Adrian Gonzalez President

Adelante SCM

The  Path  to  Becoming  a  Successful  3PL  

TMW Systems Transforum 2012 User Conference September 24, 2012

(Excerpt)

So,  you  want  to  be  a  3PL?  

A  Great  Opportunity  Exists!  

Only about 1/3 of the companies that could benefit from using a TMS have deployed one.

Most shippers are still using spreadsheets & fax machines to manage their transportation ops

Most small & midsize companies are still managing their transportation

and logistics ops in-house

Source: ARC Advisory Group

Fortune 500 Companies

About 70% of 3PL revenues come from Fortune 500 companies.

Smaller Companies

Source: Armstrong & Associates

The  Question  is  How    Do  You  Get  There?  

What do shippers look for in a 3PL?

What capabilities do you need in terms of people, technology, and go-to-market approach?

People:  Your  Most  Valuable  Asset  

  Experience  and  exper,se  in  the  ver,cal  industries  you  serve  

  Consul,ng  experience  

  Analy,cs  skills  

  Value  Selling  

  Lean/Six  Sigma    

  Interpersonal  skills  

Position your talent as one of your most valuable assets.

Sell the knowledge, experience, and expertise of your team as

much as your services.

Invest in hiring, training, and retaining the best talent

available.

“Look for people who have superior talent in managing

relationships.”

Technology:  Your  customers  are  users  too!  

 Important  TMS  AAributes  

  Supports  mul,ple  transporta,on  modes  

  Supports  different  contract  terms  

  Visibility  and  op,miza,on  

  Business  Intelligence  

  Re-­‐usability  of  customer  setups  

  Connec,vity  to  carriers  

  Customer  self-­‐service  features  

Give your customers a voice in developing your IT roadmap.

Solutions must be quick and easy to configure and upgrade.

Mobile access and capabilities becoming more important.

Users want simple user interfaces, and the ability to

view data/info in graphical formats – “A picture is worth a

thousand words.”

Go-­‐to-­‐Market:  Crawl,  Walk,  Run  

  Focus  on  your  most  strategic  clients    A  history  of  proven  success  

  Strong  personal  rela,onships  

  Trust  already  established  

  Use  consul,ng  services  as  a  stepping  stone    Network  Design  

  Procurement  

  “Tell  them  what  they  don’t  already  know”  

  Invest  in  building  your  brand    Have  sa,sfied  customers  tell  their  story  

  Leverage  social  media  to  get  word  out  

Summary  &  Recommendations  

  Big  Opportunity:  Serving  small  and  midsize  shippers  who  don’t  use  a  TMS  and  s,ll  manage  opera,ons  in-­‐house.  

  A  successful  3PL  is  an  opera,ons  manager,  a  consultant,  and  a  technology  provider  all  rolled  into  one.  

  Don’t  just  sell  your  services,  but  also  the  knowledge,  skills,  and  experience  of  your  people.  

  Con,nuously  invest  in  customer-­‐facing  technologies.  

  Avoid  the  ailments  of  typical  3PL-­‐customer  contracts.  

  Harness  the  value  of  your  customer  and  employee  community.  

Thank  You!  

Adrian Gonzalez President

Adelante SCM adrian@adelantescm.com