3PLS--WAKE UP TO THE NEW BLUE OCEAN
- How many strategies are actually just a reaction to competition?
- Why do so many firms struggle with competitive differentiation?
- Even more, why do so many firms have no strategy to create separation?
- How many providers have a strategy that will alter their industry boundaries?
- How many think beyond their red ocean of competition and look to change their red ocean into blue ocean?
- How many strategies are basically a redo of same-old, same-old?
A handful of companies are now implementing the new e-commerce. These firms understand that customers want delivery of their orders within 48 hours of order placement. This is both good business and a blue ocean opportunity. They are meeting supply chain issues using their own solutions, instead of using the standard options and providers.
The new supply chain is very different from the traditional, monolithic supply chain used by many manufacturers, retailers, and wholesalers--
New Supply Chain Management for Blue Ocean New E-Commerce / Multichannel
- Are segmented by channel
- Are defined by integrated process
- Are measured by performance and service
- Focus on customers
- Focus on delivery
- Focus on product positioning and availability
- Deliver orders complete, accurate, and on-time
- Utilize integrated suply chain execution technology across the supply chain
All this is a blue ocean opportunity for certain 3PLs and logistics service providers. These select 3PLs and LSPs may be in business now and redefine themselves with a new strategy. Or they may develop as new providers who understand the new supply chain and lead. The blue ocean is not for those 3PLs who do not want to change and like to compete in a commodity service with little or no competitive differentiation. It is for the bold and creative who want to lead and not be part of the herd.
Too many 3PLs operate and are designed for their benefit and not for the benefit of customers--including potential--and their supply chains. And they wonder why they are a commodity service.
Logistics outsourcing is based on low cost bids. Does this create an underlying weakness? What happens when costs cannot be lowered enough? What happens when service becomes the key factor, such as with the new supply chain?
Blue ocean is for those 3PLs and LSPs that--