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Path to Becoming a Successful 3PL (excerpt)

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Excerpt of presentation given by Adrian Gonzalez, President of Adelante, at the TMW Systems Transforum User Conference 2012.

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Path to Becoming a Successful 3PL (excerpt)

  1. 1. The  Path  to  Becoming  a  Successful  3PL   TMW Systems Transforum 2012 User Conference September 24, 2012 (Excerpt) Adrian Gonzalez President Adelante SCM
  2. 2. So,  you  want  to  be  a  3PL?  
  3. 3. A  Great  Opportunity  Exists!   Most shippers are still using Most small & midsize companies arespreadsheets & fax machines to still managing their transportationmanage their transportation ops and logistics ops in-house Smaller Companies Fortune 500 Companies Only about 1/3 of the companies that could About 70% of 3PL revenues come frombenefit from using a TMS have deployed one. Fortune 500 companies.Source: ARC Advisory Group Source: Armstrong & Associates
  4. 4. The  Question  is  How    Do  You  Get  There?   What do shippers look for in a 3PL? What capabilities do you need in terms of people, technology, and go-to-market approach?
  5. 5. People:  Your  Most  Valuable  Asset    Experience  and  exper,se  in  the   Position your talent as one of your most valuable assets. ver,cal  industries  you  serve   Sell the knowledge, experience,  Consul,ng  experience   and expertise of your team as much as your services.  Analy,cs  skills   Invest in hiring, training, and  Value  Selling   retaining the best talent available.  Lean/Six  Sigma     “Look for people who have  Interpersonal  skills   superior talent in managing relationships.”
  6. 6. Technology:  Your  customers  are  users  too!    Important  TMS  AAributes    Supports  mul,ple  transporta,on   Give your customers a voice in modes   developing your IT roadmap.  Supports  different  contract  terms   Solutions must be quick and easy to configure and upgrade.  Visibility  and  op,miza,on   Mobile access and capabilities  Business  Intelligence   becoming more important.  Re-­‐usability  of  customer  setups   Users want simple user interfaces, and the ability to  Connec,vity  to  carriers   view data/info in graphical formats – “A picture is worth a  Customer  self-­‐service  features   thousand words.”
  7. 7. Go-­‐to-­‐Market:  Crawl,  Walk,  Run    Focus  on  your  most  strategic  clients     A  history  of  proven  success     Strong  personal  rela,onships     Trust  already  established    Use  consul,ng  services  as  a  stepping  stone     Network  Design     Procurement     “Tell  them  what  they  don’t  already  know”    Invest  in  building  your  brand     Have  sa,sfied  customers  tell  their  story     Leverage  social  media  to  get  word  out  
  8. 8. Summary  &  Recommendations    Big  Opportunity:  Serving  small  and  midsize  shippers  who  don’t   use  a  TMS  and  s,ll  manage  opera,ons  in-­‐house.    A  successful  3PL  is  an  opera,ons  manager,  a  consultant,  and  a   technology  provider  all  rolled  into  one.    Don’t  just  sell  your  services,  but  also  the  knowledge,  skills,  and   experience  of  your  people.    Con,nuously  invest  in  customer-­‐facing  technologies.    Avoid  the  ailments  of  typical  3PL-­‐customer  contracts.    Harness  the  value  of  your  customer  and  employee  community.  
  9. 9. Thank  You!   Adrian Gonzalez President Adelante SCMadrian@adelantescm.com

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