{"id":2402,"date":"2019-12-16T15:36:46","date_gmt":"2019-12-16T21:36:46","guid":{"rendered":"http:\/\/dev-mhisolutionsmag.officialdirectory.com\/?p=2402"},"modified":"2020-02-26T09:46:08","modified_gmt":"2020-02-26T15:46:08","slug":"partnering-with-a-3pl-best-practices-for-a-successful-relationship","status":"publish","type":"post","link":"https:\/\/www.mhisolutionsmag.com\/index.php\/2019\/12\/16\/partnering-with-a-3pl-best-practices-for-a-successful-relationship\/","title":{"rendered":"Partnering with a 3PL: Best Practices for a Successful Relationship"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Learn some of the key ingredients needed as companies and their 3PL service providers define and create win-win partnerships, as well as how they measure success.<\/strong><\/p>\n

* By Sara Pearson Specter *<\/em><\/p>\n

Engaging a third-party logistics (3PL) service provider for outsourced logistics and supply chain services has become a common practice among companies of all sizes. Indeed, research from 3PL consultancy Armstrong & Associates finds that 90% of domestic Fortune 500 companies work with at least one 3PL\u2014a statistic that\u2019s nearly doubled since the firm began tracking this data in 2001.<\/p>\n

Further, the 3PL market continues to flourish. Armstrong & Associates\u2019 most recent market size findings from 2018 show the 3PL market collectively grew by 15.8%. Why this exponential increase in 3PL use? The consulting firm points to the ongoing growth of e-commerce retail, as well as a significant increase in domestic inventory of imported products ahead of import tariffs, robust U.S. economic expansion, and tight domestic carrier capacity.<\/p>\n

All that growth means more companies are on the hunt for better, more productive contract service partner agreements that yield supply chain optimization and reduce total costs. That\u2019s not to say companies aren\u2019t using short-term public warehousing services too. But when it comes to longer-term contract warehousing\u2014in which the 3PL makes capital investments in automation, software and other technologies to achieve those objectives\u2014companies that strive to establish a collaborative, mutually beneficial relationship will reap the greatest benefits.<\/p>\n

Here, MHI Solutions takes a look at some of the key ingredients needed as companies and their 3PL service providers define and create win-win partnerships, as well as how they measure success.<\/p>\n

An appropriately sized match<\/strong><\/p>\n

Just as there are a variety of company sizes and needs, there are a variety of 3PL sizes and service scopes as well. It\u2019s important that both be fairly evenly matched, so expectations are met on both sides. That means the company seeking a service provider\u2014most typically through a request for proposal (RFP) process\u2014must adequately define the scope of its needs upfront.<\/p>\n

\u201cOne of the biggest issues in this discipline is scope. Often, if two parties get in trouble, it\u2019s either because the 3PL perhaps did not understand the scope as well as they should, or because the customer didn\u2019t include all the requirements,\u201d noted Elijah Ray, chief customer officer at Sunland Logistics Solutions, a 3PL focused on warehousing and value-added services.<\/p>\n

Read more…<\/strong><\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Learn some of the key ingredients needed as companies and their 3PL service providers define and create win-win partnerships, as well as how they measure success. * By Sara Pearson Specter * Engaging a third-party logistics (3PL) service provider for outsourced logistics and supply chain services has become a common practice among companies of all …<\/p>\n","protected":false},"author":46,"featured_media":2403,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,15,12],"tags":[117,698,692,696,693,702,701,697,694,695,133,699,700],"class_list":["post-2402","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-global-trends","category-human-resources","tag-3pl","tag-alpine-supply-chain-solutions","tag-armstrong-associates","tag-capacity-llc","tag-elijah-ray","tag-global-supply-chain-institute","tag-kate-vitasek","tag-michael-wohlwend","tag-sunland-logistics-solutions","tag-thom-campbell","tag-university-of-tennessee","tag-vested","tag-vested-outsourcing"],"yoast_head":"\nPartnering with a 3PL: Best Practices for a Successful Relationship - 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