Insight, foresight for the dawning conceptual age in the global logistics, transportation, and supply chain markets.
Joyous Holidays!
posted by Michael J. Stolarczyk at 22:56
Currently, I am President and CEO of the Toledo-Lucas County Port Authority. From 2005 until 2009 I was a Senior Director with Exel Inc. I was with A P Moller/Maersk from 1988 until 2004 and held various executive roles, ranging from Sales Manager, with Maersk Hong Kong Ltd, to Managing Director, Maersk sro, in Prague, Czech Republic. In 2002 I was named as one of Fast Company Magazine's debut list of "Fast 50 - global innovators – individuals whose achievements helped change their companies or society." I am on West Liberty University's Board of Governors. I serve on the Board of Advisors for West Virginia University’s B&E School. I’ve held board positions, as Vice Chairman, with Ceske Pristavy a s, and as Chairman of both Maersk Logistics sro, and Maersk Intermodal Europe sro. My blog was one of the first logistics and transportation focused blogs. I hold a BSBA from WVU, along with studying at UPenn’s Wharton School of Business and UVa’s Darden School of Business. I founded FPS - Ronin LLC in 2005 to establish a forum where people could stimulate collaboration within their organizations.
2 Comments:
Michael - can you post your thoughts on the following comment?
"Annual savings dollars generated by a 3PL should always exceed the costs billed by that same 3PL for the same year"
As a practical application, here is an example:
ABC company has a inbound spend of $13 million. The 2007 cost of using the 3PL for an inbound warehouse and occasional transportation management was $1.7 million. The direct savings generated by the 3PL were $1.6 million. Indirect savings are not measured, but anecdotally they are high, with lower inventory, shorter cycle times, higher turns, better information, more control...etc.
The relationship has been going for about 5 years and all the low fruit has been picked. Also, many efficiencies were gained in those previous years as well as cost savings.
On the one hand, an 11% savings was generated in 2007; on the other, the 3PL cost was greater than the savings.
Would you consider it a mistake to make the statement at the top of this post?
Thanks!
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