that as the tail end of 2019
approaches, demand for transportation and logistics services
in North America and moving
goods from China continues
to soften. “I cannot emphasize
enough that there are winners and losers in every change
that is made in global trade,”
says Labadie. He believes 3PLs
remain a key enabler that can
help shippers sail through
choppy trade waters and mitigate the worst impacts.
Jason Bergman is chief customer officer for Overland
HNRY Logistics is an “asset-based” 3PL that has access to
the capacity, coverage, and resources of its sister trucking
units at YRC Worldwide. Bergman says the asset-backed
model is a value differentiator. “At the end of the day, it’s
about consistent communication and a seamless experience for the customer. When you take our logistics arm
and combine it with our assets, that provides a significant
advantage,” he says.
Going into the new year, what are three core issues that
keep Bergman up at night? “Attracting and retaining quality talent. Managing our business in a time of economic
uncertainty,” and “managing in a more difficult regulatory
environment,” he says.
TOSSING OUT THE OLD PLAYBOOK
Flexibility and diversification are two qualities that Randy
Sinker, vice president of commercial sales for Winnsboro,
Texas-based 3PL Team Worldwide, says are critical to successful logistics service providers. “If you are a traditional
freight forwarder and you don’t diversify and become more
flexible, you will go out of business,” he says.
He cites the uncertainty of tariff and trade policies as
well, which have made manufacturers reluctant to pursue
investment and growth plans, and have reduced freight
volumes, particularly air freight. Shippers also continue
to embrace vendor consolidation strategies, winnowing
down their list of suppliers to small teams of highly skilled
and resourced core logistics suppliers. All of that means a
3PL’s service portfolio has to stand out and demonstrate an
ability to consistently solve an ever-growing list of supply
chain challenges if the company hopes to stay in the game.
“It’s expensive [for shippers] to use different companies,”
says Sinker. “Those [suppliers] that can do more [for the
shipper’s supply chain] and who can think outside of the
box will remain competitive and successful.”
He adds that shippers, while still requiring competent
performance of tactical logistics tasks, increasingly want
strategy help. Sinker believes it’s imperative for 3PLs to
be able to “plan with customers for what’s [expected to]
happen a year from now, not [just] tomorrow’s shipment.”
Privately held Team Worldwide operates under the
“agency” model, which Sinker believes is a unique strength.
The company covers a broad swath of the supply chain:
import/export ocean and air, customs brokerage, ware-
housing and distribution, and final mile. Sinker says chief
among its strengths is an entrepreneurial culture, with each
station having local ownership and control. “We tell cus-
tomers we’re large enough to service you and small enough
to know you,” he adds.
Unlike larger 3PLs, which are leaving smaller cities
and consolidating operations in regional offices, Team
Worldwide is expanding into secondary and tertiary markets, complementing its presence in key metro areas.
The company has opened eight new offices in the last 22
months, currently has over 45 local branch offices within
North America, and has additional expansion plans on the
drawing board for 2020. “The biggest thing we push is service,” says Sinker, citing the value of a flat organization with
minimal bureaucracy and red tape. Decisions on operations
and customer service are made “where the rubber meets the
road at the branch level, with the branch owner.”
THE VISIBILITY CHALLENGE
In addition to the strategic challenges, 3PLs and brokers
face constant pressure on the technology front. The emergence of new tech providers such as Uber Freight, Convoy,
and others hawking new digital brokerage platforms and
visibility solutions has forever changed the logistics mar-
