With the introduction of a new normal and the redesign of supply chains, many companies are turning to third-party logistics services (3PL) providers.
Here's how you can optimize your 3PL relationship.
Take stock of your business and identify specific issues so you know what to expect from a 3PL partner.
Please answer the following questions:
Do you need help
Also ask yourself how your requirements might change over the next three to five years.
In logistics, there is no one-size-fits-all solution.
A good 3PL partner is able to develop custom solutions that meet your organization's unique needs now and in the future. It doesn't try to squeeze your supply chain into a prefabricated form.
In addition, a 3PL, which has facilities such as vehicles and warehouses, can make a decisive contribution to allowing your supply chain to adapt to seasonal fluctuations or unexpected changes in the market.
A key indicator of a vendor's ability to mitigate supply chain disruptions is their level of technological sophistication.
Verify the following:
Does the 3PL provide real-time visibility into your supply chain, collaborative tools to avoid (rather than react to) costly delays, and business intelligence and analytics to enable accurate decision making?
Also consider whether a 3PL's overall commitment to investing in innovative technologies aligns with your growth goals. Knowing this in advance can help you avoid problems later on.
Defined rules for cooperation are decisive for the success of any partnership. Identify your exact needs and set clear goals and objectives. Your values should be in line with those of the 3PL partner so that your goals are in line.
Work with your partner to set key performance indicators (KPIs) to measure performance and ensure continuous improvement on both sides.
Shippers must entrust their partners with protected data and information so that 3PLs can get an overview of the entire business and see how they can improve the efficiency of the entire supply chain. Collaboration can lead to innovative solutions and unexpected benefits.
Your partner's success also depends on your success, so you can be sure that your partner's recommendations reflect your interests.
To further improve your partnership with your 3PL, you can involve them in strategic discussions and long-term planning. This includes discussions about potential acquisitions, new brands, and anything that could indicate changes in volume.
Supply chain disruptions, labor shortages, technology outages, and other risks specific to your product line can have a significant impact on your business.
Brainstorm and plan for what-if scenarios.
With advanced technologies, dashboards, and KPIs, verbal communication can be lost. However, communication and collaboration are key to continuous improvement. Therefore, set a communication plan and stick to it.
