Spider Logistics aim is to improve the transport network and flexibility of doing business for logistics service providers, carriers, shippers and trading partners.  Our views on collaborative outsourcing brings the best of the industry together to the benefit of many and at the same time provides new and challenging opportunities in the career of transport and supply chain experts.

For more information on how Spider can drive optimization of your supply chain, contact Spider Logistics at info@spiderlogisticseurope.com

4PL market has emerged in recent years. Offering a more comprehensive service. Using a 4PL, fourth party logistics service provider, is different than the traditional 3PL. Much on 4PLs discusses technology, technology is not the answer; it is part of the answer. It is one element of success of process, people and technology.

4PLs see the process and what is required to make it succeed. A 4PL is neutral and manages the logistical process, regardless of what carriers, forwarders or warehouses are used. The 4PL can and will even manage 3PLs that a customer uses.

When it comes to outsourcing, there are three questions and underlying issues:

• One, do you outsource a function versus outsource a process? 3PLs target the function. They want to handle containers/shipments/freight, not the transport management process, for example. The true need is the process, which is what the 4PL targets. Is there really a process in place–or a series of standalone transactions? What is the present process? How does it work? Where does it fail? Where are there gaps? Where are there redundancies? The supply chain process crosses organizational lines. It runs horizontal in a vertical organization.
• Two, do you outsource work/tasks or do you outsource managing? Much outsourcing is work related. Handle warehousing. Handle shipments. Not manage them. This matter is part of the next evolution of outsourcing and where the 3PL will have to migrate-and where the 4PL is already positioned.
• Three, the outsource service provider, to truly meet the needs of his customer, should be neutral. 4PLs should be neutral if they are to manage the process. 3PLs, especially those which are asset-based struggle to be neutral. 3PLs which seek to push shipments through their transport contracts or through their warehouses are not neutral.

Conclusion: Some 3PLs have not fully stepped up to meet the exact needs of customers. Some have become too focused on “managing” tasks, not processes and on serving the parent company’s core business, and have missed opportunities to present value.

The 4PL opportunity exists because 3PLs failed to meet the real logistics/supply chain requirements of customers. There will not be a “model” (or cookie cutter) for the 4PL. After all, he knows to customize to the needs of each customer.

4PL European Summary Overview

4PL market has emerged in recent years. Offering a more comprehensive service. Using a 4PL, fourth party logistics service provider, is different than the traditional 3PL. Much on 4PLs discusses technology. Technology is not the answer; it is part of the answer. It is one element of success of process, people and technology.

4PLs see the process and what is required to make it succeed. A 4PL is neutral and manages the logistical process, regardless of what carriers, forwarders or warehouses are used. The 4PL can and will even manage 3PLs that a customer uses.

So why has the 4PL market in reality not developed within Europe, at the same pace as other regions.  Well Europe is much more complex even within the single European market there are a multitude of Countries, Languages, Cultures, Taxes and Currencies and this complexity adds to the slower transition to a 4PL market.

Some main reasons:

• European Customers take a much more conservative and cautious approach to outsourcing in general and the thought of awarding the complete business to one supplier is often perceived as to greater risk.

• 3PL organisations within Europe are often seen as not being totally neutral, protecting and leveraging their assets, where potentially their competitor provides better value.

• The large 3PL asset organisations who you would have expected to champion the 4PL concept, are often restrained by the internal organisation and management of the business as most are set up as Country based P&L’s.

• The true 4PL’s tend to be smaller non asset based companies that are more agile and flexible, suited to work accoss geographic and organisational boundaries.  But these key benefits are often out weighed by the fact that these organisations are to small to award large scale 4PL contracts.

Customer’s perspective;

Within Europe customers are more conservative towards outsourcing, those that do outsource tend to share the volumes across several 3PL’s and transport organizations. An example of a tender award outcome could be:

• DB Schenker to perform there warehousing:
• TNT to make deliveries in the Benelux
• UPS to make deliveries in Germany
• Etc.

Change to a 4PL approach need to be driven from the top of the major organization, today what we see is still a reluctance to what is perceived as losing control, often justified internally by saving 10 cents here and there on the typical functional based example you see above.

One exception in 4Pl outsourcing is the Service Industry segment such as Dell computer service platform for the service and repair of warranty and non-warranty Dell products.  The overall process is more complex and the need for a centralized service combined with customer service linking together the transport and warehousing elements into a closed loop process makes this very attractive to the 4PL concept as you are outsourcing the complete process.

Collaborative Outsourcing

Within Spider we have taken a collaborative approach towards outsourcing, this allows our customer to retain control of strategy and direction, where we Spider value proposition is to add capacity, expertise, technology and process synergies across multiple customers, This approach allows our customers to stay in control and be more cost effective whilst delivering more value and flexibility.  The diagram below defines our approach.

To Steve Hicks, Account director at Spider Logistics Europe, this again proves the need to have a director managing complex supply and demand chains who’s responsibility it is to balance all the different priorities in the chain in order to achieve the best possible result.

