Ensure a Successful 3PL Relationship

3PL Partnership

Create a Long-Term Mindset

Like in all relationships, when an organization and its 3PL both have an assumption of good will, rocks in the road can be overcome and the bond can be strengthened. A short-term mindset—the kind that focuses on saving money in the moment or making a quick buck—only creates short-term solutions. Your 3PL should be invested in the long-term success of your logistics operation, so you should be too. Work together to devise long-term strategies that will improve practices and result in well-deserved success.

Educate Your Organization

Smart business owners and their management teams don’t leave important operations in the hands of another—they work to gain a deep understanding of their business so that they can be a vital function in the system and make educated decisions that are good for all. Every person who has a function in the supply chain should be well-educated about its inner-workings and how he or she fits in. People from the dock to the C-level need to share responsibility and work to better every stage of the logistics operation.

Set Expectations & Monitor Results

If you want to run a dynamic business, you need to set measurable goals and plan for how your team will achieve them. With the help and advice from a trusted transport brokerage company, your internal logistics management team can set agreed upon benchmarks that are measured periodically. These can include tasks like supply chain improvements and basic efficiency changes, or KPIs important to you such as a carrier’s on-time delivery rate and a 3PL’s response time. Establish the frequency at which you’ll check back on these benchmarks and report them to relevant teams - monthly for new goals, quarterly for regular KPIs and annually for overall progress discussions and next year’s planning.

Look Toward the Future

Along the same vein as goal setting, you’ll want to begin looking toward the future and maximizing the potential of your business by way of your 3PL. Incorporate your 3PL in key aspects of your planning and take advantage of their assistance to set goals, improve efficiencies, set paths for new products, acquire new suppliers and even bring in new team members when needed. Working as a team will lead to continued growth and success. 

Over-Communicate

Communication guides all of the tips we’ve covered so far, but it’s a crucial skill that we can’t emphasize enough. Communication needs to happen between all individuals along the supply chain, including your company’s team and the 3PL’s support team, so that issues are noted and quickly resolved and proactive problem-solving can take place. When results fall below everyone’s expectations, carriers, shippers, manufacturers and more need to be alerted in a timely manner to avoid “close call” situations like the ones below:

• Patterns of late carrier pickup and lane delivery
• Unfiled or improperly filed claims
• Unanswered or slow-to-answer phone calls
• Inaccurate information submitted to the TMS
• Unreachable manufacturers and distributors
• False estimations on shipment weight and class 

3PL Relationship Summary

With two halves of your logistics operation striving to accomplish a single goal—unparalleled supply chain efficiency—your business and its 3PL can foster growth and success for everyone involved. If you’re searching for the right 3PL partner or struggling to solidify ways to improve your supply chain, schedule a free 30-minute consultation to get expert feedback on the current state of your logistics operation and recommendations on moving forward with a logistics solutions provider.