Pitching C-levels

on the Benefits of a
Collaborative Logistics Party
(CLP previously known as 4PL)

a Logistic Collaborative Economic Paradigm

Paul Van den Brande

Co-Managing Partner
Noble House Group

All rights reserved. Except for the quotation of short

passages for the purposes of criticism and review, no
part of this publication may be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without
the prior permission of the publisher.

Comments, remarks, input... welcome on:

[email protected]

CLP is an Accenture Trade Mark

Definition:
An integrator that assembles
the resources, capabilities and technology
of its own organizations as well as other organizations
to design, build and run comprehensive supply-chains solutions

1
 Malcolm Pope
Logistics Ideal Standard
International BVBA

Interesting, I proposed a CLP solution for my

business some 5 years ago, it fell on stony
ground. Recently the interest has recovered
thanks to a new CEO so we are now working on
this.

The answers You can find in this book.

Overview @ page 132

2
 Collaborative Consumption

Requires

Collaborative Logistics

Collaborative Consumption product-sharing

among consumers will increase a firm’s profits if
that firm strategically adjusts its product quality
and price. Some have already realized the benefit
of doing just that, and are actively embracing the
new economic system.

Sharing especially for high-cost products, such as

cars or other major assets, can also have market-
expansion effect, because some consumers may
decide to buy the product because there is a
sharing market — they would not have bought
the product if there wasn’t a sharing market.

Baojun Jiang, assistant

professor of marketing

3
Meet Paul Van den Brande

The CEO of Noble House , leading a team of

experts in the areas of physical distribution,
logistics, supply chain management, customer
service, and e-business applications, whose
collective role is to assess existing operations,
identify opportunities for improvement,
recommend solutions, and work with clients to
implement recommendations.

Paul Van den Brande "The CLP Coach." He has

also quite literally written the book on CLPs,
titled, CLP -- The book that never should have
been written, which provides common sense
guidelines for dealing with "generalized logistic
changes."

Dustin Mattison
Supply Chain Publisher

4
COLLABORATIVE
LOGISTICS: RIPE
FOR DISRUPTION

Rachel Botsman,
Collaborative Economy Global Expert

I am frequently asked what sectors I think will be

next in terms of being disrupted by collaborative
business models. Pet care? Mortgages?
Parking? It’s a hard space to crack but I think
2015 (and beyond) will be the year we see some
big things happen in collaborative logistics,
especially shipping.

5
 Pitching C-levels on the Benefits of a CLP
Collaborative Logistics Party

Get the green light

by learning to speak their language

Situation: CLPs, were initially launched by the

"big four" logistics consultants, and try as they
might, they were unable to successfully market
the idea, primarily because they failed to
understand and address the concerns of logistic
teams inside organizations. As you might
imagine, those concerns were, and still are, tied
to job loss and loss of knowledge.

The Details: To address those issues and

determine other barriers that keep organizations
from pursuing outsourcing, Paul conducted a
survey on LinkedIn. Proof of cost savings came in
first, followed by convincing C-levels.

What it Means: Telling a CXO, CEO, CFO or CPO

that you are trying to save 20% per square foot
on 10 pallets per load liter has very little meaning
to people in those position -- it is also why very
few logistics and supply chain professionals are
actively involved at the board level. The key to
6
the pitch is to speak the language of your
audience.

Breaking Down Barriers to Bringing a CLP On

Board

My best advises to anyone who is looking for the

green light on working with a CLP to "keep it
simple and speak the language of the CXO, CEO,
CFO or any other C-level you are pitching."

Let’s refer to the 4th-party logistics concept as a

"managed innovative logistics

collaboration," or MILC.

With a bit more digging, it turned out that

most logistics professionals were not
considering their audience before making
the pitch.

7
The CLP Pitch

When pitching a CXO or CEO, I suggest asking

what he or she believes the cost of logistics
means to the business?

The answer is almost always "maybe 1% over

turnover." It might surprise your CE/XO to learn
that, on average, globally, it is 9.14%, and that a
CLP can save 15% on logistics expenses.

To put it in a language that the CE/XO will

understand, the overall savings is 1.371%
over the turnover -- a figure he or she will
immediately relate to because, at the end of the
day, it will boost his or her EBITA.

The complete checklist of how to pitch each C-

level in a language they will understand can be
found in this book, it provides additional
insights into securing buy-in at the C-level,
including how to address common
objections.

For example, some organizations with union

affiliations will oppose outsourcing on the
basis of possible job cuts.

A serious CLP, will not necessarily have that

effect, because most will utilize existing staff

8
during the partnership, and will also provide all
training.

Another common objection made by the traffic

or supply chain manager is loss of control and
loss relationships with existing carriers.

Again, a true CLP will absolutely leave the

carriers in place, and will likely offer them
additional business, not just in terms of volume
and freight, but also in terms of return loads.
They will also benefit from software tools, which
most can't afford to invest in on their own.

Alex Fiddes COO, Vehicle & Operator

Services Agency

''We see that collaboration is going to happen.

But we have to ask: are you risking the supply
chain? Are you losing control; are you
introducing a new risk?''

9
What to Expect From a CLP

Collaborative logistics is said to be achieved when

two or more organizations enter into a
partnership for the purpose of optimization
of operations related to transportation by
sharing of equipment, vehicles, information or
carriers to reduce the costs and overcome
situations when the carrier that contains their
concerned shipment is almost empty or at less-
than-usual capacity. It is also beneficial for
controlling inventories and thereby eliminating
stock-outs that are likely to impact customer
service.

The modern day collaborative logistics are

powered by state-of-the-art advanced electronic
media and software systems which help
organizations with the expansion of these
networks on a big scale. This is believed to be
the best of both worlds as there is a flow of
information, resources, service providers
and saving of money.

Nowadays, organizations are forming traditional

and web-based partnerships with an aim to lower
the transportation costs along with reducing
inventories and thereby raising the existing

10
levels of customer service. Collaborative
logistics is meant for fostering new, innovative
and different solutions for business problems and
acquiring new businesses. It can be of optimal
use when it is effectively executed to derive high
efficiencies in supply chain, while also lowering
costs and placing the trading partners in a
better position by providing them with flexibility
for addressing variances in the demands of their
customers.

The current highly competitive business

environment encourages organizations to
switch to collaborative logistics, which
benefits them by raising collective visibility
between the transportation service providers,
vendors and organization for the purpose of
realizing the goals of supply chain in an optimal
way.

Collaborative supply chain trading partners must

together decide on the selection of the proper
infrastructure and systems. This may include an
existing system or a collaborative system or the
services of a third-party service provider to
successfully plan and implement these systems.
The evaluation of cost is vital in order to insure
that all trading partners perceive equity and to
make sure that the costs do not in any way

11
exceed the projected benefits of the shared
logistics.

This approach to logistics is slowly and

steadily becoming the perfect choice to
doing business for many organizations
formerly wedded to the traditional logistics
approach. It usually involves utilization of
logistical planning software tools for benefiting
organizations to re-engineer their existing
domestic and international supply chains with
regard to transportation.

This method facilitates breaking down of the

barriers that supposedly exist between the
supply chain partners. Only an effective and
efficient flow of real-time information between
the trading partners can effectively remove these
barriers. Logistics technology can considerably
improve collaboration and provide effective
management of supply chain by providing
efficient flow of promotional plans and real-time
load data, thereby allowing the use of
collaborative logistics to lead to the achievement
of cost reduction and efficiency in the supply
chain.

The process begins by taking a snapshot of what

has been paid for services to date. That is purely
open book, and any direct expenses, including

12
the customer's software tools, should be
deducted first. The remainder of the cost
becomes a gain share.

A true CLP will arrange its exit at the start of

the relationship. You might start with
transportation, and then possibly find joint
projects in inventory carrying, which is important
within the total cost of ownership of any supply
chain.

It is vitally important, to negotiate the exact

nature of the relationship, including
expectations and anticipated results, with a
C-level.

Some companies have tried "collaborative

clustering," where, for example, two
pharmaceutical companies attempt to work
together with their 3PLs in place. That model
failed because 3PLs need to fill their own trucks,
vessels, airplanes and warehouses, so the
necessary gain sharing distribution system
is not in place, which results in a breach of
trust.

Also do not onboard with any CLP that claims to

be equipped to handle everything, because it
just doesn't work.

13
Optimizing and upgrading is a step-by-step
process that involves best-of-breed
software and continuous improvement
programs.

Rob Richards Head of Primary

Logistics, Britvic

''Partnerships have to keep reflecting the external

environment. They fail when they get too cosy
and stop driving savings''

14
Why the Time For a CLP is Right

The first advantage of working with a CLP is the

cost saving element -- that 1.371% of the
turnover -- is purely and simply removed from
logistics costs.

Collaborative logistics, is a positive side effect

of outsourced CLPs and the second important
advantage in terms of managing return loads and
reducing a company's carbon footprint by putting
less trucks on the road.

Third, while restructuring is a fact of the new

economy, and something that isn't likely to go
away, a good CLP will find ways to keep, train
and reintegrate an existing workforce.

Finally:

"There will come a day when the cost of the

expertise of the logistics provider will become so
expensive and the people will become so rarely
available that only the largest companies will be
able to hire and pay for expertise in-house, so it
will absolutely go out of the company, and there
will be stronger clusters, where all this expertise
will become available at the outsource base. Like
software as a service, like business process
outsourcing, these things will undoubtedly be
part of the new economy emerging.”

15
 8-Step Roadmap to Boosting EBITA

To recap the benefits of working with a CLP this

list from his company's website:

1. In practice we save 1.371% over turnover in

your logistics costs. (Outsourcing CLP).

2. All our costs are paid out the logistics

savings so our intervention is not costing hard
cash. (Seamless).

3. The most powerful software is deployed and

your employees are trained hereon. (Best-of-
breed).

4. Then we hire your staff, during our

partnership, so you should not dismiss them and
internal knowledge for your business unit is
protected and available, a 'crisis-buster' to the
restarting of the economy (Lease-back).

5. The incumbent suppliers will remain in

service and we possibly offer them more
business. (Upgrade).

6. Our exit can be arranged, if desired, at the

beginning of cooperation. (Contracting
Results).

16
7. For Any Company we suspect a logistic
saving of 1.371% over turnover as found on
their latest Balance Sheet - calculation of which
parameters are

17
8. Scale economies by region and / or business
cooperation logistics (logistic sector
collaborative clustering) increase savings
exponentially, we manage to provide the
necessary gain sharing distribution system, to
avoid early trust breach.

Why is it so difficult for any one company

not to spend money?

