7 Reasons Why a Major Parcel Carrier Might Not Be Best for Your Spare Parts Logistics Needs

If recent news is any indicator, COVID-19 has delivered a clear message to businesses — focus on your core competencies. A major parcel carrier recently announced they were selling off their freight department. Based on quotes from executives, this move is in direct response to the COVID-19 “focus” message. Global lockdowns in 2020 pushed a record number of consumers online, driving volumes for e-commerce shopping and deliveries higher than ever with no slowdown in sight. This carrier’s decision to jettison a non-core business is a smart move and we are excited for them. If you’re a high- technology OEM, your core competencies include delivering high-quality products and services, pre- and post-sale while optimizing costs. Service supply chain and logistics solutions are part of your post-sales offering but aren’t your core competency. You’ve probably spent a bit of time exploring companies who specialize in this area — companies like the one mentioned at the beginning of this article. If so, you might want to dig deeper and ask yourself: 

• If e-commerce is their primary focus, will they be equally committed to serving you and your customers’ needs for mission-critical spare parts? 

• If they were willing to sell their freight business as part of their overall business strategy, is their service logistics division (which is much smaller than freight) stable? 
• Is service logistics a byproduct of their core business or a primary focus? 
• How consistently do they meet 2- or 4-hour service level agreements? 

Over the past six months Flash Global has earned business from several top-tier high-tech companies who switched providers to partner with us — a company whose main focus is service logistics. Each decision was unique, but several common reasons were cited that motivated their switch from one of the larger e-commerce logistics and package delivery companies to Flash Global:  

1. Lack of global account management – each region had its own account manager, creating a “daisy chain” effect of communications and interactions. This was time-consuming and frustrating to manage.  
2. Spare parts logistics was not their focus – time and attention to issues was difficult to get, elongating resolution time and exacerbating time-sensitive issues.  
3. “Our way is the only way” – very little room for configurability or flexibility in delivery solutions, processes, or systems.  
4. Technology solutions were more generic in nature – global spares management has its own unique requirements that truly benefits from purpose-designed-and-built technology.  
5. Inconsistencies in service level performance – when e-commerce deliveries and Next Business Day is your core focus, 2- and 4-hour mission-critical deliveries can be challenging.   
6. Limited Global Trade (IOR/EOR) – limited as in scope as well as countries. This forces the use of other companies, leading to increased management overhead and customs delays.  
7. Global partner network not under “one” umbrella – different systems, processes and connection points make it difficult to deliver a unified global service.  

Focusing on core competencies is a strength, not a weakness. Making strategic business decisions to support your focus is crucial to achieving business success in 2021. Flash Global is laser focused on our competency: service logistics.  

If you’d like to learn more about how to up-level your post-sales support game, we’re here for you. Grab some time with us whenever you’re ready.