Third-party logistics providers, or 3PLs, such as Panalpina are increasingly applying Supply Chain Analytics methodologies. Sophisticated assessment tools and benchmarking applications are used to compare individual supply chain performance to a wider set of industry peers. The objective is to provide customers with value-added services and strategic guidance in regards to supply chain design and execution.
Supply Chain Analytics assesses supply chain performance and identifies inefficiencies in supply chain configurations with the ultimate objective of improving their end-to-end performance in terms of operational, financial as well as managerial aspects. “Supply Chain Analytics can be regarded as the creation of ‘virtual images’ of supply chain structures in order to describe the performance or state of an existing supply chain,” explains Peter Karel, Corporate Supply Chain Analytics, Panalpina. “It is all about «cutting out» process waste and reducing costs.”
Companies throughout the world need to become more flexible and efficient in their supply chains. The integration of total cost management in supply chains is becoming increasingly important on their agenda. They need to consider market volatility and the impact on indirect supply chain cost of obsolescence of stock, cost of capital, damage and loss, lost sales etc. Companies face the challenge of not only outsourcing the execution of logistics and transportation services to 3PLs but also getting strategic consultancy on their supply chain strategy in order to focus on their core competencies.