‘‘Go Ahead ... Pile It On!’’ by John Edwards Today’s outsourcers expect 3PLs to offer a wide range of value-added services. 3PLs respond:
Andrew Klingel, director of operations for Siamons International, knows what he wants from his 3PL: a bit of everything, most having little to do with transporting and storing products.
Like many logistics managers, he expects his third-party logistics provider – Santa Monica, Calif.-based CaseStack–to take an active role in supporting an array of daily business operations. “We use CaseStack for a wide range of services, from order processing to prod- uct packaging, even building store displays,” Klingel says. These are boon times for 3PLs such as CaseStack; most are enjoying double-digit growth rates. In 2006, slightly more than one- fifth of 3PLs responding to an International
Warehouse Logistics Association (IWLA) sur- vey reported revenue increases of 20 percent or more. Another eight percent posted rev- enue gains of between 15 and 20 percent, while 25 percent experienced sales growth rates of between 10 and 15 percent. Against this backdrop of healthy reve- nue gains, 3PLs continue to press for market share growth. Expanding market presence means finding new customers, as well as convincing existing clients to switch alle- giances. One way to win new customers is to listen closely to their needs, then offer ready-
July 2007 • Inbound Logistics 75
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