AMSTERDAM and SAN FRANCISCO, Nov. 25, 2013 /PRNewswire via COMTEX/ — Gunn, Menlo’s Managing Director in Europe, was also at pains to explain that a focus on reduced costs in the supply chain need not be at the expense of innovation; rather that the latter can drive the former through the use of a structured, continuous improvement programme.
Menlo, the global logistics and supply chain management unit of Con-way Inc. CNW +0.53% offers supply chain and transportation management services as well as 3PL and 4PL logistics solutions to a large number of companies in a variety of vertical sectors across the globe. However Gunn drew on his company’s experience with a leading medical technology supplier to help answer the question, “How can the 3PL industry profitably innovate and win the battle against commoditisation?”
Gunn noted that many 3PL/shipper engagements are tactical rather than strategic. “Often shippers, in the main driven by their procurement functions focussing on cost reduction, make short-term choices based on volatile market demands. In the process they lose sight of greater efficiencies that can transpire from longer-term commitments to a logistics supplier,” he noted and proposes a switch in focus from cost to quality and innovative relationships... Keep Reading…
Article Source: : SC Transportation