SCI Logistics and Transportation North American Practice Group Report: Supply Chain Solutions
By: Juan D. Morales, North America Practice Group Leader
The logistics and transportation industry has seen substantial growth, and has been forced to evolve in the process. Customers, manufacturers, and government organizations have all demanded changes of the industry. These demands have increased as the end-users themselves try to become leaner and more competitive.
Manufacturers and retailers are relying on freight forwarders to be the managers of their intercontinental supply chains. Governments are more concerned about safety than ever before and are thus demanding more transparency of information.
The apparent beneficiaries of these demands are the freight forwarders, who have enjoyed rapid growth and generated returns on capital far exceeding those of the asset-based carriers. The challenge has been their ‘inbred’ selection of executives. Now the asset-based carriers are moving quickly to attract relevant talent from other industries. What are they looking for?
Freight forwarding has become more complex and success requires a caliber of executive who is in short supply. Some key points to consider when recruiting this talent:
• SLIM MARGINS: Returns on capital notwithstanding, the margins are low. Look for talent that has been successful in other highly competitive industries with similarly slim margins.
• COMPLEXITY: Executives in the sector must understand complex financial systems. Freight forwarders must be able to control different modes of transportation and different carriers.
• CUSTOMER INTERACTION: Freight forwarders often control the relationship with the end customer as asset-operating air and ocean carriers increasingly rely on the wholesaling capacity of forwarders instead of their own direct marketing. Who has shown talent in interacting with the customer and increasing customer satisfaction?
• SOPHISTICATION: Freight forwarders need to manage the sale and deliverance of a complex service that includes more than just the movement of goods, but also emphasizes technology, reporting, systems integration, compliance, risk management, and often global coordination.
• TECHNOLOGY: Freight forwarders must be familiar with technology that captures rich transaction data and allows them to manage critical information. Look for talent with backgrounds in similar industries, such as banking, credit card, or utilities companies.
With the rising emphasis on complex logistics services, the best freight forwarders have attracted talented individuals with fresh perspectives and varied backgrounds, many from outside sectors. Expect this recruiting trend to continue. Their next challenge will be retaining these cross-industry experts. THIS IS HOW WE SEE IT.
Contact
Juan D. Morales
North America Regional Practice Leader - Logistics and Transportation
Managing Partner, Miami
Office: +1 561-997-0011
miami@stantonchase.com
