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Obligatory Blog

Consolidate or Collaborate?

October 10th, 2008

With ever creeping consolidation in the 3PL sector (with the almost inevitable Teutonic overtones!), what is the differential advantage that customers can expect from their providers?

Quite apart from the price (margin) advantage, one key element was the relationship between the two parties, based on the closeness, access and understanding of the customers demands. The bigger the 3PL, it seems the less the chance of that closeness. Now, you’ll probably be looked after by a Global Key Account VP, not the local manager whom not only understands your requirements, but has the authority and discretion to action any change or improvement. I have it, on good authority, that a recent customer supply chain initiative required 28 signatures prior to being actioned – that’s not what I call customer focus!

With this consolidation and increasing bureaucracy, its no surprise that customers are increasingly turning to smaller, more ‘customer caring’ 3PLs where they can recreate the value chain.

So what does all this mean to a senior manager who is looking for career growth and enhanced challenges? Well, probably, the thought of being a small cog in a gigantic machine has less appeal due, in no small part to the lack of recognition and visibility.

In evaluating career options you could consider a smaller, mid-cap 3PL, a move into own account/in house, an MBI/BIMBO or even self employment as an interim or a consultant. With this much choice its important to consider all the options carefully – taking soundings and advice from a wide variety of trusted sources.

Some of these options may sound very exciting and challenging – but, as ever there is a pitfall to all of these and the watchword is ‘caution’.

So, where are we now?

October 10th, 2008

Someone one asked me why I worked in Supply Chain to which my immediate response was:-

“That every time you think you’ve got it right, some beggar moves the goal posts!”

There is an inevitability about Supply Chain – in that it really is the truth. As consumers and businesses become more sophisticated and demanding, so our services have to meet these aspirations, from the early days of the 3PL offering, to ‘lean’, six sigma, Prince 2, to collaboration (I can remember when we called it shared user!).

But if our customers are becoming more demanding, what are we doing about it? I suppose the first stage is recognition of our worth – are we an industry, a sector, a profession or a service sector provider. It is my belief that we are a profession, working in the logistics/supply chain sector. More and more, each day I hear people talking of the ‘logistics of the situation’ or the supply chain in finance etc. So they know the words but do they know what they mean? Today, I even hear of bus companies calling themselves people logistics providers, but whatever the interpretation of the terms, one cannot escape the fact that it’s about “right goods, right condition, right place, right price and right quality.” So if we are being more sophisticated, then what are we doing to attract the right talent to this profession.

A few years ago, a spirited attempt was made to convert career Masters and tutors about the merits and the excitement of the profession – to no avail! They perceive us to be dirty, polluting trucks and big environmentally unfriendly sheds. It was far more interesting to get a career in marketing, Business Studies or Media and Tourism!

Well, we’re not completely there yet, but it’s good to see so many universities offering supply chain as a syllabus. Equally it’s good to see some of the new initiatives in Skills For Logistics and the CILT, including the soon to be announced, Careers Foundation Bursaries. So may be now we are finally being recognised – but it’s up to every one of us to push the profession at every opportunity.

Editors Note
This is my first blog so its probably broken all the rules – but that’s me! Let me know your views, criticism etc.

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