Outsourcing parts of your supply chain can create a huge opportunity for business growth. However, if not careful, it can lead to a “hands-off” approach that has the potential to negate any sort of benefits that the outsourced help may bring. Learning how to manage your 3PL performance will not only help your business growth but also establish long-term work relationships that will build your reputation as well.
3PL, or third-party logistics, are companies that offer services such as distribution, warehousing, and fulfillment services within the broader scope of logistics and supply chain management. Many businesses outsource to 3PL warehouse companies because they can provide customized supply chain solutions that can flex and scale to meet their customer’s unique needs. However, hiring a 3PL company will not automatically improve the quality of supply chain or their 3PL ecommerce fulfillment. To ensure the efficiency of outsourcing to a 3PL, it is important for a company to have a clear communication with their provider, keep track of the operation, and always be willing to collaborate.
Start business relationship with a good RFP
Clear expectations
Define your KPIs
Establish a reasonable reporting schedule
Have clearly defined and measurable outcomes
Make sure both you and the 3PL UNDERSTAND each other’s business
Set up escalation procedures
Inform them of company changes
Don’t pass your products off to just anyone who offers 3PL services. Your products are the representation of your company, and your customers have high expectations. Finding a good 3PL company who is capable of continuous improvement be a tremendous benefit to your growth plan, but only if you are strategic on what is outsourced and how it is going to be measured with. Whether it be for warehouse management or for your order fulfillment process, establishing a good working relationship with your 3PL partner will strengthen your supply chain and KPIs, all while cutting costs. All it takes is the time and effort for it to be done right, the first time, every time.
If you are starting your search for a 3PL provider, or have never worked for one, now is the best time to reach out to a company known for its expertise and customer service to help you with the process. NewStream Enterprises, LLC not only offers 3PL services, but also comprehensive supply chain management solutions. Our experienced team will guide you on figuring out warehousing, distribution, and logistics, all while giving you the ability, tools, and manpower to get your growth needs met.
Contact our 3PL experts today!
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