Client-specific solutions help cut costs

Meeting client requirements at an effective cost that is beneficial to both the client and the logistics company offering the service probably poses one of the biggest challenges in business today. According to Luis Dionisio, strategic business developer for NGL Logistic Solutions, one of the most effective ways of overcoming this challenge is through transparent costing models or activity-based costing models (ABC model) that ensure the client is paying for what he is using in the service being offered. “There are many key opportunities in offering key specific solutions that move away from the traditional cross-dock philosophy to specific dedicated niche solutions that offer clients better control of the products being distributed through supply chains,” says Dionisio. “Traditionally cross dock client solutions seemed to be successful due to the illusion of cost savings linked to the critical mass of products being distributed through these models, but that is not necessarily the case.” He says these models need to carry a high operating cost to ensure national coverage due to their service offering, and in many cases clients do not need the full service offering, which means they are paying for a service they don’t need. “We have identified this and have been able to adapt and adjust to offer a key specific client solution that focuses on distributing product to where the client requires it and therefore saving the client cost and securing the distribution platform.” According to Dionisio this means that solutions are dedicated to each client and there is no cross-over of other client products and therefore no cross-contamination. “These solutions meet the clients’ specific needs, and offer their own niche logistical platform – most importantly ensuring a competitive advantage to the client as their product is being delivered to the right place, at the right time, with the right cost attributed to it.” Dionisio says being able to effectively and continuously offer a service that is specific to a client’s needs is what ensures long-term success. “It is about offering a client a service that will give him a competitive advantage in the marketplace through the solution being implemented.”