An optimum relationship with your 3PL provider will develop where there are shared expectations, common goals and values — all elements of a shared culture. A recent Inbound Logistics editorial explained, “If one party has a mentality of ‘good enough is fine,’ and the other has a ‘dazzle me’ expectation, no one will be satisfied.” A shared culture is a key element of a successful logistics partnership and this is especially critical in today’s economy as strategic alliances become a matter of survival.

A shipper should seek a 3PL that will fully invest in the relationship, while setting common goals and objectives. Partner with a provider who can meet the same expectations you have of your employees. Besides the delivery of goods, this often means focusing on the delivery of solutions as well — allowing a 3PL to offer better insight into how they can best solve customer challenges. This approach is based on trust and accountability as information is shared between parties. By engaging fully with its customers, Koch Logistics becomes actively involved in their success.

We believe sharing common values and philosophy is vital to a successful and lasting relationship between customers and third-party logistics providers.

-Darren Nelson, National Sales Manager

As you well know, and our proprietary research confirms, claims management is an important element in logistics management. For Koch Logistics, while only a small percentage of the total shipments that we coordinate result in claims, we partner with our customers in this complex area to simplify claims management and claims administration.

Knowledgeable Support

As part of our value-added services, we assist our customers through the claims process. This starts with tracking the legal deadlines and reminding our customers to provide us with timely information to preserve claim rights. We then proceed to file and administer the claims on behalf of our customers. We also will assist in negotiating settlements with carriers and filing in conciliation court when claims can not be settled through the negotiation process.

While this certainly makes the process easier, we believe the most important component of claims management is claims prevention. The dedicated Koch Logistics team tracks and reviews claim data for all of our customers. Depending on the claims trend, we will work closely with our customer transportation team to determine if possible changes are needed.

The Customer/Carrier Relationship

We will review the reason(s) for claims and how that may relate to product packaging or type of transit. At times, we may recommend the use of a dedicated truck in lieu of a LTL transportation service to reduce the amount of product handling or to reduce the exposure to other freight that may damage the product. We perform due diligence on a wide range of carriers and we regularly evaluate them so we can recommend a “best match” depending on the varying needs of our customers. Discussed in further detail in our Process Mapping blog post, we closely examine the core capabilities and strengths of vendors. And our process doesn’t end once freight is delivered—we routinely explore our carrier relationships for successes and areas of improvement to further minimize claims.

We know from speaking with customers the importance of simplifying the claims processes and prompt follow-up. We want our customers to be able to navigate this often arduous process with ease, knowing they can count on a partner like Koch.

-Tom Torreson, Director of Administration

During several recent trade shows and conferences, we have heard organizations and retailers discuss the “new normal” in regards to the economy and its lasting affects on the industry. For retailers, there is a realization that things may never be quite the same again. The idea of “hanging on until things get back to normal” is simply not an option. It is doubtful that things will get back to the old normal; this is the new normal.

So what exactly is the new normal? We began to explore this topic in the blog post about our Symposium which provided an open forum for leading retailers. Generally, there is a new set of expectations to deal with this tough, demanding retail industry climate. Shifting patterns in consumer demand combined with increasingly complex supply chains bring new challenges. For retailers to survive they must adjust and develop new ways of managing and directing their businesses. Smarter logistics can help simplify these challenges as retailers look to increase productivity, streamline operations, maximize efficiency & lower costs.

We did see an emerging optimism and energy especially lately, as companies are beginning to move past merely coping with the crisis, to actively planning for the long term. At the recent GlobalShop show for instance, we saw a stronger attendance of retailers and vendors. And we’ve certainly seen the shift toward remodels and retrofits versus new store openings. Takeaways from the findings of the 2009 Study on the State of the Retail Supply Chain by RILA noted that in light of the current economic cycle, the need for effective supply chain capabilities is more pronounced. At Koch Logistics, we continually seek even smarter supply chain connections while maintaining our track record of 99% on-time pickup and delivery. It’s how we help customers meet the challenges of this “new normal.”

What does the new normal mean to you?

-Jeff Faust, Vice President & General Manager

It was exciting to meet so many of you at the 2010 GlobalShop Logistics Conference last week. While official attendance numbers aren’t out yet, the Conference kicked off last Wednesday, March 10, with the Opening Night Reception completely sold out.

As we talked with booth visitors, we were energized by the growing sense of optimism and enthusiasm among retailers as they begin to move in a more positive direction, which was also prevalent at our Annual Retail Symposium.  To survive and thrive in this “new normal” environment, insightful observations and ideas were presented in conference sessions and on the expo floor where exhibitors showcased more than 10,000 products and services designed to make stores more interesting and more profitable.

At our booth, we enjoyed the great conversations with current clients, and gained new perspectives from visitors who dropped by to learn more about how Koch delivers smarter supply chain connections for retailers. If you were at the show, feel free to comment and share your thoughts. You can also search #globalshop on Twitter for posts about the conference and its attendees.

-Jeff Faust, Vice President & General Manager

We are pleased to announce that Yvonne Ecklund and Stan Lau have recently joined the Koch Maritime team to help customers meet international freight forwarding requirements as efficiently as possible.

Yvonne Ecklund’s previous work experience includes more than twenty-five years at DB Schenker USA. Most recently, she worked for Resource Logistics as domestic sales manager. Yvonne will focus on import/export operations for Koch Maritime. Previously a business manager residing in Shanghai, China, Stan Lau brings fluency in both Chinese Cantonese and Mandarin and will concentrate on container freight station (CFS) operations at Koch Maritime.

Yvonne and Stan bring their knowledge and skill to further establish our ability to address all international shipping requirements—and to come through for customers when it matters most. We hope you’ll get to meet Yvonne and Stan shortly.

-Larry Garaghty, COO
Koch Maritime, Inc.

GlobalShop 2010 registration is now open and we hope to see you next week (March 10-12) at the Sands Expo in Las Vegas. Stop by our booth #4230 to learn how we can help your complex logistics problems like we have for top retailers like CVS and Best Buy.

Don’t miss keynote speaker Wendy Liebmann, CEO of WSL/Strategic Retail, and her session “Hope for Retail-Finally” on Thursday, March 11 at 8:30-10 a.m.

When consumer confidence still looks like a rollercoaster ride, it’s hard to imagine there is any light at the end of the proverbial (shopping) tunnel. But there is. Wendy Liebmann will preview the results of WSL/Strategic Retail’s 2010 edition of How America Shops® Mega Trends study. Using the study, she’ll reveal where the light is: which shoppers, categories and channels, and what you can do to be “in the light.”

We hope you’ll turn “insights into action” along with us at GlobalShop 2010.

-Tom Hall, National Account Executive

We are pleased to announce that Tom Hall and Heather Doty have recently joined our Account team. As logistics veterans, they both bring comprehensive expertise that’s an ideal fit with our approach to providing our customers smarter supply chain connections.

Heather previously worked at YRC, most recently as Director of Field Sales. Prior to joining Koch Logistics, Tom worked as Business Development Manager for One Source Logistics. They will both work directly with our Koch Logistics customers to provide customized programs for optimal supply chain connections. We hope you’ll get to meet Tom and Heather shortly.

-Jeff Faust, Vice President & General Manager

We hope we’ll meet you next week at the 2010 RILA (Retail Industry Leaders Association) Logistics Conference, February 21-24 in Orlando, Florida.

I’m looking forward to an Afternoon with Archie Manning on Monday. All-American and NFL MVP Archie Manning’s appeal as a sports speaker transcends his on-field accomplishments, and even those of his sons. His example of persistence, perseverance, and leadership has endeared him to fans across the country.

View a PDF of the conference brochure here. Look for us in the Koch Logistics booth #210. And let us know what sessions you found most enjoyable.

-Darren Nelson, National Sales Manager

As we mentioned last month, Koch Logistics co-sponsored the ninth annual Best Practices Symposium with our partner, Store Opening Solutions. We recently returned from two great days in Florida and want to share our experiences for those of you not able to attend.

With several major retailers in attendance at the Symposium, we were able to facilitate some candid and open discussions regarding current industry challenges. Over the next few weeks, we’ll highlight some key research findings and explore what the “new normal” looks like for retailers. Please feel free to share your experiences with us.

We first identified the state of the retail supply chain, with help from Brian Gibson, Ph.D. Despite the compelling link between supply chain management (SCM) and retailing, few studies have addressed it. Along with the research team from Auburn College of Business, Gibson explored key issues in supply chain management through executive level interviews with more than 40 major retailers. During the Symposium, Brian presented answers to three key questions:

1.      What is the role of SCM in retail companies?

2.      What challenges are of greatest concern to retailers?

3.      What capabilities must retailers develop and leverage to achieve supply chain excellence?

The results suggest that retailers are expanding the role of SCM within the organization. According to the survey analysis, “While they remain responsible for cost efficient fulfillment of store orders, retail SCM executives are now highly engaged in strategic planning at the highest levels of the organization.” We found this to be evident with Symposium participants. We welcome your comments regarding the trend in your own company. How has your role evolved?

-Jennifer Johnson, National Account Executive

In my last blog I highlighted the importance of seeking a 3PL provider who will invest fully in the client relationship. At Koch Logistics, a new client relationship begins with process mapping to gain valuable insight into the customer’s needs as we (together) analyze the details of the way an organization operates. This insight identifies opportunities for improvement so we can implement a program to most effectively meet a client’s needs.

An integral piece of mapping is to identify key metrics or importance factors for our customer. Because we provide a customized approach, it’s critical to determine what is most important to the client—from complex problem solving to on-time delivery to increased visibility. Process mapping is the basis on which a customized program can build and succeed.

At Koch, we believe it is just as important to engage in “dual mapping” where we seek to match customer requirements to the core capabilities and strengths of vendors. It’s about determining a “best fit” for the customer based on their individual needs. This approach allows us to coordinate better service and increased productivity in the most cost-effective manner.

Take for instance the trend of tighter inventory management, especially among retailers, as evidenced this past holiday season. Dual process mapping allows Koch Logistics to select warehouse vendors to best accommodate the customer’s often strict requirements to keep stock low but not sacrifice service or performance. Koch’s customers have confidence that they are on the path to smarter supply chain connections.

-Meg Schmidt-Duncan, Manager of Carrier Relations