Schenker Launches New Dedicated Freight Management Service
New Fourth Party Logistics (4PL) Service Integrates Business Process Outsourcing, Logistics Services and Supply Chain Management
News Item Entered: Wednesday, July 11, 2007
(Mississauga, Ontario, 11 July, 2007)—Schenker of Canada today announced its new Dedicated Freight Management (DFM) service, an outcome-based, business process outsourcing service designed to offer customers the most complete logistics and supply chain solution, regardless of which carriers, forwarders or warehouses are used. This carrier-neutral service, which goes beyond the capabilities of traditional logistics providers into a new realm of customer partnership, is a fourth party logistics service (4PL) that manages the entire logistics supply chain, including third party logistics providers (3PL) that Schenker customers may have in place.
Schenker’s new international DFM group works with customers to understand their specific business rules and requirements. Critical points are defined and the group works to redesign the business process – not just elements of the existing supply chain – to maximize efficiencies, streamline operations and reduce costs. In essence, Schenker contracts with different service providers, assembles those end-to-end solutions, manages them and serves as the single point of contact to the customer.
“After examining the entire process, we can focus on specific suppliers, carriers or forwarders to correct service deficiencies and optimize distribution expenses,” said Brian Howe, Director of Dedicated Freight Management at Schenker of Canada. “We establish operational and financial performance metrics, implement cost-saving initiatives and provide exception reporting for on-time, complete and accurate supplier and shipping performance. The process is now proactive, not reactive.”
Schenker develops customized solutions for each customer and provides the technology, the people and the process to effectively administer the staffing requirements, supplier contracts, operational procedures and systems integration. Schenker structures the relationship and the process in a way that best meets the requirements of the customer, rather than the customer having to accept what the outsourcing provider has to offer. “When we design solutions for our customers, we also have to implement those solutions. So they have to be very credible," continues Howe.
“We are focusing on the business requirement and business process rather than simply dealing with freight,” adds Claude Germain, Executive Vice President & C.O.O. “Schenker has the tools, the information technology, the people, the experience and the global reach to help our customers be more successful in their business. What’s more, our customers don’t have to change carriers or forwarders to use our capabilities and services. This is a key differentiator.”Schenker’s DFM teams provide a way to manage customer orders, inventory, suppliers, shipments and international logistics so their customers can concentrate on their businesses.
About Schenker of Canada
Schenker is the 2nd largest Logistics Service Provider in Canada, with sales of over $1Billion and operating from over 40 sites across the country. Schenker Canada spans a coast-to-coast network that extends to all major harbours, airports and border crossings. In just over half a century, the business has grown to include 2,000 Schenker employees. Schenker of Canada has a portfolio of supply chain services in Canada that include: Contract Warehousing/Distribution, Ocean Freight, Air Freight, Land Transportation, and Customs Brokerage and Consulting; as well as our Global Sports Events Group and Dedicated Freight Management Team.
With annual sales of 13.2 billion euros (CDN $20.3 billion), 54,905 employees and about 1,500 offices around the globe, Schenker is one of the world's leading providers of integrated logistics services, offering land transport, air and ocean freight, as well as comprehensive logistics solutions and global supply chain management from a single source. Schenker is a part of DB Logistics, the Transportation and Logistics Division of Deutsche Bahn AG.