Global Trade Magazine — Understanding the latest trends in third-party logistics—how service providers can save exporters money, streamline their operations, and provide them with competitive advantages with the latest in value-added services, technology and analytics—can be a daunting task, but it is a critical one. That’s why Global Trade asked nine logistics thought leaders to share their thoughts on the same four questions, relating to technology, export markets, value–added and evaluating a 3PL. Read on to learn what Jon Slangerup, Chairman and CEO, American Global Logistics, has to say on these important issues.
How is technology changing the scope of services 3PLs can offer their clients?
The greatest impact of technology within our industry has been its role as a catalyst for and facilitator of the 4PL model. While 3PLs typically manage a specific aspect of their customer’s supply chain, a 4PL manages all components of its customer’s supply chain and leverages technology to provide a seamless, end-to-end view of those components. The key is how the provider configures and implements technology and whether or not it is agile enough to accommodate a customer’s workflows and processes.
What regions or countries are under-served in trade yet offer potentially big growth for exporters?
Growth in Indonesia and the Philippines is expected to accelerate in 2018, with GDP rising above five percent. While the traditional leaders in Asian exports—China, Vietnam, Cambodia, Malaysia and Thailand—will continue to benefit from ongoing global economic recovery, there is a significant opportunity for some of the newer players to accelerate their export volumes.
When should shippers be more concerned about value-added service and less driven by rates?
Shippers are always better served when decisions are driven by value. Supply chains are highly complex and critical components of a shipper’s operations and, ultimately, can impact the bottom line significantly. Selecting a provider that is demonstrably on the forefront of technology and process innovation is a decision that ultimately leads to achieving supply chain optimization and competitive advantage.
What are three questions a shipper should ask a potential 3PL vendor?
What KPIs [key performance indicators] can I expect to receive, how are they measured, and with what frequency can I expect to receive them?
Who will be my day-to-day point of contact?
How agile and secure are your technology systems?
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