Global Logistics and Supply Chain Strategies - April 2008 - (Page 43)

are shown in Figure 3. The number of 3PL services provided by industry segment is shown in Table 4. On average 3 services are provided by 3PLs for each customer relationship. This has grown from 2.9 services in 2004. These increases reflect how 3PL relationships with existing customers are expanding each year. The number of services provided per contract is highest in Technological and Automotive, indicating the higher degree of differentiated, mature supply chains in these verticals. (See Table 5) The types of 3PL services utilized vary by industry segment. Table 6 details the ranking and percentage for each service. The results in Table 6 indicate that warehousing services are most important in consumer products, healthcare and high-tech industries. Transportation management is the most important 3PL service in the other industry segments. (See Table 6) A&A has analyzed supply chain manager and lead logistics provider relationships closely since 2000. The total number of SCM and LLP relationships has increased each year. The relative percentage of SCM and LLP relationships for total services has increased to 8.2 percent. As we pointed out above, these are included in the 21 percent of services of a strategic basis. Seventy-nine percent of 3PL services are still contracted on a tactical basis. While there is some slow change, most customers are still reluctant to turn over inventory control and extended supply chain management to their logistics providers. To the extent that SCM and LLP relationships have been formed, they are most likely to occur in high-tech, automotive and retail areas where relationships are partnership-based and involve larger 3PL accounts. These relationships are detailed in Table 7. Penetration of different industries by 3PLs is a good indication of their target marketing and sales efforts. For example, European providers Rudolph and Thiel and North American-based CEVA have strong automotive concentrations. Rudolph is a sophisticated automotive logistics 3PL. It continues to expand in contract logistics for auto parts vendors, hightech and other verticals. CEVA is a major automotive 3PL. It operates in 26 countries with 1,200 contracts serving 800 customers. The CEVA operations we have visited get top marks. While there is some slow change, most customers are still reluctant to turn over inventory control and extended supply chain management to their logistics providers. Logistics Puzzle Solved Let us put the puzzle pieces together for you. Our nationwide integrated logistics capabilities increase supply chain efficiency, streamline business, and help manage costs. Flexible, single-source solutions backed by Whatever It Takes service and personal, top-of-house attention…If only all puzzles could be solved this easily. 888-878-1177 • www.saddlecrk.com Warehousing 3 Transportation 3 Contract Packaging 3 Integrated Logistics Rubik’s Cube® is used by permission of Seven Towns Ltd. www.rubiks.com GLOBAL LOGISTICS & SUPPLY CHAIN STRATEGIES 43 http://www.saddlecrk.com http://www.saddlecrk.com http://www.saddlecrk.com http://www.rubiks.com

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Global Logistics and Supply Chain Strategies - April 2008 Contents Editorial GL & SCS Exclusive Fast Forward Up Front Cover Story: Continuing to Add Ever More to Their Offerings, 3PLs Are - At Your Service Over the Long Haul Opinion: Freight Audit Bill Can't Show All Mistakes that Hurt the Bottom Line Opinion: The ‘Good-Freight’ and ‘Bad-Freight’ Trucking Customers Industry Voices

Global Logistics and Supply Chain Strategies - April 2008

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