8 Must Read Articles on Selecting a Third Party Logistics Company

Selecting a third party logistics company can be a daunting task, especially if you are transitioning from managing your own warehousing or transport operations. To help you with this process I have provided links to 8 Must Read Articles on Selecting a Third Party Logistics Company which will give some valuable insight into how to […]
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Establishing 3rd Party Logistics (3PL) Service Provider Relationships – Common Pitfall # 3 – Structure of the Agreement

Far too often the structure of the agreement between the parties is developed in a manner that will not necessarily support the dynamic business requirements of the relationship. The traditional method of embedding the business requirements within the contract tends to restrict the amount of operational flexibility of the relationship. An alternative to this is […]
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Establishing 3rd Party Logistics (3PL) Service Provider Relationships – Common Pitfall # 2 – Inadequate Training

The value of ensuring that adequate training has been undertaken prior to the transition is frequently underestimated. This applies equally when moving from an own managed to an outsourced operation for the first time or when moving from one supplier to another. Far too often we take for granted the amount of operational knowledge that is […]
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Establishing 3rd Party Logistics (3PL) Service Provider Relationships – Common Pitfall # 1 – Insufficient Planning

Not enough time and effort that is invested in planning for the transition. A project manager should be assigned and detailed project plan prepared in order to facilitate the transition. The plan should not only include the physical aspects of the move but also include such items as communication and training tasks.
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Establishing 3rd Party Logistics (3PL) Service Provider Relationships – Common Pitfalls

Common pitfalls associated with establishing 3PL Service Provider Relationships include: Insufficient time and effort is invested in the transition planning Inadequate training is undertaken prior to the transition The structure of the agreement is not flexible enough to support potential changes to the operational requirements Each of the above items will be discussed in further […]
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Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factor # 5 – A person with the right skill sets managing the relationship

The most critical factor that will determine the success or failure of any outsourced process or activity is the selection of the person that will be given responsibility for managing the relationship with the service provider. It should be recognised that the skill set required to manage supplier relationships is quite different to the skill […]
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Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factor # 4 – Implementing a disciplined supplier management process

A disciplined supplier management process is essential. There is a perception that once you outsource, you will loose control. Reality is, that if done properly, control is increased, not diluted. In order to maintain control, you as the customer must take responsibility for the supplier management process. You must define the reporting methodology and format; you […]
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Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factor # 1 – Properly Defined Scope of Work

Far too often the importance of a properly defined scope of work (what it is you want the service provider to do) is overlooked. One of the greatest frustrations of logistics service providers is the lack of quality information that is provided as part of the tender process. Each task within each process should be […]
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Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factors

The key success factors for managing 3rd Party Logistics (3PL) service providers include: Properly defining the scope of work to be performed by the 3PL Clearly articulating the service level expectations Establishing well defined performance measures Implementing a disciplined supplier management process Ensuring the person responsible for managing the 3PL relationship has the right skill […]
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Managing 3rd Party Logistics (3PL) Service Providers – Introduction

In theory, the decision to outsource and therefore the need to engage a 3rd Party Logistics (3PL) Service Provider, is driven by the company’s choice to focus on core competencies, or in its quest to improve customer service levels, or as it strives to develop more efficient processes. In reality, it is mostly driven by […]
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