Demystifying Logistics Outsourcing! exploring and explaining LSP, 3PL, 4PL and LLP

Transcription

1 1 Thought Leadership Supply Chain Management Seminar Series Demystifying Logistics Outsourcing! exploring and explaining LSP, 3PL, 4PL and LLP Mark Millar

2 2 Mark Millar MBA, PMHKLA, FCILT, GAICD Managing Partner, M Power Associates Mark Millar leverages over 25 years of global business experience to develop and deliver enlightening keynote speeches, and to provide Consulting, Education and Advisory services that create value for clients by improving the performance of their logistics and supply chain activities in China and the Asia Pacific region. Acknowledged as an industry thought leader, clients have engaged Mark as Speaker, Moderator, Master of Ceremonies or Conference Chairman at more than 250 functions in 20 countries. Mark is a Visiting Lecturer at Hong Kong Polytechnic University and serves on the advisory board of several leading organisations. His industry contributions have been recognised with a number of accolades, including being named in the Who's Who of Power Players in Supply Chain Management in China", the Pro s-to-know Thought Leaders in Supply Chain and as One of the most Progressive People in World Logistics. Contact him at [email protected]

3 Roadmap: Demystifying Logistics Outsourcing 1 Outsourcing 2 Logistics Providers 3

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5 6 Outsourcing Defined Outsourcing = the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees Outsourcing =//= Offshoring Who versus Where

6 Outsourcing Decisions What matters most is not Who executes a given function, but who executes it Best Who executes it best, will usually be the organization with the most economic incentive to improve that function Source: Accenture 7

7 Five Primary Reasons for Outsourcing Core Competencies Improve Service 2 4 Access to Technology Access to Expertise 8

8 Outsourcing Decisions Do what You do Best and Outsource the Rest Tom Peters Source: Tom Peters 11

9 Roadmap: Demystifying Logistics Outsourcing 1 Outsourcing 2 Logistics Providers 12

10 LOGISTICS PROVIDERS 3PL Consolidation - Greater Scale, Less Choice? Source: Transport Intelligence 13

11 Logistics Providers alphabet soup LSP 3PL 4PL LLP Source: M Power Associates 15

12 1PL, 2PL, 3PL, 4PL, 5PL? Asset Intensive vs Information Intensive 18

13 LSP Management Models Multiple Logistics Service Providers Example: Business involving 3 different Service Providers Transport Warehousing North China Source: M Power Associates 22

14 LSP Management Models 3PL x 3 - Company s Logistics Department Logistics Department Transport Warehousing North China Source: M Power Associates 23

15 LSP Management Models 4PL Independent Integrator Transport Warehousing North China Source: M Power Associates 24

16 LSP Management Models LLP Lead Logistics Provider - ADDITIONAL 3PL Transport Warehousing North China Source: M Power Associates 25

17 LSP Management Models LLP Lead Logistics Provider EXISTING 3PL Transport Warehousing North China Source: M Power Associates 26

18 3PL Goal = Be Everything to Everybody, Everywhere Transport Warehousing North China Source: M Power Associates 27

19 4PL vs LLP - Same Activities, Different Models Fourth Party Logistics Lead Logistics Provider 4PL LLP External, Above Within, Inside 28

20 Logistics Service Providers - All are providing logistics Services - through different type of models LSP Logistics Service Providers 3PL 4PL LLP Source: M Power Associates 29

21 Logistics Service Providers 2 Models - Asset Heavy, Asset Light Asset Heavy Asset Lite 30

22 Logistics is a Services Business Focus on the 3P s of Services Delivery - Who, How and What 3P s of Services Delivery 32

23 LSP Evaluation Framework 7 Criteria Hard 1 2 Logistics Solution LSP Company 3 4 Economics & Financials Technology Integration Soft Future Proof Value Add Source: M Power Associates 35

24 Satisfaction Litmus Test Two Key Questions: Would you... Buy Again? Would you... Recommend? 36

25 B2B Partnerships can be Challenging - but are Critical for Success Partner You are only as Strong as your Weakest Link Partner with the Best! 37

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