Sunday, May 4, 2014

CONTAINER LINES, FREIGHT FORWARDERS & 3PLs

What would I do about the service problems created by container lines?  First I would have done segmentation of our supply chain to know where to prioritize and why. I am not going to go fishing for cheap rates. Plus I would do some serious analysis of the carriers and freight forwarders for the trade lanes I am active in and overall. I want to exclude financially marginal carriers and forwarders. This is about creating supply chain service and minimizing risk. I am also analyzing service performance--on time, missed sailings, etc. As for forwarders, it is the inability to get its main customers on ships at mass times, like Chinese New Year or some contrived carrier or other problem. 

Feeding a supply chain needs dependable and consistent service. I will meet with both the identified carriers and forwarders about the company, our supply chain, and exactly what we need. I will not deal with forwarders who use our volume to drive lower rates in the market and then screw us on our service parameters. Same with carriers. I am not going to feed their fill the ship and screw our service parameters. I would then issue a type of RFP driven on performance metrics. How is that for a beginning?