John Upperton Head of Supply Chain,

Vax

''The question is whether both parties can get

something out of a partnership that they can’t
get alone. And the things you can get
change over time - objectives change''

18
 This implicates Management Buy-in

and Courage!

My approach would not sort under authentic

research although I feel that it will be interesting
to share some of the results of my enquiries with
a wider audience.

Logistic Collaborative Economy Paradigm is the

product of this process.

I humbly rest at the unscientific choice of sample

of actual inquiries nature, and the interpretation
of results. It is simply a collection of material that
today’s Collaborative Experts refer to of having
an influence on enterprise collaboration & its
evolution.

Paul Van den Brande

In a world where disequilibrium is recognized as

the steady state, where quantum leaps in
technology are considered normal and where
dramatic upheavals in social and political
fundamentals have become the norm, the future
seems unclear.

The word Logistic is interchangeable for all

aspects of business life are ‘Collaborative-able’

19
Scale economies by region and / or business
cooperation logistics (logistic sector collaborative
clustering) increase savings exponentially, CLP
manage to provide the necessary gain sharing
distribution system, to avoid early trust breach.

The solution (what Gartner calls the Holy Grail)

The
Integrated
Synchronized
Collaborative
Supply Chain.

20
Let’s hear the voice of Captains of Industry

Reflections.

Founder at Bizzdrive: ‘We're going to buy

differently, we're going to source differently,
we're going to share resources, and we're going
to share information.’ Collaboration does not
have to be limited to individual projects, it is
something that can be ongoing and dynamic.
Today's business environment allows trading
partners to share information and ideas online, in
real time, which has created tremendous
efficiencies.

Chairman at the Insight Exchange Group:

‘Collaboration – if correctly designed – is far more
powerful than any other approach. The tools and
business models that support that will be central
to the next phase of the global economy.’

President at Schneider & Company LLC:

‘Today innovation means more than developing
new systems. Today, innovation is about
reducing costs through new processes, increased
collaboration and rethinking longstanding
concepts, including outsourcing.’

21
 What is collaborative logistics?

The future of outsourcing and CLP logistics

includes the side effect of collaborative logistics
and carbon footprint reduction.

Today, collaboration means that competition

works together through a neutral third party so
that the data and confidential information is
segregated. There is no direct access to
confidential information between players in that
field.

This is a broad perspective because you can have

broad collaboration between different suppliers
delivery their products into one buyer, or buyers
who have different suppliers and bring them in
one truck/aircraft/ship. They would have to
delivery at certain times.

Collaborative logistics means competitors working

together to service a common customer, or as a
customer bundling competing suppliers (i.e.
trucking companies) into one truckload to
maximize utilization, have return loads, etc.

22
Why do collaborative logistics now?

The cost effectiveness is the major driver. In

classical outsourcing to a non-asset based carrier
neutral company/CLP, the savings will be 10% on
average. If you do collaborative outsourcing the
savings can go up to 20%. You can also realize a
5-10% improvement in service levels to the
retailer.

It is cost effective to pursue

collaborative logistics.

Also, the data is organized better and the soft

savings are tremendous, without having to lay-off
people or to necessarily shifting the trucking
companies or logistics providers you are working
with. The trucking companies or logistics
providers are just a layer on top. What you need
is strong software due to the increasing
complexity of operations as more parties enter.

Who is currently doing collaborative

logistics?

A year ago there were some emerging projects

which have now come into play. In France,
collaboration has been put together with Glaxo
Smith Kline, Henkel Cosmetics and Colgate.

23
Henkel in France collaborates with three other
FMCG companies. This is made possible by their
logistics provider. The usual logistics challenges
of availability, increasing congestion on roads and
fuel price volatility were becoming even more
strained in this environment. Henkel recognized
that they needed to make a significant change in
their supply chain. Their solution was industry
‘pooling’, which involved Colgate,

GlaxoSmithKline (GSK) and Sara Lee. This

collaboration with three other FMCG companies
and a logistics provider required a cultural shift
within the company, as well as commitment from
all parties.

These leading companies have been sharing their

experiences of collaboration across the supply
chain. At a recent supply chain conference which
focused on horizontal collaboration, strategies
discussed included:

1. Sharing knowledge, experience and

expertise

2. Consolidating goods flows

3. Sharing transport vehicles and network

capacity

24
 4. Sharing logistics infrastructure

5. Sustainability objective drive collaboration

They are delivering into the big department

stores similar to Walmart. All of the suppliers to
this large retailer used the same logistics
company. They decided to consolidate everything
to get full truck loads and to organize empty
pallets. They optimized full truckloads arriving at
dedicated times with fast turnarounds.

The cost savings are tremendous. They can do

even better by using fourth party logistics, rather
than third party logistics.

As these platforms continue to be built and put

into operations, other stores can collaborate to
grow the platform and the benefits and profits
are shared with all of the players.

Other companies using collaborative logistics

include food manufacturers such as Heinz,
Henkel, Proctor & Gamble, Nestle Waters, Colgate
Palmolive and Kimberly-Clark.

25
How to get started with collaborative
logistics?

First you need data. You can either start from

retail companies or from suppliers. It is either a
pull or a push situation.

The retailers need to meet a minimum sales

volume, otherwise their contracts are stopped.
This is dramatic for the distributor because they
have service level agreements in place and
customers to service.

The distributors proposed to the big hardware

producers that collaboration may need to be
considered due to quantities not being met.

Stay competitive... Collaborate!

One of the most powerful tools is collaborating

NOT JUST WITHIN SUPPLY CHAIN

DEPARTMENTS, BUT ACROSS THE
ENTIRE ENTERPRISE.
18/06/2011 Propriety: Noble House nv 3

26
 Stage 4 Stage 3 Stage 2 Stage 1
Cross- External Internal Functional
Enterprise Integration Integration Focus
Collaboration
Work is done Practices are Division or Planning and
with extended to company- optimization
customers interface wide is conducted
and suppliers with processes within
to define a strategic are defined functions
mutually customers Cross- and / or
beneficial and functional departments
strategy and suppliers; metrics are Processes
cross- associated defined. that cut
enterprise information across
processes needs are A well- multiple
are enabled identified defined functions are
by Corrective demand / not well
information actions are supply understood
technology taken when balancing
Real-time performance process is
performance falls below in place
targets are expectations
set with both
customers
and suppliers
Leaders Challengers Followers
Source: ’Global Supply Chain Trends - PRTM Maturity Model

Nigel Issa Associate Partner Private

Sector SC Team Leader, Atos Origin
Consulting

''You need seamless operational management -

delivered by all partners whatever the colour
of their T-shirts''

27
 The Collaborative Supply Chain
by Neil Shister reworked by the author.

Scan the latest management

texts and one phrase continually pops off the
page: integrated supply chain. References to it,
and its first cousin the collaborative supply
chain, are voluminous. There’s little
disagreement to its meaning, defined by one
author as “a systems approach to viewing the
supply chain channel as a single entity rather
than a fragmented set of parts, each performing
its own function.”

With ever-expanding global sourcing upsetting

once level playing fields, manufacturing and retail
executives have come to appreciate that they
ignore supply chain integration at their peril. As
consultants are quick to tell them, fundamental
to the successful enterprise today is a
convergence of partners collaborating to
share channel risks and rewards in optimal
synchronization.

Hau L. Lee and Seungjin Whang of Stanford:

“Over the past decade a combination of
economic, technology and market forces has
compelled companies to examine and reinvent
their supply chain strategies. To stay
competitive, enlightened companies have
strived to achieve greater coordination and
collaboration among supply chain partners.”

28
Central to achieving this coordination, write Lee
and Whang, is to “manage the supply chain as
one overall process rather than dozens of
independent functions.”

Logistics transportation coordination ranks high

among the prominent process modifications
needed to sustain an integrated supply chain. Not
that the reliable flow of shipments hasn’t always
been important, but in the context of global
competition it becomes more critical than
ever.

Dawn Salvucci, JDA Software Group

“Customers are demanding more integration
because supply chains getting longer, there’s a
lot of variability in landed costs. Companies need
to be able to go further back up-stream into their
supply chain for more accurate information on
transit times and cost. Transportation is the
holder of all that information.”

Kevin Higgins, Transplace The alignment of

transportation providers is becoming a higher
priority than it used to be. “We have gotten to
a point where it’s time to go to the next
level with collaboration. We’re seeing our
customers want to go to more integrating of their
logistics processes.”

As an example, he cites a seven-store furniture

retailer offering high-end product at mid-range
price. “They had a freight forwarder managing

29
their imports and transportation from Asia when
they came to us and said ‘we need help.’ They
needed someone who could provide
management and visibility to the whole
process.

The result was an integrated shipping

process from origin to distribution center. “They
told us their store models, growth plan, the
products they’re importing and their pain points
as to transport and visibility.”

JDA Software expanded into this emerging

practice area with a new Collaborative
Capacity Management product.

“We believe in the concept of running your

systems through one platform. This enables
companies to take the demand forecast and
convert that base forecast into something that is
consumable for transportation residing on a Web-
based portal, so it can be pushed out to
transportation partners.

“A shipper can share it with logistics providers

and carriers to lock in rolling capacity from
several weeks to several months in advance.”

It’s admittedly no easy thing to develop the

capability to implement such sophisticated
processes. As with all enterprise-wide solutions,
much of the challenge is internal.
30
Until the capacity crunch, the transportation
landscape in which logistics managers tended to
operate was one of abundance, a ‘capacity will be
there when we need it’ approach. Although taking
transportation availability for granted anymore is
a thing of the past, IT linkages between
forecasting and logistics services remain under-
developed.

Even when a collaborative framework exists,

implementing the physical movement of
goods in a timely, integrated manner
remains challenging. All the more so when the
supply chain is international, entailing movement
from foreign factory to ship to domestic
transport. Being able to enable and guarantee
such reliable integration ranks high on the
agenda of transportation providers these days.

John Carr, YRC Logistics “We absolutely see

more demand for integrated service and need to
meet customer requirements from purchase
order management to customer delivery.”

Surprisingly, such integrated service is not priced

as a premium product. “When you look at the
efficiency you can bring into the supply chain at
each touch point it reduces our costs which
we can pass to the customer.” Such
integration can result in a 10 percent reduction
in customer cost. “Our customers are looking to
us to bring double digit continuous improvement
31
initiatives. The most difficult challenge in
achieving this, has more to do with the
customer’s internal organization that with
logistical expertise or asset utilization..”

