Vested: Growing and Knocking Down Obstacles

barrier_phantomswifeLike most, I am always eager to hear what Gartner analysts have to say about business, outsourcing and logistics. Dan Gilmore, editor of Supply Chain Digest, recently wrote about Gartner’s latest global supply chain predictions in his First Thoughts column. I was keen to learn that Vested actually made the list of predictions! How cool!

Dan quoted Gartner (note – I have not seen the official Gartner report)

“While bullish on concepts like performance-based logistics or ‘vested outsourcing’ between shippers and 3PLs, Gartner does not think these approaches are likely to take off any time soon. By 2017, less than 20% of logistics outsourcing engagements will operate using value-based relationship principles.”

As I read this, my heart sank.

But read on – talk about silver linings!

Gilmore continued, stating that Gartner predicts the 20% by 2017 will be up (yes UP!) from less than 10% of logistics outsourcing relationships currently based on value-based contracts.

Talk about the paradox of perception! Going from about 10% to about 20% is a very solid growth curve, or “take off,” indeed!

Putting Gilmore’s spin aside, I see this as very motivating! Gartner is projecting an upward trend that could double. That is HUGE! Plus, it’s good news that Gartner actually cites Vested and says it is growing in popularity.

Gartner continues: “While the popularity of value-based logistics outsourcing is on the rise, early attempts to create these unique types of relationships are being met with significant challenges within the buying organizations, in particular within the procurement and legal organizations.”

Gilmore’s analysis? “There are just so many barriers to moving away from transaction-based pricing and traditional service level agreements with 3PLs that getting to a more collaborative and value-based approach is just very difficult in practice, Gartner says – even if a shipper recognizes the potential benefits.”

I take a somewhat different spin on that. In fact, we should expect obstacles to exist, that’s a given! Anytime there is a “new” or “different” or “innovative” approach, there will always be barriers to overcome. Gilmore invites readers to share their obstacles – and I can’t wait for this follow-up article.

But until then, I encourage you to look at the fastest path to knock down the barriers: follow the Vested methodology! Not sure where to start? I invite you to start with our free Vested Orientation online course. Take it from the comfort of your desk or sofa. If you like the concept, I invite you to come to Knoxville, Tennessee to our 3-Day Executive Education open enrollment course and learn about the roadmap to success! Our six classes and step-by-step methodology will get you unstuck!

Image: Barrier by phantomswife via Flickr CC

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