It's estimated that over 80% of companies globally now outsource some or all of their logistics activities, but outsourcing does not suit all companies and some organisations are not happy with their outsourcing results. So reduce eliminate your risk and talk to Logistics Bureau first.
We assist our customers to determine whether Supply Chain, Logistics, Warehouse or Transport Outsourcing is an appropriate strategy and if required, provide specialist support through to implementation. Logistics Bureau's consultants do not have commercial relationships with any service providers and so we provide a totally objective and unbiased approach.
Our consultants outsourcing experience also includes offshore sourcing with a number of recent projects related to product sourcing in China and evaluating the down stream Supply Chain benefits.
The Logistics Bureau outsourcing approach provides our customers with the following benefits:
- An ethical and thorough tender evaluation process.
- Finding the right cultural 'fit' with potential outsourcing partners.
- Getting the best value for money from the outsourcing contract rather than the lowest price.
- Providing professional assistance and methodologies in the outsourcing process.
- When required, throwing the net wide, including new and developing companies.
- Evaluation of varied 'types & styles' of outsourcing partners.
- Providing essential decision support during the outsourcing decision, which should never be a forgone conclusion
And providing all of this, in a structured, objective and unemotional process.
Our specialist outsourcing consultants have been involved in hundreds of outsourcing and tender related projects across many industries. Our thorough and meticulous approach to outsourcing ensures success for your business.
Here is an example of the typical stages our consultants use in an outsourcing project, whatever the level of focus. Supply Chain, Logistics, Distribution, Warehousing or just Transport.
Performance Based Contracts
There is a great deal of interest in the use of Performance Based Logistics (PBL) contracts, stemming mainly from the use of such contracts within the US Department of Defence. Logistics Bureau's consultants have been very successful in taking this approach to industry, and we have been pleased with the high degree of acceptance by many of the major Third Party Logistics (3PL) companies. of this style of contract. Simplistically, our approach is to reduce as much of the logistics costs as possible to variable costs, and link elements of the 3PL's rewards to achieving specific service and cost outcomes.
3PL Contract Support
As part of our outsourcing related services, our consultants also assist third party logistics (3PL) companies in developing solutions for customers, improving current contract performance and integrating/implementing new contracts.
For more details on our outsourcing services, feel free to contact the following senior Staff who all have considerable outsourcing experience.
Logistics Contract Mediation - Logistics, Warehousing or Transport
Outsourcing Logistics operations is generally very successful, but like any commercial relationship things can deteriorate. Sadly for both parties, this can often mean the termination or at least non renewal of a contract, which can be a costly and disruptive process for all involved.
Logistics contracts may deteriorate for a number of reasons, that typically include:
- Poor service performance
- Cost escalation
- Poor resolution of issues
- Poor communication with outsourcing partner.
But perhaps the greatest issue, is the inconsistency in outsourcing expectations.
Logistics Bureau's consultants are able to provide a 3PL contract mediation / facilitation service that can often avoid the need for contract termination and get things back on track.
This service brings together a mix of qualifications, skills and experience, that include a team of outsourcing consultants with the following:
- A former Corporate Counsel, Arbitrator and Mediator who understands and is experienced in ADR (Alternative Dispute Resolution) methodology– thereby avoiding complicated, time and resource consuming legalistic issues.
- Qualified accountants with many years experience in Supply Chain and Logistics environments.
- Senior Logistics Bureau staff (Partners) with many years of experience in outsourcing.
It is this mix, that has proven to be so successful in repairing and restoring an excellent level of service or at worst, coming to an ordered (and probably amicable) parting of the ways.
For more details on our mediation services, feel free to make direct contact
Outsourcing of Transport and Warehousing - How to be successful?
Over the last 10-15 years outsourcing of logistic activities to third party logistics service providers has become increasingly popular. Research indicates that up to 75% of firms report positive impacts from outsourcing to logistic service providers (Langley J, Capgemini 2007). But what of the balance? Why have they have struggled to obtain the results that they were hoping for?
In this article I will outline firstly, the reasons why organizations outsource Logistics activities, and secondly, what are the key drivers for outsourcing success.Read More
Outsourcing Transport and Warehousing: Pricing, Honesty and Contentious Issues
(From an Australian Industry Perspective)
In the article above I outlined reasons why companies outsource and described key drivers for successful third party logistics (3PL) relationships. In this volume I briefly describe five pricing options which are commonly used in Australia and how to ensure that the 3PL is honest, together with the four most contentious issues confronting customers as they enter 3PL contracts.Read More
Third party warehousing contracts – Heading North or rapidly South?
As I sit at the Airport awaiting my flight, I ponder over the meeting I have just had with yet another company, who is dissatisfied with their Third Partly Logistics (3PL) service provider and outsourcing contract.
Some times I feel like a marriage counsellor as I listen to these tales of woe. “They don’t understand us, they don’t respond to our needs, our customer service levels are way below expectation”. Sound like a similar outsourcing story? Well take heart, the future need not be doom and gloom.Read More
Warehousing Contracts – The OptionsIntroduction
The outsourcing of Logistics services continues to be a growing trend, and can encompass a very broad range of services. This article will focus only on outsourced warehousing contracts, and is intended to be a guide for those companies considering the outsourcing of warehousing or indeed those companies that may wish to review and renegotiate existing outsourced warehousing contracts. The specific focus of this article, is on traditional Third Party Logistics (3PL) contracts and the types of pricing mechanisms available for use within warehousing contracts, and does not cover other very important aspects such as:Read More