“A lot of customers still have their

transportation system in silos. They’re
making separate decisions about origin country,
then about transportation, then on to customs
brokers, then who’s going to do final delivery. It’s
our customers’ ability within their organization to
allow the procurement of these services to be
looked at as one integrated solutions instead of
as multiple functional services that allows us to
maximize our effectiveness.”

Bryan Black, Hyundai Merchant Marine

(HMM) “Companies are now recognizing that
inventory carrying costs and lost
opportunities in the marketplace far
outweigh cost savings on the transportation
side.”

While speed to market remains important,

reliability is becoming the main consideration to
ocean shipping customers. “I may have the
fastest ship but if you can’t depend on me getting
your cargo on that fast transport time
consistently and with true reliability, I’m much
less valuable to you. Just because a carrier can
get to port doesn’t necessarily guarantee
delivery.”

32
This emphasis on reliability (and in fleets with
more fuel efficient vessels, prompted by the high
price of oil) coincides with the need to be able to
offer shippers fast-changing options. Shippers
want alternatives depending on what they need
at different times.

“When containerization first started, service was

port-to-port and that was it. Now, there are very
few places in the country where you don’t see a
container.”

The complexity of shippers’ supply chains has

meant that “transportation providers have to
offer additional services” that emphasize
timeliness. ‘Store door delivery,’ where the
shipper contracts with vessel operators for direct
delivery to distribution centers, is an example to
offers and fully serve customers in the new
context of time sensitivity,contracting directly
with the trucker for ‘last mile delivery.’

Bill Villalon, APL Logistics “What shippers have

seen is that as they extend their supply chain out
migrating from domestic to intercontinental,”
observes, “the variability of delivery time has
increased substantially. Regaining that
predictability and reliability is the biggest
challenge we’re seeing from shippers.”

Often the customer’s first priority is not speed

but rather confidence. “They need predictability.
The emerging big idea in intercontinental

33
shipping is Time Definite. It’s been lacking in the
intercontinental space because of the multiple
hand-offs and complexity.”

“We looked at the market where LCL products are

highly variable, so much so that if customers had
small shipments, they’d fly it because they could
not live with extended transit times. They wanted
to ship in LCL quantities but with a day definite
delivery commitment.”

The market void being filled for shippers

was guaranteed shipments from eight Asian
ports at 25 percent of the typical air freight
rate, with shipments arriving sooner than
they would with standard ocean ground
carriage.

This in addition to having two networks linked in

a system that provides visibility from port-to-
door, there is a very simplified pricing scheme
that is priced in kilograms; customers should
not have to worry about pricing regimes.”

He reports that on-time performance has been

98.5 percent since inception (there’s a 20 percent
customer refund for failure to do so). This is a
track record performance that is comparable to
air.”

“The gap in the marketplace we initially saw on

the LCL side we believe also exists with FCLs.”

34
The challenges in doing the engineering and
process design to make sure everything flowed
well, only working with philosophically very
like-minded partners and leverage two
asset-based networks will do the trick.

Carl Frey, American Airlines: Traditional

domestic air freight is also being
incorporated into the integrated global
supply chain in ways that weren’t previously
common.

Working in conjunction with trucking partners

comprise an integral part of the air-to-
transportation equation.

“Each month, American moves about 360 million

pounds to its air freight gateways via its trucking
partners,” notes. The network is expected to
grow even more in 2008 to support expanding an
expanding international flight schedule.

Further evidence of the demand for

seamless transmodal service is the extent to
which even purely domestic air carriers are
being linked into global supply chains.

Dave Hinderland, Southwest Airlines, “We

get a lot of supply chain. Reflecting the growing
demand for the integration of domestic with
global supply chains, requires building global
alliances with international airlines that want to

35
partner so we can inter-line with them who have
frequency and availability. Customer demand for
speed to market and one-stop shipping prompted
an airline to can aggregate the whole shipment.

---&---

In a world where disequilibrium is recognized as

the steady state, where quantum leaps in
technology are considered normal and where
dramatic upheavals in social and political
fundamentals have become the norm, the future
seems unclear.

36
 From the Back Room to the Boardroom:
Logistics Gets on the Agenda
By Lisa Terry - www.inboundlogistics.com

Not so long ago, we began to understand that

relationships were the key to a successful
business. Since then, organizations across the
globe have discovered just how difficult and
challenging it is to form and sustain these
working relationships. While the need for these
relationships still exists, it’s become apparent
that the model we’ve been following is
incomplete.

Collaboration is the missing link.

The idea of collaboration is not one that always

comes naturally to organizations, especially
between companies offering the same or similar
products or services. While most competition
occurs in the marketplace itself, the lack of
certain types of collaboration among competing
firms sometimes creates inefficiencies which are
experienced by all.

Creating a culture where employees are

comfortable recommending strategic direction to
management, and working cross-functionally to
make it happen, is a hallmark of a new breed of
corporate leaders -- those who are aware of

37
supply chain management's impact on the
organization.

When the importance of supply chain

management pervades an organization, its
implications are intrinsic to daily decision-making,
and collaboration with partners and
customers is the rule.

Companies that execute their supply chains

well, gain market share, profits, and favor
with Wall Street.

Jimmy Guterman - Harvard Business

Review: Embedding Collaboration from the Start

Collaboration is one of those terms, like

innovation or execution, that sometimes loses its
meaning in a management context because we
use it too much.

Of course:

we all need to collaborate more and better.

Yet it's also one of those functions that many

companies hope will just happen. Let's put a
bunch of good, motivated people together and

38
the collaboration will take place, right? It's not
that easy — leaders must create conditions in
which collaboration is inevitable.

---&---

Paul Van den Brande

Noble House Group

“Collaboration will re-boost global

economy, it is emerging & there to
stay.”
Put most simply and generally, collaboration
occurs when companies work together for mutual
benefit. Collaboration goes beyond vague
expressions of partnership and aligned interest.

It means that companies leverage each other on

an operational basis so that together they
perform better than they did separately.

39
Collaborative Logistics -The Time
Has Come!

Today, collaboration means that competition

works together through a neutral third party
so that the data and confidential information
is segregated.

If only two shippers could know what each other

is doing, they could leverage each other in
innumerable ways:

planning routes, consolidating shipments,

arranging backhauls and more. The payoffs start
with lower costs but extend into even more
important areas such as reliability, shorter cycle
times, and greater flexibility. Multiply these
benefits many-fold as more players get involved.

How well you communicate any changes in

demand, supply, process requirements, quality
requirements, cost targets, and so on will
determine the flexibility of your supply chain...
and perhaps the profitability of your enterprise.
By sharing more high-level information and
working more collaboratively with key remote
suppliers, you can make faster, better decisions.
With a more complete view of the facts, you can
resolve issues faster. And with more mature
business relationships, you can achieve better
long-term results.

40
Colleen Crum with Oliver Wight Americas
writes about the difficulties in achieving
flexibility while maintaining control in her
blog posting ‘Advances in communicating
information across a supply chain aid in better
decision making and collaboration.’

She states that,

‘Supply chains, both fully integrated within one
company and multi-enterprise networks, need to
return to the fundamentals (well-designed
processes that utilize best practices and are
operated by knowledgeable people). They also
need to leverage the advances of information
technology in communicating information across
a supply chain to aid in better decision making
and collaboration.

Inefficiencies, poor customer service, and other

waste in a supply chain are inevitably the result
of:

1) poor decisions made by people, and

2) poorly designed processes that lack integration

(although many people incorrectly blame the

information technology).’

41
Food for thought.

Private shareholders and institutional investors

begin to influence management supply chain
behavior via the boardroom!

It dawns to me that one can reflect on boardroom

management under-performance though,
whereas this is supposed to be in the ranks of
middle or lower management or at trade union
levels.

Impact on management

Systematic shift in the responsibility and role of

the board transforms it into a responsible body in
the life and growth of the company responsive to
stakeholders & shareholders.

Every business today has ready access to an

armory of business processes that provide basic
tools for successful operations and problem-
solving. Business and product planning,
budgeting, decision-making and management
support systems, for example, are all highly
developed activities that are learnable skills no
longer regarded as some sort of art form,
inherited talent or magic.

Businesses are much bigger, must usually

support global operations, demand the capacity

42
to make important decisions rapidly and the
ability to integrate a diversity of specialized skills.
As a result most enterprises are subdivided into
some form of profit-accountable business units
with varying degrees of autonomy. At the center,
an array of highly skilled, specialized resources
(legal, technical, financial, Supply Chain &
Logistic, HR) supports an executive management
team and must be represented therein.

Industrial rationalization and restructuring tend

to create much more rational collections of
businesses that have had to meet global
competitive standards in order to survive.
Having, in the main unsuccessfully, tried to
create and operate the multi-business industrial
conglomerate, corporations took the 'stick to your
knitting' message to heart.

Logistics, supply management, asset

control, inventory control, manufacturing
planning and distribution optimization, are
all enterprise skills that make significant
contributions to the effective management
of corporate resources.

If we define management simply as the process

of arranging, coordinating and controlling
resources to accomplish a specific task or set of
objectives, each of these events clearly have a
direct impact on management thinking. However,
43
in most cases, such thinking has followed
events, rather than been the driving force
behind them.

Specialist in-house departments dealing with

functions such as public relations, legal affairs,
advertising, Supply Chain & Logistics or
communications will disappear. These services,
skills and special advisory functions are
abundantly available from independent
enterprises and practitioners. They will require
such a high level of know-how that only the
largest or richest companies will be able to
afford to keep their specialist 'in house'.

All their activities will, in the future, be

accomplished via the creative friendly real-time
use of information, computers and modern
communication technologies, not as a route to
gaining competitive advantage but as a basic
requirement for economic survival.

Most importantly is finding the time and

senior management endorsement which is
vital to making collaboration work.

44
Gaining Management Buy-in for Outsourced
Logistics - By Deborah Catalano Ruriani

What company doesn't want to achieve greater

product availability rates, more flexible work
processes, fewer customer complaints, and
improved order accuracy? If you can't seem to
reach these goals on your own, it might be time
to outsource some of your company's logistics
functions to a third-party logistics (CLP) provider.
Steve Dean - Ryder System Inc., offers the
following advice for convincing management it's
time to call for help.

1. Promise improved metrics. A CLP

can help your company develop quantitative,
data-driven key performance indicators in areas
such as inventory turns, stock outs, and on-time
delivery.

2. Emphasize the potential to

reduce costs. Taking advantage of a CLP's
expertise and infrastructure can help shippers
reduce excess carrying costs, returned goods
costs, and lost sales. They can also move more
material with fewer assets, and realize savings by
using shared facilities.

