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The goal is to not have вЂњtoo many cooks,вЂќ confusing your 3PL partner with differing instructions. Appoint a single contact to talk with your value-added partner, whether it be an account manager or a production manager. Never underestimate the power of a regular check in. Balancing the structure of insight of your partnerвЂ™s operations and unbearable oversight is tricky. You also donвЂ™t want to be overbearing and micromanaging.

Just because you hired a 3PL doesnвЂ™t mean you should just turn a blind eye to its processes.

KPIs can include on-time percentages, shipping and order accuracy, return rate, and inbound receiving time.Д®stablish a reasonable reporting schedule.

Explaining why they matter can help incentivize your partner to strive for maximum performance as well. Communicating those to your logistics and fulfillment partner is critical when agreeing on how they will be evaluated.

Your Key Performance Indicators (KPI) are the metrics that help define your success.

This would be spelled out in your service level agreement. Nailing down what your shared goals and expectations is very important and will lead to less confusion down the line.

Specify what the 3PL is expected to do before the contract is signed.

If you company cannot complete a baseline and benchmark costs in an accurate fashion, then your business needs to reevaluate whether or not outsourcing is the right step for you.

Nothing can sour a relationship with a 3PL center faster than a poorly written RFP made with inaccurate data.Start business relationship with a good RFP To ensure the efficiency of outsourcing to a 3PL, it is important for a company to have a clear communication with their provider, keep track of the operation, and always be willing to collaborate.ДЈ Tips for Managing 3PL Performance 1. However, hiring a 3PL company will not automatically improve the quality of supply chain or their 3PL ecommerce fulfillment. Many businesses outsource to 3PL warehouse companies because they can provide customized supply chain solutions that can flex and scale to meet their customerвЂ™s unique needs.

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Learning how to manage your 3PL performance will not only help your business growth but also establish long-term work relationships that will build your reputation as well.ДЈPL, or third-party logistics, are companies that offer services such as distribution, warehousing, and fulfillment services within the broader scope of logistics and supply chain management. However, if not careful, it can lead to a вЂњhands-offвЂќ approach that has the potential to negate any sort of benefits that the outsourced help may bring. Outsourcing parts of your supply chain can create a huge opportunity for business growth.