DC Velocity - April 2017

Learn the latest approaches for successful 3PL relationship management at 40th annual WERC Conference

By Annette Danek-Akey, Senior Vice President of Fulfillment, Penguin Random House Inc., and WERC 2017 Annual Conference Committee Chair Engaging a third-party logistics (3PL) service provider to boost supply chain efficiency is no longer restricted to warehousing, distribution and transportation outsourcing. Rather, today’s 3PLs provide value-added services throughout the entire supply chain, from sourcing and procurement to international tariff and customs management to last mile delivery to returns processing.

And, according to a report from Allied Market Research
released last summer, the global 3PL market is on pace
to reach $1,110 billion by 2022, a compound annual
growth rate (CAGR) of 5.16% between now and then.
The reasons for this growth include:
• Continued expansion of e-commerce retail and its
associated proliferation of inventory and smaller,
more frequent orders to individual consumers that
can be challenging to manage.

• Global expansion of regional manufacturing footprints for inventory redundancy to minimize the risks associated with unpredictable disruptions requires specialized awareness of country-specific policies and regulations.

• Increased need for returns handling, multiple return destinations, asset recovery, remanufacturing or repairs, end-of-life product management and regulations.

While many businesses are entrusting key parts of their supply chains to 3PLs, doing so requires a certain leap of faith. Although handing off direct control of some (or all) logistics services to an outside service provider might allow a company to better focus on its core competencies, it also introduces the risk of reputation damage should the 3PL not deliver as expected. The most successful partnerships, therefore, prioritize frequent communication and relationship tending.

For that reason, outsourcing to 3PLs is a key topic at
the Warehousing Education and Research Council’s
(WERC) 40th Annual Conference for Logistics
In breakout presentations, insiders on both sides of
a 3PL relationship will share with WERC Conference
attendees:
• How to resolve challenges and problems that
might arise during a long-term outsourced
logistics contract, including scenarios involving
the service provider losing money, and subsequent
renegotiations.

• What is activity-based pricing in a 3PL relationship, and how to create, nurture and maintain such an arrangement.

•Why establishing a vested relationship methodology contract between a company and a 3PL built around innovative solutions will result in a win-win outcome for both parties.

• How to utilize outsourced transportation service providers for multi-site manufacturing operations.

Further, in a Peer-2-Peer discussion, participants will discuss their personal experiences working with 3PLs, including the best ways to establish relationships, monitor key performance indicators (KPIs), set targets and align processes. Those interested in seeing a successful outsourcing relationship in action can join a tour of the electronically monitored, temperature controlled Allergan Pharmaceuticals’ cold chain storage and distribution facility, managed by 3PL service provider Kuehne + Nagel.

You won’t want to miss this valuable opportunity to discover the latest trends and best practices in outsourcing at the WERC 2017 Annual Conference. For more information and to register, visit www.werc.org/2017 today.