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Gartner Positions DHL as Leader in 2019 Magic Quadrant list for 3PL

Gartner Positions DHL as Leader in 2019 Magic Quadrant list for 3PL

Global logistics contract provider, DHL joins many of its own customers on the 2019 Magic Quadrant list. The company’s impressive scale and seamless solutions integration for global clients contributed to earning the “Leader” title in the 2019 list.

“Predictability is critical in this business, and our customers count on us to maintain a level of unmatched operational excellence in everything we do,” said Scott Sureddin, Chief Executive Officer, DHL Supply Chain North America. “We believe that being named a Leader in the Magic Quadrant again this year is a testament to our ability to think strategically and operate exceptionally to drive continuous efficiency improvements for our customers across verticals.”

DHL Supply Chain was 1 of 19 companies surveyed for Completeness of Vision and Ability to Execute. DHL maintained the furthest position in Completeness of Vision, representing some of the most prominent North American 3PL experts. Roughly 70 percent of DHL Supply Chain clients were named in the 2018 list (Gartner, The Gartner Supply Chain Top 25 for 2018, Stan Aronow et al., 16 May 2018).

“These providers enable customers to outsource, either completely or partially, their logistics operations to external specialists. Many companies view logistics outsourcing as an effective strategy primarily to reduce costs, but more and more customers are seeking innovative solutions that can improve process and service as well.”

Source: DHL

GlobalTranz Boasts Ninth Acquisition in Two Years

Circle 8 Logistics is the latest company to be added to the list of acquisitions for leading third-party logistics solutions provider, GlobalTranz. The company confirmed the acquisition this week, confirming added support for expansion efforts specifically in the Chicago region while adding value to 3PL initiatives.

“Circle 8 has a strong history of providing its customers with superior services and logistics solutions,” said Renee Krug, CEO of GlobalTranz.  “Circle 8 has combined a focus on people, processes and technology to drive growth via unique solutions for its customers and strong carrier partnerships. The combination will further accelerate our growth and market leadership in the 3PL industry,” she added.

Circle 8 is a third-party multimodal transportation and logistics services provider with a reputation of ethical business practices combined with its extensive history of satisfied customers represented in its 98 percent customer retention rate.

“Since the founding of our business in 2001, Circle 8 has provided innovative solutions with honesty and integrity,” said Mike Lewis, co-founder and co-CEO of Circle 8.

The Lombard-based company represents the ninth acquisition for GlobalTranz since January 2017.

“GlobalTranz is clearly executing on its strategy of driving growth both organically and via complementary, accretive acquisitions,” said Bob Farrell, executive chairman of GlobalTranz. “Our unique hybrid combination of the best independent freight agents in the industry with our strong direct channels is a clear differentiator. Circle 8 will further enhance our channels to market.”

RSL AND THE COMPETITIVE ADVANTAGE OF ORDER FULFILLMENT

Order fulfillment can be labeled as the least appealing part of the e-commerce lifecycle. However, as unappealing as it is, order fulfillment is integral to the shopper and retailer. On its simplest level, an order that is placed must be shipped out. So, how can an order fulfillment 3PL be a competitive advantage for retailers?

Rakuten Super Logistics (RSL) is a leading 3PL that operates a nationwide network of 12 order fulfillment facilities. With such an expansive network, RSL is uniquely positioned to provide the competitive advantage that many retailers need.  “The RSL network opens the marketplace to choice and flexibility,” says Michael Manzione, CEO of Rakuten Super Logistics. “Scaling up and down is invaluable and, depending on your size and need, you can utilize our two-day delivery network or drill down to further locate your product closer to the end consumer.”

While RSL is among the 3PLs with the most expansive U.S. networks, they are not stopping there. They recently announced plans to open an additional six U.S. facilities by the end of the year. Their expansion will include the major metropolitan cities of Houston and Los Angeles.

“Our continued expansion into major metropolitan markets is a commitment to our customers,” Manzione says. “Our larger footprint will facilitate our ability to deliver our clients product to their customers via next day ground and even same day in some cases.”

