We are going through a period when gaining on sales has ended, gaining on purchases is initiated, and the competition medium forces even rival organizations to produce joint logistic solutions. Nowadays, almost everybody asks the question of "how can I find a way to create a miracle and free myself from these fixed charges". Increased outsourcing in Supply Chain Management, and the continuous search of the business world for new business models are the most significant indicators of this.

Organizations which were relieved a bit in 2003 when economic indicators entered a positive course, and had the chance of reviewing the previous periods, will now be able to see that somewhere, they have done some things wrong. Comprehending what was done wrong and where, is as important as becoming aware of mistakes. Just at this point, I suggest that organizations review their logistic processes in detail. Substantially, due to your care on product quality, product variety, production control and marketing, you must have overlooked logistic elements which will have a direct impact on the price of the product you are going to sell, and on your profitability.

It is very natural to locate product quality, product variety, production control and product marketing at the core of your interests. As a matter of fact, the proper thing to do is to have your logistic processes reviewed by outsourcing providers who are qualified in this matter; and leave the management of these processes to the outsourcing provider as much as possible.

Well, what to outsource and up to what limit?

This is a very serious, as well as an extremely crucial question. Being able to ask this question is as important as giving the right answers to the question. Furthermore, you should not look for the answer of this question by yourself, but in the presence of people who are able to present substantial and satisfactory suggestions for solutions.
If you remain within the traditional limits of international transportation and bonding in logistics outsourcing, you will see that you are not able to find the solution you are looking for. At this point, you will be in the position to put on the table the logistics concepts which can be considered as new for our business world:
1. Endorsement of international transport, bonded warehouse, bonding, warehousing, stock monitoring, order management, value added hive off services, and physical distribution tasks to Third Party (3PL) outsourcing providers, as separate elements.
2. Endorsement of these tasks in total or in separate parts to Third Party (3PL) outsourcing providers, and/or cooperation with Fourth Party (4PL) outsourcing providers for implementation.
Although these business models are logistic concepts which might be considered new, you should not limit your perspective with these. Because, there is now a business model which supersedes these business models also:


"The 4. Dimension in Logistics"

This new concept was introduced to the business world by Ekol Logistics, one of the leading logistics service providers of our country. This 4. Dimension in logistics offers, besides the processes I have described in paragraph 1 above, the chance of receiving an integrated outsourcing service at planning points from production to stocks and/or from production to order; including management processes such as tax, import-export regulations; physical sales and billing. And all single-handed. In this sense, it is possible to mention a strategic partnership beyond a mere outsourcing service provider. Because, this incremental concept converts the business into a strategic partnership where the outsourcing service provider is also involved and shares risks to some extent.

"The 4. Dimension in Logistics" already marks the 2003, and future perspective of logistics.


Cem Kumuk
(Ekol Logistics Vice President)