Adding Real Value In Logistics

In the Logistics and Transportation business, our customers entrust us with millions of dollars of business. Often, the contracts for services that we sign are multiple years in duration.

Inevitably, no matter how well we do in fulfilling these services, when it comes time for the Quarterly Performance Reviews, one element of customer feedback resonates consistently: "As 3PLs, we expect you to come up with innovations and solutions that improve efficiency and productivity; the status quo, meeting your contractual standards is not enough."

On the face of it, we can raise our hackles at this customer expectation. After all, are we not meeting the agreed-upon deliverables? Yes and no.

Our contracts set a defined level of service, but our whole purpose, our raison d'etre is that we are solutions providers. Does it not stand to reason that as w engage deeply with our customers, that we find areas for efficiency, where we can leverage our network, our expertise and our scale to advantage for the customer?

If we are truly customer-sensitive, if we are not to take the won business for granted, then our mindset has to change. We have to be in the business of beating expectations. We have to stand behind the mantra that 3PLs can leverage their core competencies to continually add new value for the customer. That is how we become indispensable partners. Our customers don't service providers. They want us to help them get better, to differentiate themselves through service and cost positions.

And we are uniquely positioned to do that.
If we are happy with delivering against our service parameters, then we are not partners.

Then we become just another vendor.