Addressing the 3PL expectation problem
Addressing the 3PL expectation problem
Don’t always put the responsibility on the third-party logistics company (3PL) if you don’t always receive what you want. Miscommunication or conflicting messages might be the issue. A crystal-clear RFP and great communication between the two companies are the foundation of a successful partnership. The 10 suggestions that follow will help you get the most out of your 3PL partnership.
Be honest when discussing matters that can have an impact on your logistics business: Include matters that don’t necessarily make you appear good or that are proprietary when drafting your RFP and talking about your business with prospective suppliers. You want accurate evaluations.
Be precise: Give 3PL providers specific instructions on what you want them to complete and take great effort to ensure that they understand your expectations. Not only should you request next-day delivery, but also delivery by 10 a.m. Give them a percentage if you want the fulfillment expenses to go down. The 3PL then has a particular objective to achieve.
Giving your 3PL staff training will empower them: As though they were your own workers, train your 3PL staff. Invite staff from the provider’s fulfillment centre to your exclusive quality training program. When you upgrade, give them further systems training. Invite important account team members from your provider to the same conferences or training sessions that your management attends.
Prior to sending an RFP (Request for Proposal), send an RFI (Request for Information): The RFI will assist you in gathering more accurate data, defining your genuine needs, and including potential 3PL candidates in the creation of a solution. It can also assist you in assembling a “short list” of service providers you believe ought to get your RFP.
Treat your suppliers more like partners than just vendors: Be reasonable in your expectations for their performance. Encourage them to take initiative rather than just follow orders, even if it involves taking some calculated risks.
In your RFP, ask the 3PL for solutions while allowing for some creativity: Instead of including their criteria and difficulties in the RFP and asking the third party for the logistics solution, too many businesses leap to a rigid solution paradigm. Experienced 3PLs may bring to the table unique consulting skills, originality, and innovations. Don’t pass up a solution that could be better than the one you had in mind initially.
When creating your RFP, pay close attention to the procedure you employ to gather information from inside locations or departments: To avoid issuing an RFP that is unclear or misleading and might direct the potential provider in the wrong direction, be careful when filtering and assessing the results you get. Comparing price answers is a useful litmus test to see whether your business has made its needs clear. If there is a large spread, the translator most likely left something out.
Utilize established means to be in continual contact with your 3PL: To do this, use meetings, phone conversations, emails, and letters. Connect your suppliers to your website and intranet and invite them to internal meetings.
Rather than searching for a new partner, resolve the issue: Help your 3PL supplier address the issue if they have been a solid performer and have improved the value of your brand. A solid logistics supplier will perform better with a second opportunity, which will also improve your logistics operations.
Don’t hurry your RFP submissions: Give a local or regional warehouse RFP 4 weeks, and a global or worldwide RFP 6 to 8 weeks. Rushing this procedure prevents the supplier from having enough time to test several solutions and determine which ones would be most effective for you.
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AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.
Tel: +234 909 199 9866
+234 909 199 9866
+234 909 199 9841
+234 909 199 9805
+234 909 199 9813
AMG Logistics Locations
7c Creek Road
B3 ground floor
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Asokoro Business & Lifestyle centre
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Port Harcourt International Airport
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