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RE: Third Party Logistics (3PL)

From: "Steve Lee" <steve.lee@...>
Date: Tue Dec 30, 2003  8:34 pm
Subject: RE: [EDI-L] Third Party Logistics (3PL)
Dave,
Ah 'operational procedures'. It depends on the amount of
integration. When you get to the point where you have dedicated 3PL
employees on your account or implanted at your location a sigh of relief
can be taken. Also 3PL experience can be taken into account as some
3PLs have vertical industry account handling and customized processes
for those verticals.

Regards,
Steve Lee

DHL Danzas Air & Ocean
120 Tokeneke Road
Darien, CT 06820
United States

Phone +1 203 656-6892
Fax +1 203 662-5499

<mailto: <http://www.us.danzas.com/> www.us.danzas.com

All business transactions are based on DHL Danzas Air & Ocean terms and
conditions, available upon request.
-----Original Message-----
From: David Frenkel [mailto: Sent: Tuesday, December 30, 2003 1:06 PM
To: 'EDI-L Mailing List'
Subject: RE: [EDI-L] Third Party Logistics (3PL)

Steve,

From what I have read the majority of organizations are happy with their
3PL
and the pain seems to be with specialty or niche type work. For example
in
retail stores the vendor is relying more on point of purchase (POP)
displays
that vendors often rely on store employees to set up. It is estimated
about
a third of these displays never get off the loading dock. Most 3PL will
only handle point to point and not get involved in any specialty work.

I know DHL has been a global freight carrier for some time. The article
I
linked to below talks about even in China reducing freight costs has
become
an issue for exporters. I know in China the quality of the packing for
ocean going containers is an issue for breakage. A 3PL might help in
this
area.



Regards,



David Frenkel

612-237-1966

-----Original Message-----
From: Steve Lee [mailto: Sent: Tuesday, December 30, 2003 11:37 AM
To: 'EDI-L Mailing List'
Subject: RE: [EDI-L] Third Party Logistics (3PL)



Dave,
As with any outsourcing the IT pitfalls I've seen are the
customer looses direct control of their project timelines, unless they
are a big fish. Global 3PL's are able to handle your whole supply
chain. They can take from multiple suppliers/warehouses, store or
crossdock in 3PL managed exclusive warehouses and move freight break or
consolidation across multiple carriers. A multinational customer would
then get consolidated customized reporting even across competing 3PLs,
that is if you are using multiple 3PLs, which in that case it is best to
choose a main 3PL to report to you.
This is starting to sound like a sales call.
It's easier for a transportation provider to open a
warehouse, than it is for a warehouse provider to provide in house
transportation as there is no infrastructure in place.

Regards,
Steve Lee

DHL Danzas Air & Ocean
120 Tokeneke Road
Darien, CT 06820
United States

Phone +1 203 656-6892
Fax +1 203 662-5499

<mailto: <http://www.us.danzas.com/> www.us.danzas.com

All business transactions are based on DHL Danzas Air & Ocean terms and
conditions, available upon request.
-----Original Message-----
From: David Frenkel [mailto: Sent: Tuesday, December 30, 2003 11:06 AM
To: 'EDI-L Mailing List'
Subject: RE: [EDI-L] Third Party Logistics (3PL)

Steve,

I am most curious at the 'pain' points of using a 3PL some of which you
touched on. Most people think of a 3PL as an organization that runs a
warehouse which I have experience dealing with and they are often not
very
inefficient for a variety of reasons. The 3PL marketplace is crowded
and I
wonder what the differentiators are between these transportation and
warehousing service providers. Thanks.



Regards,



David Frenkel

612-237-1966

-----Original Message-----
From: Steve Lee [mailto: Sent: Tuesday, December 30, 2003 9:12 AM
To: 'David Frenkel'; 'EDI-L Mailing List'
Subject: RE: [EDI-L] Third Party Logistics (3PL)



Dave,

Most curious issue that happens is that EDI was originally
intended as a two party transaction. Now it's a three party transaction
and
trying to intercept, extract, and process coherently the differently
formatted data is like playing monkey in the middle of the United
Nations.
Especially when the customer has multiple warehouses, suppliers and
multiple
Carriers (3PLs).

From which angle are you looking at these 3PL
implementations?
The Supplier, Carrier/Warehouse or Customer?



Regards,

Steve Lee



DHL Danzas Air & Ocean

120 Tokeneke Road

Darien, CT 06820

United States


Phone +1 203 656-6892

Fax +1 203 662-5499



<mailto:
<http://www.us.danzas.com/> www.us.danzas.com



All business transactions are based on DHL Danzas Air & Ocean terms and
conditions, available upon request.

-----Original Message-----
From: Jim Greeney [mailto: Sent: Tuesday, December 30, 2003 10:02 AM
To: David Frenkel; 'EDI-L Mailing List'
Subject: Re: [EDI-L] Third Party Logistics (3PL)



Dave -

I have been involved in a number of 3PL implementations over the last
decade
and would be more than happy to discuss any questions you might have. I
am
currently implementing a global 3PL solution for a major electronics
manufacturing company with distribution centers in the US, Europe, and
Asia.
Our goal is to provide real-time persistent EDI communications between
customers, field service personnel, distribution centers and the
manufacturer.

Let me know what types of questions/concerns you might have and I will
provide you with feedback based on my experiences.

Regards -

Jim Greeney
President/GM
asp4edi.com, inc
Austin, TX/Hudson, WI


David Frenkel < wrote:
There have been numerous articles about companies outsourcing logistics
(which is a big user of EDI). I would be interested to hear from
anybody
who has or is looking at outsourcing their logistics/supply chain
concerning
issues around this (pro or con). Thanks.



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Regards,



David Frenkel

612-237-1966





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