STUDENTS' CORNER - 118

Customer Developer is our next 3PL provider.

 

It is said to be the highest level of 3PL.  Other 3PL providers may take or may be given some chosen logistics operations by the company, considering the specialization of the said 3PL provider. But in case of the Customer Developer 3PL, the company entrusts the whole of the logistics operations to the Customer Developer. Some companies, it is said, give the Customer Developer, in addition to the entire logistics operations, all warehousing related functions and distribution services also. Indeed, some 3PL provider undertakes all such functions.

 

It only means that such 3PL provider becomes integrated with the company. It also implies that the company that decides to entrust all such tasks with a 3PL provider must be extremely cautious before taking the decision; it knows that the reputation of the company is at risk if a wrong 3PL Customer Developer is chosen for these operations. There should be no lapses in the process of the company’s goods reaching the destination, which is after all what all businesses are keenly concerned. 

 

Now, having seen the types of 3PL providers, we have to look into certain disadvantages involved in adopting some 3PL provider.

 

Entrusting complete responsibility of logistics operations of the company to a chosen 3PL provider does not absolve the company from all the responsibility. It should not fail to exercise some critical control over the service provider. Lack of control over some process may lead to some serious problems causing a chain of problems which can end in some real issues that may negatively impact the name of the company. Regaining a name or a business lost is not that easy in the stifling competitive environment that actually is the normal ethos for businesses.

 

Besides control, communication is also very significant. Any wrong communication or delayed communication will certainly damage the business process. Expertise in communication is a vital issue that must be checked many times before the company entrusts its operations to any 3PL provider.

 

In our next session, we will spend some time on Communication.