World Trade - December 2008 - (Page 19)

WORLD TRADE READERS RATE OCEAN CARRIERS T o know the true value of a logistics provider, go to the folks who are paying the bills. Find out what the customers think. That way you’ll get straight talk without hype or spin. So that’s what we’ve done at World Trade as we launch the ﬁrst installment of an exciting new editorial service feature, the Performance Partners Awards of Excellence. Working with our BNP Media corporate partners, Clear Seas Research, we have surveyed our readers who are customers of the transportation and logistics companies that move their freight and manage their supply chains. We wanted to learn what they think is important, what they’re looking for in a service provider and how they rate their own vendors on these metrics. As you can well imagine, to do this within the parameters of professional research is no simple feat. Lots of competitions presume to capture the voice of the people; fewer actually do so. That’s why we set the bar high for Performance Partners. We want to celebrate companies that are providing superior value based on statistically signiﬁcant measures. First, a bit about how we came up with the name Performance Partners. It has been clear for the past few years that the nature of logistics is undergoing a major transformation. As shippers strive to get non-productive assets off their books and optimize the returns on their assets, they are outsourcing processes they used to manage in-house that don’t constitute their core competencies. Which typically includes transportation (and even supply chain management). But to do this is to take a huge leap of faith. Entrusting your lifeblood to an outside party requires more trust in the relationship than would be the case with a mere cost-based transaction. It means sharing strategies, information, product development planning— to say nothing of expecting on-time deliveries. What we’ve come to appreciate at World Trade as we report the on-going evolution of the supply chain is that companies are looking for Partners when they shop for transportation providers. To some this may sound like cliché, ‘partner’ is right up there with ‘passion’ as a term so over-worked that it has lost much of its meaning. But in this case, the word means exactly what it says. A company from whom one is not simply purchasing a product but rather entering into a close relationship of mutual dependence and reliance is a vital partner. In order for either to succeed, both must. So, in recognition of this sea change as logistics providers cross over from mere vendors to valued allies, we are calling these winners of our readers praise Performance Partners. In keeping with the ‘sea change’ metaphor, we’re launching Performance Partners with ocean carriers. No service is more fundamental to world trade than ocean carriage. It is the foundation upon which global commerce resides. And although oceans costs have risen in the past few years, they remain the lowest in comparison to other modes of transportation. But, as shippers appreciate, the trade-off for low price is longer transport time (Hong Kong to LA is typically a 10-day run, Hong Kong to New York via the Panama Canal can take 31 days). With supply chains poised for ever-faster throughput and more agile market response, slow-moving ocean freight can pose a problem. Correspondingly, the ocean transport sector whose service was largely a commodity differentiated (if at all) only by price, is expanding its role with a more fullservice spectrum of offerings. Most major ocean carriers have added—to traditional ocean freight—such valueadds as freight consolidation, warehousing, inland waterway, truck and rail service for door-to-door service. As they enter into this service realm, differences between carriers becomes more evident—and the praise of the customer a compelling recommendation (or, in its absence, rejection). The transition of ocean carriers from a ‘basic’ service to a ‘supply chain collaborator’ aptly exempliﬁes our concept of Performance Partner. Thus, our decision to begin this ﬁrst edition of what we anticipate will become one of the most prestigious awards in the supply chain and logistic sector with ocean carriers. Before we get into a discussion of the winners, a few words about how they were chosen. The goal of the study conducted by Clear Seas Research was to provide a superior source of comparative information for those needing global ocean transport. It is this global capability that is the key element in World Trade Performance Partners; their capacity to provide service wherever in the world customers WWW.WORLDTRADEMAG.COM 19 http://WWW.WORLDTRADEMAG.COM

Table of Contents Feed for the Digital Edition of World Trade - December 2008

World Trade - December 2008 Contents The Promise of Peril The Current Reality with IP in China Supply Chain Watch Tradewinds Performance Partners: Awards of Excellence Managing With Mobility What 2009 Bodes for the Supply Chain Small Business Takes to Export Green is Here for Good Fast Fashion

World Trade - December 2008

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