In this recovering economy, third-party logistics providers
(a.k.a. 3PLs, logistics service providers, or LSPs) are jockeying for position
to claim their share of new and increased business. Why? Because shippers
across a wide variety of industries are once again focused on growth.
Whether it’s concern about freight capacity and rates,
requirements for additional distribution points, entry into new markets, or a
strategic direction to outsource logistics functions, shippers are increasingly
turning to LSPs. As such, the outlook for growth in the 3PL industry, short and
long term, is good.
But this evolution in the 3PL industry certainly hasn’t made
it easier for shippers to navigate through the myriad of service options that
exist. Many LSPs have difficulty
presenting their portfolios in a way that promotes their services, and even
those who offer “integrated services” struggle with how to organize – and sell
– for maximum effectiveness and client satisfaction.
Basic terms such as contract logistics, transportation
management and global freight forwarding seem easy to understand on the
surface; however, each of these terms covers a host of potential services. Then there’s the positioning of asset,
non-asset, asset light, asset right …. and the list goes on. These claims can
be very confusing, especially as LSPs add to their capabilities in an array of
different scenarios through organic expansion, strategic relationships,
internal reorganizations, and M&A activities.
So, a very important question for you LSPs out there: How do
you ensure that your customers a) know who you are? and; b) know how to find
you?
Five Basic Questions
that 3PLs Often Miss
When you read my tips
below, you may dismiss them as stating the obvious. But trust me, based on the 3PL marketing materials and presentations we have reviewed, as well as LSP site visits and
marketing assessments we’ve completed, a large number of LSPs –
big and small – still don’t have this right.
Consider these five simple questions:
-
Do you have an elevator speech that even your
parents could understand?
-
Does your website clearly identify who you are,
what you do, and who you serve?
-
Have your clearly identified your target market?
-
Have you clearly differentiated your market
position?
-
Have you clearly communicated your Value Proposition and
market differentiators?
Never assume that if it’s clear to you, it’s clear to the
marketplace. Gaining external perspectives to test and fine tune messaging,
researching specific needs by market segment, and thoroughly analyzing your
findings for correct positioning are all really important.
Once these basics are in place, it will be much easier to
ensure that your marketing and sales tactics align. Then you will be executing
on all cylinders – reaping the benefits through improvements in renewal,
expansion and new contracts. And of
course we know your work does not stop there.
You must be sure to continuously deliver on promises through excellent service,
year-over-year innovation, and continuous improvement in value delivered.
And let’s not forget the power of implementing best
practices and of networking with shippers and others in your industry. You may
have already heard about the successful Tompkins Supply Chain
Consortium. What you may now have heard is that now 3PLs also have the
opportunity to actively participate in this vibrant community through a special
LSP Supply Chain Consortium.
As an LSP, do you have the five basic questions down pat? Do
you want to expand your knowledge base via supply chain benchmarking and best
practices?
Feel free to respond in this post, or contact me directly at
vbonebrake@tompkinsinc.com. As
Jim says, Go!Go!Go!
Valerie
More Resources
LSP Top 11: Market Forces Drive Freight Costs Up
Tompkins Supply Chain Consortium for Logistics Service Providers (LSPs)
Logistics and Manufacturing Outsourcing:
Harness Your Core Competencies