Popular in Course
verified elite notetaker
Popular in Business Administration
This 2 page Document was uploaded by an elite notetaker on Tuesday December 22, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 10 views.
Reviews for Impotance-Of-Third-Party-Logistics-Company
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/22/15
Few Tips For Selecting A Good Third Party Logistics Company Third party logistics providers are the companies that offer outsource services in logistics and management to their client companies. Now days, it is quite hard to find the correct third party logistics company that meets the requirements of your business. To hire a good 3PL company you must have a crystal clear understanding of your own business and a rough estimate of your future needs. Also you must ensure that you give accurate with complete information in your request for proposal, or RFP, else you won't be able to get the service you really want from the 3PL service providers. Your RFP should clearly state the desired objectives with a historical growth chart of the company. Other than these basic requisites, you should keep the following tips in mind while selecting a good 3PL provider:- • Confirm the capabilities of the company: A key reason of why anyone outsources his work to a 3PL provider is that he himself does not have the required infrastructure for transport and warehousing. So you should deeply look into the transport management and warehouse management system of the company you are considering to hire. Top 3rd party logistics companies usually provide real time visibility of their inventory, so that you do not face any difficulty in communicating important information. You should ensure that they offer to manage stock rotation parameters and allow shipment tracking, so that you can track their delivery performance. Also the capabilities of the 3PL company you hire should match the enterprise resource planning of your company. E- Commerce has revolutionized many businesses by offering online trading facilities. So, if you take online orders, you should select the 3PL provider who allows ecommerce order fulfillment service. • Keep up with your pace of growth: Associating with a 3PL company is a long term association. So, you should take care that the company which is able to handle your current requirements should be able to handle your increased requirements in the future, if your company registers a staggering growth. So, if you are looking to expand in the future, you 3PL partner should also have the capabilities of adding new trucks and warehouses for your service, and be able to keep pace with your growth. • Should have good back-up: It is very essential that your 3PL associate can manage to get your shipment delivered even if few of his trucks have broken down or have suffered some accidents. So, a good 3PL provider should always have back-up inventory to meet urgent requirements at time of emergencies.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'