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.”
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LM recently spoke with recently spoke with Wall Street analyst John Larkin to get some of his insights as we approach the halfway point of 2013, or at least get a little closer to it.
Carload volume—at 285,679—was up 1.9 percent annually, and intermodal—at 250,159 trailers and containers—was up 3.5 percent
At yesterday’s Senate Commerce Committee hearing on the recently announced nomination of Charlotte, North Carolina Mayor Anthony Foxx to be Secretary of Transportation, the nominee laid out some key components of his agenda if he is confirmed.
Supply chain consultancy Armstrong & Associates said this week that total United States 2012 third-party logistics (3PL) gross revenue—at $141.8 billion—were up 6 percent over 2011.
Company officials said that CEVA’s quarterly results were impacted by various factors, including: overall soft global logistics markets; loss of airfreight volume with some business switching to ocean transport; exposure to Eurozone markets; and underperforming Contract Logistics contracts.