by
Fred Kulach, VP
Business Development, Progistix-Solutions Inc.
as
printed in The Globe & Mail
April 19, 2004
In any state of evolutionary disarray, there is typically much confusion and waste – and though often overlooked, there are huge opportunities as well.
I believe the logistics industry is at that stage now.
Currently, it reflects the complexity of multifaceted business processes, multiple supply chain trading partners and poorly integrated technology platforms. The industry is tactical – from setting up and sustaining proprietary warehouses in one space to transportation management, inventory management, international shipping, recovery and customer service in other spaces with different suppliers. We operate in silos. We see all the trees but never the forest.
Despite excellent growth in outsourcing to 3PL's over the last few years, the greatest challenge for the industry is that most businesses continue to focus solely on the unit price of a transaction. This is a result of their inability to measure their true performance due the complexity of the entire supply chain. They have invested and re-invested in systems and processes in an effort to improve performance but are often unable to achieve the expected gains. As if this were not enough, new business paradigms have changed their world forever. Multi-channel sales, just-in-time production, direct-to-store and direct-to-consumer delivery, multi-node manufacturing, global networks, the Internet, and markets of one continue to add to the complexity of the supply chain.
Progistix was created in the midst of this evolutionary period. We started business as a 3PL in the highly demanding and complex telecommunications service industry and as a consequence, we are further along the evolutionary path than most. We were created by customers; therefore we think as they do.
In the “Use of Third Party Logistics services by Large American Manufacturers in 2002” study by Dr. Robert Lieb & Steven Kendrick, 3PL customers rated the ability to integrate software amongst supply chain partners as highest on the list of desired services and expertise. Progistix has extensive experience in IT integration, provides engineered solutions, and problem solving and integrated services – from process development to inventory management systems, transportation management, recovery and long-term tracking.
Instead of customers investing individually in emerging and changing technologies, Progistix makes the investments so the costs and risks are shared by multiple customers and reduced as a result. Instead of multiple points of carrier contact there is one, and customer control is maintained as a direct result.
Our customers believe tailored solutions are the only solutions. We agree. That's why we have specialists in field service logistics, retail fulfillment, supply chain management and transportation. Our customers want us to be as concerned about end-user satisfaction as they are. We get it. We know effective customer service support based on after-sale logistics presents high margin opportunities for the organizations we serve.
Catching up to the strategic needs of organizations that use logistics is the 3PL industry's immediate future. Delivering every time, in real time in the real world is the challenge.
The opportunity out of the chaos created by rapid change is in providing stable, complete, intelligent solutions that are an accurate reflection of the customer's business plans.
