6 Important Tips for Third Party Logistics Providers
Posted: Jun 01, 2021
Third-party logistics (3PL) service provider offers services related to warehouse, order fulfillment, distribution, reverse logistics, and other supply chain entities. It needs to be technology-driven to run an efficient system that fulfills business management.
Logistics is an important aspect of an organization that’s why a 3PL partner needs to be efficient in order management and deliveries, not only that their policy for return queries need to be organized, it looks like a tedious task for an organization.
As we all know, E-commerce has played a crucial role in the evolution of 3PL. And demand for 3PL Montreal service providers surged overnight due to the crisis of COVID-19, right from healthcare and personal care to retail aftermarket. With this demand, we are only expecting an increase as time goes by and logistics play a crucial role in driving demand for 3PL providers.
Let’s understand some important tips that 3PL providers should need to remember
Measure Only What Matters: There are many factors that need to be reported and measured. A set of KPIs is the one that matters most and should be concentrated for objective achievement. And if we are talking about the 3PL partner’s vision and their focus is on improving the company’s profits and not just simply creating reports.
Understanding or building ways so that you can work with the logistics provider & reach a certain benchmark. Customer satisfaction should always be the priority in KPI because KPIs break down the goals into a granular form. Keep an eye on the KPIs and see the results from time to time depending on changing needs as well as real-time issues.
Ensure the Use of Efficient Software: With the developing technology in today’s world, it’s important to understand the software that your order fulfillment uses. It can manage operations, inventory, deliveries, and all the other operations with a high-end software application.
For 3PL management, the software is one of the most crucial parts, or we can say a complete software solution with all required customizations used for every operation such as monitoring every activity, tracking details, and challenges as well.
Regular Communication: Communication it’s an important aspect for any business to succeed. In logistics too it’s an essential element for successful 3PL management, it brings transparency between the logistics provider and the company. Not only that it can be extended in the form of a contract enclosing the expectations of services to be provided, and the goals to be achieved.
Communicating with a 3PL partner regularly on a daily or weekly basis, setting up schedules for meetings and calls is important for a successful 3PL partnership.
State the Contract T&Cs Clearly: As it takes extra time to get clarity between partners, but transparency is very important in businesses may be in terms of payment, services to be performed, or any other operational performance. A lack of understanding will lead to disputes, undermining the relationship between the 3PL partner and the client company. That's why understanding is extremely important.
Allocating Appropriate Resources to Manage the Relationship: The resources from the client’s side need to be managed proactively. To achieve large mutual goals essential functions should be accompanied so that it can be better handled by the 3PL partner and assigned the work as soon as possible to it. Doing this can improvise and helps to achieve better results.
Define a Long-term Contract: Providing freedom to 3PL partners just to express their ideas to maximize capital investments over time. We all know that long-term contracts have a certain amount of risk, but proper management leads to higher investment.