3. Describe the CLP's buying power.

Because CLPs manage billions of freight
movement dollars, they have industry buying
45
power and can pass along transportation savings
to shippers.

4. Explain the improved global

capabilities. Many CLPs can facilitate moving
goods through an international supply chain with
their on-ground knowledge of local markets,
regulations, and government agencies.

5. Outline the technology benefits.

CLPs often make substantial investments in the
technology used to manage supply chain
efficiency. These tools provide shippers with end-
to-end visibility of their supply chain networks,
ranging from track and trace for day-to-day
management to detailed reporting for long-term
strategic planning.

6. Communicate the environmental

impact. CLPs can help shippers optimize
distribution networks and consolidate routes,
train drivers to incorporate fuel-efficient
behaviors, specify equipment to reduce
emissions, and leverage technology to streamline
inventory and enhance vehicle performance.

7. Talk up the security

enhancements. A CLP partner can assist in
navigating new regulations and provide counsel
on best practices to improve security policy and
procedures. Some service providers manage
46
supply chain security program implementation,
from facility and asset security to security
monitoring services and training.

8. Predict efficient process

changes. It's easier to make process changes
with an outside provider, especially when you can
tap into another company's existing
infrastructure, technology, and people. This is
critical for shippers who need to grow at an
accelerated pace.

9. Anticipate improved
accountability. Shippers can benefit from
synergies by engaging CLPs in adjacent processes
that take place "before" or "after" what is
considered a traditional supply chain activity.
Eliminating hand-offs improves accountability,
increases speed to market, and reduces costs.

10. Elaborate on your vision. Logistics

is a complex process that requires planning,
technology, competencies, and integration. There
is no one-size-fits-all solution. Clearly
communicate not only the strategic advantage of
outsourcing, but also the process for getting
there, the time line involved, and what the
selected CLP brings to the operation.

47
PERFECTING COLLABORATION:

In a highly competitive, sales-driven industry,

keeping supply chain concerns at the forefront of
company decision-making isn’t easy. Yet,
changes to product design and even warrantee
policies can cause huge supply chain disruptions.

How to plan and coordinate across your company

to eliminate inefficiencies and improve time-to-
market:

 Secure board-room endorsement for

supply chain goals and improvements

 Integrate supply chain input from Design,

Marketing and Sales to Warrantees and
Repairs

 Leverage Internet tools to boost inter- and

intra- enterprise planning and coordination

Collaboration is a strategy.

It is not a strategy per se but it can add value to

a strategy.

The only sense in which a company can adopt

horizontal collaboration as a strategy would be
tactically or as a guiding principle.

48
Collaboration is the output of a culture
based on trust and openness, where individual
requirements are overall met better in concert
with others than by striving to make it on one's
own capabilities/resources.

Collaboration takes work. It is not like

flipping a switch. It's the work, not talking,
which will make collaboration happen.

CLP is much more about the financial business

model of the company and how the supply chain
can contribute to this actively.

Successful companies know that it is not only

about warehousing and transportation costs or
on-time delivery performance.

Taking costs out of the supply chain is not the

same as 'squeezing' suppliers further in the
supply chain. Rate reductions are 'quick wins' but
more often than not lead to sub optimization. Key
is to engage suppliers as business partners to
develop collaborative models; business models
that create 'win-win' situations in turn create
value. Of course rates have to be competitive and
in line with the services offered, but collaborative
supply chain models look to create value as a
principal motive to reduce costs. This is a
different philosophy.

In complex and large organizations executives

at Board level often do not have a 'holistic'
49
overview on company costs mainly due to
"departmentalized' organizational
structures. Business Units and departments
often manage to report figures in line with the
KPI structures set yet these are often 'sub-
optimized' as a result of these 'silo' structures.

Controllers are not process specialists and

therefore report the numbers but struggle to
understand the links between the two which turns
reporting into a numbers game.

It is therefore important for executives to

have a hands-on understanding of company
processes and to continue to challenge
department managers based on the
business model deployed. Having cross-
departmental KPl's is one sure way to get
departments working better together to manage
and better optimize supply chain costs in line
with the company strategy.

The classic Supply Chain trade-off of cost versus

service should also be on more boardroom
agendas than ever. Supply Chain executives
play an important role these days in the
performance of a company's bottom line.

50
 CFO's pay more attention
to cost than to risk.

Prof. Done – IESE Business School,

Barcelona : The economic crisis makes CFOs
concentrate on small change rather than avoid
risks in the supply chain. In 64 percent direct
cost savings are CFO’s priority, 39 percent
viewed risk as major concern.

Supply chains are the backbone of many

companies. Many of the problems facing
companies in recent months are caused by
financial deficiencies in the supply chain. An
unrestrained focus on cost savings and a poor
relationship between financial people and
purchasers, ensure companies run unnecessary
risks in their supply.

The relationship between finance and

procurement is one example where the strength
and weakness influence & affect the rest of the
organization.

Despite the current economic situation, many

CFOs do not see the importance of supply chain
management through procurement. Deep
cooperation of finance and procurement within a
company, will clearly add value to the insight into
the supply chain

51
  28 percent of CFOs believe that
procurement has a significant impact
on the financial risks.
 64 percent of the respondents see cost
saving as an important priority,
followed by
 39 percent who see risk as a major
concern. 39 percent believe that
maintaining and improving margins is
the key to success.
 46 percent of the surveyed financial
directors see a purchase and financial
integration between teams.

This indicates that there is a separation between

these two departments, which right now - at a
time of financial recession - should work
together. Many CFOs underestimate the role of
the purchasing department.

 27 percent of CFOs believe that

procurement has a positive impact on
profitability.

This suggests that the role of the procurement

department and in a broader supply chain, is not
seen as a crucial added value for the
performance.

52
Successful business management today is largely
determined by optimizing the supply chain and
over the past twelve months, various failures of
the supply chain are identified as the cause.

Worldwide CFO's still underestimate the added

value that the procurement department, for some
decades already, can provide. We can therefore
say that they do not get the most from the
department, which on the contrary can be very
valuable at a time of recession.

---&---

When 4 major Laundry Brands took the initiative

to start a logistic collaboration called the Miles
initiative the results were staggering:

1. 124 million miles saved between 2007-09

2. Equivalent to removing 2,000 vehicles
from the roads
3. Saving 60 million liters of fuel and over
€78.5 million in fuel costs
4. Saving over €217.3 million in transport
costs

53
 A new skill –
Collaborative Alliance Management

Collaboration is a term that has crept into the

management lexicon describing everything from
joint ventures, research agreements, marketing
consortia and cross licensing to distribution
arrangements, manufacturing associations and
logistical sharing schemes. Even those
corporations that originally denigrated the notion
of alliances & collaboration have recently found
that they indeed have extraordinarily
valuable features of which they have decided to
take advantage. Alliances will continue to grow in
importance.

They represent an ownership pattern that is

flexible, creative and easily adjusted to fit
fast changing economic conditions.

What has apparently not been as flexible or

creative has been the managerial, structural and
systems capabilities of the enterprises that apply
collaboration.

Economic disaster will trigger a base of

experience and knowledge that will provide
alliance patterns approaches that will make
these collaboration through external parties
far more likely to succeed.

54
In Future Perfect, Stanley Davis develops the
notion of customized mass production - a
seemingly contradictory idea – increasing
complexity of the supply chain even further
requiring modern technology - i.e. applied
science – which can be distilled into two
propositions:

1. That we are well into a period of rapid,

accelerating technological change and
2. That our ability to cope with, let alone
absorb or use, these developments is
highly questionable.

How will management cope with developments in

applied science and to make certain that potential
benefits are rapidly translated into realities.

At the same time, information technology, which

is a glorious catchphrase that we invented to
include anything that is even remotely associated
with 'black boxes' of any size or shape, will
mature and stop being an end in itself. Instead, it
will be bent and shaped to serve our needs,
rather than forcing us to adjust our needs, our
personal requirements, our style and our
approach to decision-making.

Artificial intelligence systems will replace much of

the management decision-making processes
required, for example, to control an enterprise,
plan a new product introduction, & steer the ever
growing complexity of the demand-chain.

55
 Nick Allen Chairman, and Editor of
''Supply Chain Standard''

''Given the need to work closely with suppliers

(and customers) to achieve results, are we really
reaching the hoped-for levels of connectivity and
collaboration?''

Graham Wilkie -DGSi : In a true collaborative

relationship, you have to find the relationship at
a number of levels - ideally, the CEOs are
linked in; failing that, find links at as many
levels as possible. Otherwise, what sounds like
strategic collaboration doesn’t feel like that at the
grass roots, and that’s when the contract gets
pulled out of the drawer.

Rob Richards – Britvic: The partners should sit

down every month, reviewing what they are
trying to achieve and how they have done. Also,
you need to be continually refreshing it; bringing
it to life again (and again). If the vision is up-
front, there is a far better chance of success. If
the vision isn’t there you have a
fundamental problem''.

56
 Tim Leftley, British Sugar

''It comes down to relationships on all teams -

but then the people who aren’t around the table
are often the 3PLs ''

Paul Van den Brande: 3PL are not capable in

gain share redistribution because

1. they are asset bound

2. carrier contracted.
3. Hardly know their cost structure
4. nor can well define their added value.

Hence attract large volumes below the base

cost line and fill this gap with gains from
collaborative traffics.

Asset free & carrier neutral CLP’s have

embedded collaboration and gain share
redistribution in their footprint.

Dr. John Gattorna, Living Supply Chains: You

can’t tender for a CLP in the original concept.
There’s no such thing as a CLP provider.

A company that still has contractual relationships

can’t function like a true CLP, because if
difficulties arise, finger-pointing begins rather
than an attempt to pull together.

57
The CLP was intended to do away with contracts,
replacing them with a more collaborative, equity
based relationship.

Do you trust yourself to collaborate? The real

barrier to collaboration is not technology, but
trust – Trevor Miles - Milesahead

58
I believe very strongly in the value that
collaboration can bring to massively outsourced
supply chains such as we see in electronics and
apparel.

But what is collaboration and

what value does it bring?

All too often what we see as progress in

collaboration is an exchange of data, perhaps
on a more frequent basis, using EDI, when
really collaboration is about working
together to achieve a shared objective, but
perhaps not a common goal. By that I mean
each party is playing a part (their individual goal)
in reaching the shared objective.

Outsourcing, away with that trade ...

