As a relatively new company, we often have to build relationships from the ground up with clients, suppliers and partners which can sometimes be a challenge given that, within the logistics industry, the onus is always on trust.
This is particularly the case when delivering high-value goods or cargo. Being a third-party provider also means we understand how much stress can be caused when things don’t go to plan.
Here are our ten tips to ensure things run smoothly with your 3PL provider:
- Use the latest tech: With technology becoming more affordable across the industry, there’s a lot to be said for being prepared in this regard. We would recommend using vehicle tracking technology for vehicles and making use of accuracy data for documents and due diligence reasons. This will not only improve your business in general, but also give you much-needed peace of mind.
- Make sure the 3PL is up to the job: This might be a no-brainer to most, but having a supplier in place that can step up to the mark and deliver whatever the requirements is key. Companies which are ill-equipped, not focused or simply not letting you see the whole picture may well let you down further along the line. Being fully costed, prepared and up to standards makes all the difference when it comes to entrusting your product or services in another’s hands.
- Treat them as one of your own: Treat your 3PL provider as an extension of your business. If you expect your staff to adhere to a certain way of behaving, then extend this to your associates too. Equally, if you reward your staff with bonuses or incentives, why not make that link across the whole chain? It will not only foster better relationships, but will also encourage uniformity.
- Do your due diligence: Could you survive if your 3PL suddenly ceased trading? Do you know how well the company is underwritten? This is basic, but essential information you should know if relying on a carrier for most of your business. If the bottom fell out of their business, could you cope with the repercussions?
- Listen to existing customers: How much do you know about your 3PL provider? Have they had success with similar companies? How do they operate? What do other people think of them? Research rather than rash decisions should be the mantra here. Proven results in the past often ensure stability in the future.
- Keep it professional: No matter how close you get with a partner that provides third-party support for your business, remember to keep the relationship on a professional level. Relaxing that link might result in less stringent behaviours or a general decline in delivery promises, standards or quality.
- Match ambitions: Are you targeting the same markets as your 3PL partner? If your aim is to crack new territories, adapt to new tech or business strategies or break into other areas of the industry, can your chosen partner keep up? Make this clear from the start and the road ahead will no doubt be less bumpy.
- Plan ahead: As many 3PL providers being snapped up lately, do you have a contingency plan if your trusted 3PL gets bought out? Agile businesses are often set up and sold very quickly, planning for all eventualities is key if you want to avoid being left high and dry by your usual provider. Scope out the provider’s competition, even if you never intend to change.
- Make the social link: Make sure your 3PL partner is on message when it comes to social media. If you’re active on the likes of Twitter, Facebook or LinkedIn, why should the last part of your chain not be covered too? Photos of cargo, happy customers or day-to-day business activities all make great content. Make sure your partner takes it as seriously as you. Their social media could be another shop window to set out your display in.
- Set targets and expectations: If your 3PL is given an easy ride, you won’t see the results you want. During the planning stages, agree on some ambitious but realistic key performance indicators (KPIs) or targets to have a fighting chance of seeing a progressive relationship!
