The Future of 3PLs: Forging Strategic Partnerships with CPGs

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FORGING STRATEGIC PARTNERS WITH CPG’S The Future of 3PLs:

description

As a forward-thinking 3PL, you're aware of the consumer-driven impacts of retail supply chain and the trickle-down effect on CPG's and their suppliers. Industry consolidation has driven you to think more strategically and foray into providing value-added services for your customers.

Transcript of The Future of 3PLs: Forging Strategic Partnerships with CPGs

Page 1: The Future of 3PLs: Forging Strategic Partnerships with CPGs

FORGING STRATEGIC PARTNERS WITH CPG’S

The Future of 3PLs:

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TODAY’S AGENDA

What are the consumer-driven impacts of retail supply chain and what are the trickle-down effects on CPGs and their suppliers.

INDUSTRY TRENDS IMPACTS ON 3PL’S

How this affects the ways that 3PLs must think more strategically and foray into providing value-added services for their customers.

Q&A

Pose questions in the side panel throughout the webinar; all questions will be addressed in a Q&A session at the end.

AHEAD OF THE CURVE

Practical examples and tangible tips on what you can do to stay ahead of the curve and maintain market leadership as a forward-thinking 3PL.

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Karl Kretschmer• Extensive experience with 3rd party co-packers and co-manufacturers

• Specialties: vendor selection, 3PL contract design, cost management, setting vendor scorecard’s

• Managed over $50M in logistics spend for MARS Canada

FEATURED SPEAKER

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Nulogy

WEBINAR SPONSOR

• Provider of industry-leading contract packaging software

• Delivers control-tower visibility and transparency to 3PL fulfillment operations

• Top 3 warehousing 3PLs in North America trust PackManager, and leading 3PLs all over the world like…

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INDUSTRY TRENDS

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RETAIL INDUSTRY TREND

2004

Kmart & sears merge

+CVS

acquires Eckerd

drugstores

2005

Federated merges

with may

2013

Hudson’s bay

acquires saks fifth avenue

+Target

acquires zellers

2014

Albertsons merges

with safeway

1993 1994

Price club merges

with costco

Walmart enters

Canadian market

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IMPACT OF CONSOLIDATION

SC costs

Vendor compliance

Replenish lead times

Retail purchasing power

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3PL INDUSTRY TREND

2002

Exel acquires power

logistics

2004

Exel acquires

Tibbett and britten

2005

Dhl acquires exel

2006

Db schenker acquires

bax global

1993 1994

Cpa formed Cpg’s expand

secondary retail

display offerings

2012

C.H. Robinson acquires phoenix

international

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ONE OF THE BIGGEST WAYS FOR CPG’S TO CUT COSTS IS IN DISTRIBUTION CENTERS

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HOW IT IMPACTS 3PL’S

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Impact on 3pl's

1. Lead and innovate

2. Invest in technologies

3. Operate more efficiently

CPGs expect 3PLs to…

4. Expand core services

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STAYING AHEAD OF THE CURVE

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HOW TO BE FORWARD-THINKING

Operational transparency

JointStrategic Planning

Go Beyond traditional

Warehousing

Develop strategic alliances

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Develop the tools to demonstrate transparency with your customers

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Engage your customers in strategic planning sessions about capacity, technology, & resource management

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Think beyond traditional warehousing to get to value-added services

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Develop strategic alliances with other suppliers to become an end-to-end provider

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CONTRACT PACKAGING IS THE MOST NATURAL EXTENSION OF 3PL’S VALUE-ADDED SERVICES

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56% OF CPG’S ARE REDUCING THE NUMBER OF 3PL’S THEY USE

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CONCLUSIONS

The retail industry consolidation is changing the dynamics of how retailers, CPGs, and 3PLs all transact with each other.

INDUSTRY TRENDS IMPACTS ON 3PL’S

CPGs are relying on 3PLs to make the move from tactical to strategic in order to reach operational efficiencies, gain transparency, and foster innovation.

AHEAD OF THE CURVE

Forward-thinking 3PLs need to deliver on operational benchmarks, joint strategic planning, value-added services, and forging strategic alliances.

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Q&A SESSION

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