Tuesday, March 12, 2013

3PL for Disabled Veterans

The Idea
Create a third-party logistics (3PL) company offering warehousing capabilities and specifically employing disabled veterans home from deployment and trying to re-enter the workforce.

Origins
One of our customers at Vocollect is a 3PL facility for the blind. They use Vocollect Voice(R) to enable these workers to do the work of typical warehouse selectors. This customer spurred my interest in distribution center technologies for the disabled, of which there are many.

How It Works
Build a warehouse or purchase or lease a vacant warehouse. Contract with a warehouse management software (WMS) vendor, possibly "in the cloud" to save money initially, to manage inventory. Recruit disabled veterans and work with a licensed physical rehabilitation specialist to adapt the job to their injury. Many former military service members have supply chain management experience and would be able to manage the warehouse and the customer relationships as well. Market this business to corporations as a socially responsible 3PL outsourcing alternative.

Resources Needed
Supply chain management experience, physical rehabilitation experience, capital investment for the distribution center and technologies required.

Sustainable Competitive Advantage (If Any)
Productivity and accuracy are bound to be higher due to greater experience by the workers. The 3PL may be more likely to forge gain-sharing agreements with customers due to the socially responsible nature of the business, making switching costs higher as well as increasing profitability. Some subsidies may be available by the Federal Government for employing veterans, and Veterans Administration funds may be available for assistive technologies in the warehouse that may also increase productivity and accuracy.

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