To outsource or not outsource is a question frequently posed by manufacturers and shippers. Some in the logistics industry would advise that an outside logistics provider does not understand or know your specific requirements as well as internal personnel. However, the value of utilizing an outsourced organization, a 3PL,—to augment services, provide insight into improvement processes and to supplement an organization’s core competencies—should not be overlooked.
The shipper must seek a 3PL that will fully invest in the relationship, starting early with a rigorous mapping process to gain a keen and thorough understanding of a shipper’s supply chain requirements. This will allow the 3PL to develop a customized transportation solution to integrate into the shipper’s existing operations.
The shipper and the 3PL should also collaborate and develop a detailed execution plan. Not only will this allow the 3PL provider to bring greater value and accountability to the partnership, but provide common understanding of KPI’s, execution timelines, and shared goals.
What other ways does your 3PL provider bring value?
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