Guaranteed Value Acceleration: Why, What, Where and How
Anytime you outsource a core aspect of your supply chain, you don’t just want it managed, you want it managed more effectively. When you contract for logistics services from Landair, we look for opportunities to deliver Guaranteed Value Acceleration.
In today’s business world there’s intense focus — and rightly so — on measuring value whenever an organization outsources supply chain operations to a 3PL. In some regards, claims by 3PLs that they provide “value” or “value add” have gone the way of claims by transportation companies regarding on-time delivery — where it seems everyone now claims to provide 100 percent on-time performance.
At Landair we’ve decided value is too important a concept to be defined loosely and treated casually. We prefer to address value clearly, head-on, in our relationships with customers.
After all, when you outsource a core aspect of your supply chain, you don’t just want it managed, you want it managed more effectively. You’re not simply looking for operations to be managed at status quo. You’re anticipating a continuous-improvement mindset and approach from your 3PL partner.
That’s why, when you contract for logistics services from Landair, we look for every opportunity to provide Guaranteed Value Acceleration.
What we mean by “value”
When outsourcing supply chain operations, most organizations and supply chain managers are looking to accomplish one or more of the following objectives: reduce cost, improve operational performance (i.e., customer service), and mitigate risk or liability.
When Landair collaborates with you, it’s our top priority to understand your primary objective or objectives, and in doing so arrive at a definition of value most meaningful to you and your organization. Then we’ll seek ways to guarantee delivery of value, even accelerate value, over the course of your contract.
Typically this value-definition dialogue results in you and Landair getting in full alignment on the revenue-enhancement or cost-reduction potential that exists within your operations. Landair will then make a commitment to extracting that value over the course of our contract with you.
Where does Guaranteed Value Acceleration apply?
Logistics services where Landair has the opportunity to guarantee value acceleration include:
- • Dedicated contract carriage
- • Distribution management (including specialty warehousing and light manufacturing services)
- • Transportation management
We’re able to guarantee value acceleration in most, if not all, logistics engagements. In some cases, the scope and nature of a customer’s operation precludes value acceleration guarantees. In certain other instances, a customer might decide they’d rather not change their proven practices and processes, even if the changes we’re recommending would result in greater value.
How does Guaranteed Value Acceleration work?
At the outset of our relationship, you and Landair will agree on a shared definition of value, along with benchmark metrics for operational performance, cost and customer service. Landair’s engineers then will design a strategy that includes value-improvement goals — goals that accelerate the timeframe during which you will realize expected value from the relationship.
As goals are met, you’ll see the results in improved performance metrics, lower costs or gainshare payments. If a goal is missed, commensurate financial guarantees are built into your contract.
Not seeing quantifiable value from your current 3PL provider? Wondering if there’s greater value to be extracted from your supply chain? Landair welcomes the opportunity to explore whether we can deliver Guaranteed Value Acceleration for you and your organization.
To start a value-centric conversation, Request a Consultation or call 1-888-LANDAIR (1-888-526-3247).
Matt T. Anderson
SVP, Sales & Marketing
Matt T. Anderson is a member of Landair’s executive leadership team with responsibility for sales, marketing and engineering services.