How to Maximize the Benefits of Using 3PL Warehousing

Most business owners understand that when they opt for outsourcing any of the logistics function, they will avail many benefits. But only a few of them realize that there are some very simple things they can do to ensure that they maximize the Benefits of using 3PL Warehousing. If you want to maximize these benefits, you should know about some simple methods mentioned below. Please note that these methods need to be implemented at different stages of the logistics outsourcing journey so they are not a one-time deal. So, you should take the time from your busy schedule to try each of these methods separately.

23 june 2017

  • Share the Information

If you want the logistics partner to serve you in the right manner and work according to your organizational goals, it’s imperative that you share detailed operational data with the partner so that it can be carefully analyzed and third party logistics strategies are created accordingly. Share everything about the current operations, the volumes, the processes, the metrics as well as the workflows to ensure you get a relevant cost estimate and good quality of proposed solution.

  • Be Real

Don’t expect any magic to happen, ever! You should know that third party logistics providers don’t carry a wand that they can wave and solve the significant operational problems that you have been facing for years. Instead, you should help them to understand the problem and give them time to devise as well as implement a perfect solution.

  • Choose Someone who Cares

As a business owner, you might have gained a fair insight into how people think and what they really mean when they are saying something. So, you should always hire someone for third party logistics who really care about improving your operational snags and enhancing the supply chain process rather than just pretending to get it done in order to win the project.

  • Be Clear

The very basic step that lets you make the most of 3PL Warehousing is that you clearly define all the terms of the contract. You should be very clear about what you expect from the outsourcing partner in terms of operational performance, services you need and the payment terms so that the other party can have clearly defined goals. It will also play a key role in avoiding any disputes later on.

  • Consider Long Term Contracts

If you are sure that you have chosen the right partner for 3PL warehousing, you should consider a contract length that allows the third party service provider to invest heavily in your project like hiring dedicated resources while being sure that the investments can be amortized over a long period of time.

  • Make Them Work With You, Not For You

This is a sure shot way of maximizing the benefits of using 3PL warehousing or any outsourcing partner. You should ensure that you appoint a dedicated resource who would work with the outsourcing firm to ensure that they are doing the job right and getting regular feedback from your end. You can’t just expect them to deliver results if you fail to communicate your ever changing needs properly.

  • Communicate

This is the key to every business relationship. The third party warehouse provider should be obliged to hold communication with you at regular intervals to report on the progress made during that time frame. The service provider should also be open about what you need to change to make his job easier. If you expect the latter, be sure to attend these meetings with an open mind.

  • Seek Measurable Results

It is also vital to make it clear that you don’t need reports that are based on theory. Seek someone who can provide you with reports containing measurable improvements like the amount of waste was reduced by XX in the last quarter or the loading time reduced by XX in the last year. This will ensure more accountability and great results.

  • Pool Resources

The final step is to pool your resources with the third party warehouse provider so that both of you can learn from each other. Some ways of collaborating includes integrating key software, training staff members together, etc.

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