Third-party logistics (3PL), is an integrated business that provides services in warehouse, distribution, and order fulfillment. 3PL must be technology-driven to run an efficient system that meets business management.
Third-party logistics vendors are often contracted to handle logistics. 3PL partners need to be efficient in order management, deliveries and return queries. This is often a tedious task for most organizations. 3PL is the inventory solutions for every type of product seller.
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A mutually beneficial partnership will be built by clearly defining your needs and ensuring that they are met. These are some ways to improve your 3PL management.
You should only measure what is important
Many factors need to be measured and reported. KPIs should only be reported on the most important ones. They should be focused on objective achievement. Your 3PL partner should have a clear vision and focus on improving the company's profits, not just creating reports.
Make sure you use efficient software
Technology is a key component of today's world. It's important to be familiar with the software that your logistics partner will use. High-end software applications are required to manage logistics operations such as inventory and deliveries.
The Cadence for Regular Communication
Successful 3PL management requires communication. Proper communication between logistics providers and companies leads to transparency. A dedicated staff member should be available to manage all communication with the provider. Clearly defining the contract's escalation procedure helps to avoid confusion in case of late, missed, or damaged deliveries.