Source Consulting's Supply Chain Success Story
Written by Terence Dowling
Source Consulting is a logistics consulting and solution provider that applies cost reduction services within the shipping industry. Kupersmith, Co-Founder and CEO of the company, is excited to have been included on Inc. Magazine’s 30th annual list of the “500 Fastest Growing Companies” in America, joining the ranks of Microsoft, Zappos, Intuit, and Vizio. Source Consulting was also nationally ranked by the magazine as a “Top Ten Logistics and Transportation Company” and a “Top Forty Company” in the Los Angeles area.
Since 2004, Source Consulting has been helping companies with high shipping volumes to reduce transportation costs and streamline the logistics process. Their team of highly experienced former carrier employees and innovative technologies aim to deliver maximum small parcel and freight cost savings for clients.
Services include freight and parcel invoice auditing, carrier rate analysis and negotiation solutions, supply chain optimization and consulting projects, customizable logistics reporting solutions, and carrier bill payment services.
Much of the company’s recent growth and success can be credited to the performance-based element of their business’ cost structure.
“In the midst of a challenging economic environment, Source Consulting’s contingency based fee model has encouraged many customers to proactively seek our help in reducing transportation costs,” Kupersmith said. “Although the cost saving solutions offered by Source are certainly relevant in a thriving economy, they become all the more sought after in troubled economic times.
“A performance-based fee model allows companies to drive internal cost savings without putting limited budget dollars at risk.”
Source Consulting is quite simply just taking a piece of the costs savings that they have already procured for their clients.
“Although performance based fees are not unique to Source Consulting or this industry, the additional value add solutions that the company incorporates into its core service offering set us apart,” Kupersmith said. “Consultative services related to transportation forecasting and budgeting, carrier service level optimization, accessorial fee reduction analytics, and other cost custom saving initiatives are provided without upfront charge or performance fees.”
While Source Consulting has reached a level of success, the road to where it is today has not always been so smooth.
“The ever evolving struggle to develop efficient systems, processes and best practices was and is a learning curve that has resulted in many bumps and bruises along the way,” said Kupersmith. “Unfortunately, our primary method of discovering what worked best, most often involved first discovering what did not work well.”
Kupersmith advises anyone looking to start or maintain a business to keep focused and be consistent in the effort to grow.
“My advice would be to have a goal and develop a plan to get there, but be ready to scrap it all and re-figure things along the way,” he said. “Be persistent but also flexible.”
It worked for him.
To learn more about Luke Kupersmith and Source Consulting, please visit www.sourceconsulting.com
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.