Viewpoint: Masters adding value through partnerships

Before we dive into the findings of the 21st Annual Study of Logistics and Transportations Trends (a.k.a The Masters of Logistics), we’d like to thank a few of the players that help us make this in-depth assessment of the current state of logistics and transportation management operations a reality.

First and foremost, we need to thank the 1,370 domestic and global logistics, transportation, and supply chain management professionals—a near record turnout—who took the time out of their hectic schedules to participate. We realize that it takes more than a few minutes to complete the questionnaire, and the fact that we hit a near record response rate tells us that the results we glean from this level of detail is worth the effort in the eyes of our readers.

Always, a special thanks goes out to Karl B. Manrodt, Ph.D., of Georgia Southern University and Mary C. Holcomb, Ph.D., of the University of Tennessee (UT) for continuing to drive and innovate this research project for over two decades. And of course, I’d be remiss if I didn’t thank the group of UT graduate students who help crunch the numbers as well as the teams at Con-way Inc. and Ernst & Young who lend their financial and intellectual support.

So, what are some of the key findings of the highly anticipated study? According to Holcomb and Manrodt, one result that quickly surfaced was that the group we’ve titled the Masters of Logistics—those companies with sales greater than $3 billion—are once again taking the lead in implementing new management methods and technological strategies after a few years of falling into the “norm.”

“During the recession years we found that the competitive gap that was created by the Masters through their innovation essentially closed as companies of all sizes shrunk into a cost-cutting cocoon,” says Manrodt. “During that time, being the biggest simply didn’t translate into being the best, and we weren’t seeing any statistical significant difference between small-, medium-, or large-sized companies.”

But attitudes have certainly changed, and quickly. “Following those years of intense cost cutting, particularly in transportation spending, the 2012 study results point towards companies shifting some of their focus to maximizing profitability and asset utilization while improving core carrier relationships,” says Holcomb. “In essence, we’ve found that shippers again believe that you have to spend money to make money.”

And it’s the Masters that are leading the way in investing time and money by better partnering with the core carrier partners in order to differentiate their offerings in the marketplace. “If fact, we’ve found that the Masters think differently when it comes to actualizing this concept, as they view their people, carrier relationships, and processes as key elements in differentiating their organizations in the marketplace,” says Mandrodt.

But the re-emergence of the Masters is just one significant data point from our 2012 findings. Starting on page 34, Mandrodt and Holcomb put this year’s findings into context. And if you still have questions for our research team, join us in our webcast event on Thurs., September 27, at 2:00 p.m. ET (register at logisticsmgmt.com/masters2012).

How do your logistics operations stack up against the Masters?