Sustainability Metrics - Improving Relations with 3PLs

Blog by Julie Urlaub, Founder and Managing Partner at Taiga Company
Dec 3, 2010 10:45 AM ET

Taiga Company blog by Julie Urlaub, Founder and Managing Partner at Taiga Compa…

Keeping with the latest trends, customer demands continue to drive the overall logistics market.  The desire to meet service levels set by end consumers have improved one aspect of the logistics relationship but have not necessarily aligned companies with their third party logistic (3PL) providers.  Some believe business sustainability metrics may be a new and common platform for improved 3PL relations.

Traditionally two major factors have been at odds in outsourced logistics decision making.  Professionals have been torn between the value of integrate business operations with logistics providers and business risk of ‘vendor lock-in’ due to high switching costs.  Too often the result has be an under performing or misaligned relationship that has become too costly to replace.  However, there may be a solution on the horizon.   Consolidation of the logistics outsourcing industry through mergers and acquisitions has become the primary avenue of growth for many of the very large 3PLs.  This combined with increase regulation and the increased use information technology to deepen visibility logistics cost drivers, presents an avenue for alternative performance discussions.   For the most part, today’s logistics systems rely heavily on the use of air and truck delivery. These transportation modes come with significant environmental and social touch points.  The improvement opportunity for distribution can now go beyond traditional efficient, timely and cost effective delivery. Companies taking business sustainability action: click here to continue reading.  

Home to one third of the earth's trees, the Taiga is the largest land-based biosphere and encircles the globe. Its immense oxygen production literally changes the atmosphere and refreshes the planet. It is this continuous renewal that has shaped Taiga Company's vision to drive similar change in the business world. Taiga Company seeks to be the "oxygen for your business".