When contracting logistics suppliers, one of the crucial elements is subcontracting.
There are very few Global players and their service quality is very variable by region, market and by service.
Who is great in Australia is not best in West-Africa. A company serving the chemical industry is not perse the best in bulk. Tapping into specialists is the key to success.
But creating relationships with LSPs is a job in itself.
On one hand we say we want to develop these partnerships, on the other hand we want to keep a healthy competition and options to change to supplier with lowest cost.
The secret is to design logistics processes that can evolve and where multiple suppliers can operate via one common setup.
A supplier relationship management setup...
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