Your 3PL Must Offer These 2 Things For A Successful Partnership

Your 3PL Partnership: The Must-Haves For Your Business

No successful partnership can exist without trust and respect. A little bit of each will go a long way for the section below. Both sides must have these two things to move forward. There are a few things you can do to keep the trust and respect flowing within your 3Pl partnership.

3PL

1) You must have a culture fit that feels right. It does not make sense to continue with a partner that looks at things differently. The numbers can look right and line up on paper, but everything else must work right too.

It is like being in a marriage. There are plenty of marriages that look good on paper. When you go beneath the surface, the love is not there at all. The couple is just doing it for the sake of the children or money. There is no way you can have this with your 3Pl partnership. The love must be there too, otherwise, it is not going to work out.

2) You must have everything clearly defined and written down in a contract. A good old-fashioned handshake just does not work anymore. People in business can say anything. You must have outlined what you want to be done, the way you want it done, etc. Anything that is not written down will be left up to circumstance.

You will then have a lot of “he said, she said” dialogue going on. No one is happy. This affects the business and the long-term goals of everyone involved. You need to have everything written. This way no one can dispute what is or is not happening.

3) You need to speak to everyone involved, including your main source of the business. Communication is and always will be the key here. You will have order instead of chaos when you do not employ communication. Everyone must be on the same page. This includes the smallest of details. When no one is on the same page, then anything can happen.

Are you adding to the chaos of the world or the order?

4) Do you have a strategy? Share it. Some tend to assume that a plan they have will never take effect. You never know unless you try. Give it a shot. Let them know what you have in mind. This is also included under the umbrella of “communication”. You never move forward with a plan without talking it through first.

It is all about having trust and respect, along with the other 4 elements. You cannot have one without the other. When one person fails to use trust, communication, loyalty, and respect for one side, then the whole business plan will fall like a deck of cards.

It is the only way your business partnership with these services will move forward and grow.

Justin Bright – CEO Brighter Logistics

6 Benefits a 3PL Can Offer Smaller Businesses

Advantages of Outsourcing 3PL Providers

There are numerous benefits businesses can get by outsourcing supply chain activities and logistics to a 3PL provider. A 3PL provider offers a wide range of supply, purchasing, and logistics solution. Whether in packaging, assembling, warehousing and distribution all these and much more can be easily granted by a third party logistic company. A business that uses third party logistics have a reliable logistics advantage thus maximizes their profits. Here are some of the advantages a business can gain by using a 3PL provider.

Freight Broker

Resource Network

Third party logistics providers have access to a wide network of shippers, carriers; warehouses thus have an advantage over in-house supply chains. Resource network allows for ease of operations thus supply chain can be executed in an efficient and cost-effective manner. Using a third-party logistics provider allows a business to benefit from resources which cannot be found in-house.

Expertise

Expertise is the other important advantage of choosing a third-party logistics provider. This is so because the providers are more knowledgeable of the industry practice and are also up to date with new developments whether in technology, manufacturing or logistics. Supply chain management and logistics are what they have specialized in as is what they do every day, unlike businesses who only access logistics services when the need arises. Outsourcing the services of a supply and logistics company allows a company to focus on its core competencies while allowing the expert to do what they know best. Logistics company use software’s that are capable of inventory management advanced reporting and can monitor the entire process. Supply chain experts can also employ the use of just in time practices to ensure orders are delivered on the right time and under the right conditions.

Using a third-party logistics provider allows a business to benefit from resources which cannot be found in-house

Saves time and money

Logistics and supply chain companies are well versed with the current market transportation and storage costs thus can help a business get affair deal. In addition, these companies are well networked thus know the routes and best transportation method which ensures on time deliveries and saves costs. Contracting a logistics company also allows you time to concentrate on the development of your business.

Leverage

By being linked to a wide network, a logistics company can help leverage relationships and volume discounts. If you are shipping small quantities of goods the shipping companies because they employ the use of economies of scale will give you better rates as they ship large volumes of freight on a daily basis.

Flexible solutions for growing companies

One thing that is quite essential for any growing business is scalability. Market trends are not always stable and are subject to changes thus a business needs to adapt to sudden and unpredictable market forces. For this reason, growing businesses need flexible solutions which can only be met by third party logistics companies who are always flexible and have specialized in the business.

Continuous Optimization

Logistics and supplies companies do have resources at hand thus capable of making any adjustment any time to improve the supply chain. Third party providers have the tools required to restructure a supply chain process whether in technology or distribution. Outsourcing the services of the providers will ensure continuous improvements are made in the logistics process.

Justin Bright – CEO Brighter Logistics

An Eye Opener on Freight Brokers Today

In today’s world, most of the activities are geared towards the transport industry. This is evident in the United States where according to research conducted, the business is expanding. According to the renowned American Trucking Associations, in the year 2014, about 7.3 million people acquired employment in the same industry. Interesting to note, in the year 2015, about 3.5 million people were serving as truck drivers. However, the number of freight brokers in the market remains unmatched to the number of truck drivers.

Freight Broker

Brokers come in quite handy when it comes to connecting the perfect drivers to shippers. They also ensure that the truck drivers are also linked to the appropriate equipment’s that will work for them. The freight brokers have the responsibility for ensuring that their shipping clients get the right motor carriers for their goods. Some of these clients include distributors, factories, and farm producers, among others. Keep in mind that the transport professionals are highly skilled when it comes to planning the time and location of the picking and delivering the various cargo.

Some of the renowned freight brokerages run and operate their fleets. By doing so, they can network in the market. At the same time, they can provide both short term and long-term solutions to their clients. The services provided to their clients are always satisfying and beyond their expectations.

The invoice factoring strategy is quite common and is preferred by the freight brokers. This is because by using it, they can curb the challenges experienced in balancing their cash flow. At the same time, they can timely pay their drivers for the services provided to them as they anticipate their payments from their clients.

According to research conducted, the freight industry is built on strong and firm relationships. For people willing to join the industry, it is advisable for them to have built strong firm relationships to ensure that they survive and thrive in the industry. At the same time, one ought to have a passion and zeal for the job at hand.

When it comes to serving or operating as a freight brokerage, it is wise for one to establish and have a strong relationship with motor carriers. Remember that these are the people that will be responsible for ensuring that the goods get to their expected destinations right on time. The relationship should be genuine and founded on honesty to ensure that success is achieved at the end of the transactions. Keep in mind that if you have a great working relationship with the carriers, you can be sure of consistent great services.

Also, a superb relationship with the customers is no option! Remember that these are the backbone of your business and determinant of the success of your business. Being in good terms will ensure that the customers make timely payments for the services rendered. On the other hand, failure to make payments on time will lead to obstacles in the operation of your business. It is also advisable for you to consider freight bill factoring before engaging in any business deal. This will enable you to put into consideration the duration of time you give to your customers for them to meet their payments. It is also wise to contract the payment collection to third parties to ensure that you maintain the great relationship with both your clients and carriers. This is because you will keep at bay any awkward moments when engaging in the collection of payments.

Justin Bright – CEO Brighter Logistics