Georges Ataya, professor at Solvay Business

School (* Supply Chain additions due to Paul Van
den Brande - Noble House NV - having analogy
with the IT outsourcing industry)

“Outsourcing, away with that trade ...... and then

we are rid of it. Many managers tend to say that
when they once again are confronted with a *
Supply Chain & IT problem. Outsourcing seems
often enough to resolve, especially if one fails to

59
master the governance of its * Supply Chain &
IT.

You can outsource various aspects of a company.

E.G. development of new applications,
maintenance of existing applications or providing
technical services that include housing and
managing systems and Supply Chain *. You can
outsource entire business processes, such as
billing or customer service. Offshoring offers new
opportunities and increases the number of
variants still.

It is often said that you can outsource

everything except the decision process. And
unfortunately we see that we mostly tend to
outsource in situations where that decision
process falters.

Upon outsourcing *The Supply Chain & IT

companies transfer to others many
decisions companies themselves should
have taken. The problem often lies in a lack
of involvement of the general management,
and lack of clear well thought of choices and clear
priorities for investment.

This often results in failures and losses. While

outsourcing just as often is justified by the

60
perceived financial gains that would yield
such an operation. One can actually reduce
costs by entrusting technical services to
organizations that master technology and have
developed economy of scale. There are many
successful examples in this area, such as
outsourcing of web development, the helpdesk,
network management, data center etc..

But * Supply Chain & IT requirements change

frequently. One can exhaust oneself to close price
and delivery conditions with complex contracts to
ensure that the outsourcing solution is perfectly
reliable. But many companies run into problems
because they could not adapt to unforeseen
changes. And this while a flexible * Supply
Chain & IT in many companies is gaining
increasingly importance as a strategic tool.

Successful companies tend to keep the Supply

Chain & IT * indoors. They identify specific areas
that they outsource, but keep the ultimate
control themselves. Only after reaching the
desired level of quality and safety, these
services or activities may be outsourced to
external companies.

Prior to outsource one must ensure that it is

possible, taking into account how a critical

61
particular activity is for the company. One must
also clearly define what kind of relationship is
desired with the supplier. A governance structure
is to be outlined for that relationship that
provides a good view of the objectives,
expectations and the roles and responsibilities of
the various parties. One must also prepare a risk
management approach that avoids surprises and
friction.

One should especially avoid outsourcing

lame activities. If a company cannot control
his own operations, there is little hope that
an outside firm can.

The greatest success in supply chain relationships

is when true collaboration happens. What does it
look like? It is a when a sustainable win/win
value proposition.

Six elements are required:

1. resources,
2. skills,
3. joint vision,
4. leadership,
5. a plan,
6. and aligned incentives.

62
A true CLP will deploy the most powerful software
and train all users and employers.

Thinking about HRM in logistics.

Especially in logistics “People” are perhaps the

most decisive factor. Not only for the logistics
costs effectivity but also the logistical quality
hinges on the commitment of logistic staff.
Unkindness at the helpdesk, errors in the
warehouse, the incorrect storage of products,
delays in transportation and out of control
conflicts with customers about delivery problems
often have a human cause.

What causes this situation?

Employment in logistics is growing by more than

5% per year. The supply of staff however
decreases. The problem escalates because of
the growth in value added activities. More and
more products undergo an additional process
which makes them suitable for the end-user,
retailers or individual customers.

e.g. unpacked flowers in buckets and boxes,

from the auction will be processed into bouquets,
computers and printers are equipped with
software and a manual in the correct language
combined with the matching keyboard, clothing

63
and sporting shoes are provided with labels and
store prepared. It’s no longer about storage
and transportation but customization,
adaption...

Logistics requires more flexible and better

talent while the supply of qualified staff
dries up. Logistics is certainly not in the top 10
of starters in the labor market. The staff turnover
is high, there are many vacancies, temporary
workers are scarce, wages grow faster than the
diesel prices and we do not get more work done.
The HRM policy in logistics is dominated by heavy
competition for jobs. In the jobs market
logistical functions there is an imbalance
between the large demand for and supply of
qualified logistics co-workers. This applies
also to the middle management and staff
positions in ICT, project management and
business development functions. Even greater
problems emerge in the executive functions in
warehouses, transportation, customer service
and administration.

Research indicates that the competitiveness of

the logistics sector is affected by the limited
availability of quality staff at all levels. The weak
image starters & labor market have of the
logistics sector does not contribute to the

64
competitive logistics position of a country
either.

Often the pressure on distribution costs,

investment budgets and not the least on quality
perfection are a source of stress for many
managers. Logistics still operates on the
cutting edge.

HRM activities are mainly used for human ‘

intake’ and to advance continuity.

Principles for Logistics HRM

HRM is not an established practice in the logistics

sector. How HRM actually result in terms of
profits, productivity, increases or decreases in
absenteeism is difficult to prove. Scientific
research shows that there are positive
relationships between the use of HRM tools for
recruitment, remuneration, staff development
and other economic success or competitive
advantage.

The 4conditions for logistics HRM.

1. HRM must fit the scale of the company. .../..

2. HRM tools are used consistently. .../...
3. HRM thrives in a SERENE environment. ..../...
4. HRM match the environment of the company.

65
Logistics employees expect an inspiring
vision, which they can support. The
management, especially the immediate
boss, is the employees determinant
selection factor to continue working for the
chosen company.

Employees want meaningful and challenging work

that matters and where they can see results of
their efforts. To strengthen relationship between
the employees your utmost efforts must be
geared towards working together in small teams.

During times of logistic cooperation, this

"natural" way of working is particularly
valuable. In collaborating with colleagues,
you must make sure that they stimulate each
other, you always learn from each other and
develop your own skills even further. Employees
want to continue learning in their work and
should be able to develop more rapidly than their
counterparts at competing businesses. This
development better includes subject content
and/or skills.

But where is the real problem? The labor

market is not the sole cause of the problems in
HRM logistics. Warehouses are under
tremendous pressure as the last link in the

66
logistics chain. The volume of work has high
peaks and deep valleys and great flexibility of
workers is required. Much work is dirty, heavy or
cold. By contracting out distribution,
transportation and help desks and the creation of
large anonymous shared services, the emotional
involvement between customers and employees
and internal concurrence amongst employees
themselves disappears. Then you lose experience
again and again. And just at that spot in the
logistics chain where human talent matters
the loyalty of the customer is made or
broken.

The solution of human problems in the final

meters of the logistic chain are usually to be
found in the first kilometers of that logistics
chain. Not the detailed procedures, advanced ICT
or lengthy descriptions of job functions and the
logistics department or call center, but
cooperation between (functional)
departments such as sales, purchasing and
production partners and the logistics chain
is the critical success factor. This makes
strenuous demands on the inventiveness and
problem solving skills of employees. And the
responsible top bosses do not seem to
understand that interplay.

67
They still think de '0800-helpdesk-patch' or
'unlimited flexibility’ will do the job. No wonder
your employees will elope. That is like mopping
with an open tap! ...

Now we are with our back up against the wall,

the deficiencies in the logistics HRM policy will be
more visible than ever. The HRM policy must tilt
from 'selection' to 'adoration' and the
management must evolve from 'delegation' to
'inspiration'.

The role which plays at all management

layers, from the top management to the team
leaders in the workplace, makes this a
responsibility you cannot lay down in the HRM or
Personnel department alone. This is a shared
responsibility.

The logistics manager should not abscond ...

68
 The role of the Corporate Logistic Officer

Business Intelligent Quotes

“.....No matter the reason for the decision to

outsource, nearly all outsourcing
arrangements have room for improvement.
... “

“....So there is no lack of benefits ... “

“....If the shipper can make Clear

arrangements for Clear results and a lasting
value its logistics chain raises to a higher
level

Denis O'Sullivan FCILT • The need to

collaborate and the barrier of trust - or lack
thereof - has been with us for a long time. You
can spend years trying to build trust - and never
succeed. You have to take the plunge and
then work together not to break that trust.

The real barrier has been technology. If you do

not have the technology to provide visibility to all
partners you have nothing to build this trust on.

The Internet has opened up the possibilities and

the technology now exists to create trust. ... “

69
Out- or Insource Logistics?

This is indeed a trend in transportation - and so

have many others,. I know - from past
experience being a (life-time) forwarder –
LSP’s tend to take over full control of the supply
chain in an attempt to control the cost (and
receive a wild card, when not a blank check).
Probably the most s.m.a.r.t. (**) way to
outsource is to maintain the software and make
providers work on your systems! Or find a
provider to has the necessary software on board
and offers this seamless in a gain share modus.

The dilemma: The shipper wants to save cost on

its freight movements and the forwarder wants to
make money with freight movements, and seeks
customers loyalty by such action. Such conflicting
interest can indeed be overcome, in combining
the best of two worlds, with a simple active verb
to "co-operate":

Role of the LSP: his core activity is to move

freight at the best possible transportation cost
within the appropriated agreed time.

Role of the Shipper: his core activity is to

produce goods to exceed the satisfaction of its
customers and when it comes to the supply chain
70
is to find the best possible LSP in line with the
cost-effective (*) strategy in place. To delegate
(outsource) is all about keeping control,
especially when the financial stakes are that high.
No matter the reason for the decision to
outsource, nearly all outsourcing
arrangements have room for improvement.
Outsourcing as a large-scale business practice
has not been around long enough to work out all
the kinks resulting from its rapid growth and
global implementation. Many companies jumped
in without a full understanding of how to do it
correctly. Outsourcing deals consequently are
commonly structured with fundamental flaws in
the business model and the relationship. The
flaws result in perverse incentives: direct
negative or unconscious behaviors that drive
unintended consequences.

A quote from Five Rules That Will Transform

Outsourcing by Kate Vitasek with Mike Ledyard
and Karl Manrodt identifies and unlocks five key
tenets of a sound outsourcing partnership.
The research and analysis underlying this book
set the stage for companies to take their
outsourcing relationships to the next level – a
true vested performance partnership.

71
 The 10 Ailments

o #1 – Penny Wise and Pound

Foolish
o #2 – The Outsourcing Paradox
o #3 – The Activity Trap
o #4 – The Junkyard Dog Factor
o #5 – The Honeymoon Effect
o #6 – Sandbagging
o #7 – The Zero-Sum Game
o #8 – Driving Blind Disease
o #9 – Measurement Minutiae
o #10 – The Power of Not Doing

The 5 Rules - Laying the Foundation –

What’s in it for We?

o Rule# 1 Focus On the What, Not

The How
o Rule# 2 Focus on Outcomes
o Rule#3 Agree on Clearly Defined
and Measurable Outcomes
o Rule #4 Optimize Pricing Model
Incentives
o Rule# 5 Governance Structure
Should Provide Insight, not
Merely Oversight

72
The true CLP provider is responsible for the
organization and management of part or the
entire logistics chain.

The eleven characteristics of a CLP-

provider and its importance to a score 10

9-Asset-Neutral
9-Process Management skills
9-Logistics Expertise
9-Knowledge of the Logistics Market
8-Customer orientation
7-Technological expertise
6-Flexibility
6-Business Management Expertise
4-Innovativeness
1-Global Working area
0-Asset Freedom

Trust needs to grow

While the concept undeniably has a number of

important advantages, many companies still
suffer cold feet. The discussions on the
feasibility of the cost benefits, which some say
must be reproduced in the margins of service,
will certainly have something to do with it.

