3PL as it’s commonly referred to, is a way to avoid having to use corporate resources that may be better used in manufacturing. By monitoring logistics and using different techniques, you can measure all areas. There are however some important 3PL do’s and do not’s that you must adhere to. 

The “Must Do’s” of 3PL: 

• Be sure to set out your KPIs, looking at the numerics, including quantities and times.
• Set out a reporting schedule to allow you to maintain and analyze.
• Focus on the cost-effective performance levels as well as keeping logs.
• Keep a log of when products leave and arrive at their destination.
• Monitor the performance closely and set up a range of tools to assist with visibility.

These systems can allow you to track your inventory level and hone in on any glitches before they continue. Be aware of the improvement programs available to you. They can help analyze detailed information relating to performance. 

The “Do Nots” of 3PL:

Despite the advantages of automation, you must not leave things to chance.

• Leave 3PL data to chance and trust that everything will go well.
  • Always verify your decisions with hard data.
• Ignore competitive 3PL options
  • Someone is always innovating, stay aware of the latest trends and offerings
• Allow contracts to remain after a year
  • Always push for better terms and conditions on your contracts
• Under utilize 3PL delivery data
  • 3PL measurement data is crucial and is utilized by the best companies

If you keep these principles in mind you can create superb results. Just don’t be complacent in your 3PL parters. If you expect the best, you will get it! Contact us for a competitive analysis of your 3PL operation.