Landair Announces New Contract Logistics Service Feature: Guaranteed Value Acceleration

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Supply chain managers need their third-party logistics providers to be committed to making a measurable, positive impact on their businesses. In response, Landair announces a new service feature: Guaranteed Value Acceleration.

Third-party logistics company Landair today announced a new logistics service feature, Guaranteed Value Acceleration, to give supply chain managers greater confidence that outsourcing to a third-party logistics provider (3PL) will produce predictably measurable financial, operational or customer-service improvements.

Landair will offer Guaranteed Value Acceleration (GVA) on three contract logistics services: dedicated contract carriage, warehouse/distribution management and transportation management. To provide GVA, Landair’s logistics engineers involve each customer in a collaborative Value Identification and Enablement Workshop (VIEW) to define value in terms specific and meaningful to that customer’s business.

Landair then builds GVA metrics and milestones into the customer’s logistics strategy and contract, committing to progressively higher levels of value over the contract’s duration. If value metrics and milestones are missed, the contract specifies commensurate financial guarantees.

“We believe the concept of value between a customer and a 3PL is too important to be defined loosely or just talked about casually,” said John Tweed, Landair’s president. “Today’s supply chain managers have every right to feel that value is becoming like the weather: Everybody talks about it, but nobody ever seems to do much about it. At Landair we’re focused on changing that. We’re looking to have very concrete discussions with customers about value ― and making very tangible commitments.”

Tweed said open, candid information sharing is critical in determining whether a customer’s supply chain lends itself to a strategy that includes GVA. “Defining value in terms relevant to each customer is where everything starts,” he said. “That, plus exploring their readiness to make any operational changes that might be needed to extract greater value. That’s what we focus on in the VIEW process.

“Once we’ve had in-depth conversations around value — whether it’s bottom-line cost savings, higher customer service levels or something else — we can look for ways to build GVA into the logistics strategy we design and the contractual agreement we make. For us it’s all about being committed to making a meaningful difference for the customer, and then being willing to stand behind that commitment.”

About Landair
Landair is a third-party logistics company focused on solving challenges and creating value at the heart of U.S. supply chains. Landair’s services span freight transportation and contract logistics, including dedicated contract carriage, distribution center management and transportation management. The company employs more than 800 customer-centric professionals, owns and operates a fleet of several hundred modern tractors and trailers, and manages an alliance network of more than 3,000 freight carriers nationwide. Founded in 1981, Landair is headquartered in Greeneville, Tennessee, with regional operations centers in Greeneville and in Hartsville, South Carolina.

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