USCO Forms Global Network of Licensed Providers

By Staff -- Logistics Management, 7/1/1999

Shippers that do business with a single provider on a multinational or multiregional basis, particularly large shippers that require complex logistics and information services, have long been concerned about inconsistencies in that service. The level of sophistication that is expected in the United States, Western Europe, or parts of Asia, for example, may not be readily available in other parts of the world. And it's hard to ensure uniform practices among contractors on different continents that are working with different resources and in different business cultures.

Now, one third-party logistics company believes it has found the solution to that problem. USCO Logistics, based in Naugatuck, Conn., has created a network of licensed logistics partners that meet its stringent operational standards and share its proprietary information system. Initial members are located in Argentina, Brazil, Paraguay, and Chile; USCO plans to expand its concept to England, the Netherlands, Belgium, and Singapore by year's end.

To be licensed as a member of USCO's network, providers must invest the necessary financial, human, and technical resources to integrate their information systems with USCO's Internet-based "Dashboard" database, thus making inventory, shipment status, and other logistics data accessible from anywhere in the world. Partners also must demonstrate operational excellence and exceptional quality standards, as well as maintain a customer-focused approach to serving high-profile multinational customers, says Bob Auray, USCO's president and CEO. "We looked for companies that have shown they could serve a diverse and demanding customer base, and manage multiple locations and product lines within their markets," he says.

Service standards, metrics, and resource commitments are mutually agreed upon and are specified in contracts. To further ensure consistency of service, USCO trains its partners' personnel in its operations practices and information technology, just as it does its own employees. Training is conducted in the United States or, for Spanish-speaking partners, at USCO's state-of-the-art distribution center near Mexico City.

USCO's expansion plans are tied to customer demand, Auray says. "We'll go where we need to go to create a seamless network for our customers. ... Many of our customers are learning themselves to manage their business globally. ... That's changing the requirements in the various local markets [USCO serves]," he adds.