The document discusses trends in logistics outsourcing, noting that 61% of shippers are increasing their use of these services, driven by the desire for cost savings, access to talent, and the need for agile supply chains. It highlights the role of collaborative outsourcing relationships in enhancing logistics value and the importance of transparency and technology in improving operations and decision-making. Additionally, it mentions how companies can tailor logistics strategies to meet specific operational and financial metrics, with a focus on driving continuous innovation and efficiency.

1. IN LOGISTICS OUTSOURCING
RELATIONSHIPS
CUSTOMER VALUE
CO-CREATING

2. With greater need for innovation and ideas to create
dynamic supply chains, many companies consider
outsourcing logistics.

3. 61%of shippers indicate they are increasing their use of
outsourced logistics services this year.
Versus
58%reported last year.
*
*
*Source: 2018 Third-Party Logistics Study – The State of Logistics Outsourcing

4. COMMON FACTORS TO OUTSOURCE LOGISTICS
Desire for more savings Finding or adding talent
is challenging
Need for agile, scalable
supply chain
Gain a competitive
advantage
Need for best-in-class
technology

5. COMMON FACTORS TO OUTSOURCE LOGISTICS
Desire for more savings Finding or adding talent
is challenging
Need for agile, scalable
supply chain
Gain a competitive
advantage
Need for best-in-class
technology
 Cost-cutting is a trend that is likely to continue for the foreseeable future.
 Once hard euro savings have been removed, the focus can shift to soft euro savings.
 Continually looking for soft euro savings can lead to long term cost reduction strategies.

6. COMMON FACTORS TO OUTSOURCE LOGISTICS
Desire for more savings Finding or adding talent
is challenging
Need for agile, scalable
supply chain
Gain a competitive
advantage
Need for best-in-class
technology
 Inefficiencies or imbalances occur when merging existing distribution networks
or changing them.
 Companies may need to outsource the analysis and execution of these
opportunities to a provider with an extensive network of capacity & technology

7. COMMON FACTORS TO OUTSOURCE LOGISTICS
Desire for more savings Finding or adding talent
is challenging
Need for agile, scalable
supply chain
Gain a competitive
advantage
Need for best-in-class
technology
 Outsourcing is an alternative to hiring new
employees – they will bring extensive knowledge
of the industry without adding fixed costs

8. COMMON FACTORS TO OUTSOURCE LOGISTICS
Desire for more savings Finding or adding talent
is challenging
Need for agile, scalable
supply chain
Gain a competitive
advantage
Need for best-in-class
technology
 Companies can choose to outsource logistics
management or execution of tactical, day-to-day
execution to pursue more strategic and value-
centric assignments.

9. COMMON FACTORS TO OUTSOURCE LOGISTICS
Desire for more savings Finding or adding talent
is challenging
Need for agile, scalable
supply chain
Gain a competitive
advantage
Need for best-in-class
technology
 TMS technology is expensive to buy, implement and maintain.
 Some companies who require TMS technology can choose to collaborate
with outsourcing providers that offer best-in class technology as well as the
trained experts to leverage it.

10. SHIPPERS OUTSOURCE SPECIFIC LOGISTICS ACTIVITIES*
Domestic transportation
Warehousing
International transportation
Customs brokerage
Freight forwarding
Freight bill auditing and payment
Reverse logistics
Cross-docking
Product labeling, packaging assembly, kitting
Information technology (IT) services
Transportation planning and management
Order management and fulfillment
Service parts logistics
Inventory management
Supply chain consultancy services provided by 3PLs
Customer service
LLP (Lead Logistics Provider) / 4PL services
Fleet management
83%
66%
63%
46%
46%
34%
31%
29%
29%
27%
25%
20%
18%
17%
15%
11%
11%
10%
*Source: 2018 Third-Party Logistics Study – The State of Logistics Outsourcing

11. CO-CREATION OF VALUE IN OUTSOURCING RELATIONSHIPS
C.H. Robinson collaborates with your
company’s cross-functional subject matter
experts to tailor a logistics solution specific
to your business requirements.
C.H. Robinson logistics experts align a
broad menu of supply chain services and
execute your company strategy to maximise
the value of the engagement.

