4 Tips When Outsourcing To A Third-Party Logistics Provider

In today's highly competitive world, businesses around the world are increasing their use of outsourcing. Outsourcing can assist businesses by allowing them to focus on their core competencies, providing more flexibility, and reducing costs.  To find out the best logistic provider, you can visit https://treefroglogistics.com/.

Contract logistics or warehousing is one of the main functions that is outsourced to 3PL providers with 73% of global shippers outsourcing their warehousing according to the 2014 18th Annual Third-Party Logistics (3PL) Study.

1) Be open with information and proactively raise potential issues early

In order for a 3PL provider to understand your business requirements, it will need very specific data and detailed process information upfront. 

The better the 3PL provider can be open and share information, challenges, and ideas, the better it can develop the most appropriate solutions. Further, it is important to proactively raise any issues early. 

2) Confirm the 3PL provider uses a Warehouse Management System (WMS) that works for your business

A WMS allows monitoring, managing, and optimizing workflows and the storage of goods within your warehouse.

3) Starting a new business relationship with a 3PL provider is similar in many ways to dating. You meet for the first time, share some information, get along (or don't), and decide if you want to share more information. 

4) Operate with key performance indicators (KPIs) to ensure continuous improvement

Businesses that outsource are looking for continuous improvement. In order to improve a process, it must be measured and KPIs are measures that are used to define and track progress toward a specific goal.