Insight, foresight for the dawning conceptual age in the global logistics, transportation, and supply chain markets.
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posted by Michael J. Stolarczyk at 22:56
In December 2009, Mike joined Kontane Logistics in Charleston, SC, as President. Prior to Kontane, Mike served as CEO of the Toledo Port Authority in Ohio. From 05-09, Mike was a Sr Director for global 3pl Exel. Mike founded FPS - Ronin LLC in 04 to establish a forum where people could stimulate collaboration. Mike was with the A P Moller from 1988 until 2004 and held senior management positions within Maersk, ranging from Manager, Maersk Hong Kong Ltd, to Director, US Flag Liner Ops, for Maersk Line Ltd, in DC. Mike was posted to Prague in 1999 as the Managing Director within the Maersk Agency, administrating all business activities in the Czech Republic and Slovakia. He was also Chairman of the Board for both Maersk Logistics and Maersk Intermodal Europe. In 2002, Michael’s was named to Fast Company magazine’s debut list of “Fast 50: Global Innovators Whose Achievements Helped Change Their Company or Society.” In 2003, Mike was elected vice chairman of the Ceske Pristavy a s Board by the shareholders. He was also appointed to the Board of WVU’s B&E School that same year. He also serves on the Board of Governors at West Liberty University.
1 Comments:
Michael - can you post your thoughts on the following comment?
"Annual savings dollars generated by a 3PL should always exceed the costs billed by that same 3PL for the same year"
As a practical application, here is an example:
ABC company has a inbound spend of $13 million. The 2007 cost of using the 3PL for an inbound warehouse and occasional transportation management was $1.7 million. The direct savings generated by the 3PL were $1.6 million. Indirect savings are not measured, but anecdotally they are high, with lower inventory, shorter cycle times, higher turns, better information, more control...etc.
The relationship has been going for about 5 years and all the low fruit has been picked. Also, many efficiencies were gained in those previous years as well as cost savings.
On the one hand, an 11% savings was generated in 2007; on the other, the 3PL cost was greater than the savings.
Would you consider it a mistake to make the statement at the top of this post?
Thanks!
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