Jim van Leenen, CEO and President, Flash Global Logistics, Inc. Issues Statement to the Media on Disruption in the Logistics Industry
PINE BROOK, N.J.--“The announcement by DHL to exit the U.S. domestic express and parcel markets effective January 30, 2009 was a shot heard around the world by shipping managers. While there were signs that DHL had challenges, it certainly appears that many logistics professionals were caught off guard by the degree and timing of the announcement. Even though service parts logistics (SPL) was probably not paramount in the minds of DHL leaders, both here and in Bonn, it raises questions on the impact to that segment of their business and the clients they serve.
“In the case of domestic express and ground parcel, shippers now have one less choice. Notwithstanding whatever Airborne and DHL may or may not have done right, they were a force in the market. Clearly from the shipper’s viewpoint, they kept the other two competitors honest. Unlike trucking, ocean, air freight, customs house brokerage, warehousing and virtually every other mode that logistics managers utilize, express and parcel is the only component where they will suffer from a “duopoly”. As DHL said in an earlier advertisement: “Competition. Bad for Them. Great for You.”
“What does this mean and possibly signal for SPL managers in the future? We have heard that the main reason for DHL to even have SPL business is to fill yellow trucks and planes. If there is no domestic DHL service anymore, is there a compelling reason to support DHL’s SPL business in the future? One could logically argue that given limited resources, focusing all their efforts on just their remaining core international express offering is a likely outcome. There has been no announcement or indication that DHL SPL is also exiting the US market, but given recent developments, it is safe to say it’s more possible since November 10th of this year.
“This turn of events will certainly challenge the remaining integrators to absorb transportation business left behind by DHL while remaining focused on the relentless demands of the service parts logistics segment of their total supply chain solution business model. Phasing out a large scale integrator places burden not only on SPL clients who are being displaced, but this excess business, already not a core focus for the integrator, further distracts them from service satisfaction for SPL clients by sheer volume.
“This begs the question: can large scale carriers continue to play in market space down to the SPL level, where mission critical service often demands intense, absolute and immediate service and performance parameters? The time is now for service parts professionals to be presented with solutions honoring the unique demands of their specialized logistics needs.
“While we have built-in bias to be sure, those of us who are “an inch wide and a mile deep” in doing nothing but providing SPL solutions, I am here to tell you that we see the world totally different. Unlike large scale integrator generalists, Flash Global Logistics’ sole focus is service parts logistics and improvement of SPL and the critical SPL supply chain. Every decision we make on staffing, technology and innovation is driven totally by what adds value to our service parts logistics clients. In addition, we do not have the burden of filling trucks and planes. Therefore, we are also more focused and objective about the total end-to-end solution.
“These dynamics and how we think about our clients is the main reason Flash Global Logistics is the preferred solution for the mission critical parts industry. Headquartered in New Jersey with a far-reaching global presence, Flash Global Logistics has been providing critical logistic services to leading businesses in the U.S. and around the globe for 25 years.
“Over the last 12 months, Flash Global Logistics has seen its number of customers increase, including many more from the Fortune 500. Additionally, volume with existing customers is expanding, and Flash Global Logistics realizes further operational improvements attained by stepped up investment in IT and its logistical infrastructure.
“Based on inquires we are receiving from integrator-based SPL clients, there may not be a better time than right now to learn why leaders in high tech, healthcare, telecommunications, semiconductor, computer data storage and networking industries are turning to Flash Global Logistics for their global mission critical supply chain needs.”
Flash Global Logistics, Inc. provides mission critical inventory management and supply chain solutions for clients. Worldwide, Flash Global Logistics’ 570 field service locations, 13 multi-client distribution centers, four command centers and five regional offices enhance clients’ profitability, efficiency and scalability. Clients include leading companies in high tech, healthcare, telecommunications, semiconductor, computer data storage and networking industries requiring global parts availability in 90 minutes, 2 and 4 hours, real-time information using real-time visibility, strategic inventory positioning, an advanced proprietary Web-based IT solutions system, and local personnel with global business market expertise. Flash Global Logistics’ customized solutions improve customer satisfaction while minimizing expense. Client focus, flexibility, and responsiveness ensure its portfolio of Fortune 500 customers receive the most comprehensive services for critical parts and products, inventory management and business continuity. www.flashlogistics.com