That's easier said than done. A buyer or logistics manager first must take stock of his company's entire distribution chain, mapping out the effectiveness and cost of everything from inbound trucking and warehousing to final delivery and returns. You'd be surprised at how many clients approach us that don't have a clear idea of what they want. And that can be a costly mistake. This can be a tricky process, especially for buyers sourcing a complete logistics solution.
Most providers typically have a specialty, such as fleet, warehouse, or information management.
But few providers are experts in all fields. Because of this, some transportation managers have found it necessary to hire multiple providers, each handling a different part of the logistics process. Buyers at small to mid-sized companies have an added challenge because many of the top logistics providers are out of their price range. For example, Ryder Integrated Logistics, famous for serving big-name accounts such as Xerox and Saturn, currently supports several smaller customers through a single logistics command center. Increasingly, outsourcing agreements include gain sharing-options where a provider can claim all or a portion of the savings reaped for a customer above the targets set out in the initial contract.