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Real Value Of A Vested
Partnerships With A 3PL
Kelly Winters
Thank You For Having Me
Kelly Winters
Vice President, Supply Chain Solutions
NFI Industries
25+ Years of Supply Chain Management
Chartered Member ...
Agenda
 How To Establish A 'True' Meaningful 3PL Relationship
 Clarity of expectations and terms of engagement
 Best us...
3 PL Defined
Businesses that provide one or many of the
following logistics services:
 Transportation Management
 Public...
F E A R of 3 PL Outsourcing
Loss of Control
Loss of Service Level Control
Biased Choices of 3PL
Reduced Connection to the ...
WHO HAS DONE 3 PL OUTSOURCING WELL
SO WHY THE FEAR?
1. 61% of Companies believe their provider is doing a “Good” Job
2. 55% of Logistics Outsourcing Contract...
WHY THESE RELATIONSHIPS FAIL
1. Companies Identify The Need To Outsource And The SCM Does Not Do The Homework
On Who The R...
Consider This
 Buyers Are Typically Incented To Save
 Sellers Are Typically Incented To Yield High Revenues
Buyers = POW...
Our SCM Legacy
TO WIN
THREE TYPES OF TRADITIONAL OUTSOURCING
5 RULES OF VESTED OUTSOURCING
To Begin
 Identify The WHO
 Which Providers Truly Walk The Talk Of Collaboration
 Asset Based Vs. Non Assets
 Understa...
How To Establish A 'True' Meaningful 3PL
Relationship
 Check The “Power” Card At The Door
 Check The “Sales” Pitch At Th...
Keeping It Working, The Long-term Plan
Be Prepared To Continuously:
 Make Decisions That Take Into Account The Views Of D...
The Lean and Vested Parallel
1. Culture Shifts
2. Learning
3. Customer Satisfaction
4. Problem Solving
5. Winning
6. Compl...
THE FOUNDATION OF A PARTNERSHIP
Required Elements:
 TRUST
 Mindset & Culture
 Methodology, Plan & Process
 Relationshi...
The Collaborative Learning Model
THE ROADMAP OF A PARTNERSHIP
FORGED WITH ALL PARTIES AT THE TABLE:
 Statement Of Intent
 Know the Business Outcome
 Hav...
The Pitfalls & Creating The Win/Win
 Discussions Of Differences And Constructive Management Of
Conflict
 Conflict Manage...
The Personal Agenda Value?
Qualities Of Successful Leadership
THE GAME CHANGERS
I’m Not Telling You It Is Going To Be Easy, I’m
Telling You It Is Going To Be Worth It.
Coach: The A. L. Williams Story
by...
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SCMAO BREAKFAST SERIES 04102014

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SCMAO BREAKFAST SERIES 04102014

