Change is here

• Global Recession
  Increasing number of plant shut downs and more than 1 million ocean containers sitting idle.
• Fuel Price Volatility
  Over 3,000 trucking companies in bankruptcy.
• Excessive Inventory
  Consumers are becoming more price conscious and nobody wants to hold inventory while demand is still hard to forecast.
• Difficulty Securing Capital
  Stock market volatility and the credit crunch.
• Technology Advancements
  20% of the world is now online!

What to do in economic volatility

• Convert your fixed cost to variable cost
• Reduce operations cost
• Refocus on core competencies
• Revise your supply chain to impove financial performance

How to do it?

Positive change can be achieved with an outsourcing partner like third party logistics company (3PL). Increased use of a 3PL can minimize your market risks and increase your flexibility. Additional benefits include:

• Logistics variable and fixed cost reduction
• Inventory cost reduction
• Order cycle time improvement
• Freed up capital in non-core areas like shipping and real estate

Customers respond in various ways to an economic downturn, but one common denominator is cash. Cash becomes king. Reducing operating cost through use of 3PL is the most frequent strategy in response to market volatility.

89% of customers rate their 3PL relations as successful.

Why is logistics outsourcing critical in economic volatility?

• Change is here
• What to do in economic volatility
• How to do it?

Kasia Wenker
kwenker@its4logistics.com
775.358.5300
620 Spice Island Drive
Sparks, NV 89431