What does a well-established multinational truck manufacturer have in common with a relatively new telecommunications equipment provider? Quite a bit if you are examining their respective global distribution strategies.
Navistar Inc. and Vology Data Systems are both undergoing transformational changes as each builds upon existing relationships with time-tested logistics partners. In fact, the following two case studies demonstrate that working to transform your existing 3PL into your 4PL makes sense if it’s done with “cultural integration” as a primary goal.
Navistar’s global challenge When Ed Melching, Navistar’s director of global logistics, began searching for a partner capable of supporting the company’s five-year plan to re-engineer and improve performance in its supply chain, he didn’t have to look far. His existing two-year contract with a 3PL as a starting point for global expansion.
“There are normal growing pains in any partnership,” he says. “But at the beginning, we spent a lot of time on alignment of vision, mission and strategy, governance, ensuring executive support for the steering teams, and taking an ‘open book’ approach to the relationship where both of us would be rewarded when we were successful.”
About the Author
Subscribe to Logistics Management magazine
The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) dropped 0.7 percent from September to October, snapping a three-month run of gains.
Commerce reported that November retail sales at $432.3 billion were up 0.7 percent compared to October and up 4.7 percent compared to November 2012. NRF reported that November retail sales, which exclude autos, gas stations, and restaurants, were up 0.6 percent on a seasonally-adjusted basis from October and were up 3.9 percent on an unadjusted basis annually.
XPO Logistics has entered into a definitive agreement to acquire NLM, the largest provider of Web-based expedited transportation in North America from Jacksonville, Fla.-based Landstar System.
New monthly report offers fresh insight into U.S. export and import container activity and trends
As has been the case in its respective monthly manufacturing and non-manufacturing reports on business, continued growth remains in the cards for 2014, according to the December 2013 Semiannual Economic Forecast released this week by the Institute for Supply Management.