Global Logistics and Supply Chain Strategies - March 2008 - (Page 63)

Global Moneymaking Opportunities Abound for Mid-Sized 3PLs John Fitzgerald of SEKO Worldwide Moving away from point-to-point transportation to IT-based supply chain solutions is the path to success for evolving third-party logistics providers. As manufacturers and retailers expand their supply chains globally, they are depending more and more on 3PLs to manage their far-reaching logistics. Not long ago, the list of 3PLs with truly global reach was quite short, but that is no longer the case. Mid-sized logistics companies that have their roots in freight forwarding and domestic transportation have evolved into full-blown global providers with capabilities far beyond their traditional focus. SEKO Worldwide is one such 3PL. Founded in 1976, SEKO began as a domestically oriented airfreight forwarder. After going through several owners, SEKO has developed into a global provider of many supply chain services with 58 offices in North America and offices in over 40 countries worldwide. GL&SCS spoke with John Fitzgerald, SEKO Worldwide’s global vice president of sales and marketing, about the evolution of the mid-sized 3PL segment and the strategies that have allowed his company to grow faster than the giant global 3PLs. tailored to meet the needs of customers with global scope. Within the operating system, exports generated in one area of the world become the imports in another area. Our focus is definitely international, and we will continue to open more offices around where our customers tell us that they need support. We have logistics firms around the world that like our model and are approaching us as well. There is a lot of interest, and we will continue to grow. In the U.S., we are already in 47 cities, and we will be opening in a few more key markets. Our major growth right now is outside the U.S. Q: Five years ago, SEKO Worldwide adopted a unique business structure where your worldwide network is composed of privately owned operations. While this structure has certainly allowed SEKO to expand rapidly around the world, what are the advantages to the customer? Fitzgerald: Our motto is global reach, local control, so our model is based on strategic partnerships and equity ownership by the local offices. Our customers see that all the people they are doing business with have skin in the game. The local offices own the business, and they own SEKO on a global basis. Our customers benefit because they receive local control and local expertise while functioning within the operational guidelines and financial support of the SEKO global network. Our integrated IT platform allows connectivity throughout the market, which allows efficient communication and cooperation. Few competitors have worldwide offices operating under the same platform. Ours is 64 MARCH 2008 Q: Does SEKO still earn the majority of its revenue as an airfreight forwarder? What makes a logistics company a global 3PL rather than just a very successful forwarder? Fitzgerald:Over the past five years, we shifted away from a standard U.S.-based freight forwarder to become a true global 3PL. Our international growth is a direct result of this strategy. We have transformed our business so only 25 percent of what we do is standard airfreight forwarding. In 1976 when we started, that was all of the business. Now our business is based on value-added services beyond freight forwarding. It is all tied into technology. Our IT enhancements have allowed us to grow beyond the boundaries of freight forwarding. For example, we provide our customers capabilities such as warehousing, inventory management, purchase order management and other services enabled by our expanded IT system. A number of our client’s call centers are even using our technology to help their customer service people handle warranty exchanges. This capability is tied into the actual booking, tender and movement of the cargo all the way through proof of delivery. It is our technology solution that enables the supply chain and transportation to take place. We do not care what mode is used. We use whatever is the right solution to meet the customer’s

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Global Logistics and Supply Chain Strategies - March 2008 Editorial GL & SCS Exclusive FastForward Up Front The Green in Green Think Inside the Box Have a Second Look Can't Happen Here Opinion: Stay in the Black as Your Workforce Fades to Gray Opinion: Four Critical Steps to Managing Change in the Supply Chain Industry Voices

Global Logistics and Supply Chain Strategies - March 2008

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