Friday, August 7, 2015

Why Your 3PL Should Be Your Strategic Partner

The need to manage and reduce costs is nothing new.  And the centralization of logistics services and automation offered by 3PLs have enabled companies to bundle and outsource complex logistics functions, leading to more efficient operations and in many cases, allowing the companies to capitalize on the 3PLs infrastructure, resources and relationships.   All good so far, right?

The problem arises when those companies begin to view the 3PL as a commodity provider rather than a strategic partner.  “The recent white paper, Unpacking Risk Shifting: A White Paper Challenging Unreasonable Risk-Shifting in the Transportation Industry,” written by what could be viewed as a collection of logistics “all-stars,” including academics, 3PLs and shippers, and consultants, makes the argument that the relationships have swung too far toward commoditization and away from strategic partnerships.  Companies “…want innovation and investment by 3PLs, with 3PLs reluctant to deliver, citing how ‘razor thin margins and short-term commodity-based contracts create a disincentive for 3PLs to make investments.’”1   That’s bad for both sides of the transaction:  3PLs may turn away business, or even go out of business.  Companies may not be able to find a 3PL willing to work with them.  Both sides lose.

VisionCPFContrast that with a more balanced relationship that builds on the success of both the company and the 3PL.  As a strategic partner, your 3PL is in a position to invest in the future, supporting the success of both organizations.  They can be the innovative solution provider that your company relies on, rather than just the folks who get the package from point A to point B.  When the next crisis or amazing opportunity arises, will you have a strategic 3PL partner to help you solve the problem or capitalize on that great new opportunity?  


Talk to Vision today, to learn how we can be your strategic 3PL partner, building a future together.  Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services.  No matter who your customer is, we treat your customer as our own.  We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business.  Call or email us to learn how.  We’re certain we’ll be the best fulfillment warehouse partner you have ever had!



1http://www.logisticsmgmt.com/article/shifting_risk_and_meeting_in_the_middle_could_serve_as_key_to_shipper_3pl_r

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