As is the case with the Dutch Railways, such a director or manager of supply chains should be independent and asset free and capable of analysing, optimising and managing complex executions based on forecasts and actual demands.

Spider Logistics is the only independent and asset free Supply Chain Manager who operates and directs supply chains on behalf of its blue chip customers, with improved service levels, better cost control and a dramatically reduced carbon footprint.

Should you want to know more on the added value that Spider can bring to your supply chain, do not hesitate to contact Steve Hicks at: info@spiderlogisticseurope.com

According to Spider’s philosophy, every organization benefits from an integrated analysis and optimization of its supply chain. Wim expects that organizations across Europe will now be triggered to have a closer look at the planning and execution of their transportation requirements and as Spider has proven in the past: this saves costs, improves efficiencies and reduces carbon footprint.

It might well be a blessing in disguise, says Wim. Organizations that use the economic downturn as an opportunity to start optimizing their planning and execution cycles will be better equipped for the upsurge that economists expect in the near future.

For information on how to generate more value from your supply chain whilst lowering your carbon footprint: contact Spider Logistics at info@spiderlogisticseurope.com

Forward thinking organizations approach outsourcing from a different perspective. Instead of viewing it as a removing exercise and a giving-away strategic control, they look at outsourcing as a low or no cost strategy for adding talent, capacity and technology. Instead of relinquishing control, they are importing expertise, talent and technology that help drive down costs, improve efficiency and enhance customer satisfaction.

Spider Logistics Europe is well placed to offer outsourcing services for your supply chain, in a collaborative manner. This is a perfect way to support your team with the right level of expertise and knowledge in transport without the investment, while you can focus on your customer’s needs, growing your business.

4PL Collaborative Outsourcing case study

Challenge

One of our customers had a fragmented approach to managing their transport requirements and traditionally approached the problem by looking for carriers with the lowest price per transport lane. This approach led to a multitude of carriers which required hands on management, plus a multitude of hidden costs with regard to freight invoicing, day to day communication between various carriers etc.

Solution

Spider Logistics Europe solution was to move towards a collaborative outsourcing approach were the customer retained overall control of strategy and direction, but looked to Spider logistics to provide expertise, talent and technology to drive down costs, improve efficiency and enhance customer satisfaction.

An overall 10% savings was achieved through a combination of our extensive carrier management program together with Spider Logistics transport management system operated in conjunction with a central control tower approach strategy. This strategy enables us to manage multiple customers transportation networks from a central point, thereby leveraging both human savings and process synergies for our customers and carrier networks.

Key Customer Benefits

• 5 to 8 % Reduction in transportation costs
• Increased customer service levels
• Optimized supply chain performance, reliability & visibility
• Greater business process flexibility
• Streamlining and automating the process of auditing freight bills and approving freight payments.

Wim Pauwels is an experienced supply chain executive with an international track record at blue chip companies such as KPMG,  DB Schenker, Sony and Digital Equipment. Wim brings a wealth of knowledge and insight to Spiders’ Sales Solutions team.

Starting August 1, the Spider Solutions team consists of Steve Hicks, Michel Talla and Natalia Henao Alvarez

You can reach Wim Pauwels at his e-mail pauwelsw@spiderlogisticseurope.com or telephone + 31 88 01 00 400.

My name is Danielle van Oort and I was born in Tilburg. 10 years ago I finished my education and started at a large electronics chain store as an administrative assistant, where my job consisted mostly out of invoicing and other financial administrative tasks. I started at Spider Logistics as an administrative assistant on part-time basis about a month ago.

Specially the custom clearance process will be simplified due to the new customs union, and with the leading position of Belthamozhservice in custom activities in Belarus, Spider Logistics will be able to offer our customers a significant improved process of import towards the 3 countries.After many years of discussion and development, a final agreement has been initiated in the summer of 2010 between the three states and they are to go on with economic integration and are set to remove all customs borders between Russia-Kazakhstan and Russia-Belarus from 2011. The agreement, for now, eases trade among the three large former Soviet economies without fully abolishing all duties and tariffs

What does the Custom Union mean for import activities towards Russia?

Each Western European based company that imports goods towards the Russian Federation has his own experiences with unpredictable customs procedures and lead-times of the products to the final destinations. Relationship is the key word to ensure that your shipments will pass the customs without too many delays or extra costs involved.

With the Customs Union, the internal borders between the three countries will be (in the end) dismissed, which means,  custom clearance activities for the Russian Federation can be performed at the Polish / Belarus border for road and rail shipments towards the main cities in the Russian Federation.

A central role for the customs activities will be played by the city of Brest due to its geographical and historical situation with the M1 and the rail facilities as a good infrastructure for the transfer of the goods into the Russian Federation.

Beltamozhservice

Beltamozhservice is an old Belarus company that provides custom clearance activities and is at the moment the main  customs broker in this area. The company owns 52 customs clearance offices at each border entry point in Belarus and they have played a unique role in the development of the Customs Union, together with the Belarus and Russian Railway.

