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Win the Race in your Supply Chain Look at Third Party Logistics Outsourcing

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Page 1: Look at Third Party Logistics Outsourcing...Third party logistics providers can provide a variety of benefits to organizations and they are well documented. Time Savings Time savings

Win the Race in your Supply ChainLook at Third Party Logistics Outsourcing

Page 2: Look at Third Party Logistics Outsourcing...Third party logistics providers can provide a variety of benefits to organizations and they are well documented. Time Savings Time savings

WhitePaper

PacificCoastWarehouseCompany

AreyouWinningtheRace? 2

OutsourcedServices 4

IsOutsourcingRightforyou? 5

Benefitsof3PLServices 6

AboutPCWC 8

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Table of Contents

Page 3: Look at Third Party Logistics Outsourcing...Third party logistics providers can provide a variety of benefits to organizations and they are well documented. Time Savings Time savings

WhitePaper

PacificCoastWarehouseCompany

Areyouwinningtheraceinyoursupplychain? Doyoufeelyouareaheadofthecompetition?SupplyChainsarecomplex.Betweenglobalization,technology,fiercercompetition,it’shardtodetermineifyouarewinningtheraceorthepacehasoutpacedyou.

Asalogistician,youneedtothinklikearunnerandestablishthemindset(inourworld– tools)towintherace.

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Warmup. Yourwarmupisthefoundationforagoodrun.Goodroutineshelpyoupreparefortherace.Inlogistics,isyournetworkready?Doyouhavethenetworkinplacetoaccommodateamulti-channelenvironment?Iftheinfrastructureisnotinplaceorintherightplace,howcanyouexpecttheracetobewon?

BeststartingPosition. Runnerswanttogetagoodpositionwhiletheyarerunning.Theyneedtohaveagoodstart,breathingintheairastherefsays“set”.Waitingforthatflagthatindicatestheracehasbegun.Inyoursupplychain,areyoureadytomeetthechallenges?Haveyoupositionedyourorganizationtostarttheracewell?

RunatanevenPace. Don’toverreact.Don’twasteyourenergyinareasthatdon’tbringyouareturn.Thinkthroughhowyouwantyoursupplychaintowork,putthestepsinmotionandworkthroughtheissues.Staysteady.You’llknowwhenit’stimeforthesprint!

Stayfocused. Don’tgetdistracted.Remember,youcan’tbeeverythingtoeveryone.Whatarethedecisionsthataregoingtoallowyoutogiveyouareturnonyourefforts?Whatarethechangesthataregoingtogiveyouacompetitiveadvantage?

KnowhowtoPasssomeone. Onceyouhavethatcompetitiveadvantage...useit.Don’tbeafraidtopassyourcompetitor!Makedecisions– bebold!

Keeptheweatherinmind. Consumerskeepchangingjustliketheweather.Anticipatewhatmaygowrong.HavePlanBreadysothatit’salwaysseamless.Alittleplanningcangoalongway.

Are you winning the Race?

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PacificCoastWarehouseCompany

Keepyoureyesontheprize. Efficiency,Effectiveness,andCustomerRetention.Remember,whileyouwanttodrivesales,ultimately,it’saboutthecustomerexperienceandeaseofdoingbusinesswithyourorganization.Don’tgetcaughtupinotherthings.

StayHumble. NimbleisthewordforSupplyChain.Justwhenyouthinkyouhaveitfiguredout,it’sgoingtochange!Don’tpatyourselfonthebackbutbenimble.Ensureyoursupplychainhasroomtomoveindifferentdirectionsasbusinesschanges,competitorschange,productchanges...andthelistgoesone.Stayinghumble,alertandnimblewillhelpyouwintherace.

So,howdoyougetallthisdone?Well,supplychainsarecomplexandifyouwanttobuildonethatisflexibleandnimble,youneedtolookbeyondyourfourwalls.

Thinkaboutoutsourcingyoursupplychaintoathirdpartylogisticsprovider(3PL).Youcanoutsourceelementsofyourdistribution,fulfillmentandtransportationfunctionstoalogisticsandsupplychainmanagementcompanywhospecializesinservingorganizationsandtheircustomers.

WhatisidealforaShipperisthattheydon’thavetoinvestinbuildings,ITinfrastructuresandtrucks.Usinga3PLcanofferbigsolutionswithsmallcosts.A3PLserviceorganizationallowsyoutoselectthespecificservicesyouneedinyoursupplychaininaspecificmarket.It’sallcustomizedtofityourneeds.