Meeting a client’s demand is always a priority. This is evident in RSL clients that practice Just In Time (JIT) inventory from overseas. When executed properly, JIT is a competitive advantage as the inventory system increases efficiency and decreases waste by receiving product as it is ordered, thereby reducing inventory costs.

Rakuten Super Logistics’ 12 facilities are all located near major shipping ports, which reduces the time from when a product enters the country to when it is received in the warehouse. That close proximity to major container ports allows RSL clients to keep lower inventory levels, thereby reducing their costs while leaving room for scalability.

Scalability is a huge advantage for retailers that have seasonal lifecycles. Take Black Friday as an example. In 2018, Black Friday e-commerce sales in the U.S. topped $6.2 billion, dwarfing the $5 billion in 2017 Black Friday sales.* The strain on 3PLs was enormous but managed through valuable resources. However, many retailers who managed order fulfillment in-house could not meet the increased customer demand.

Operating a vast network of facilities, RSL provides more than just the ability to scale. It provides significant cost savings to its clients. “Our approach to serving the small to middle-size e-commerce companies allows them to compete equally with their larger competitors at a competitive rate,” says Manzione.

Rakuten Super Logistics negotiates shipping rates with the major carriers based on their large-scale shipping volumes. This means that when an e-commerce retailer partners with RSL, they receive the reduced, negotiated shipping rates.

“With the USPS First Class Packages service structure change to zone-based pricing, all e-commerce retailers must consider how to locate their product closer to their customers,” Manzione notes. The zone-based pricing structure will leave many retailers sticker shocked–the cost to ship a one-pound package from LA to New York will be significantly higher.  Leveraging Rakuten Super Logistics’ shipping rates will help keep these costs more manageable.

The savings isn’t always bottom line either. “We have built a great two-day ground network and now want to offer additional choices for those seeking same day and next day delivery, while maintaining lower shipping costs,” Manzione says. “Technology is the key to our success. In 2018, we implemented ‘picker-robots’ developed by California-based inVia. The picker robots help increase production and order accuracy. Technology and innovation have been the backbone of Rakuten Super Logistics. We continue to implement the latest technology.”

Manzione continues: “The exponential growth in e-commerce couldn’t have been accomplished without significant changes to logistics. Rakuten Super Logistics has been on the forefront of 3PL innovation; from using robotics to zone skipping, Rakuten Super Logistics provides clients with a competitive advantage to succeed in the tough online space.”

Source: Statista

LET’S COUNT THE WAYS 3PLS ADD VALUE TO YOUR COMPANY’S WAREHOUSING AND DISTRIBUTION PROCESSES

Growing pains aren’t just for new businesses. As any experienced business leader will tell you, even a well-established business will run up against its share of challenges from time to time. One such challenge is often inventory management, or more specifically how to process that inventory in a timely and cost-effective manner. That’s where third-party-logistics, or 3PLs, come in.
Third-party logistics is the outsourcing of any logistics services, from shipping to warehousing and distribution. But how can outsourcing help your business? After all, it’s just going to cost more money, right? Not necessarily—and even when it does, that investment is usually money well spent.
If you’re curious about how 3PLs can add value to your company’s warehousing and distribution processes, here are some of the top reasons you should consider switching operations to one.

They help alleviate those growing pains

Having a 3PL provider host your warehousing and distribution options allows businesses of all sizes to grow without worrying about one of the most crucial aspects of growth: inventory. By transporting inventory from ports or domestic manufacturers to the warehouse or straight to your business, 3PLs save you time, labor and even the ability to expand without physically expanding your site. On the flipside, are you ready to scale back on seasonal inventory? Warehousing with a 3PL will allow you to eliminate unneeded or unwanted space without having to pay for extra overhead you no longer need.
An added bonus? Working with a 3PL provider can help generate income, because thanks to an expanded delivery network, your products can reach more customers in more places, and at a faster speed than in-house logistics may be capable of.
This efficiency means that seasonal items arrive in season, trendy items arrive before the trend is over.