With the “nr. 1“ position in custom clearances in Belarus, they will be an important factor in the success of the Customs Union. Without the cooperation of Beltamozhservice the customs process will not be very different from the last couple of years. Increased lead-times and possible delays at custom clearance process at the Polish/Belarus border can still be expected specially due to the limited logistics knowledge and experiences of the company.

Spider Logistics and Beltamozhservice

In the last months, both companies have held several meeting to discuss how the new Customs Union can be developed into a corridor between Europe and Russian Federation that will ensure fixed and short lead-times. Next the partners are developing a a custom clearance process that will allow an electronic customs clearance procedure.An exclusive long term agreement has been signed to ensure that the 3 companies align the process to develop a complete service package for the customers of Spider Logistics.

Due to the “Neutral” position of Spider Logistics, we are able to develop a synergy between customer volumes into Russia and to combine the existing capabilities without the issues of assets to be involved.

3 Step Process

Step 1

The companies involved (Belthamoszhservice / SIC Group and Spider Logistics) developed a clear process that will ensure a fixed lead-time, to be determined by project and by customer from the Brest border location into the Moscow terminal, custom cleared
As a carrier neutral Transport Management company, Spider Logistics will manage the first leg (Leg 1) from customer locations anywhere in Europe towards the Brest location. Shipments will be managed in line with the customer requirements and Spider Logistics will be focused on developing solutions for each customer that will take the effects towards the CO2 emissions into account, where possible.
From the loading point at the customer location, Spider Logistics will collect all documentation for the custom clearance procedure and electronically transfer all information to our Spider Logistics TC location in Belarus.

Step 2

At arrival of the containers at the Brest location, the following action has been completed already:
•    Transit Clearance by arrival (electronic process)
•    Rail equipment for Brest-Moscow has been ordered and ready for swob
•    Containers will be transferred to Russian train
Due to the Control Tower structure of Spider Logistics, all steps can and will be prepared to ensure that no delays will take place at the Brest location. With the partnership of Beltamozhservice and the SIC Group, Spider Logistics can manage this process from our location in Belarus.

Leg 3

At arrival in in the Moscow terminal, Spider Logistics will ensure that each of the containers can be transferred directly after arrival towards the final customer location. Which means that in future there are no custom clearance activities to be executed at the Moscow terminal anymore

Security

Security was always a point of concern for the services into the Russian Federation. With the new corridor and the services of Spider Logistics, the security element is reduced to a minor concern due to the positioning of the containers on the rail equipment.
In the case of 40FT containers, both will be placed on one train platform with the doors towards each other.
Next to this high level of security, guards from the railway will accompany each train movement from Brest towards Moscow

Benefits  from the services of Spider Logistics

•    A Door to Door service offering from any location in Europe towards Moscow, with in a later phase (end 2011)  all other main cities Unpredictable lead-times for the shipments are now changed into fixed times that will ensure that customer inventories can be brought to reliable levels again
•    Custom clearance process will be managed from begin till the end by Spider Logistics
•    Due to the efficient process with short lead-times, serious cost will be reduced for our customers supply chain.

On January 29th , 2010, Spider Logistics will celebrate together with our relations the official opening of our new head-office in the Netherlands.

As you are aware, we have started our new Transport Management company, only a few months ago, and recently moved towards our new office in the south of The Netherlands.
The new address is:

Spider Logistics Europe
De Scheper 312
5688 HP, Oirschot
The Netherlands

Spider Logistics is pleased that the (former) Municipal Councillor for Economic affairs and Regional Cooperation in Breda, Mrs Els Aarts Engbers, will be present to support the official Opening and as she is seen as the motivator behind the decision of the Dutch Government to allocate the new Top Instituut Logistics in Breda, she is pleased that companies like Spider Logistics has chosen this region for their further grow in the European market.
“As a independent transport management company, Spider Logistics is aiming for the same objectives as we see for the new Logistics Top Instituut, namely to develop new models to optimize the supply chain and to reduce inefficient activities. This will have a positive impact on cost and the environment” according to Els Aarts Engbers.
The Spider Logistics management has chosen for this area due to the high level of expertise in the region and the Logistics universities in Eindhoven, Tilburg and now also in the city of Breda by 2010.
“We expect to work closely together with these universities in the nearby future, to develop new models for our customers and at the same time, to offer exiting new jobs to talented students who want to be on the top of logistics developments in Europe” said Anton van Dongen, Operations Director and co owner of the company.

Launch of the Spider Russia site

On the 29th of January, Spider will also launch its new website for the customers and carriers in Russia. This is seen as a important market for the development of the company and with this new website, Spider will be able to fulfil the requirements of the customers in this region too.

Spider Logistics, a real 4PL supply chain manager, chooses for the web based versions of the Transport Management Systems Cat4RoadHaulier in combination with Cat4Web to be its powerful service base. This new company has all the expertise and now also has the best tools to organize the activities of European carriers as efficient and costs-saving as possible. Managing Director Anton van Dongen is extremely enthusiast about the cooperation with GreenCat: “These tools optimize our possibilities to provide our services as ‘Carrier Neutral & Assett Free’ to our customers in all Europe. They seamlessly close the gaps from our customers wishes today and in the future!”