We’ve all heard the expression, “The job is easier when you have the correct tool.” Supply chains are no different.
Supply chain problems often stem from misalignment of providers and service goals. We see shippers choosing 3PLs without a solid knowledge of what those firms are good at. For example, a company with a large number of shipments within 1000 miles may use a national LTL carrier for the work. Not only are the long-haul carrier’s base rates higher for short-haul moves, but its network does not support regional distribution.
When it comes to 3PL selection, handing the keys to a company that forgets your account after the initial assessment will drive profit for them, and poor service for you.
The single most important thing a shipper can do in 3PL selection is to map out its goals, deliverables, and challenges. This is a lengthy process that involves multiple departments and levels of management. But, once you have it, you can start to fit goals with providers that have those core competencies. If your service standard is 2 days, don’t overpay for next day service. If you service standard is next day, don’t pay an expedited fee. Get the carrier whose standard is next day service.
Trans-solutions can manage a comprehensive logistics RPF management process, from identification of a short list to final 3PL selection.
