5 Crucial Steps to Onboard a New 3rd Party Logistics Company

The pandemic has affected many businesses. Vendors have settled many issues ever since the outbreak. Office closures and supply chain disruptions have been rampant. Many have been looking for consistency. These issues should not affect your partnerships.

During this pandemic, your business is going through a difficult time. It is best if you stick to an effective delivery arrangement. It will improve your supply chain function.

What does this all mean? Choosing a good logistics provider can be helpful. It can make your company’s work easier and faster. Make sure to choose a logistics provider that provides the needs of your company.  

There are many factors why you should onboard a new logistics provider. Now is the best time to do it, especially in these trying times. Your company will be better for it. 

Here are five steps on how to onboard a new logistics company. 

Logistics Should Make Onboarding Easy

What is a sign of an effective logistic partnership? The onboarding process is fast. It means that your logistic partner has customer service. The onboarding process is an action done in a few hours.

Logistic Partnerships Increase Efficiency

There are benefits to getting a logistics provider. They can give more agreements to your operation. Working with a good provider can improve the delivery performance of your company. It can also cut the delivery time.

Third-party providers or 3PLs must have a good relationship with your company. Trusting 3PLs is key to getting benefits for your company.

3PLs can fill gaps in your company’s supply chain. It is due to their understanding of logistics and technology. 

Increasing efficiency is one of the benefits of choosing a good logistics provider. It is crucial to consider the value your company will get from your 3PL. The majority of companies are cost-conscious. 

It does not mean that choosing low upfront costs can be better for your company. It is best to check what the 3PL can offer. Weighing the benefits and costs of a logistics provider can be economical.

Fulfillment fees are not the only thing to factor in when looking at costs. Saving money is a crucial factor to be considered. 

Logistic Partnerships Can Cut Costs

Your company should take the opportunity to reduce costs. The pandemic is not a good condition for our company to increase its spending.

Having a 3PL can cut the cost of the company in many ways. They cut costs by creating network recommendations. They can also reduce spending by creating a distribution network suggestion.

Aside from deciding which 3PL to partner with, you also have to consider how to onboard them.

Create a Product Profile

Risk profiles and elements of the product are crucial. A product profile considers material handling and packaging. 

It should also confirm that it arrives at the customer. The product should be in the same condition as when it left.  Aside from those, there are other factors included in the product profile. These include:

  • Presentation
  • Classification
  • Global code and brand
  • Material identification

When documenting a profile, you should also take note of the following:

  • Intended use of the product
  • Storage conditions
  • Material handling
  • Risks
  • Hazards

Perform Process Mapping and Risk Assessment

Following GDP guidelines are crucial.  It checks that outsourced partners follow these practices. The chain of custody’s local links is not enforced outside.

Losing visibility is a risk. Parties in the supply chain should cooperate. Designing local, regional, and global networks is crucial to avoid this situation.

Entities like product management and logistics need to cooperate. It will let them perform process mapping and risk assessment better. Customers are also included in this activity to prepare for the shipment of products.

This activity represents each step in the shipment process. After that, it needs to consult the company’s transportation provider.

Ensure Consistency Across All Locations

During the onboarding, you need to confirm it is uniform across all locations. Many companies use systems that are inconsistent with their data supplier.

Using technology gives you control over the supplier’s data and the service they provide. Translating the data for departments and branches is crucial. Having a uniform method can produce a smooth rollout. 

Good communication is the foundation of successful onboarding.  It is crucial to create a process for communication. In this way, stakeholders can act on the right information.

Share Sales Date with Logistics Partner

Sharing your data can be helpful to your company.  Your logistics provider can determine your sales pattern and make adjustments there. Sharing sales data can result in better service for your company. 

Sharing sales data can also help plan ahead. Your 3PL can prepare extra storage space during the seasonal rush. 

If you are hesitant to share your sales data, consider these:

  • Your company should have a non-disclosure agreement with your 3PL. It guarantees the safety of data. 
  • Sharing sales data with your service provider can boost efficiency. 
  • Consider your 3PL as your business partner. The only way service providers can help you is by sharing your data. Through this, your business will grow. 

Create a Vendor Portal

Making a vendor portal is beneficial to your company. Potential suppliers can express their interest in your company through the portal. Emails are useful, but they can get lost in the spam box. 

Creating a vendor portal also speeds up the onboarding process. It can take weeks to months before all the needed information is gathered. A portal can benefit your company and the logistics provider.  

Accurate data needs to reduce the backlog and expedite shipping like UPS ground shipping time. That is why the portal should contain crucial forms when filled out. It includes contact information and references.

In a Nutshell

Onboarding a new logistics company can be daunting. But this should not stop you from getting a good service provider. Forming a partnership with a service provider is crucial, especially during a pandemic.

It is best to choose a good logistics provider. Check the pros and cons first before availing their services. Consider what benefits the 3PL can give to your company. 

A good logistics provider can make your business reduce costs and save money. Aside from those, the 3PL should also meet the needs of your company. Most importantly, they should make your company more efficient.

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