Selecting a third party logistics (3PL) provider does not always prove to be the best option for every organisation. Assess every option when making a decision to operate your warehouse or outsource logistics.
Organisations typically consider two primary factors that tend to shift the focus towards outsourcing: the level of capital investment required and the opportunity to concentrate on what you are really in business for in the first place. All other factors are part of an evaluation process that can cancel out when pros and cons are considered.
We help our clients understand all of their options, compare third party logistics vendors using a matrix that considers every component of a 3PL operation. As cost versus service comparisons are important factors, we can also manage the entire process from the initial evalation phase, contract negotiation, performance assessment through to developing transition plans for physical relocation.
"A Turn Key Solution" will take you through the whole process and work towards finding the right 3PL provider to support your business fulfillment requirements.
Benefits of Third Party Logistics
Some of the factors to consider in a typical assessment when we evaluate a new 3rd Party Logistics outsourcing prospect:
- Our processes and requirements are specific to our company, will the new 3PL provider be able to understand our business?
- How are we to measure customer service level performance when we have no visibility?
- Are we the main customer for a outsourced provider or are we with other businesses that have more urgent requirements daily?
- Where are the warehouses located and are they closer to our customers so our freight costs dont increase ?
- How do we know if the costs charged to our account are fair and reasonable, especially in a shared facility?
- How are we able to grow our business without being surprised by cost escalation for services or utilities?
- We need to do a straight line comparison of services, costs and infrastructure components, how is this achieved?
- Is the technology used by the 3rd party provider leading edge so we can migrate other services for customers?