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Andy Nitz and Joe Lynch discuss what big shippers need from their 3PL. As the Director of Logistics at a very big shipper, Andy has unique insights into the shipper-3PL relationship.
About Andy Nitz
Andy Nitz is the Director of Logistics at Daikin Applied Americas. Prior to joining Daikin, Andy was the Vice President of a management consulting firm. Earlier in his career, Andy was the Vice President of Distribution and Logistics for a privately held safety products company. Andy started his career in logistics and distribution leadership first at Macy's and then at Toys R Us. Andy attended Bowling Green State University and graduated with a double major in Marketing and International Business while playing on the football team.
About Daikin
Daikin Applied designs and manufactures technologically advanced commercial HVAC systems for customers around the world. Daikin Applied products, solutions, and services are sold through a global network of dedicated sales, service, and part offices. Daikin Applied’s parent company, Daikin Industries, Ltd. Is a Fortune 1000 company with revenues in excess of $20 billion and more than 50,000 employees worldwide, making it the largest HVAC manufacturer in the world.
Key Takeaways: What Big Shippers Need from Their 3PL
- RFP stands for request for partnership, not just request for pricing.
- Big shippers are looking for a strategic partner – not a transactional relationship (married, not dating).
- Cultural fit
- Big shippers are looking for 3PLs that have the right culture. Having a culture of continuous improvement, hon – help us get better – our goal is to be world-class
- Services and scale
- Big shippers need 3PL partners who can provide the services required to properly service their account. If the 3PL needs to partner with other companies, they should be accountable for their performance.
- Big shippers also need their 3PL partner to be big enough to be a true partner, which means they can invest in the relationship and support the shipper's growth goals. Hiring a smaller 3PL is risky for a large shipper.
- Technology
- Big shippers require their 3PL partner to be able to provide world-class technology. The 3PL should be able to procure, customize, implement, and maintain systems that enable the shipper to be world-class. Since fright tech is always evolving, the 3PL must stay abreast of enhancements and innovations.
- Reporting
- For the Shipper-3PL relationship to strive, they must agree on key performance indicators and meeting cadence including quarterly business reviews.
- Additionally, the 3PL must be completely accountable for the issues driving the KPIs.