Best value beats best price

May 9, 2006
Companies that follow best practices in managing international logistics are creating better ways to leverage the skills and technology of their logistics

Companies that follow best practices in managing international logistics are creating better ways to leverage the skills and technology of their logistics partners, according to research conducted by analyst firm Aberdeen Group (www.aberdeen.com). These companies are finding new ways to synchronize activities and increase process visibility and control with their third-party logistics providers (3PLs). A winning 3PL strategy starts with choosing partners that provide the best value rather than the lowest contract cost.

Noting that international logistics is all about managing a network of 3PLs, the Aberdeen report suggests the foundation for controlling this process is visibility. With best practice companies, visibility goes beyond identifying a shipment delay or inventory issue. These companies consider an alert as just the first step in a structured notification, resolution and root cause analysis process.

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