When
sourcing supply chain management services, think about the provider’s approach
to people and processes. Do they embrace a methodology like lean, six sigma, or
operational excellence? Are they really committed to continuous improvement, or
is it just an advertising tactic? Do they have an internal culture that
demonstrates that commitment?
When
a provider is well rounded in its supply chain management services, you’re able
to benefit by:
•
The value and wealth of efficient opportunities in your supply chain
•
Gaining a higher level of competitive advantage
•
Focus on total logistics cost reduction (transportation, warehousing, and
inventory)
•
Reaching new heights with supplier accountability and performance
•
Solving problems with a leader present at your facility
•
Building the lean culture to drive and sustain continuous improvement
Whether
you are looking fSupply Chain Management Servicesor supply chain management
services or have had experience with a third party logistics provider (3PL),
you may have realized that finding the right partner isn’t easy. For instance,
many 3PLs are eager to dazzle customers with the latest and greatest, but they
don’t offer anything substantive to ensure proper long-term customer care.
Because businesses have unique logistics needs, an easy solution is not a
solution at all. What is needed is a partner, a 3PL company that tailors its
approach to meet your individual needs.
1.
The Right Type of 3PL Relationship
The
first tip is having the right type of relationship with your 3PL. While groups
of 3PL’s may have similar characteristics, the supply chain management services
will each value different aspects of your solution by different measures. You
want your 3PL to connect quickly and then show you how their supply chain
management services will fit your specific needs. Continuous improvement is
also a vital aspect in choosing the right 3PL. Continuous improvement is important
as it leads to improved quality efficiency, innovation or any component that is
crucial to any system. It’s about becoming the best in the field you happen to
be in.
2.
Improved Performance with Increased Data Access
The
second tip in choosing supply chain management services is improved performance
with increased data access. Working together with a 3PL, you can create targets
throughout your supply chain. Choosing the right target means defining your
metrics, such as measuring carrier performance. Selecting the applicable
targets should involve conversations with all partners, not just 3PLs, around
what data can be captured for each shipment.
3.
Accountability and Control in Achieving Expected Results
The
third tip is accountability and control in achieving expected results. The 3PL
should be accountable to ensure ownership is in the right hands and positive
results are achieved. It’s important for a 3PL to follow through on
expectations. In our research, the number one reason 3PL relationships fail is because
the 3PL over-promised and under-delivered. The 3PL needs to accept
responsibility and demonstrate a daily commitment to delivering what was
promised up front.
Here
are some general questions to ask when sourcing supply chain management
services:
Does
the 3PL provide the services required?
Does
the 3PL have the technology required to perform the tasks required?
Does
the company have the required warehouse space, dock capacity, warehouse
personnel, etc.?
Is
the 3PL financially sound?
Are
the 3PL’s geographical locations suitable to cover the network?
Does
the 3PL have the flexibility to respond to changes?
Are
the 3PL’s environmental policies compatible?
Are
the costs of the services detailed enough for comparison to other bids?
Are
the customer references acceptable?
Is
the 3PL a good cultural fit?
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