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Winning the Race?

As the complexity in supply chains increase, more companies are turning to 3PL’s to manage their inventories, ship their orders and ensure orders deliver to the customer.

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PacificCoastWarehouseCompany 4

INBOUNDPROCESSINGProductReceiptsCrossDockingInspectionReverseLogistics

TRANSPORTATIONMANAGEMENTTruckload/Less-than-TruckloadClaimsManagementCarrierManagementDrayageServicesFreightConsolidationPoolDistribution

VALUEADDEDPlantSupportServicesSpecialtyPackaging,VarietyPacksandDisplayAssemblingPostponementProjectManagement

OUTBOUNDPROCESSINGOrderManagementCustomerCareManagement

STORAGEMANAGEMENTANDINVENTORYCONTROLInventoryManagementCycleCounting/PhysicalInventoriesReporting

Outsourced Services

Themostcommontasksoutsourcedto3PLorganizationsaretransactional,repetitiveandoperational.Belowareareasofopportunity:

Asyoudetermineifoutsourcingworks,theseareasofbusinessshouldbereviewed.

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PacificCoastWarehouseCompany

Ifyou’veneveroutsourcedinthepast,it’salwaysabigdecisiontodetermineifyoushouldhandleservicesin-houseoroutsourcethem.Doyouhavetheresourcesavailable?Doyouneedtooutsourceallorjustspecificservices?Aresupplychainservicesyourcorecompetency?Reviewingcostfactors,financialimpact,suitabilityofoutsourcingandperformancegapswillhelpyoudetermineyouroutsourcingstrategies.

Somecompaniesbelievethattheirbusinessisuniqueandonlytheyknowhowtoservetheircustomer.Whileproductsmaybeunique,anexperienced3PLcouldactuallyservicecustomersbetter.Withefficientprocessesinwarehousing,storage,fulfilment,EDI,labeling,ordermanagementandshipping,anfull-service3PLcanbringimprovedperformanceandspecificityinanalyticsthatwillbeusefulinmakingdecisions.Thisallowsyoutoreturntoyourcorebusinessandfocusonwhatyoudobest.

Whilemanybelievethattheywilllosecontrolofthesupplychain,thisisactuallynottrue.Throughawell-structured3PLagreement,performancemetrics,constantcommunicationandacollaborativerelationshipbuiltontrust,controlcanbeatahigherlevelthanin-houseoperations.Withtransparencyofinformationwithonlineportals,companiescanreviewallandanydataatanytime.

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Is Outsourcing right for you?

Beforegoingforwardwithoutsourcing,evaluatewhereyoumighthave:

• limitedresources,• aneedforflexibility,• littleexpertise,or• aservicethatisanon-coreactivity

Theseareascombinedwithspecificservicescouldhelpyouidentifyifoutsourcingwouldworkforyou.

Make sure you know what services fit for outsourcing.

Page 7: Look at Third Party Logistics Outsourcing...Third party logistics providers can provide a variety of benefits to organizations and they are well documented. Time Savings Time savings

WhitePaper

PacificCoastWarehouseCompany

Thirdpartylogisticsproviderscanprovideavarietyofbenefitstoorganizationsandtheyarewelldocumented.

TimeSavingsTimesavingsareavailabletoaShipper.Whenyououtsource,younowgaintime.Logisticaltaskscanbehandledbyyour3PLrelievingyouandyourteamoftheburden.Spendyourtimeonthecoreactivitiesthatgrowyourbusiness.

ExpertiseMost3PLproviderscareabouttheirclientsandarepassionateaboutdeliveringthebestexperiencepossible.Theyareknowledgeableaboutindustrybestpractices,latesttechnology,transportation,andlocalmarketexpectations.Efficientprocessesallowyoupeaceofmindknowingthatyourneedsarebeinghandledbyreliable,seasonedcustomercareprofessionals.

AgileResourcesA3PLproviderhastheabilitytoscalespace,laborandtransportationdependingonseasonalneeds.Theseswingsinvolumescanbehandledeasilyandprovideflexiblesolutions.Asyouneedmoreorless,theycanaccommodatethoseneeds.

ContinuousImprovementA3PL’sproductis“service”.Itisalwaysnecessarytocontinuetoimproveupontheirproducts.Withalifestyleofcontinuousimprovement,3PLorganizationshavethetoolstooptimizeprocessestoensureyourneedsaremetwiththefastest,mostefficientandcosteffectivemethodsavailableresultinginhelpingyoumaximizeyourprofits,andimprovingyourcustomer’sexperience.

