West Coast and California Logistics Blog

Your customers are more data-driven than ever, and your success or failure in the eyes of those customers is partly determined through logistics metrics that measure your performance. It is therefore important that you have a firm handle on your customers’ key performance indicators (KPIs) as well as your ability – or that of your 3PL – to meet or exceed those KPIs.

If you’re looking for a 3PL provider, you may begin to feel a bit like Goldilocks. You’ll encounter providers that feel “too big” and many that feel “too small” to handle your business effectively. For many companies, the “just right” 3PL is the mid-size provider that has the resources you require, plus the focused, personalized attention you expect. In this article, we’ll explore the advantages of working with a mid-size provider and help you determine if such a 3PL is “just right” for your business.

Do you ever feel like breaking out of the everyday routine and trying a new dinner spot? Well before hopping in the car and driving aimlessly, try turning to the internet to find suggestions and reviews of a few places. Now what are the key things most people look for in a restaurant? Perhaps… parking availability, the ambiance of the venue, hi-tech ordering gadgets, cleanliness of the restrooms, or price on the menu? Those are all good characteristics to review, however, don’t forget the most important of all… SERVICE!

A lack of service can ruin an entire dinner experience and detour you from ever returning regardless of how tasty the food was. Just as you evaluate and value the service at a restaurant, you should evaluate and value the service of a potential third party logistics warehouse. By service we are referring to “associate engagement” within the 3PL. For many companies in the market for a new 3PL partner, there will be an intense focus on the economics, contract provisions, possibly IT capabilities, however, we know that when associates are engaged in our business and more importantly, in our client’s business, we win and our clients win. If you can refuse to go back to the restaurant, why should your product keep going back to a warehouse with poor service?

As the saga of the 3PL selection process comes to an end and a contract is signed, one must prepare for what comes next. A new journey with your 3PL is now beginning; a journey called the onboarding process.

The onboarding process shows a great deal about the 3PL partner you selected. At this time the truth comes out; maybe you received amazing rates, but now experience a lack of service and attention. Maybe you paid well above market price, but the service is impeccable. Regardless, you want to know what you are getting into, good or bad. A company’s onboarding process will ultimately say a great deal of how it operates in the long run and will set the tone for the relationship.

With costs consistently rising, a 3PL partnership should be defined by more than just the cost of storing and shipping a pallet. For example, how much value does this 3PL bring? Do you even have a “relationship” or are they simply another vendor sending another invoice? Well, some of the best results are derived from companies who outsourced 3PL services and developed a relationship with them.

Any good relationship requires a solid foundation to build upon. In order to establish a solid foundation you need trust, respect and commitment. This same foundation is necessary when partnering with a new third party logistics company. Although each person has their own way of doing things in a relationship, both individuals must trust the other has their best interest in hand. The same principal applies with the client – provider supply chain relationship.

As the onboarding process begins, clients should be open to accepting the standard operating procedures (SOP’s) of their new logistics partner. At Weber we have found may clients want to replicate the systems and procedures they were previously utilizing. If you bring your same routine to your new 3PL partner, you will experience the same results and will NOT maximize efficiencies. Leaving old systems and procedures behind are crucial steps to establish the foundation for success in the short term and long term.

Many will say there is no better part of a relationship than the honeymoon phase. Both parties are always there for one another, care extremely about their partner and will do anything and everything to keep their partner happy. You are barely scratching the surface and uncovering your partner’s true identity. Things seemed great at first, but what if you are not so happy now with what you find? Suddenly promises are broken, goals are different and the synergy is gone.

It’s possible you overlooked investigating a few things because they looked great at the surface level. If your 3PL is not living up to the expectations from when you signed the contract, it might be time to start exploring other options and re-evaluating your current provider.