Less investment

Yes, 3PLs are an investment in your inventory management processes, but that investment is often significantly less costly than investing in your own logistics operations. When you outsource to a 3PL, you eliminate the need for manpower, vehicles, storage overhead, tracking and inventory software—and the list goes on.
For one generally-lower rate, you benefit from the expertise of 3PL professionals who know what they’re doing because it’s all they do. That’s at least five fewer headaches for you and your business.
But saving money isn’t the only major savings using a 3PL provider can afford you. It also saves your time—time you could be using to focus on running your business. Third-party logistics providers are more efficient at what they do, so you can be more efficient at what you do.

They offer value-added services

With many 3PLs, your warehousing doesn’t just end at shipping and storing. Third-party logistics providers often offer far more than just the basics and can customize the services to your individual business needs. Plus, with a recent push toward VIP and a la carte services, there has never been a better time to work with a 3PL provider.
These programs allow you to tailor your logistics package to your business’ individual needs—trimming unnecessary services and replacing them with services that can really benefit your business. Examples of VIP services include priority loading and unloading at the ports, rush delivery and more.

Less technology

Since when is less technology a good thing? When it costs your business tens of thousands of dollars to purchase additional logistics software to help with the logistics and inventory process. Why spend your own money when a 3PL provider already has cutting edge software that likely works more efficiently than any software your business would need to invest in?
But there’s more because once you get that brand-new logistics system, you must then train your workers to use it—another issue you won’t run into with a 3PL provider. Using a 3PL affords you the luxury of hitting the ground running with a business that lives and breathes exactly what you need. After all, what’s the point of operating your own logistics if it doesn’t make your business run more efficiently or even slows productivity?
Another perk to relying on your 3PL’s tracking software is better visibility for your customers, who can track their orders as those orders move along the supply chain.

Better transparency

Along with leaving the inventory management technology to the experts, switching to a 3PL usually offers you more accurate tracking information about the status of your inventory. This is because most 3PL operations have better shipment tracking software. This allows the business customer to access real-time information about the status of their product from ship to port to warehouse and on to the end user; all the tracking information you need is right at your fingertips, without having to check each stage with multiple providers or invest in costly logistics software.
It can be nerve-wracking to hand over the reins of your logistics operations to an outsourced, third-party provider, especially if you’ve been handling your logistics operations in-house. But when you’re doing business with experts in the industry, the cost of switching operations to a 3PL usually outweighs the risk.
All of this for less money than bringing your logistics in-house? It seems too good to be true, but the proof is in the numbers.
Think of it this way: Outsourcing your logistics operations to a third-party provider is a lot like those sale sites where the more people buy in, the lower the price goes. But instead of driving down the cost of a vacation, your money is pooled with other businesses who use the same 3PL, driving down the cost for everyone. All this for the expertise of professionals whose hands-on approach allows you to remain as hands-off as you want to be and focus on what’s really important: your business.

Happy (Belated) Birthday, Team Worldwide

Winnsboro, Texas-based Team Worldwide, which bills itself as “a global yet locally-minded freight forwarder and 3PL company,” in January proudly celebrated is its 40th anniversary in the biz.
Father and son Joe and Bobby Brunson established Team Worldwide in 1979 as a small, regional freight forwarder in the Dallas/Fort Worth area. The company’s mission was “to develop a long-term relationship with each customer by providing a logistics network that offers a variety of innovative and reliable services now and for the future.” Under the third generation of family leadership, the company remains committed to the same principles.
Of course, from humble beginnings Team Worldwide built itself up to the point where its corporate headquarters in Winnsboro boasts of more than 100,000 square feet of office and warehouse space, on grounds that accommodate a state-of-the-art data and technology center that supports 40-plus locally owned branches in North America and a global customer base.
 “We appreciate this opportunity to say ‘Thank You’ as we celebrate 40 years of service,” says Team Worldwide. “We proudly remain large enough to serve you but small enough to know you!”