How to choose a 3PL
The 3PL market has been growing exponentially over the last few years and is now a $120 billion plus market in the U.S. More and more companies are making the decision to outsource all or a portion of their logistics operations to third party companies. However, according to an article on Industryweek.com, the decision to outsource should not be taken lightly.
“The logistics landscape is littered with failed relationships between 3PLs and manufacturing companies. In many cases, the seeds for these failed ventures are sown early in the process. Outsourcing may not even be a legitimate option for many organizations, but for those who think it may be, beginning the process with your eyes wide open is the first key to success.”
John Blanchard, team leader of transportation services with supply chain consulting firm TranSystems/ESYNC offers the following advice when deciding to outsource to a 3PL.
1. Outline areas of opportunity
2. Critically assess your strengths and weaknesses
3. Decide what is on the table
4. Identify a shortlist of providers that meet your requirements
5. Consider the human element carefully
Read the entire article for detailed information on each topic.
Georgia Logistics Company on Fri, 5th Sep 2008 2:52 pm
Interesting article.
Your post quotes:
“The logistics landscape is littered with failed relationships between 3PLs and manufacturing companies.”
I think a lot of that has to do with sales people overselling their services and manufacturing businesses wanting to believe the promises they are hearing. It’s kind of like some of the promises you hear at election time. People want to believe them even though they sound too good to be true.
In order to rebuild their reputation the 3PL’s need to do a better job of educating both their clients as well as their sales people.