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ICTD International Centre for Training and Development

The Role of Freight Forwarding Companies and Third Party Logistics Providers

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Description

Corporate executive are under constant pressure to reduce capital investment and increase shareholder value. They also must deal with constant customer pressures to improve service and reduce costs. In this demanding environment, executives struggle with question like:

  • What are our core competencies?
  • What are the real sources of our competitive advantage?
  • Can outsourcing functions and processes to Third Party Logistics (3PL) providers help us achieve out corporate objectives?

The emergence of a large and resourceful community of 3PL providers has placed the question of if, when and how to effectively use third party logistics services in front of every product company, regardless of size. The pressure to outsource competition in all channels in all industries has never been greater. Featuring an overview of the third-party logistics marketplace, the course includes an assessment of the pros, cons, and correct applications for third-party logistics; a methodology for building the business case for third-party logistics; contracting with third-party logistics provider; negotiating techniques with third-party logistics providers; negotiating techniques with third-party logistics providers; starting up third-party logistics operations, third-party logistics case studies; and tips and techniques for third-party relationship management.

Course Objectives

At the end of the course participants will be able to learn:

  • When to Utilize Third-Party Logistics Service
  • How to Justify Third-Party Logistics
  • How to Select a Third-Party logistics Provider
  • How to Transition to Third-Party Logistics
  • How to Start-Up a Third-Party Logistics Operation
  • How to Measure 3PL Performance
  • How to Manage 3PL Relationship

Course Outline

Third-Party Logistics Industry Overview

  • Third-Party Warehousing Providers
  • Third-Party Transportation Providers
  • Global Logistics Service Providers
  • Freight Forwarders and Customs

Brokers

  • Logistics Management Service

Providers

  • Logistics Exchanges
  • Fourth-Party Logistics Providers
  • Third-Party Logistics Industry Trends and Statistics

How and When to Justify Logistics Outsourcing

  • Financial Impact Analysis
  • Service Impact Analysis

How to Select a Third-Party Logistics Provider

  • Vendor Selection Criteria
  • Seven Steps to Vendor Selection Preplanning
  • Third-Party Logistics RFI and RFQ Elements
  • On-site observations
  • Online resources

How to Negotiate with Third-Party Logistics Providers

  • Elements of a Contract Relationship
  • Contracting Principles

How to Contract with Third-Party Logistics Providers

  • Cost Models for Third-Party Logistics Contracts
  • Gain Sharing Models for Third-Party Logistics Contracts
  • Free Structure Alternatives and Examples

How to Manage Third-Party Logistics Providers

  • Joint Operating Models
  • 3PL Relationship Management Models

How to Transition to Third-Party Logistics

  • Start-Up Tips and Techniques
  • Workforce Transition
  • Overcoming Barriers to Change

Re-In sourcing Tips & Techniques Case Studies in Third-Party Logistics

  • Automotive Industry Third-Party Logistics Case Study
  • Food Industry Third-Party Logistics Case Study
  • Telecommunications Third-Party Logistics Case Study
  • Service Parts Third-Party Logistics Case Study
  • High-Tech Third-Party Logistics Case Study

## Course Methodology

A variety of methodologies will be used during the course that includes:

  • (30%) Based on Case Studies
  • (30%) Techniques
  • (30%) Role Play
  • (10%) Concepts
  • Pre-test and Post-test
  • Variety of Learning Methods
  • Lectures
  • Case Studies and Self Questionaires
  • Group Work
  • Discussion
  • Presentation

Who should attend

  • Buyers & Planners
  • Customer Service Managers
  • Distribution Operations Managers
  • Import/Export Managers
  • Industrial Engineers
  • Logistics Directors
  • Logistics Managers
  • Logistics Project Managers
  • Manufacturing Analysts
  • Manufacturing Engineers
  • Materials Managers
  • Operations
  • Planning Managers
  • Procurement Analysts
  • Procurement Managers
  • Shipping Managers
  • Supply Chain Managers
  • Traffic Managers
  • Supply chain Vice Presidents
  • Warehousing Operations Managers

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