wondered something like this before – you may be surprise with our answer.
Get in touch by using one of the methods in the top bar of this site and we might have a stimulating discussion.
FOR LOGISTICS COMPANY SENIOR EXECUTIVES AND DIRECTORS
CHANGE THE CULTURE - YOUR HIGHEST VALUE ADDED IN YOUR COMPANY
FOR LOGISTICS COMPANY SENIOR EXECUTIVES AND DIRECTORS
CHANGE THE CULTURE - YOUR HIGHEST VALUE ADDED IN YOUR COMPANY
