STUDENTS' CORNER - 126

In this session, we will see the measures you should take to get the best of your 3PL, or to choose the best 3PL for your concern.

First of all, you should know what your requirements are; that is, which part of your business you propose to entrust with a 3PL. This implies you should know for certain your strength and your weakness in the sense that your areas of operation wherein you are not confident of performing to the expected level. 

Then, having chosen the area of operation you have decided to choose 3PL for, scrutinize your choice of 3PL in terms of certain Key Performance Indicators; that is, trustworthiness and reliability of the 3PL: Will he pick up the products from you in the right way, in the right time with right documents, so on.  In case he is not able to keep up his words, can he arrange some substitute with equal efficiency with advance information to you?  You have to check with all these facts before you finally choose your 3PL.

Of course, the one proven way to check all these details related to your possible 3PL, is to see the track record of the 3PL. With discretion, an analysis must be done if necessary by the professionals.

Upgradation indicates alive sensitiveness to the developments particularly the developments related to one’s business.  The 3PL you intend to select for you must have shown this upgradation in his dealing with his stakeholders; it only means he must be using latest technology in his operations. Absence of such upgraded technological gadgets does not speak well of the 3PL and naturally it won’t be a good option to go in for such 3PL since it will not help you face competition in the market. Rivals are ready to outsmart you on some fact or other. May be that 3PL does not have sufficient resources to upgrade himself; inadequate resources do form a good invitation for partnership.

Close monitoring through frequent interactions is essential to make the relationship with your chosen 3PL productive. Synergies must push you both to newer initiatives to promote the business.

Having spent some time on selecting the right 3PL, we will move on to the next topic in our discussion:  Supply Chain strategies.