Davide Palumbo argues that competition is not always negative and can be used to improve logistics performance. Specifically: 1) A company can learn from their competitors' logistics strategies and choices by considering using the same third-party logistics provider (3PL) as their competitors. This 3PL will understand the industry needs and solutions may transfer. 2) Using the same 3PL as competitors can increase synergy in distribution by shipping to the same customers more frequently, improving customer satisfaction and making planning easier. 3) Increased shipment frequency and volume optimizations from enhanced synergy can lower logistics costs through consolidated shipments and improved utilization.

1. DAVIDE PALUMBO
COMPETITION IS NOT ALWAYS A BAD THING
MITSUBISHI HEAVY INDUSTRIES AIR
CONDITIONING EUROPE LTD

2. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

3. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

4. Introduction
• Name : Davide
• Nationality : TBC
• Current position : Head of Operation @ Mitsubishi Heavy Industries
Europe Ltd
• Working Background :
Operations, Logistics, Customs, IT, Finance, S&OP, BPR, Project Management and
many other things not worth mentioning…
• Past working experiences : Sony Europe Limited, Sony Italia
• Personal traits : moody… definitely NOT a sales guy…

5. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

6. Competitors…
The fact that there is competition on the market is generally viewed as "negative“,
however we can use a little bit of "lateral thinking" and revert the experience and
the choices of our competitors to improve our logistics performance and at the
same time improve customer satisfaction

7. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

8. 3PL
The choice of the right 3PL is never easy:
• tender process
• benchmarking
• SLA agreements
• “trial and error”
• Customer satisfaction
There is really no rulebook to follow: each type of business has its own peculiarities
and needs…

9. 3PL
…this is why considering using the same 3PL of our competitor(s) might actually not
be such a bad idea:
• this 3PL will have provided solutions to similar needs that might actually work for
you
• More synergy in the distribution logic: same customers -> more frequent
shipments -> improved customer satisfaction
• Seasonality activity planning will be easier
• The bigger the size of your competitor, the better the advantage…

10. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

11. Logistics Cost Down
As a consequence of the enhanced synergy of the shipments, the logistics cost will
go down:
• LCL/groupages
• Frequency of the shipments
• Volume optimizations

12. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

13. Market Analysis
“Know your enemy”….
It’s the first rule of war: and actually very effective.
If you understand the competitors, their strategies and policies you may make
better choices, however differentiating the choices from a logistics perspective
might actually fire back…
An unfit 3PL can do as much damage as a bad publicity on the market, for it will
directly affect the customer satisfaction.

14. Agenda
Competitors……
3PL Selection
Logistics Cost Down
Introduction
Market Analysis
AOB

15. AOB
Free discussion and mostly questions are welcome!!!!!!!!!!!