3PL services are growing year after year. It has been noticed that supply chain departments are becoming trickier, and so the 3PL providers have been turning even more important to the companies. Maybe you are moderately new in a business, or you have grown enough to warrant the need for more logistic options – Whatever the reason if you are searching for a logistic management company for the first time then you must have a keen understanding of what they are and how they work before choosing the right one.
WHAT IS 3PL SERVICE?
Third Party Logistics is a subcontracted or “third party” logistics service company that handles part or sometimes all of the logistics or supply chain management function for another company to meet the order fulfilment established. Those functions were previously made internally by the company, but trying to reduce their costs after outsourcing their logistics to 3PL service providers.
SERVICE PROVIDED BY 3PL LOGISTICS MANAGEMENT COMPANIES
Third Party Logistics Providers exists as long as commerce, but in the beginning, they hadn´t so much importance as they have now. They offer the customers multiple services like:
- 3PL Warehouse
- 3PL Transportation
- 3PL Packaging
- 3PL Inventory management
- Cross-docking and freight forwarding
A company need to decide what kind of services they need for their business.
08 TIPS TO MANAGE A SUCCESSFUL LOGISTICS MANAGEMENT COMPANY
The first thing that you should know, you can provide this service to your clients if you know how to handle it. Here are some great tips that will guide you on how to manage the services of the third party.
- EFFECTIVE COMMUNICATION
The first thing that you should consider when managing the service of a third-party logistics is to communicate well with your customers and your clients. You have to communicate well and build a relationship with your clients because customer satisfaction is the key to get success in any business.
- BE A PROBLEM SOLVER
Always, try to become a liaison between your company and the client. You have to help the client with their business issues so that it can achieve maximum benefit by outsource logistics from your assistance. Moreover, you have to be familiar with your client’s business requirement.
After knowing the business requirement of your client’s, you should have known some common issues that may occur and how you can help the company deal with them. So, you have a strong knowledge of the market and about your client’s business in order to be a successful 3PL service provider.
You have to be competent enough to handle the problems and concerns that your clients might have with their logistics. Before offering the service to your clients, you have to make sure that you know about the service and its terms and conditions.
- LOGISTICS MANAGEMENT KNOWLEDGE
Before starting your own 3PL company, you should have enough knowledge related to Logistics management domain. You have a strong grasp while handling third party consignments because in this domain there are several other departments linked with government agencies for clearing and forwarding freights.
- MUST HAVE EXCELLENT CUSTOMER SERVICE
Building relationship with your customers is the key to any successful businesses. In order to start and be a successful 3PL service provider, you have to deliver excellent customer service to your client.
Whenever you are dealing with clients, it’s important for you to give them proper attention and respect. Furthermore, always ask the client about the problems or concerns that they might have with their logistics. You have to provide high quality services to your clients. Your clients should always be satisfied with the service that you have provided to them.
- 3PL WAREHOUSE INSPECTION
Keeping check and balance is mandatory while operating a successful 3PL company. You have to conduct a regular check of the warehouse to monitor your client’s inventory for daily updates. In this way, your clients feel trusted and secure that their personal information is safe. Make sure, you regularly update your warehouse inventory so that your client has a clear picture of their stocks, deliveries and productions.
- MAKE IT OFFICIAL
After acquiring a brief from your client, and once you have information about the duties that you have to perform as a third-party logistics Management Company then you need to prepare a contract to make it official.
Now, you have to work according to the clients’ needs and requirements. You should always be ready to deliver the best quality service and should also follow the contract.
- BE RESPONSIBLE
In the end, you have to be responsible for the quality of your services. You should make sure that you know the things that you have to do so that you can help your clients make better decisions so that they will be able to get the best service.
- UP TO DATE TECHNOLOGY
Technology is revolutionizing the 3PL industry year to year, from order processing to tracking. Being a successful 3PL service provider, you must have strong technical setup by which you can keep your client updated via your smart tracking system. No need to send daily reports or attend calls because all you can handle via this medium.
3PL logistics management providers can offer professional, help simplify supply chains, and save time and money. In order to grow your business, you should consider outsource logistics because they can really make a difference. After hiring 3PL service providers, you can solely focus on the growth of your business and other internal affairs because your customers are taken care by third party logistics companies.
So, if you are managing such a company and would like to flourish in the market, then you must consider all the above tips. We guarantee you will rise and shine like a star in the 3PL industry.
Ryan Myers is a business blog author and writer. He graduated from the University of California, Berkeley in 2009 with a degree in Political Science. His favorite topics to write about are blogging for small businesses and becoming an entrepreneur.