It is true that the greatest savings will be realized

the first years, but the fact remains that a CLP-
provider is always, and during the entire period

73
of cooperation, seeking the lowest total logistics
cost.

Companies can also benefit from such a

partnership through the logistics expertise of the
CLP-provider, they receive a single contact point
where they can get answers to any logistical
questions and they enjoy a greater visibility in
the chain through integrated IT-systems.

So there is no lack of benefits.

Trevor Miles - Kinaxis Canada

Do you trust yourself to collaborate? The real

barrier to collaboration is not technology, but
trust

There are sectors where collaboration may never

be right - those businesses where the supply
chain actually is the source of competitive
advantage as its ability to source a single
volume. But most areas can outsource logistics,
and if it can be outsourced, some degree of
collaboration should be possible.

74
Outsourced logistics management - the
future of supply chain sourcing.

Brent Pearson - Centre Point Logistics Sensis

Outsourcing of non-core activities is common

practice of businesses around the world. The
extension of this to supply chain and logistics is
not surprising, particularly given the transparency
of contribution the logistics costs and the true
competitive advantage a supply chain can make.

Buyers of supply chain services are not only

demanding more reliable and lower cost services
but more importantly, an adaptive supply chain
that can meet their customers’ requirements.
It is difficult to achieve these outcomes engaging
multiple third party logistics (”3PL”) providers and
have an integrated solution.

Traditional 3PL providers have their business

based on scale in order to compete on cost. Scale
is achieved through the reduction overheads on a
per unit cost basis and the operation of large
facilities to support the model. The scale model
also warrants the concept of generic processes to
achieve productivity. This results in a self-
fulfilling prophecy of standardized services
that can only differentiate on price.

75
On the other hand, outsourced logistics
managers (”CLP”) work on a different model of
scale - scale of knowledge. It is this knowledge
and intelligence that not only differentiates CLP
managers to 3PL providers but also makes
outsourcing a more sustainable model to the
legacy in-house management. To this extent, the
bonus should be on the CLP manager to prove or
identify how they add value to your business.

The value proposition of CLP managers is

important and needs to be understood. The value
proposition will vary from cost savings, to increase
sales or reduced working capital requirements - all
these being tangible benefits.

To realize these outcomes, CLP managers need to

consider issues such as broadening the
requirements of procurement sourcing - this can
only be achieved through a holistic review of the
supply chain. They need to utilize their industry
experience and knowledge to reduce the individual
supply chain links whilst increasing the scope of
supply contracts to better meet the end customer
requirements. The reduction of these links will
ultimately reduce risk and maybe costs.

The step to use CLP outsource managers is

sometimes seen as a bold move and an outsource
of control. However the case studies to support

76
this model is compelling particularly in industries
where the supply chain is complex and has many
3PL providers. Competent CLP managers will
reduce this complexity and by doing so will
increase the reliability of your supply chain
and therefore enhance control.

The benefit of a CLP manager, particularly for

medium to large scale organizations is that
sourcing for logistics services as and when new
projects arise or when existing projects need to
change in their scope, is that the changes can be
implemented quickly, with little or no
modification to the existing interaction between
the CLP manager and the client. The benefits to
3PL suppliers is that they can deal directly with a
CLP manager, to gain access to the provision of
services across a range of management contracts,
via one point of contact. Effectively the CLP acts
as an independent broker between logistics
purchaser and the service supplier, coupling the
needs of both.

The benefit of outsourcing logistics management

to an independent CLP, is the ability of a CLP to
provide an overlapping sequence of activities to
enhance the independent 3PL’s capabilities, these
activities include:

77
The provision of a value supply chain proposition
that meets the organizational culture, business
model and performance measure of the end users
standardization. By utilizing the independent
manager you can ensure a commonality of
data and service performance indicators.

Innovative service, allowing the buyer of the

services to have an independent supplier of
customer services and knowledge of entire supply
chain requirements.

Teaming capability. As the value and breadth of

the CLP mangers service offerings increased, so
will the customers own access to provider’s
networks will be increased.

The future of logistics provision is via the access

presented by the CLP manager. This will allow for
better end to end visibility, commonality of
data and greater access to harvested
knowledge for the supply chain user.

78
Toolbox.com:

Lastly, a recap of a CLP Products, Services &

Capabilities (visualize a triangle):

Relationship: CRM
Know-How: Knowledge Management
industry/supply chain
Consulting: Supply chain reengineering, Process
consulting (3PL), IT analysis/implementation
Visibility: Supply chain visibility, communication
and IT integration
Operational: Accounting/invoice management,
Event monitoring/exception
management, RFP/RFQ management/execution,
Carrier/3PL management.

Disclaimer: Contents are not reviewed for

correctness and are not endorsed or
recommended by Toolbox.com or any vendor.
Popular Q&A contents include summarized
information from scm-select discussion unless
otherwise noted.

79
Supply chain and logistics – CLP add value
and strategy to outsourcing

Sean Hargrave - Daily Telegraph

Summary: This article explains that global

companies often rely on several logistics providers
to ensure they run smoothly. Recently there has
been a trend to move beyond third party logistics
(3PL) to fourth party logistics (CLP) suppliers,
which can act as a single provider managing
several third parties on behalf of the client.

“You can sometimes find that companies

have grown quickly yet not had logistics
represented at a senior level,” comments Tim
Lawrence, Supply Chain Specialist at PA
Consulting Group. “Then you can often find
that companies have grown through mergers
and acquisitions with very complex set of
third party arrangements in different
regions. They can often find they have
multiple legacy hubs dotted around the globe
so they have too much capacity in one region
and not enough in another.

Tim Lawrence continues: “This is where they

often need help with strategy. One client of
PA’s found themselves with ten warehouses
and distribution hubs in Benelux alone which
obviously wasn’t very efficient and with high

80
energy prices the cost of logistics is going up,
so companies often need a strategic helping
hand.”

81
LEAP OF FAITH

The term CLP is still misunderstood within the

logistics industry. Devised as a new approach to
business structure based on joint venture, shared
resources and equity based rather than
contractual relationships, it’s not difficult to see
why the idea hasn’t been embraced in its
entirety. One only has to witness rapid
consolidation in the logistics industry to realize
that most prefer the perceived control achieved by
acquisitions and mergers to the nebulous benefits
of mutual risk and reward.

The CLP concept was initially a response to

problems arising between shippers and 3PLs.
While shippers make ruthless, cost-based
outsourcing decisions, they are dissatisfied if a 3PL
fails to provide value added services. Meanwhile
3PLs, operating to these tightly closed contracts,
are struggling to maintain narrowing margins let
alone finding time to optimize and develop creative
solutions. Competition is leaving no room for
change.

82
Leading supply chain thinker, speaker and author
John Gattorna was one of a team from Andersen
Consultants (now Accenture) who jotted the
initial CLP idea on the back of a napkin in
1995. The CLP was intended to do away with
contracts, replacing them with a more
collaborative, equity based relationship.

“You can’t tender for a CLP in the original concept.

There’s no such thing as a CLP provider,” Gattorna
says. “A company that still has contractual
relationships can’t function like a true CLP,
because if difficulties arise, finger-pointing begins
rather than an attempt to pull together.”

The true CLP, or Joint Services Company (JSC)

as he prefers to call it, is a joint venture
between a group of companies, initiated by two
or more shippers as the owners and ultimately
controllers of the business. The shippers might be
competitors or have dissimilar markets, but they
must share a compatible culture and vision.
Junior joint venture partners might include 3PLs,
consultants and finance companies.

83
Along with equity in the vehicle, the relationship
requires a “pre-nuptial” exit agreement
stating how long the parties must commit before
choosing to roll over or buy back capabilities to an
agreed formula. Such an agreement would
also contain incentives and rewards to
encourage a strong working relationship.
Companies place key staff with the business
acumen, experience and know how into the vehicle
to ensure proper functioning of the businesses.

Once working properly, parties would make

returns on their capabilities and assets along with
fees and dividends according to their equity in
the management company. In an ideal form,
companies would allow the vehicle to manage their
assets and infrastructure until such time as they
wished to buy back their capabilities.

The fundamental reasoning behind such a

structure is to allow shippers to acquire instant
capabilities. If capabilities are well chosen,
including shared infrastructure and assets,
shippers could substantially cut costs and

84
improve the bottom line brought about by
increased volumes.

Trust a sticking point

Deploying trust has been the basis of

criticism of the CLP concept.

Eric Van Dort – CapGemini: It was originally put

forward that consultants would be the CLPs of the
future because of the need for highly trained
people with planning and technological skills.

CLP concept still evolving

Ultimately the development of CLP structure

approximating the original concept through
partnerships and joint ventures - companies
joining forces to meet requirements in an
‘ecosystem’ style rather than a pure play that
claims the whole ground.

In the end you need the execution experience

which is normally held by the 3PLs. CLPs are much
more likely to grow from 3PLs or the creation of

85
new companies as independent or related
subsidiaries or in a collaborative way”

Gattorna admits the idea requires a leap of

faith from a CEO willing to break the mould.
He says it will take increasing pressure on the
bottom line before companies are willing to
change.

But they couldn’t get their heads around it. “Some

say, ‘prove it to me’, but you can’t prove it until
you try it out. It will take a couple of visionary
CEOs to say ‘We’ve done all the business cases
and the numbers are there’.”

86
COLLABORATIVE
LOGISTICS: RIPE
FOR DISRUPTION

Rachel Botsman,
Collaborative Economy Global Expert

I am frequently asked what sectors I think will be

next in terms of being disrupted by collaborative
business models. Pet care? Mortgages?
Parking? It’s a hard space to crack but I think
2015 (and beyond) will be the year we see some
big things happen in collaborative logistics,
especially shipping.

