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 […]
3pl management key success factors
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 […]
Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factor # 3 – Establish well defined performance measures
Establishing well defined performance measures will have two major benefits. It will ensure that there is no ambiguity as to what the service level expectations are. It will ensure that the service provider knows exactly how the performance measure is determined and how it is to be calculated. As an example DIFOT (Delivered In Full […]
Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factor # 2 – Clearly articulate service level expectations
It is important that service level expectations are clearly articulated. There should also be a differentiation between your standard requirements and any non-standard requirements. Even if 99% of your orders are dispatched as standard shipments you should still have all potential non-standard service requirements included in the scope of work and in the costing schedule. […]
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 […]