Is Your 3PL Adding Value to Your Supply Chain?

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Organizations are placing increased focus on logistics because of the effect it has on client loyalty and revenue. Simultaneously, logistics prices are rising, and transportation management is now more complicated, digitized and fast-paced.

To overcome these intricacies, organizations are seeking out logistics companies that do more than merely book shipments and take orders. Third Party Logistics (3PLs) providers which are solution-focused and can address logistics obstacles are critical to bringing value to an organization’s supply chain.

What to anticipate from a Solutions-Focused 3PL

Solutions-focused 3PLs progress organizations over and above shipping transactions, assisting them advance as well as think tactically regarding logistics and transportation management. The gap between a transactional and solutions-focused 3PL is like vacation organizing. If you are going for a week-long holiday to Universal Studios, would you arrive at the entrance the initial day to purchase tickets and arrange accommodations, or do you prepare ahead of time to obtain the best rates and conditions?

The identical is true of logistics and shipping. If you purchase at the eleventh hour, you could be spending a premium on the spot market. Planning long-term and holistically assists you to forecast need so that you can obtain cost-effective agreements at competitively priced levels. Solutions-focused 3PLs enable you to prepare, develop a plan and buy your transportation in a consultative, collaborative and data-driven manner.

A solutions-focused 3PL will offer the subsequent value-added solutions:

  • Detailed shipping and freight evaluation – A good 3PL will expend the time to understand the specifics and intricacies of your distinct company, goods, and objectives throughout a discovery process. They will spend some time to fully grasp your requirements, what you are dealing with and evaluate your shipping activity and lanes. It could also make sense to allow them to look at your locations to understand your packaging and dock procedures.
  • Generate and put into action dependable shipping processes – The discovery process allows a solutions-focused 3PL to create an integrated logistics process, customized to your requirements, which links all the individuals, procedures as well as technology associated with your supply chain. A successful system must leverage multi-modal options and Transportation Management System (TMS) technology to assist you to generate operational performance and total cost savings.
  • Build scorecards for monitoring important Key Performance Indicators (KPIs) – What is measured, is improved. A solution-focused 3PL works together with you to develop KPIs developed to keep track of improvement and sustain responsibility. On-time pick-up, on-time delivery, tender acknowledgement and refusal rates, as well as claims percentages are a handful of kinds of common KPIs.
  • Structure and conduct an effective ongoing development program – 3PLs who are solution-focused will perform business evaluations to make sure you are reaching your objectives. Applying data-driven company data, they will verify expected outcomes of your collaborative logistics program, observe and coach your teams on the industry, modify solutions as required and constantly create innovative approaches to enable your organization to produce competitive strengths from your supply chain.

We recommend you look past your freight planning as a compilation of separate transactions to a well-thought system, which will help you become more streamlined, boost efficiency as well as reduce costs.

Need help evaluating your supply chain? Logistics Titans is the expert at supply chain optimization.  Contact us today!

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn