It seems some of the most successful Fortune 100/500 companies have been able to grow their business profitably by outsourcing their logistics needs. Admittidely, the word "partnership" with a service provider has become exhausted — I prefer marriage. Just like marriage, you are truly in it to reap the benefits for the long-term. However, outsourcing isn't for everyone. There are companies that feel they want total control, and that they can deliver a lower cost per order by handling warehousing, fulfillment and freight internally. Doing so, some find that there is a greater impact on the bottom line. On average, a 3PL can provide a lower cost per order compared to internally managed operations. For those that are interested din utilizing a 3PL, but haven't taken the leap, here are 5 ways we have seen a number of clients get the most out of outsourcing. Keep in mind that some of the points need to become a part of the negotiation process and expectations early on. 1. Creating a "Win/Win" for Both Parties I recently spoke with the Director of Logistics of a multi-million dollar manufacturing company. He stated that their average customer had been with them just over 10 years. They have 10 manufacturing facilities and very little square feet for production overrun in the U.S. and offshore; and they need to be closer to their customers. Think about that for a minute — that says a lot about finding a 3PL in a time when quality, low cost, and time-to-market are key to the business and profitability. Creating a true union and win/win scenario should be the ultimate goal for both parties. Here are a couple of things to think about: From your perspective, what are the short and long-term 3PL services you require to grow your business? Are there new systems and services a 3PL partner will invest in to provide first-rate services for your company?
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Topics: Common 3pl Questions
