The Future of 3PLs: Forging Strategic Partnerships with CPGs
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Transcript of The Future of 3PLs: Forging Strategic Partnerships with CPGs
FORGING STRATEGIC PARTNERS WITH CPG’S
The Future of 3PLs:
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.
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
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…
INDUSTRY TRENDS
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
IMPACT OF CONSOLIDATION
SC costs
Vendor compliance
Replenish lead times
Retail purchasing power
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
ONE OF THE BIGGEST WAYS FOR CPG’S TO CUT COSTS IS IN DISTRIBUTION CENTERS
HOW IT IMPACTS 3PL’S
Impact on 3pl's
1. Lead and innovate
2. Invest in technologies
3. Operate more efficiently
CPGs expect 3PLs to…
4. Expand core services
STAYING AHEAD OF THE CURVE
HOW TO BE FORWARD-THINKING
Operational transparency
JointStrategic Planning
Go Beyond traditional
Warehousing
Develop strategic alliances
Develop the tools to demonstrate transparency with your customers
Engage your customers in strategic planning sessions about capacity, technology, & resource management
Think beyond traditional warehousing to get to value-added services
Develop strategic alliances with other suppliers to become an end-to-end provider
CONTRACT PACKAGING IS THE MOST NATURAL EXTENSION OF 3PL’S VALUE-ADDED SERVICES
56% OF CPG’S ARE REDUCING THE NUMBER OF 3PL’S THEY USE
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.
Q&A SESSION
HOW TO CONTACT US
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