Outsourcing all or part of your company's supply chain, Third Party Logistics (3PL) provider is now the norm in the industry. However, it is important that the right vendor who can meet your specific needs and identify the maintenance of a stable and healthy relationship with to look after the contract with him / she has dyed. This article discusses ways to get the most out of your 3PL relationships, so that these advantageous for both sides, both theContractors.
Managing Relationships:
The relationship with your logistics provider does not end with the signing of the contract. In fact, in many ways, it is only the beginning. You have to maintain the same responsibility for relations with, so she sought the benefits that you received at competitive prices.
• Top management support: logistics costs represent a significant portion of the budget of a company. It is therefore important that theRelationship with the PL-party is part of the company's strategy and helps in the long run. This is only possible if top management support and commitment from the outset. Such an obligation will penetrate to the lower ranks. The Board is responsible for this function should be consistent with the vision and goals, but with logistics experience. Efficient supply chains have a major impact on business performance and may lead to improvement of serviceLevels.
• Contracts: 3PL providers have a tendency to emphasize too strongly to their abilities and promise more than they can deliver. A close agreement with expectations, responsibilities and performance parameters clearly defined, provide the basis for a lasting relationship. Avoid platitudes and stick to quantifiable performance. The contracts are the basis of the relationship, but it is futile to point out every other day in an attempt to enforce it. Instead, createa climate of trust, so that functional efficiency are optimized. The conflict resolution mechanism should be clearly included in the contract.
• Functional Leeway: If the services of a 3PL service providers have been instructed, it shall be allowed full operational freedom. If your research was good and you have employed a competent agency, it is his duty to use it, his expertise and used the freedom to provide services under contract. Their role is hereinafter referred to the relationship and managementnot the services available. In general, experts in their field, service providers have the latest technologies suited to their area of operation. It is in the interests of tenants who update their own systems to bring them at par with those of the 3PL provider, so that synergies are fully exploited.
• Integration: The customer needs to ensure that all systems involved in the supply chain are fully integrated. Individual functions such as procurement,Manufacturing, finance and distribution are fully integrated with 3PL providers. This alone will ensure that they achieve the larger business goals.
Selection of a competent and 'best of breed "3PL providers in important decision. The outsourcing decisions are strategic in nature and must have the commitment of top management. Much responsibility rests on the client to ensure that the relationship is good is maintained and provides maximum value.
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