12. BUILDING A MUTUALLY BENEFICIAL RELATIONSHIP
A dedicated in-house contact for your
customersA Respectful relationship
A genuine interest to the customer
beyond contractual obligations
 It’s a matter of having mutual respect for
each other. It means an ongoing
respectful relationship, one in which the
seller shows an understanding of the
buyer’s needs and works to satisfying
those needs.
 Few relationships have more impact
on future customer success than the
one between the operations
departments and sales post contract.
A clearly defined handoff process
allows operations to immediately start
delivering on the value Sales
presented to the customer and what
the customer has signed off to receive.
 We equip our people with the right
technology, so they can drive, and
make smart decisions, based on the
data-driven facts, either with the
customer, or on the customer’s behalf.
This comes back to your employees
having the right expertise and
competencies, to build the right type
of relationships with their customers.

13. COLLABORATING TO DRIVE THE DESIRED OUTCOME
Tailor your own solutions with seasoned
logistics experts
Adding resources and services to
reach your goals
Drive continuous innovation and
improvement
 A Collaborative Outsourcing relationship
enables you to add the resources and
integrated services to your organisation
that will help you drive desired outcomes
 Collaborative Outsourcing enhances
the value of logistics to your business
and your customers’ experiences, and
drives innovation and continuous
improvement throughout your supply
chain.
 As part of the C.H. Robinson
Collaborative Outsourcing approach,
seasoned logistics experts work with
you, listening to your challenges,
examining processes, and configuring
our comprehensive menu of logistics
services into an outsource relationship
that is built around your key
operational and financial metrics.

14. IMPROVING PROCESSES AND OPERATIONS
Cost-efficient business operations Increasing sales volume
 Efficient supply-chain management has various cost benefits.
Eliminating redundant steps, for example, saves salary costs
by ensuring workers don’t waste time on unnecessary
procedures. A more efficient supply chain also increases your
negotiating power with partners, which also stand to benefit
from doing business faster. For example, a retail business
might be more willing to offer you favourable terms if it
knows your company always delivers products on schedule.
 Segmentation lets companies boost profitability by
tailoring their supply chain strategy to each customer and
product in their portfolio. By understanding the profit
profiles of their customers, companies can tailor a more
profitable supply chain strategy to each of them and thus
increase the overall profitability and volume growth of
their portfolios.

15. SHARING VISIBILITY TO IMPROVE EFFICIENCY
 It is vital to ensure transparency so we can effectively share
information and data around sales and operations planning,
supply and demand. When there is latency and more real-time
visibility, this is where collaboration creates benefit for us. In this
sense, transparency across our end-to-end supply chain
ecosystem again becomes critical as it enables us to more
effectively balance supply and demand.
Supply Chain transparency

16. MAKING SENSE OF THE INFORMATION TO IMPROVE THE DECISION PROCESS
 With the abundance of information and technology available
it should be easier to choose the right supply chain.
However, a common problem lies with an organisation’s
ability to make sense of this material.
 C.H. Robinson’s internally built technology platform
Navisphere®, provides full visibility to your operations, 24-
hour online tracking, and a single connection to your
customers and suppliers to support your optimised business
processes, and provide you with tools for more informed
decision making.
 We are constantly evolving to deliver more efficient
processes that reduce the manual operations and provide
more accurate information. Our newest mobile app
Navisphere® Driver submits near real-time load updates to
drivers and shippers providing predictive information that
can help shippers to take corrective actions when the
estimated time of arrival deviates from the original schedule.

17. As one of the world’s largest third-party logistics providers (3PL), C.H.
Robinson provides a broad portfolio of logistics services, fresh produce
sourcing and Managed Services across a dynamic network of 48 offices across
Europe.
Global
Forwarding
ABOUT C.H. ROBINSON
Visit our website: www.chrobinson.com
Road
Transportation
Managed
Services
Fresh Produce
Sourcing

18. COLLABORATIVE OUTSOURCING: IS LOGISTICS OUTSOURCING RIGHT FOR YOUR COMPANY?
DOWNLOAD THE WHITE PAPER
This white paper can help companies decide by exploring:
 Misperceptions about the realities of outsourcing
 How to set reasonable expectations for what outsourcing can contribute to
your organisation
 How much of a role you will need to play to achieve the successful business
outcomes you seek
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