Jones recognizes the need for in-country people but argues they need to understand the global economy in addition to the local economy. In a global environment there have to be both shipping and receiving groups to comprehend what happens at both ends of the chain. When shipping globally anywhere there is a need for those well versed in world trade issues as well as local customs and the landscape of logistics throughout the region. Because of those requirements, Jones feels a larger provider offers greater access to those resources.

Something else that argues in favor of a larger supplier is the ability to devote a broad range of assets to a project. Those assets might include everything from trucks to warehousing. They may involve transportation management and the ability to procure services from other people. “Those are relatively large endeavors that a small logistics company might struggle with,” states Jones. “Because to keep on top of the technology, especially in warehousing, transportation management and online services, there is a significant investment companies have to make that needs to be leveraged across a very broad array. Otherwise, for just one customer it would be cost prohibitive.”

Jones points to the big systems needed to operate effectively globally. They are expensive and require people that can maintain the systems and react to technology issues relatively quickly and efficiently. “You have to have a backbone with an IT organization that is able to support the technology that’s being deployed on the customer’s behalf.”

Jones sees market strength for logistics providers like Ryder that have intellectual depth, geographic presence and technology and employ people that understand those relationships and are readily available for large customers. “That’s where real leverage comes,” he claims. “Because if you learn something on a landed cost calculation with customer A, more than likely that knowledge will help customer B as well.”

Ryder is a very powerful Americas logistics organization. In the Asia-Pacific region its focus is primarily on China. Jones characterizes the company as a very strong regional logistics provider with capabilities in the entire world. Ryder conducts a great deal of cross border operations with automotives in Canada. “In the US we are historically strong as an automotive provider,” he explains “We are strong in the high tech arena and in the fast moving goods, or retail, segment. That is one of our fastest growing areas. We are looking at the consumerism in the region and are crafting our products to reflect North American trends that include less manufacturing, more consuming.”

What a large 3PL can do for its customers goes beyond just moving the material, notes Jones. Its benefits involve the customer’s shelf, manufacturing plant and suppliers. He claims that, “All the elements of the supply chain important to success are things customers don’t necessarily see in a cost sheet, but those are the advantages they get from an industry leader.”