Respect and truth are the two things that are essential for a mutually rewarding outsourcing relation. This might seem easy but it is not. Micromanagement and continuous price pressure from the shippers serving as overseers affect the relationship. However, the 3PL needs to be treated as partners. If you do so then you give more value to them and will be able to carry out the business processes effectively.
Experts have mentioned that efficacious client-3PL relationships mean a mutual commitment to the creation of value for each of the parties. If you emphasize too much on the price of the 3PL business, you will not be able to focus on the innovation that brings profit to the organization and improves the performance.
Here are some tips to improve your 3PL experience.
Upgrading the Proposal Request
You should include the operation date in detail. This is necessary for a detailed analysis. A third party logistics and spend a large amount of money just to develop a response and suffer a loss. This is the reason they might choose not to go for a project that doesn’t have a proposal containing the required data to make it informational as it might hurt their performance and budget.
Set a Realistic Expectation
Your company might be experiencing the same issue every year and every trial. You should not expect that the third party logistics that you hire will be able to solve the problem immediately. Even though they are experts they will be facing the same challenges that you did. Thus, they will take some time to work on the issue. You need to set realistic expectations and goals from the start and thereafter collaborate to solve the problem.
State the Terms of the Contract Clearly
The contract shouldn’t be an afterthought. Service and billing dispute are pretty lethal to a relationship. Contracts might be daunting and lengthy but it is not as daunting and lengthy as litigation. You should clearly state the service that you expect from the 3PL provider and how the operational performance is going to be measured. Do not forget to mention the terms of payment with the details about how it is going to be calculated.
Using the Right Resourcing for Manipulating
One of the common reasons behind the failure of outsourcing companies is insufficient resources, change in management, and improper performance management. It might seem like the daily activities take away the logistics execution. However, in reality, this just adds the need for management in other areas. You should define the requirements of a third-party logistics provider and thereafter assign someone to this role. A majority of the 3PL operations has a go-to person and if the 3PL provider works with you then it will be beneficial for the partnership.
Set a Time to Communicate Regularly
You should always stay in touch with the 3PL provider. It is important to stick to the communication plan with only a slight deviation. Be it a monthly call or a daily meeting, this step should be considered as a mandatory requirement.
20Cube Logistics is one of the leading 3PL service providers and believe in building long term relationships with business clients.
3PL shipping services should be provided with your long-term business strategies. This will empower both the partners and lead you to think better to improve the performance.