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
Almost all companies today are aware of their labor or material costs... but what about energy consumption?
It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.
With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.
The annualized turnover rate for large truckload carriers in the third quarter rose one percentage point to 97 percent, according to the ATA.
The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.
Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).