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Manufacturers and retailers used to value 3PLs for their physical assets.The very idea of outsourcing transportation and logistics functions evolved as all the elements of the supply chain became part of a single management perspective. Thirty years ago, pricing was king, contracts were short, and performance was measured in three-year bids. That has all changed. It seems like only yesterday when "3PL" was just a new acronym thrown about at industry conferences and logistics trade magazines to describe a different kind of transportation and warehousing company. Today, Spartan Logistics is appreciated more for our cerebral approach and adaptability to define your strategic direction and execute it. Let’s say you are the owner of, or you are responsible for, a company that sells or distributes footwear to a segment of the population. Before commiting, ask these five questions of a 3PL provider:  Read More

Topics: Common 3pl Questions

It seems some of the most successful Fortune 100/500 companies have been able to grow their business profitably by outsourcing their logistics needs. Admittidely, the word "partnership" with a service provider has become exhausted — I prefer marriage. Just like marriage, you are truly in it to reap the benefits for the long-term. However, outsourcing isn't for everyone. There are companies that feel they want total control, and that they can deliver a lower cost per order by handling warehousing, fulfillment and freight internally. Doing so, some find that there is a greater impact on the bottom line. On average, a 3PL can provide a lower cost per order compared to internally managed operations. For those that are interested din utilizing a 3PL, but haven't taken the leap, here are 5 ways we have seen a number of clients get the most out of outsourcing. Keep in mind that some of the points need to become a part of the negotiation process and expectations early on. 1. Creating a "Win/Win" for Both Parties I recently spoke with the Director of Logistics of a multi-million dollar manufacturing company. He stated that their average customer had been with them just over 10 years. They have 10 manufacturing facilities and very little square feet for production overrun in the U.S. and offshore; and they need to be closer to their customers. Think about that for a minute — that says a lot about finding a 3PL in a time when quality, low cost, and time-to-market are key to the business and profitability. Creating a true union and win/win scenario should be the ultimate goal for both parties. Here are a couple of things to think about: From your perspective, what are the short and long-term 3PL services you require to grow your business? Are there new systems and services a 3PL partner will invest in to provide first-rate services for your company?  Read More

Topics: Common 3pl Questions

In the fast-changing world that is today's supply chain landscape, learning the difference between the different types of logistics companies can be quite confusing. While each type of logistics provider serves a specific purpose, it's important to remember that there are varying degrees of expertise and capabilities among each.  Read More

Topics: Common 3pl Questions