A useful lens I have developed to identify big

opportunities is to look at where two key
problems exist:

87
 Problem Solution
Lots of waste in a system Efficient use of assets
Asset heavy business Asset light network

Look at most leading ideas in the space and you

will see the above lens in action – using
technology to create access to an abundant
source of underutilized assets to create a new
offering through an ‘asset light’ model, akin to
the likes of Airbnb, Liquidspace and Lyft.

88
Logistics: A Big Opportunity

‘Crowdshipping’ startups such as Deliv, Nimber,

and MeeMeep can flip this model into an asset-
light solution by providing access to a network of
drivers and vehicles that already exist with
underutilized capacity.

Logistics, particularly shipping solutions, are

rife with waste. Consider something simple like
empty return trips drivers make or empty space
containers not fully loaded with goods. On top of
this, the likes of UPS, DHL, FedEx and even
traditional postal services require asset heavy
models from the fleets of vehicles to the
maintenance staff to parking tickets and
warehouses.

Note: A point that is often missed in

discussions around collaborative and
sharing models is that we still need
companies to create and manage assets and
infrastructure. Where start-ups are causing
disruption is around how these assets can be
accessed and deployed.

Incumbent Move: DHL MyWays

An interesting move is being made by DHL who
recently launched a peer delivery model

89
called MyWays. The model taps into the crowd to
change how they can address ‘last mile’ delivery
problems and enter into new fast growing
markets without existing logistics
infrastructure.

90
Existing Supply

The way crowdshipping works is very similar to

most collaborative models. A user (an individual
or a business) has a need – ‘I want something
shipped’ and the platform provides access to a
network of existing ‘providers’ who can fulfil that
need on-demand.

The supply often consists of three different

forms:

1. Sub-contractors of mainstream
brands such as Allied Express, StarTrack and
DHL who, at best, earn 30 per cent of the face
value of a delivery job but often far less than
this amount.
2. ‘Professional’ drivers employed by
traditional courier companies who have a
lot of idling capacity from downtime between
jobs to empty space in their vans to idle
return trips after dropping a parcel.
3. ‘Casual’ drivers, such as university students,
retirees or freelancers with a car and some
time who are looking to make extra income.

91
Massive Demand

Not only are the problems (waste, asset heavy)

and the collaborative marketplace model easily
applied, the beauty of logistics is there is
massive existing demand that start-ups can
tap into. Here are six big areas:

1. Immediate delivery: businesses such as dry

cleaning or restaurants where having their

92
 own delivery personnel are simply not cost
effective.
2. Moving: from entire houses to moving a sofa
to your friend’s house
3. Fragile or expensive goods: categories of
goods from artworks to pets where knowing
that your expensive painting or precious cat is
going in the back of x vehicle with driver
‘Sam’ is an attractive proposition.
4. White goods and large items: from fridges
to furniture, a lack of cost-efficient options
exist
5. Online auction marketplaces: where ‘last
mile’ solutions limit the buyer/seller radius
6. Local retail stores: lack flexible and cost-
effective shipping solutions to compete with
online

93
I recently wrote a piece on the opportunity of
these platforms to change the way goods are
delivered. You can read it here:

Crowdshipping: using the crowd to transform

delivery

94
There are lots of different start-ups launching in
this space with a slightly different target market.

Here is a snapshot of some interesting ventures

(note some are playing across the needs I have
mapped here). I am honestly surprised by the
number in the traveller space, which would seem
the smallest and strangest slice of the market.

Missed any? Please add to our directory or email

us at [email protected].

It easy to list all the things that could go

wrong with these emerging crowd-driven
shipping solutions; damaged or missing
95
packages, privacy concerns and say delivery
delays. And like most collaborative models, the
core question is who is responsible when
something does happen?

But I am convinced that logistics space will

see a breakout player because the
relationship between demand (I need
something shipped/moved/delivered) and
supply (I can deliver) is inefficient and in
many instances broken.

And where there is pain and problems,

entrepreneurs with a collaborative mindset
will step in to create new efficiencies that
can disrupt the market.

96
A note of caution by Korhan I have some
objections as a logistics professional with 20 years’
experience… logistics is the game for efficiency so it
is very hard to beat the asset heavy systems on
prices with single person or single vehicle. I do not
deny the collaboration opportunity but in my
opinion it will be logical for fast deliveries or
valuable cargo and of course locally… when you
take the system to international then you are
targeting customs payments not freight cost. I am
using the same thing for years for my iPhone
purchase from us and one of my friend is bringing
the product to me. they always buy themselves and
see what is inside the package… picking up a
package from a location and moving it
internationally is never worth the risk. one narc dog
might cost you 20 years of life and any explanation
that you don’t own the cargo won’t be heard. I am
sure all these website owners started these project
with all good intensions but any of us could be a
mule for international smuggling without knowing…
I don’t believe there will be anything the website
owner can do to get me out of jail please consider
all risks before moving any package…

Mia de Villa

Hello Korhan, that’s a very good point. Moving

packages especially as a traveller has its risks. We
should be careful-Mia

97
What criteria would be most important when
outsourcing logistics?

Copyright 2016 The Progress Group, LLC

Copyright 2016 The Progress Group, LLC

98
Copyright 2016 The Progress Group, LLC

99
Collaborative
Logistics

Everybody is talking
about it, but how do
we get it started?

CLP are Cradle to

grave collaborative
service providers!
100
The Collaborating Proces Management

101
102
103
104
105
106
107
108
109
Outsourced Logistics at Linked-In

Do what you do best, outsource the rest!

Charles-Antoine Martin - GCL Group

Nowadays, some companies realize that their

logistics require some attention. Of those
enterprises, a portion decides to use a specialized
Third Party Logistics (3PL) provider and,
depending on company specifics, we believe
there are good reasons for such a change. In
fact, most transitions to an outsourced logistics
model are driven by one of these four criteria:

 Focus on your core business: A

company’s main activity can be sales,
marketing, client satisfaction or any other
business aspect that drives revenue,
therefore why not concentrate your
resources’ efforts on your bread and butter
and entrust your operations to a company
who takes pride in logistics excellence?
 Using a logistics expert: It is possible
that you might have issues or challenges
with your operations. In that case,
partnering with a skillful 3PL could help
you improve your performance.
110
  Limiting capital expenditure: Maybe
your financial focus is logistics, then again
it might be increasing your sales force,
implementing a new IT system or simply
managing cash flow. Therefore, using a
3PL with a variable or per use cost
structure can allow you to invest in other
facets of your business.
 Cost savings: Are your logistics
inefficiencies amounting to increased costs
or are you even able to identify the causes
of your cost increase? You might be
interested in using an efficient 3PL that has
a defined reporting structure, as well as
pre-approved costing parameters.

Since no company is the same and no situation is

the same, each decisional process is different but
there are multiple contextual scenarios where a
company could and should evaluate the switch to
a logistics 3PL partnership.

 Going away from the use of

distributors: Multiple companies choose
the use of distributors to expand rapidly
within a new market but this means less
control over the operations and little to no
information regarding POS performance
and the influence of promotions. Switching
to a 3PL can be a good alternative once
you have established yourself in the
market.

111
  High growth rate: Merger & acquisition
based companies know this all too well, the
variation in volume and space
requirements make it hard to build a
business plan for a brick and mortar
approach. Therefore, it might be more
appropriate to partner with a flexible 3PL
that can accommodate a rapid growth or a
reduction of warehousing needs.
 Making the leap from the startup
phase: When operating from a basement
or a garage no longer makes sense, it
could be wise to entrust your operations to
a proven professional that will assist you
throughout your growth.
 Logistics affecting customer
satisfaction: It is possible that logistics
issues, such as order delays, picking
errors, loss of inventory or inadequate
returns processing greatly affects your
customer’s satisfaction to a point where it
threatens your business. The use of a
logistically sound 3PL could make sure
those issues are long gone.

Once you take the decision to outsource your

operations, there are multiple steps to follow;
analyzing internal processes, optimizing supply
chain relations with partners, gathering as much
data on volumes as possible, ensuring all Service
Level Agreements (SLA) and Key Performance
Indicators (KPI) are documented, proceed with

112
an initial Request For Information (RFI) to qualify
a group of potential 3PL’s, initiate a Request For
Quotation (RFQ) with the preferred partners,
analyze the quotes and meet with the chosen 3PL
to ensure that every single bit of information has
been considered. Once all this is done,
contractual talks should begin, IT infrastructure
and interfacing should be integrated, move
processes should be agreed upon and all teams
from both entities should meet (operations,
supply chain, QA/QC, customer service, finance,
etc.). At last, once all tangible and virtual
processes had been checked and double checked,
it is time to move and go live. Since the transition
needs to be seamless for the client, this whole
process needs to be a thorough one and the
relationship needs to be honest between the two
entities. Therefore, there are multiple aspects to
factor in when choosing your logistics 3PL:

 Cultural fit between the two entities

 Growth capacity in terms of
infrastructure, IT capabilities and
workforce
 Guidance and advisory towards the
logistics management of SLA’s, KPI’s and
freight
 Flexibility in work planning, peak periods,
IT modifications, etc.

113
  Costing & potential savings coming
from warehousing and freight synergies, as
well as cost tracking processes
 Risk mitigation to ensure a seamless
transition for clients

Acknowledging that there are multiple other

aspects to factor in when choosing an outsourced
logistics model, based on our experience and the
clients that we accompanied, we believe that the
major ones are reflected in this article.

---&---

What criteria would be most important when

outsourcing logistics?

Malcolm Pope
Logistics Ideal Standard
International BVBA

Interesting, I proposed a CLP solution for my

business some 5 years ago, it fell on stony
ground. Recently the interest has recovered
thanks to a new CEO so we are now working on
this.

114
The growth of private equity in business asking
ever harder questions in respect of cost
reduction. In "traditional" businesses there is too
much vested in traditional logistics outsourcing.
Additionally complexity of requirements from
supply chain/logistics has increased
(multichannel, visibility on line) beyond the
capability of medium/large scale logistics teams
to deliver. Finally, buying logistics well is not a
well-developed talent in many businesses.

Beyond clear specification and data the points I

feel you need to consider are:

1. Allow sufficient time to procure

2. Deep understanding of what internal

stakeholders require

3. Review of market capability prior to

engagement (helps with the generation of
specification

4. The business system infrastructure

5. The key points of change and development you

want to see

6. At least a baseline scenario to market test but

giving the suppliers freedom to be creative

115
7. Consider the tendering and selection process
along with what the selection process will be
(balanced scorecard?)

