This column is authored by Pramod Singh Marketing Manager, Synchronized
Hiring a third party logistics company has become the need of the hour for companies that hope for an efficient and effective supply chain management. But the time when you could just pick the service provider you first bumped into has long gone. Now you need to ensure that the company you choose to manage your supply chain has the capacity to offer latest services and change the service list as per changing needs of the clients. To help you out here we have mentioned the 8 signs of the most advanced level of the 3PL service provider.
It Presents Strategic Assistance
If you wish to select the best outsourcing partner, you should know that the right company will offer you assistance with strategic matters related to demand and supply. It will let you know of the existing demand and supply patterns so that you can plan the future demand and supply accordingly. It will also let you know details of unexpected peaks, surges and unexpected demands so that you can tackle such incidents with caution the next time.
It Renders Logistics Expertise
An established third party service provider will help your company and your staff members to learn from the logistics expertise by organizing various learning sessions. It will not only train its staff on logistics matters, it will also ensure that the training is rendered to your staff as well. It will also ensure that your end customers are satisfied with the logistics end of the deal by adequately answering each of their queries and training your staff to do the same.
It Analyzes the Weaknesses
A good company offering an advanced level of 3PL service will have the tools and skills required to judge the performance of a supply chain network. After conducting a thorough analysis of the issues, it will move on to providing the best possible solutions that must be implemented to ensure that the network delivers peak performance at every moment.
It Takes Corrective Actions
If your company or you as a business owner don’t have the time or resources needed to take corrective actions with regard to the weaknesses highlighted by your logistics partner, you should assign the task of taking corrective actions to the company that highlighted the problems. Just ensure that the corrective actions are taken in a responsible manner by demanding progress reports.
It Optimizes Shipments
When you hire the right third party logistics provider and provide it with ready times, shipping details like weights & dimensional information, requested arrival dates, etc. it would use its skills to optimize your shipments. It will also give you the details on the exact amount of money that was saved by you via load/mode optimization. It will also tell you about strategies you can use to increase the savings further.
It Offers Technology
A good logistics services provider will also allow you as a client to benefit from its own technological tools like warehouse management system, tracking software, etc. It will often integrate its advanced technologies with yours to ensure that you can use advanced technologies to boost the logistical efficiencies.
It Provides Details on Upcoming Solutions and Proven Best Practices
A good 3PL company will also keep up with the best industry practices and upcoming trends of the supply chain management. It will let you know which systems you can incorporate to optimize the inventory level, reduce the travel time of the transport fleet, etc. When you learn about and follow the latest logistics management trends, your brand value will certainly be enhanced.
It Reduces the Risk
A company that offers an advanced level of 3PL service will also negate the risk factor associated with the transport of goods by taking responsibility for any damage that occurs when the products are on its premises. It would reduce your costs because if an accident or a natural calamity occurs, you won’t need to pay for the entire damage.