10 Common Mistakes to Avoid When Outsourcing Logisticsby S & S Brokerage Top Logistics Company In New Jersey
you think about how popular logistics outsourcing has become in the last few
years, you might think that success is a sure thing. But, as some companies
have learned the hard way, there are some mistakes to avoid if you want your
partnership with a 3PL New Jersey provider to work.
Mistakes to Avoid When Outsourcing Logistics
knowing what mistakes to avoid when outsourcing logistics, your supply chain
can save money, time, and effort but:
Mistake #1 is
hoping for too much. Rarely does an outsourcing project save all of the money
that was expected. Don't let this news make you too sad, though. Even if you
only reach 70% of what was planned, that's still a big win for your business.
In fact, if the only reason you want to outsource logistics is to save money,
you should be very careful. If your current operations aren't really
inefficient, outsourcing may even make your logistics costs go up.
Mistake #2: Everything
you want from your outsourcing partner should be outlined in documented
Mistake #3: Too
much outsourcing, too soon. Plan for a "honeymoon" period and start
by outsourcing a small part of your chosen process. If everything goes well,
raise the scales.
Without an exit plan—Ensure your provider's contract includes a method for
disengagement if the collaboration fails.
Outsourced procedures are still your processes. Micromanagement isn't
necessary, but monitoring and measuring are.
Treating the process like a buy – Outsourcing logistics is a long-term collaboration.
Choosing a service based on pricing is rarely a wise move.
Internal negativity and finger-pointing may undermine a relationship quickly.
Change management and stakeholder buy-in are worthy investments.
Rushing bids – If you plan to find a 3PL partner, complete a deal, and start
outsourcing logistics in a few weeks, you'll likely be disappointed. An
outsourced relationship takes four to six months to establish.
Outsourcing strategy – Not every firm needs outsourced logistics. You should
tell people what your goals are for outsourcing. If you don't, you'll treat it
like a strategy when it should just be a tool for your strategy.
Not realizing how important communication is: Once you start working with a 3PL
provider, you must resist the urge to keep everything to yourself. Logistics
outsourcing won't work if you aren't willing to share short-term forecasts,
long-term plans, and, perhaps most importantly, important business data with
the ten mistakes listed above, and choose your 3PL partner wisely. This will
provide your business with the best opportunity to make money without too much
Created on Sep 11th 2022 14:03. Viewed 165 times.