In selecting your Logistics Outsourcing partner, it is crucial to be careful and choose the right one.

So, what do you look for when selecting a Logistics Outsourcing Partner?

Here are some tips for finding the right 3PL.

 

 

Choosing Logistics Outsourcing Partner: 7 Things to Consider

 

One of the key things to get right in logistics outsourcing and it’s going to sound so obvious is picking the right partner. And yet why does so many organisations get it wrong? I’m going to share some tips to help you pick the right logistics outsourcing partner.

So it’s a tricky time for logistics outsourcing on both sides of the fence at the moment and I’m still a great advocate for logistics outsourcing. I think for most organisations it makes sense that allows them to focus on the core, it gives them access to technology and skills they may not have in house. It gives them added capability and capacities but it’s getting harder and harder. Why is that? Well, over the last few years, we’ve seen things such as driver shortages. We’ve seen shortages of warehousing space. We’ve seen a lot of rationalization of the industry and all of this is making it harder and harder to find the right logistics outsourcing partner. But people are still rushing into it and not taking a considered approach and really going through a careful process to pick their outsourcing partner. 

I’m going to share with you 7 things to consider when you’re looking at logistics outsourcing partners:

 

1. Industry Experience

 

Most of the time, you’re going to want to approach logistics companies that have experience in your industry. If it’s a little bit of a left field industry, you’re going to be looking for companies that have experience with similar industries or industries with similar characteristics.

 

2. People Fit

 

Next one, I would say is the people fit. And this happens on all sorts of levels. One, you probably thinking culture? Yes, ideally you should be working with this organization long term, you know, 5-10 years at least. And you wanna have a good cultural fit with this logistics outsourcing company. But there are other things to look at. One? What’s about the management team? Do you get on well with the management team? Do you think you’re going to be able to work with them long term? Do you get a sense when you’re looking around the facilities that there’s a good culture there?  I’ve looked at so many 3PL warehouses, for example, you can walk through and within 5 or 10 minutes you get a sense of, you know, whether people are happy working here, whether they’re motivated, whether they’re really sort of customer service focused. You just get that buzz from people and the things that you see around you, you know, the performance KPI boards and all that kind of stuff. So you really want to make sure that you’ve got a good people fit, cultural fit. 

 

3. Good Fit in Size

 

Number 3, I would suggest is a good fit in terms of size and capacity. You don’t necessarily want to be going with a tier one 3PL if you’re quite a small company. There’s always this fear that you know you’re kind of get left behind. They’re going to focus on the big customers and not the small ones. Maybe your contracts not big enough to be of interest to them and for them to give you the right sort of focus, it’s sad but it happens. So make sure that you’re looking at logistics companies that are a good fit for you in terms of their size. Conversely, if you’re a huge multi billion dollar, multinational, you probably want to be looking at those first tier guys as well. 

 

 4. Performance

 

Number 4, performance! This is a really tricky one. How do you check on their performance? I’ve sat in presentations, here at Logistics Bureau, I’ve been helping companies go through this process for almost 30 years. I’ve sat through 3PL presentations where they have been telling their potential client, you know, the wonderful they’ve job they’ve done with this company and that company and all the rest of it. I have to say to the client company, “Do check out these references because I don’t think the performance was quite what they were saying”. You know you need to… it’s a little bit like having references on a CV, isn’t it? People don’t put bad ones on a CV. You’ve got to get out and do as much reference checking off your own bat as you can and you know, look at that performance with companies like yours. Look at how they track their KPIs. What sort of KPIs are they measuring? What sort of performance are they measuring? So all of that is really important.  

 


Watch the full video for the remaining tips on logistics outsourcing!


 

Related articles on this topic have appeared throughout our website, check them out:

 

 

Contact Rob O'Byrne
Best Regards,
Rob O’Byrne
Email: [email protected]
Phone: +61 417 417 307
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