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.