I ran across this article in BusinessWeek, and thought it would be good to share with everyone:
http://www.businessweek.com/smallbiz/content/oct2008/sb20081024_482729.htm
It offers an interesting view on logistics businesses, which will be the career path of many in our class.
Does everyone agree that the business is "built around personal relationships and trust"?
-Andrew Freeman
Subscribe to:
Post Comments (Atom)
1 comment:
In an effort to answer your question, I think that additional explanation of the term logisitcs business is needed. For example if your logistics business is your truck then I believe that there are several jobs you could get regardless of your relationships with others. However, if your business is a bit more complex, say a 3PL, charged with ensuring all aspects of transportation within a companies' supply chain are being done as timely, accurately, and as cost effectively as possible. Then personal relationships and trust will play more of a role.
Formerly I worked at Honda and while I was there they changed the 3PL, in this case I am sure that relationships had nothing to with the change. I believe Honda's decision was based on cost, quality, and potentially additional services. However, Honda would never turnover that kind of responsibility to a small company, they would always use a large reputable company.
I was reading an article the other day,I apologize for not remembering where, but it talked about the future of the 3PL business and how 3PLs are being asked to do more and more. They even mentioned 4PL, which I believe is a company that would be charged to hire several 3PLs on behalf of a large company and manage them. The article was saying that there would be consolidation in the 3PL business because of the increase in global business, large companies who source globally will want a large 3PL so they only have one person to deal with for all of their transportation needs. This makes sense to me, so I am not sure if opening a small business would be the best thing to do. However, consulting or being a 4PL could be a good opportunity, however, that is where trust and relationships will be at the highest of priorities.
Post a Comment