Manufacturers Turn to Specialists to Oversee Transport Services

For the world’s largest manufacturers, transportation services are so complex that not only are third-party logistics providers a necessity, but corporations are increasingly asking outside managers to oversee not just their carriers, but their 3PLs as well.

In December, General Motors Corp. announced the start of a joint venture company with CNF Inc. that would eventually be given the task of managing GM’s $5 billion-a-year global supply chain. Known as Vector SCM, for supply chain management, the company is GM’s lead logistics provider or 4PL.

Vector may be noteworthy because of the enormity of its only client, GM, and because of its structure as a joint venture company, but it is not unique in its function, according to logistics consultant Richard Armstrong.

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