Benefits of 3PL services

INCREASEREVENUE• Increaseresponsiveness,being

nimbleandflexible• Fasterspeedtomarket• Improvecustomerexperience• Easeofnewmarketentry• Improvedquality

IMPROVECAPABILITIES• Focusoncorebusiness• Receivefacilitycapacity

flexibility• Gainaccesstowarehouse/

storagetechnology• Receivemarketlogistics

expertise• Increasebackupcapabilities

REDUCECOSTS• Reduceoperatingcosts• Reducecapitalinvestments• Movefromafixedtovariable

costelements• Meetdownsizingneeds

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OutsourcingMOTIVATORS

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PacificCoastWarehouseCompany

AccountabilityTrustingandrelyingonanothercompanywithyourbusinesscanbedifficult.However,whenexpectationsareoutlinedandcommunicated,metricsaretracked,thena3PLproviderwilltakeresponsibilityforyourbusinessknowingthattheyareanextensionofyourcompany.Theyunderstandthattheyarerepresentingyou.

Technology3PLcompanieshavemadeinvestmentsthatarespecifictoefficientprocessesbecausetheyuseitdayinanddayout.Theseinvestmentsinwarehouseandtransportationmanagementallowthemtospreadtheircostsoveralltheircustomerswhereyouareonlypayingasmallportion.Theintegratedsystemsprovideyoucustomanalyticsthatyoumayrequireandgiveyoufullvisibilityandtransparencyofyourbusiness.

OperationalControlandPerspectiveYoucanactuallygainmorecontrolbyoutsourcing.Improvedsystems,analytics,andmetricsallowyoutoworkandplanmoreontheareasthatcangrowyourbusiness.Plusworkingwitha3PLexposesyoutoothermethodologiesacrossdifferentindustriesandclients.Thesebestpracticesarenowavailabletoyou.

AvoidInvestments3PLcompanieshaveinvestedinbuildings,systemsandequipmentsoyoudon’thaveto!Thesecostsarepartoftheratestructureyoupaybutareanallocatedcostthatyousharewithotherclients.Havingtheflexibilitytoplaceyoursupplychainindifferentlocationswithoutcapitalexpenditureallowsyourcostsmovefromafixedcosttoavariablecoststructure.

So,ifyouwanttowintherace– looktooutsourcingallorpartofyourlogisticsservicestoathirdpartylogisticscompany.Withover70yearsinthebusiness,PacificCoastWarehouseCompanycanpartnerwithyouandmakeadifferenceinyoursupplychain.Weunderstandtheimportanceofservicingyou,yourteamandyourcustomers.

Benefits of 3PL services

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Page 9: Look at Third Party Logistics Outsourcing...Third party logistics providers can provide a variety of benefits to organizations and they are well documented. Time Savings Time savings

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PacificCoastWarehouseCompany

PacificCoastWarehouseCompanydatesbackoverseventyyearsandhasclearlybecomeoneofthefinestdistributionorganizationsintheWesternUnitedStates.

Weareoperating nearly60,000palletsonongoingstoragecapacity inSouthern California. Ourfacilitiesareofthehighestqualityconcretetilt-upconstruction,withlargetruckcourtsandcompletesprinklerandalarmprotection.OurASIaward-winningsanitationprograms,completecodedatetrackingandstockrotationareallintegralpartsofourservice.

Inhandlingthedistributionneedsofeachofourcustomers,weapproacheachsituationasaveryrealmemberofthatcompany’sdistributionteam.Wearecontinuallylookingforwaystoimproveouroperationintermsofbothlogisticsandproductivity,withtheendresultbeinglowercoststoourcustomers.Ourmanyyearsofservicetoourrespectedclientscertainlyconfirm oursuccessintheseefforts.

Ourcorebeliefsarethecornerstonetoourbusiness. Weusetheseprinciplestoguideusinourconductandapproachtothebusiness. Webelievethesebeliefsallowustoexcelandbecomea"partnerofchoice"byourcustomers.

Stewardship ‣ Unity ‣Betterment ‣ Authenticity

Ifyouarelookingforwaystoenhanceyoursupplychain,youneedtopartnerwithacompanywhohasyourinterestsfirst.LetmetellyouaboutPacificCoastWarehouseCompany!

[email protected] formoreinformation.

About PCWC

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Big Company Solutions

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