Traditional Industry Relationships

Activity based agreements Pricing/costs directly link at the transactional level Task based services & implementation Services provided are normally reactive to client

needs

Traditional Industry Relationships

Benefits: Easy to implement & measure Clearly defined rules of engagement

Disadvantages: Difficult to expand relationship Typically not long lasting – longevity based on

personal relationships “You get what you asked for” Death by SOW amendments Often subject to the concepts expressed in Kate

Vitasek’s book; Vested Outsourcing of, “Bid and Transition, Bid and Transition…”

Relationship Evolution – Transaver/BMS 1992 - Barceloneta:

Established unified LCL program Managed air & ocean Inbound routing

1993-94 – Expansion to include Mayaguez & Humacao: 1st time the three facilities worked together Created transportation team Performed LCL RFP Managed air & ocean Inbound routing for all three

facilities Managed cargo claims

Relationship maintained at Manager level at each facility

Relationship Evolution – Transaver/BMS

Relationship Evolution – Transaver/BMS

2006 – 2009 Through ownership turnover “the ear of the client was lost”

Long term contacts transitioned Specific services lost New people with different visions joining BMS

Transportation & Logistics team “Who is Transaver & what do they do” Pockets of strong supporters

Period of reduced usage of Transaver

Relationship Evolution – Transaver/BMS

Relationship Evolution – Transaver/BMS

2010 - 2011 – New decade of engagement (continued): Fact Finding & Needs Assessment:

What does Transaver do todayWhere does BMS need helpIdentification of support that can be deployed

immediately What can we build together

Management of Transportation Incident Reporting Security Monitoring

Recognition & acceptance by entire BMS supply chain as being a strategic part of the team

Participate in solution development Clearly defined responsibilities & expectations

Relationship Evolution – Transaver/BMS

Benefits:

Seamless transition from one responsibility to anotherEmployee turnover has low risk to long term partnershipIncreased integration means harder to disengageProcess focusedClear Win-Win results

Lower overall costs to BMS BMS flexibility to direct outsource exactly

where need exists Improved performance results Transaver providing additional services to

BMS

Relationship Evolution – Transaver/BMS

Best Practices:

Team ApproachHigh level of commitment & involvement from both sidesAllow 3PL to fully understand the business and become an extension of the customerConsistent Quarterly Business Review Meetings

Participation by all stakeholdersDashboard approach to measuring & monitoring

How to Achieve – Lessons Learned

Requires commitment from both sides beyond primary contacts

Trust Openness to share Desire for mutual win-win results

Solid and Embraced N.D.A.