  1. 1. Real Value Of A Vested Partnerships With A 3PL Kelly Winters
  2. 2. Thank You For Having Me
  3. 3. Kelly Winters Vice President, Supply Chain Solutions NFI Industries 25+ Years of Supply Chain Management Chartered Member of the Institute of Logistics and Transportation, CMILT Board Member, CSCMP Certified Lean Logistics Leader, Georgia Tech Supply Chain Logistician, Georgia Tech SHIPPER - 3PL - TECHNOLOGY
  4. 4. Agenda  How To Establish A 'True' Meaningful 3PL Relationship  Clarity of expectations and terms of engagement  Best use of time and resources  Understanding others priorities and constraints  Mutually supportive processes with defined objectives Keeping It Working, The Long-term Plan  Decisions that take into account the views of different stakeholders  Operating on an equal footing with other organizations, the introduction of vested relationships  Sharing roles The Pitfalls Of Relationship Building/ Creating The Win/Win Scenario  Discussions of differences and constructive management of conflict  Getting beyond individual agendas  Keeping other organizations informed  Consistency of approach and avoidance of duplication
  5. 5. 3 PL Defined Businesses that provide one or many of the following logistics services:  Transportation Management  Public/Contract Warehousing  Distribution Management  Freight Consolidation  Dedicated Fleet  Modal Optimization  Global Services
  6. 6. F E A R of 3 PL Outsourcing Loss of Control Loss of Service Level Control Biased Choices of 3PL Reduced Connection to the Customer Leakage of Sensitive Information
  7. 7. WHO HAS DONE 3 PL OUTSOURCING WELL
  8. 8. SO WHY THE FEAR? 1. 61% of Companies believe their provider is doing a “Good” Job 2. 55% of Logistics Outsourcing Contracts end in 3-5 years
  9. 9. WHY THESE RELATIONSHIPS FAIL 1. Companies Identify The Need To Outsource And The SCM Does Not Do The Homework On Who The RIGHT Partner Will Be, Further The Business Decision Is Not Based On A Peer To Peer Model, And Lacks The Committed Executive Buy In. 2. Companies Identify The Need To Outsource & Then Proceed To Tell The 3pl What To Do And How To Do It. Worse Cases Not Allowing The 3pl’s To Do Its Job. 3. Activity Trap – We Spend Too Much Time On Transactions And Not Enough Time On Outcome 4. The Model Is Inherent To Fail If It Does Not Create A WIN/WIN For Both Partners 5. We Do Not All Step Back And Understand That Buyers Are Incented To Save And Sellers Are Incented To Make More 6. Short Term Contacts That Do Not Allow Nor Induce The 3pl To Invest In The Business
  10. 10. Consider This  Buyers Are Typically Incented To Save  Sellers Are Typically Incented To Yield High Revenues Buyers = POWER Sellers = PLEASER
  11. 11. Our SCM Legacy TO WIN
  12. 12. THREE TYPES OF TRADITIONAL OUTSOURCING
  13. 13. 5 RULES OF VESTED OUTSOURCING
  14. 14. To Begin  Identify The WHO  Which Providers Truly Walk The Talk Of Collaboration  Asset Based Vs. Non Assets  Understand The Value Of Both And Your Win In Each  Ensure There Is A Proven Track Record, Do Your Research!  Provide A Peer To Peer Commitment  Identify By Committee If Possible
  15. 15. How To Establish A 'True' Meaningful 3PL Relationship  Check The “Power” Card At The Door  Check The “Sales” Pitch At The Door  Clarity Of Expectations And Terms Of Engagement For Win/Win Model  Identify Best Use Of Time And Resources For Both  Understanding Other's Priorities And Constraints  Mutually Supportive Processes With Defined Objectives  Be Willing To Listen And Look Well Beyond The Current State  Identify The Gaps And Work Hard To Close Them
  16. 16. Keeping It Working, The Long-term Plan Be Prepared To Continuously:  Make Decisions That Take Into Account The Views Of Different Stakeholders  Operate On An Equal Footing With Other Organizations, The Introduction Of Vested Relationships  Managing Cultural Changes & Challenges  Use The RFP To Start Change Management – Review Your Entire Approach To The RFP Process. It Has Become The “New” Way, It Doesn’t Make It The Right Way. Many 3pl’s today Refuse To Participate.  RFP = Cost To A Vendor And Can Actually Result In Higher Cost To The Buyer  Create Relationship Based Contracts  Introduce Legal Early In The Process; Reminding Always That Success Requires Some Risk.
  17. 17. The Lean and Vested Parallel 1. Culture Shifts 2. Learning 3. Customer Satisfaction 4. Problem Solving 5. Winning 6. Completive Edge 7. Engagement 8. Quality Monitoring 9. Educated Managing 10. Reduced Costs
  18. 18. THE FOUNDATION OF A PARTNERSHIP Required Elements:  TRUST  Mindset & Culture  Methodology, Plan & Process  Relationship Based Contracts
  19. 19. The Collaborative Learning Model
  20. 20. THE ROADMAP OF A PARTNERSHIP FORGED WITH ALL PARTIES AT THE TABLE:  Statement Of Intent  Know the Business Outcome  Have Clearly Defined & Measurable KPI’s  Peer To Peer Structure  Governance Body  Long Term Contract With Income Based Payoffs
  21. 21. The Pitfalls & Creating The Win/Win  Discussions Of Differences And Constructive Management Of Conflict  Conflict Management; Predefined Escalation Process Getting Beyond Individual Agendas *  Keeping Other Organization's Informed  Consistency Of Approach And Avoidance Of Duplication
  22. 22. The Personal Agenda Value? Qualities Of Successful Leadership
  23. 23. THE GAME CHANGERS
  24. 24. I’m Not Telling You It Is Going To Be Easy, I’m Telling You It Is Going To Be Worth It. Coach: The A. L. Williams Story by Art Williams Thank You, Questions?

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