#projectlogistics #projectcargo Process change

When there are multiple service providers for complex specialized transportation needs why does one limit oneself with a “tied-in” restrictive contract with one third party or multiple assets based carriers? 

Why is a 2 tier or even a multiple tier purchasing approach not utilized more often? Using 2+ partners instead of only one? Tying yourself to a single service provider across a specific region or the globe even? 

Of course, a full vetting and qualification has been conducted and 1 has been chosen but why? Why only 1? Why not more? Added communication and time to manage but holding others on the sideline to hold the preferred accountable holds massive value I feel. All it might take is an added "cc" on an email.

I once had a customer who managed his vendors in this way on a daily basis. To be certain, many of us use this "blind copy" option to source the best rates and information and make our decisions based on this. It's was a quite effective approach for this customer.

Does increasing suppliers to review information/solutions/options/ideas give you a clearer picture of their strengths? Does your service provider have all options available covered before offering you their service? Sometimes they do, sometimes they don't.

Would increased brainpower add better solutions? Can potentially 2+ work together if a collaborative framework is established? Similar to JVs we are seeing in the mining sector - is sharing resources (physical & intellectual) in the best interest of the stakeholder and project? Sometimes?

Any logistics pro can attest to the challenges of applying a single-source global methodology across a wide geographic region if they are truthful. It's difficult but not impossible to manage. The larger the network, the looser the process the higher the risk of challenges at the local level. Global contracts are signed regularly. Some work, some don't.

Tight processes, understanding, knowledge, systems, processes, KPIs, coverage, planning.

BUT....

There is always a "but" or an "if" in the world of project logistics. It should be easy but it isn't...

What works well in one part of the world might limit or cause massive challenges in an another - I've spoken to customers with global agreements only to be held to contracts signed at head office levels. Are there ways around this? Who suffers? What's the cost?

Project budgets, timelines, delays & schedules suffer. Reputation suffers and business suffers. Future business and bottom line suffers.

North American or European mentality applied in South America, Africa, Asia or the Middle East? Who is the best in which region? First, second or even a third choice? What's the benefits of signing an MSA? Why not 2 or more?

Does this fall under the WE ALWAYS DO IT THIS WAY category? Why? Why not change the process, the understanding and the outcome? Worth some thought?

Why is regional procurement not utilized more to obtain the most local value and experience in working with complex global logistics projects?

Transparency to customers, integrity and value. Exploring the alternatives. Bringing ideas.  

#projectmanagement #projectlogistics #logisticsplanning #heavylift #vesselchartering #epc#epcm #oil #gas #mining #power #infrastructure #engineering #lng #heavyindustry#chemical #nuclear #hydrocarbons #renewables #oilgas #construction #plantmobilization#plantdemobilization #remotearealogistics #international #projectmanagement #engineeringdesign #supplychainmanagement #logisticsmanagement #logisticsengineering#transportation #transportationplanning #riskmanagement #riskassessment#engineeringmanagement

ABOUT: Mike is a 35 year career logistics business executive & business observer focusing on collaborative, transparent & simple solutions for regional and global stakeholders, EPCs and equipment manufacturers.

He is adding personal, creative, fresh, simple strategy and innovative solutions & project management perspectives to a complex market through customer focused discussion and review. He is an outlier in the usage of social media, connecting and creating massive value for customers.

Offering ANOTHER CHOICE for capital project logistics management, transportation/customs brokerage & supply chain services globally.