Of any industry in the business world, few can be as fickle and volatile as freight. With so many variables and factors to manage, supply chain management can be more than a little difficult at times. Things like capacity issues, risk mitigation, cost management and the ever-changing rules and regulations make taking a strategic approach vital for every shipper, and to that end, can be one of the most draining aspects in both time and financial costs for any business.
The use of 3PL services has contributed to overall logistics cost reductions and improved customer service
The Benefit of Outsourcing
Outsourcing the supply chain to a 3PL has a number of inherent benefits. In the hands of a capable partner, shippers can see improvements in various parts of their supply chain. In fact, the 2016 3PL study “The State of Logistics Outsourcing” conducted by Capgemini Consulting showed that the use of 3PL services has contributed to overall logistics cost reductions and improved customer service. The majority of those who were asked also said 3PLs offer new and innovative ways to improve logistics effectiveness.
Partners not Vendors
While picking the right logistics partner is the beginning, shippers who are looking for true growth and success build and rely on a strong, long-term and collaborative relationship with their logistics providers; they expect best-in-class services and solutions. Indeed the number one rule, according to Bridge Strategy Group, and based on our experience is “Start by treating your suppliers as true partners, not just vendors.
Finding the Right Partner for the Job
Choosing the right 3PL to partner to manage part of or the entire supply chain can make or break a business if not chosen carefully. Picking the right partner is a matter of knowing what the shippers business needs are and if the potential 3PL partner can meet those needs. Therefore, it’s crucial that the right questions are asked during the selection process. Two important questions would be how the potential logistics partner will handle freight and manage processes, and what they can bring to the table to challenge the status quo and improve the shipper’s business.
To make the first step on the journey to strategic supply chain management we collected The Top 7 Questions You Should Ask About Your Freight.
These 7 questions are the first big step. If you need help feel free to contact Blue Grace and we will be glad to discuss all 7 questions in detail, share our experience and help you succeed!