FAQ: Program Information
How does Supply Chain Solutions’ (SCS) differ from a Third Party Logistics provider (3PL)?
SCS is a transparent transportation management provider. We share our total discount, by service as well as all surcharges, so you have complete visibility to the actual make-up of your transportation spend. We then take a gain share based on what our program saves you versus your current contracted transportation provider. This allows an organization to effectively manage their transportation spend.
A traditional 3PL, does not pass along their total discount and hides surcharge spend within the total price so you are unable to have a clear understanding of your specific charges. The difference between the discounts they receive from their transportation provider (FedEx, UPS) and what they pass along to you becomes their revenue stream. This is all hidden to the participating member.
What is a gain share?
Gain share is the model Supply Chain Solutions uses to drive performance in our Logistics Program through involvement and participation. In other words, our service fees for the program are a share of the improved performance by the member.
Our gain share model compares your previous discount rates, by service, to Supply Chain Solutions’ current discount rates, by service. The difference between these two rates is calculated and then your qualifying tier gain share split percentage is applied to determine the amount to be shared with Supply Chain Solutions. The gain share model creates complete transparency to the discounts you achieve on the program.
Are there any extra fees I have to pay SCS?
No, the gain share covers the entire cost of participating in the program.
Do you have a set supplier list limiting the number of my suppliers who may participate?
Part of the Supply Chain Solutions’ difference is we do not work off of a certified list. If your organization does business with them, they will be contacted to participate. Your top spend vendors will be targeted with a Vendor Enablement/Call to Action process with FedEx. Your remaining vendors are targeted through global PO term changes.
Do you charge a fee to convert a supplier to the program?
No, there is no fee associated with this service.
I have import and export shipments as well; does this program handle international shipments?
Yes, because we collaborate with FedEx, we are able to handle all international shipments.
What does your back-end auditor audit?
The back-end auditor (Intelligent Audit) audits for service failures, correct rates, incorrectly applied freight surcharges, and identifies potential fraud. They also perform audit checks specific to your organization utilizing rules in which the Supply Chain Solutions Logistics team will help you create.