There are many advantages to outsourcing the management of your supply chain to a logistics company, but it is important to do your homework before entering into a partnership with your selected 3PL provider.
Identify what you are trying to achieve and establish goals.
Before entering into a relationship with a third party logistics provider map out what you are trying to accomplish and what you are going to expect from a 3PL. Using this information will aid you in finding a better match that more effectively fits your company. Some of these criteria include: customer service, technology offerings, inventory management practices, facility and staff size, and where your company will fit in with a provider’s other clients.
Develop an Implementation Plan
In order to ensure a smooth transition moving from your current operations to your selected logistics company it is essential to put together an implementation plan. Establishing requirements for service and developing performance metrics for assessment of your 3PL are initial recommended ways for starting account implementation. It is also important to establish strong open communication both internally within your operations group and with key contacts at your logistics provider’s warehouse facility.
Evaluate and Measure 3PL Performance
Especially when beginning a relationship with a 3PL it is important to meet regularly to discuss your distribution program. Upon initial startup everything will not always run as smoothly as you might expect. It is important to work with your provider to get off the ground with a solid program and work to iron out any initial kinks you may come across. Once you are up and running assess your provider using performance metrics to ensure that you are receiving optimal supply chain coverage.