© GT Nexus, Inc.

How to Manage Inbound Transportation from Global Suppliers When Shipments are Outsourced to Multiple 3PLs

Establish a Global Transportation Platform

A STRATEGIC IMPERATIVE FOR MANUFACTURERS

Manufacturers lose control over the inbound supply chain when they purchase from global suppliers and must organize transport across multiple regions and modes. Third-party logistics providers often help manage these fl ows, which often include consolidation and direct-to-customer orders. They manage their assigned region or mode from their own, isolated “control tower” — a system meant to bring all infor-mation onto one page, but in this case leaves out data on the manufacturer’s shipments from other 3PLs.

Impact of Having No Centralized Platform

Manufacturers using several 3PL systems lose a large degree of control over their outsourced activities. “Without a cloud platform, they are forced to gather transportation information in separate systems with different formats and standards for each region or mode.”

In this case, there’s no single information source. Because the cost of switching deters the manufacturer from gaining vis-ibility into the supply chain, they may tolerate lower margins, lost or late shipments, and manual reconciliation in order to avoid a new implementation process with a new 3PL.

When manufacturers lack control, they experience:

Shipments that are missed by carriers

Manual rule-checking to ensure accurate execution

Lack of visibility and control into the entire process

Falling service levels due to being “locked in” to a particu-lar provider

The Root of the ProblemWhen each 3PL uses its own system, there is no central location for data on events like shipping orders, shipment plans, book-ings, load plans, and ASNs from every partner.

1. Proprietary 3PL systems

When manufacturers outsource to 3PLs, they must work on multiple systems. Each might warrant a different process and use varied KPIs to monitor performance. This results in:

Lack of consistent processes and information on inbound supply transport

Manual bookings by suppliers to one or many 3PLs

No automated and trusted audit trail of past or current activities

2. 3PL lock-in

Manufacturers invest a great deal in choosing 3PLs. They must integrate the software to existing ERP systems and bring employees up-to-speed on its use. This leads to:

A high cost of switching to a new 3PL and subsequent “lock-in” to the chosen system

3. No platform for supply chain control capabilities

Without a cloud-based system on which to manage trans-portation, companies won’t have visibility into supply chain activity, resulting in:

Low level of control over the supply chain and tedious, manual processes to manage supply chain activity

© GT Nexus, Inc.

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Companies struggle to control the supply chain transportation planning processes.

The Challenge

When 3PLs are on their own proprietary systems, there’s no centralized source of information to keep track of inbound transport.

Suppliers Customers3PLs Enterprise

Plant

Plant

NetworkConnectivity

Agility

Customers

Customer

DC / Warehouse

Plan

Actual At-Risk DelayDynamic ETA

B

A

Sense more accurately

Operate more efficiently

Respond faster

Make better decisions

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The SolutionManufacturers operating with ERP systems cannot manage inbound and outbound supply via a single platform if they are forced to use isolated systems for each 3PL they contract with. However, there is an option that allows companies to outsource important transportation activities while maintain-ing a single system of record.

A cloud-based supply chain platform allows each 3PL part-ner, suppliers, carriers, and the buyer itself to collaborate on a single network. Manufacturers can purchase from suppli-ers all over the world, book shipments on various modes,

and make supply chain decisions based on standardized data. When a manager identifi es the need to switch to a different 3PL, the process is painless.

Connect on a neutral cross-supplier and cross-3PL booking platform to manage inbound fl ow.

Manage the process from booking to ASN creation through a supplier portal

Provide end-to-end visibility from supplier shipment through customer delivery

Make better transport consolidation and routing decisions with a logistics workbench

Work across partner 3PLs, regardless of their back-end systems

How to use a global transportation platform:

1. Ensure that shipments get out on time using the best trans-port option

2. Provide one source for suppliers, partners, and carriers to see transport information

3. Avoid higher-than-expected freight spend by ensuring compliance to allocation and routing plans

Value PropositionsThe value in a single platform for global transportation lies in the power of the network. All proprietary 3PL systems are in-tegrated onto a cloud-based platform, where processes can be automated and unnecessary spending eliminated. Manufactur-ers can create transport plans from a clear, high-quality picture of their inbound supply chains.

1. Harmonize processes across all suppliers and 3PLs instead of decentralized workfl ows

Standardize processes that can be automated

2. Ensure optimal product fl ow at lowest possible freight spend

Use cross-supplier/cross-3PL shipment planning platform to make better decisions

Change 3PLs as needed; avoid being tied to a single provider

3. Reduce unnecessary expediting

Adjust proposed high-cost transport plans through advanced visibility and pipeline insight

Supplier Transport Control and the Networked CompanyTo manage inbound supply from a single platform, companies must transform themselves from silo-based, inward-facing corporate operators to interconnected, highly agile business network orchestrators.

When each new 3PL contract requires an investment in a new system, manufacturers are better off adopting a cloud platform — where connecting to new partners is seamless.