A lot of shippers prefer to first focus on the prices that a 3PL freight broker charges, while at the same time, the price is a matter of concern as most shippers can take this to their advantage and level up, so to speak. SO, how is it that shippers can make improvements to their 3PL experience?
Upgrade your Proposal Request
You must ensure that all operational data has been included, and in detail too. This is important for thorough analysis before an informed response can be sent back. Mostly, 3PLs spend thousands in coming up with a response just to lose it. It is for this reason that they may choose to avoid pursuing a project whose proposal doesn’t include the relevant details for an informed proposal. Additionally, accuracy is important and if for any reason a 3PL under prices a project due to inaccurate data, budget and performance are going to be hurt in the process.
Set achievable Expectations
In case your company has been having the same problem year on year, you shouldn’t expect that your problems will immediately incinerate with a 3PL. Even though they are experts, they too will be facing similar challenges as you’d have when trying to fix the issue by yourself. Setting realistic goals and anticipations from the very start and collaboratively working together tends to solve the problem.
Set Terms of Contract Clearly
It is often rumored that the contract can never be an afterthought and most of the times, services, and billing disputes are ruinous to relationships. Indeed, contracts can be daunting not to mention lengthy and they also state precisely what you expect the contract to perform, performance measures and the terms of payment.
Use Resources Available to Manage the relationship
One of the most common failures of companies that use outsourcing is inadequate resources and effort dedicated to communication, management of changes and handing overs as well as performance management. Though it may seem like outsourcing takes away daily motions for logistics execution, it merely adds a need for management in other diverse areas. By working with you person on person, you will be both working towards the benefit of the partnership.
Communicate in regular timeframes sticking to the plan regarding communications matters is imperative and should be with the minimal deviation be it a daily call, monthly meeting or a quarterly gathering, you need to look upon this as a mandatory requirement.
Focus on Important Metrics
The amount of data to be analyzed and reported is virtually endless and there is no good if the data does not lead to gains or improvements in productivity, cuts in cost and the improvement of customer service. First, you need to take a keen look at some key performance indicators which is good, to begin with.
Justin Bright – CEO Brighter Logistics