Think hiring an advanced level of a 3PL service provider is a waste? Confident that your supply chain management processes are as excellent as they can be? If so, then it’s time for you to start thinking about the drawbacks of the supply chain processes you have established. We are sure that these drawbacks, if all or most of them are present in your supply chain process, will convince you to hire a third-party logistics firm for good. Have a look at the top 8 drawbacks right here.
- Stocking the Wrong SKU
If you always have the stock available but it’s mostly in the wrong SKU then there is something wide off the mark with your SCM processes. To change the situation, you either find the inventory management issue yourself or hire an expert to do it for you. A third-party logistics firm will not only highlight the trouble but resolve the problem as well.
- Limited Industry Knowledge
The logistics management arena is changing at a rapid pace and all the people can’t stay updated on it. If you as a business owner can’t keep a watch on the innovative products that are ruling the market like a new warehouse management system or a new style of packaging then it’s time you hand over the reins to a 3PL company and focus on business management.
- Bad Forecasting
Forecasting has become a vital part of SCM processes these days and if a company fails to forecast demands for inventory, it is very likely that the company is losing out to its competitor. To resolve this situation, you need to hire a 3PL company that forecasts the inventory demand for at least a few months and updates you accordingly so that you can modify the business operations or manufacturing processes accordingly.
- Poor People Management
If most of your staff members working in a supply chain are not trained regularly and they are not happy with their work, the chances are high that most of them are looking for a new job. A third-party logistics firm will not only help you to train your staff but will also keep them motivated & engaged. If you wish the employees of the 3PL company would take over from existing employees so that you get access to the best human resources with updated knowledge & skills.
- Inadequate Communication
There should always be some form of communication between the teams that are finding the goods to the teams that are packing & sorting them and to the teams that are loading and transporting them. If you lack such communication channels then it’s time for you to hire a third-partylogistics firm that has aligned its communication channels properly and can do it for you as well.
- Lack of Innovation
You want to give extra to your customers like early deliveries, better packaging and improved labeling but can’t find the time or resources to do so? This is a major sign that says you need to find the right 3PL company as such an organization would provide you with many valued added services at minimal costs and help your customers recognize you as an innovative product delivery provider.
- Reputation as a Mediocre Customer Support Provider
Customer support is one of the few factors that make or break a company. If your supply chain management teams can’t keep the customer apprised of the exact position of their shipments at any point of time then you should seriously consider hiring a 3PL company that can offer exceptional customer service and has the track record of doing so. Remember, when customers get amazing customer support, they become more loyal to a brand.
- Scarcity of Right Leadership
Finally, if you as a leader of a company do not have much expertise in the logistics area then you should not try to handle it all by yourself as it may give you stress. Instead, you should hire a leader or a project manager from a 3PL company to guide SCM teams in the right direction at all times.