Although LeanCor strives to be the only logistics partner you need, there are times when this may not make sense. However, LeanCor is still committed to ensure that all Third Party Logistics (3PL) relationships succeed. Developing a successful 3PL relationship requires vision, trust, planning, knowledge and a lot of hard work. Choosing a 3PL company is a strategic decision with lasting impressions. A 3PL is an agent for your organization and will have direct communication with your supply chain stakeholders. Therefore we are happy to provide you with the following to be sure the partner you select shares the same values and customer service principles.
Outsource Vision Generation
Core Competency Analysis
Key Outsource Process Identification
Make VS Buy Analysis
RFI / RFQ Development
RFI / RFQ Management
Contract Management
Implementation Planning
Implementation Project Management
Outsource Relationship Measurement
Continuous Improvement Development
The 3PL industry is growing at a pace of nearly 15% per year. Unfortunately, as new 3PL relationships are born, existing 3PL relationships are disintegrating in a milieu of failed promises. These failures tend not to be the fault of any one party, but rather they are the result of poor planning and lack of efficient strategies. Some reasons that these relationships are doomed from the start are:
The customer did not give accurate information from the beginning, which resulted in the 3PL unknowingly under-pricing the contract in the initial proposal.
The 3PL was eager to get the business and did not consider all cost and operational components and therefore under-priced, over-promised.
The customer thought all aspects of the logistics function could be left to the 3PL.
The 3PL took on the new business without the resources to implement and operate the account effectively in the long term.
The customer did not set expectations, standards, and measurements to define success in the relationship.
The 3PL did not listen for or document the voice of the customer and consequently did not understand the customer's requirements or expectations.
The 3PL had no formal continuous improvement infrastructure in place, which resulted in a stagnant relationship after the initial start-up phase.
The relationship was based solely on cost-reduction goals, which are virtually impossible to calculate, confirm, or deny after the operation begins.
When we review this list, it is apparent that many 3PL relationships begin for the wrong reasons. Successful business relationships do not live and die by cost reduction. The successful relationship is driven by common goals, shared vision, and complementary expertise. Contact us if you would like support in selecting the right 3PL partner.