8. Understand today's cost and service to act as a

baseline to measure progress against

9. Clear and continuing communication with

candidates participating in your selection process

10. Understand and share detail contract

requirements during the selection process

---&---

Freelance Management
Consultant

Efficiency and trust

---&---

Vice President of Global

Logistics and Materials
Management at Eaton
Corporation

116
Understand the strategic reason for outsourcing;
the role and expectations of the LSP partner; the
cultural alignment between you and the partner;
clear, concise, mutually agreed charter, and
who's technology, capital, and people.…

---&---

Tom Craig
Leading global logistics/supply
chain management consultant
who develops and implements
solutions that work

Paul, the #1 is cost. Depending on the buyer and

his industry, others may rank--such as
performance. Technology has moved up in
importance. A problem with outsourcing is
managing the relationship. I am watching to see if
Omnichannel redefines outsourcing and the type of
providers required--and who they will be--a new
breed.

The omnichannel business model has fast

become the gold standard in today’s marketplace
as retailers and ecommerce companies recognize
its potential impact. By Saddle Creek Logistics
Services

117
While the omnichannel business model has fast
become the gold stand-ard in today’s
marketplace, delivering an omnichannel
experience is anything but easy.

Consumers’ expectations continue to escalate.

They’ve come to expect real-time information on
product availability, a seamless shopping
experience across channels, and a variety of
delivery and store pick-up options.

Many retailers and ecommerce companies are

recognizing that they need to invest in improving
omnichannel supply chain operations if they’re
going to satisfy their customers, yet remain
profitable.

Partnering with an experienced supply chain

solution provider often enables companies
to achieve success more quickly and cost-
effectively than tackling omnichannel on
their own.

118
Doing business is a human activity.

But it feels divine.

119
 Books from Paul Van den Brande:

- All are available as E-book -

Logistics:

CLP-the book which needed not to be

written.

Collaboration: The new economic Paradigm.

Pitching C-levels on the Benefits of

Collaborative Logistics outsourcing to a CLP.

Management:

Stages of Organizational Life. (E-book only)

Business Development: The Missing Link

Between Marketing and Sales

Trust Value Chain (due 2018)

Corporate Thriller:

Vuil Spel (Foul Play) being translated now.

Undisclosed thriller - (due 2018)

Real Estate: (E-book only)

213-O The stuff dreams are made of…

120
 Passion In Everything You Do!
Born from a litter of
6, which is always a
struggle for attention
and a share, Paul Van
den Brande was well
prepared for business.
Paul Van den Brande He is a personification
°1953 of the American
Dream, starting as a
filer up to owner of
several companies.
' His slogan is clearly
present in this book.

---&---

Mark Kearns
Luminaire SCM Director

Paul is hands on, no frills, fast paced and

entrepreneurial.

121
 C-level Logistic
Outsourcing Check List

Any C-Level, needs to assess the "cost of

money" for logistics outsourcing, to fit in
within the strategic decisions already taken.

Successful Outsourcing-initiatives

always have 3 things in common!

1. The subject must be high on the agenda of

the top management/board of directors,
2. outsourcing is seen as a means not as an
end,
3. Implementation takes place in association
with 'credible partners'!

 When all levels have at least

 1 box checked
 then apply for an audit

It’s not about the CLP,
it’s about the Customer!
122
 Key Players in the
Logistic Collaboration Process

Gender - Neutral - Functional Abbreviation

C= Corporate * O = Officer

CAU Audit
CEN Environmental
CEO Executive
CFO Financial
CHAIR Chairman
CHR Human Resources -#42
CIO Information
CLO Logistic
COO Operational
CPO Purchase
CSCO Supply Chain
CSR Sales
CTO Technical
CXO General Officer
Unions

123
Why Not Outsource?
Rank what triggered your discontent

( 1 highest ..)

in company buying power outsmarts

collaboration with any CLP by far
failed to shoulder the risks and just
contracted needs
CLP is over marketed and under delivered

combined just a standard IT solution with

logistics services
have a quick buck earner attitude in a lead
contractor role only
just managed a shared-user site with
integrated services
missed out on generating genuine
transformational leap in performance
guaranteed solutions without offering
proven benefits
a clear defined process for interfacing was
lacking
a suggestion to form a internal evaluation
team was skipped

124
technology issues and handing off
responsibilities non existent
meetings with senior management at both
sides insufficient
management buy in faltered

clear defined project assessment

unsatisfactory
seamless cost overshooting savings

headcount rightsizing inadequate

front-up exit strategy open ended

other …(clarify)
….............................................................
….............................................................
….............................................................
Your input is welcome at
[email protected]

125
 Checklist for the
CEO & CFO & CPO whom:

want to enhance the balance EBITA

with n² € per calendar day
with the help of a unique CLP partner

asking no money for (a 2-day)

‘assessment’
after which the CLP shall be paid
out of the savings

For Back Pocket Notes:

CEO: “.....This wasn't something I had ever

thought about before.... “
CFO: “....Many of the problems facing companies
in recent months are caused by financial
deficiencies in the supply chain. ..... “
CPO: “....An unrestrained focus on cost savings
and a poor relationship between financial
people and purchasers, ensure companies
run unnecessary risks ..... “
Chair: ” .... Private shareholders and institutional
investors begin to influence management
supply chain behavior via the boardroom!
...“
CAU: “....Controllers are not process specialists
and therefore report the numbers but
struggle to understand the links..... “

126
 Checklist for the
CTO & COO & CIO & CXO
expecting that:

the Logistics/Supply Chain process

simplifies
the inventory decrease
the service level agreements are met
the carbon-footprint/the ecological
footprint reduces substantially

For Back Pocket Notes:

CTO: “.....we are well into a period of rapid,
accelerating technological change ... “
COO: “...customized mass production - a
seemingly contradictory idea –
increasing complexity of the supply
chain “
CIO: “....IT...will be bent and shaped to serve
our needs, ... “
CXO: “....Artificial intelligence systems will
replace much of the management
decision-making processes ... “

127
 Checklist for the
CSCO & CSR & CHR
because you:

increase the quality of customer

service
improve on landed cost
show you can think out-of-the-box
have taken initiative to a positive
contribution to the bottom line
help the sales organization by giving
them an extra argument to pamper the
customer
contribute to job security not forgetting
your colleagues

For Back Pocket Notes:

CSR: “.....the customer seems once again to
have gained unanimous recognition as the
ultimate factor in ... “
CSCO: “....If you can't seem to reach these goals
on your own, it might be time to outsource
... “
CHR: “....Coping with a permanent cerebral
worker shortage outsourcing will continue
to proliferate ... “
ALL It’s not about the CLP,
it’s about the Customer

128
 Checklist for the
CHR & Unions
because:

A true CLP will deploy the most

powerful software and train the
employers

Non-asset based CLP hire your staff,

during the partnership, so you should
not dismiss them and internal
knowledge for your business unit is
protected and available, a 'crisis-buster'
to the restarting of the economy
(Lease-back).

For Back Pocket Notes:

Unions “....CLP hire your staff, during the

partnership, so you should not dismiss
them ... “
CHR: “....Especially in logistics “People” are
perhaps the most decisive factor ... “
ALL: ‘...This is a shared responsibility ...”

129
 Checklist for the
Chief Logistic Officer &
Supply Chain Officer

Allow yourself green

light as well because

Logistics are evolutive

Collaborative Logistics is in high
demand today
reaffirms the positive results internally
achieved so far
a logistic ‘sanity check’ better happens
spontaneously

Business Intelligent Quotes

“.....No matter the reason for the decision to

outsource, nearly all outsourcing arrangements
have room for improvement. ... “

“....So there is no lack of benefits ... “

“....If the shipper can make Clear arrangements

for Clear results and a lasting value its logistics
chain raises to a higher level

130
A Dream is a Project
without a date !
Application project Nbr.:

Issue date: Participants: Due date:

Targeting: I ( C-...) will make sure that .......

will be ready to deploy by .....

Decisions:

What do we need?

How will we reach?

Who is it for?

Whom will we need to inform?

Roadmap:
Sequence Subject Decisions Responsible Due Status
& Date
Actions
Sequence Subject Decisions Responsible Due Status
& Date
Actions

131
 The answers You can find in this book.

03-04 Collaborative Consumption Requires

Collaborative Logistics

05 + 88 COLLABORATIVE LOGISTICS: RIPE FOR

DISRUPTION

06 – 15 Pitching C-levels on the Benefits of CLP

Collaborative Logistics - Get the green light by
learning to speak their language. The CLP Pitch.
What to Expect From a CLP. Why the Time For a
CLP is Right.

16-18 Eight (8)-Step Roadmap to Boosting EBITA

19 This implicates Management Buy-in and

Courage

22-27 What is collaborative logistics? Why do

collaborative logistics now? How to get started
with collaborative logistics?

28-36 The Collaborative Supply Chain.

37-39 From the Back Room to the Boardroom:

Logistics Gets on the Agenda

40+41 Collaborative Logistics -The Time Has

Come!

42-44 Food for thought. Impact on management.

132
45-50 Gaining Management Buy-in for
Outsourced Logistics. PERFECTING
COLLABORATION. Collaboration is a strategy.

51-57 CFO's pay more attention to cost than to

risk. A new skill – Collaborative Alliance
Management

58-62 Do you trust yourself to collaborate? The

real barrier to collaboration is not technology, but
trust. But what is collaboration and what value
does it bring?

63-68 Thinking about HRM in logistics. Principles

for Logistics HRM. The 4conditions for logistics
HRM.

69-72 The role of the Corporate Logistic Officer.

Out- or Insource Logistics? Trust needs to grow.

75-79 Outsourced logistics management - the

future of supply chain sourcing.

80-86 Supply chain and logistics – CLP add value

and strategy to outsourcing. LEAP OF FAITH.
Trust a sticking point. Deploying trust has been
the basis of criticism of the CLP concept. CLP
concept still evolving.

87-97 COLLABORATIVE LOGISTICS: RIPE FOR

DISRUPTION Logistics, particularly shipping

133
solutions, are rife with waste. Crowdshipping:
using the crowd to transform delivery

98-99 What criteria would be most important

when outsourcing logistics?

100-109 Collaborative Logistics: Everybody is

talking about it, but how do we get it started?
Financial benefits for Receiver + Shipper +
Carrier

110-118 Outsourced Logistics at Linked-In. Do

what you do best, outsource the rest! What
criteria would be most important when
outsourcing logistics?

119-121 Doing business is a human activity. But

it feels divine. Passion In Everything You Do!

122-131 C-level Logistic Outsourcing Check List .

Key Players in the Logistic Collaboration Process:
Gender - Neutral - Functional Abbreviation. Why
Not Outsource? A Dream is a Project without a
date !

132-134 The answers You can find in this book.

134