Topic 2: Limiting parties that can offer their service in a market with undercapacity

The greatest danger when selecting an LSP is to choose a large Global logistics player to service a smaller company.

First the bargaining power will not be in favor of the smaller company. Second, the Global Logistics partner will not necessarily be willing to offer flexible terms and services.

Best for a smaller company is to help a smaller or several selected smaller logistics providers to develop jointly.

A win-win relationship will be established for many years with a clear bargaining power to get best price st best cost.

When the number of relationships becomes hard and complex to manage a Global logistics player can be brought in to manage the relationships.

But always keep control over logistics contract and price negotiations.

Nobody negotiates better than the one needing the right service!