To follow up on yesterday's post about managing your third-party logistics provider, here's an article from Supply & Demand Chain Executive that brings up some good points on the type of relationship you should have with your 3PL: Why You Don't Want an Obedient 3PL. Collaboration is key for these type of relationships. Shippers should define key performance indicators to make sure goals are met, while at the same time giving their 3PLs enough operational freedom to offer up new ideas on how to make things run more efficiently.
Below are tips from the article on how to ensure your making the most out of your relationship with your 3PL.
- Establish mutual interests and share goals. 3PLs need to have a vested interest in their customer's success and companies need to have a vested interest in their 3PL's success.
- Focus on performance rather than cost-cutting. 3PLs will always be able to deliver cost-cutting efficiencies; the best relationships also ensure higher levels of performance and customer service.
- Share more information than you normally would with a supplier. Include your logistics provider in upfront discussions about infrastructure, sourcing, IT and overall business strategies. The relationship must be open and honest. That means frank discussions about expectations, price and projected work levels. If you are not comfortable with this, you shouldn't outsource.
- Keep the relationship on track. This requires daily discussion. The relationship can't be evaluated once a year if it is to be successful.
