through a relationship with a local agent with existing
operations, said Jeffrey Ivinski, director of supply chain
marketing and sales for the Concord, Calif.-based company. Once Matson Logistics gains experience and volume
with a market, it may look to structure its own entity and
on-the-ground presence in that location, Ivinski said.
Using an agent appears a prudent
step for a newcomer, but it carries its
own risks, according to Mike Short,
president of C.H. Robinson’s global
forwarding unit. Because most agents
don’t work exclusively for one 3PL,
a company entering a market is not
going to be the agent’s sole focus,
Short said. Without a commitment to
exclusivity on an agent’s part, a 3PL
without a physical presence in a foreign land may not have the visibility into its business there
that it needs, Short said.
The arena of customs compliance, where failure to meet
complex and precise government requirements can result
in hefty penalties and delayed shipments, is where agents
can stumble, Short said. Ongoing training and education is
essential for proper compliance, yet agents cannot devote
their full training efforts to one 3PL, according to Short.
Robinson employs a staff of 80 full-time compliance educa-
tors and trainers, backed by a team of auditors, Short said.
This gives Robinson the “boots on the ground” needed to
facilitate the penetration of overseas markets, he said.
Jacobs of XPO said a U.S. 3PL seeking to go abroad should be led by executives seasoned in the ways of global
commerce. This is an important step
to developing a “global approach” that
promotes the concept of a single brand
that’s bringing a coherent message to
market, which is why XPO is unlikely
to seek out agents as it expands its
international presence, according to
Jacobs.
A guiding principle for 3PLs to follow is to apply overseas the unique
capabilities that made them competitive in the U.S.,
said Paul Man, head of North Asia for APL Logistics, a
Singapore-based 3PL that has served the U.S. since 1980.
Man said 3PLs will need to properly segment their market
and then deliver value-added solutions to appeal to a new
customer base. That may sound like 3PL 101, yet it’s a universal philosophy that is likely to work in any geography.
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