Although 3PL logistics providers are highly beneficial today to help customers manage parts of their supply chains, there are many new risks involved with it too. These risks come with the shortfalls with which the 3PL providers are selected. However, if you understand these risks beforehand, you may also be able to identify them ahead of time and take steps to eliminate them. So, here we are to help you identify these deficits. Here are some of the potential shortfalls that you must look out for while selecting a 3 PL logistics provider.
When a 3PL lacks the appropriate amount of experience required in their staff, it will lead to a lower level of efficiency and increased errors, thus resulting in slower response times. You must look for a 3PL that has an experienced team so that they can understand your business requirements and align their operations and deliveries accordingly in order to influence your business positively.
Not having the right inventory in the right place at the right time can highly affect your supply chain negatively. It leads to shipment delay which will in turn bring dissatisfied customers. Moreover, not having the right control over inventory and its processes will lead to missed errors because inventory related issues will be hard to identify. Choose a 3PL that specifically focuses on inventory controlled processes.
Safety and compliance
Safety and compliance are important components in a 3PL logistics business. 3PL providers should have planned programs to ensure a safe and healthy working environment. You need to keep a check on whether your 3PL complies with all such safety guidelines like monitoring and interpreting transportation related regulations, preparing company specific procedures, etc.
The kind of solution they provide
Some 3PL providers while providing solutions to their customers are only focused on delivering industry best practices without recognizing the requirements of the individual customer. While there are others who focus only on the needs of the customer without being concerned about the industry best practices. Both these cases are not useful to the clients. An ideal 3PL is one who can provide a solution that strikes the perfect balance between their customers’ individual needs and the industry best practices. Thus, you must make sure that the 3PL you select is fully engaged and understand your requirements well so that it can bring to you the best of both worlds for your benefit.
Information technology systems
Today, almost every shipment company uses information systems for shipping, receiving and storing products. Technology helps to manage large volumes of shipment easily and effortlessly. Customers require complete transparency, automated reporting and real time visibility. If your 3PL logistics provider is not equipped with modern technology, the capabilities of your supply chain will be limited. Thus, you need to ensure that the 3PL provider you select uses the IT systems that will meet your needs.
Keep all these shortfalls in mind so that you know how to overcome them. Professional and experienced providers of 3PL logistics like Jayem Logistics have been providing customer-focused logistics services over the years. Jayem has been assisting small, medium and large businesses to achieve the best logistic solution with its various services, which has proven it to become the best logistics company in India.