Selecting a 3rd Party Logistics Provider – A Step by Step Approach for Shippers and Supply Chain Leaders


February 27, 2020


Joe Lynch

  1:00 PM ET | 12:00 PM CT | 10:00 AM PT | 60 Minutes

* Not able to attend the live session? We can arrange an on-demand session for You. Please call 1-‪814-892-0304


When it comes to 3PL, the best method to maintain/monitor a transparent and strong relationship is to mutually set up a win-win service level agreement (SLA) with agreed upon key performance indicators (KPIs). This document has to be reviewed frequently, quarterly at minimum, and monthly to begin with, as the two parties go through the honeymoon period. Some issues in the SLA/KPI are continuous improvement for cost reduction, quality levels, reliability, flexibility, responsiveness, customer service percentages, voice of the customer techniques, inventory management, inventory records accuracy, transportation, IT systems integration, safety, security, manpower, weekend work and many other issues depending on the customer and a 3PL.

This 3PL training program will examine how to implement third party logistics to outsource your logistics, warehousing and transportation to a specialist in the field, so you can concentrate on your core products. Transportation should be handled by a quarterly business review (QBR) wherein you both review the fuel surcharge (FSC) and agree to savings using the 3PL’s transportation management system (TMS) which optimizes lanes and routes for better mileage and transportation efficiency.

Why Should You Attend:

This webinar will discuss why the key to success is collaboration, trust, compatibility, and fairness and why adversarial relationships do not work. Further, it will discuss reasons why large companies use a 3PL:

  • Significant pressures to reduce costs
  • Visibility of goods
  • Emphasis on improved supply chain management
  • Access to new technologies while avoiding investment
  • Significant pressure to improve customer service
  • Globalization/new markets
  • Consolidations, mergers and acquisitions
  • Intensifying government and regulatory processes
  • Rapidly accelerating new product introductions
  • Security issues
  • Transportation/logistics capacity issues

Learning Objectives:

Selecting a 3PL

  • Conducting an internal needs assessment to determine what logistics functions will be outsourced
  • Identifying the 7 most important criteria for 3PL selection: 3PL business models, financial stability, company specialization/current customers, operational excellence, technology assessment, people & organization, culture, reputation and references

3PL Implementation

  • Negotiation and collaboration between the customer and 3PL
  • The difference between contracts and service level agreements
  • Contract negotiation/key elements of the contract
  • Implementing service level agreements with key performance indicators
  • Training/onboarding
  • Project management/project sponsorship

Ongoing Management of 3PL Relationship

  • Using scorecards and KPIs to monitor progress
  • Quarterly business reviews
  • Collaboration

Areas Covered in the Webinar:

  • How to implement 3PL to outsource your logistics, warehousing and transportation to a specialist in the field, so you can concentrate on your core products.
  • How to bring out better value, improved customer service, and continuous improvement for you, in your 3PL?
  • How to implement communication, IT integration, contracts and SLAs with KPIs for a more formal partnership relationship?
  • Is there a process to follow so this partnership can be more effectively maintained?
  • Collaboration for a win-win partnership is critical as adversarial relationships do not work.
  • Third party logistics companies checklist for choosing and qualifying a 3PL.

Who Will Benefit:

  • CEO
  • COO
  • Supply chain manager/ personnel
  • Carriers and food transportation department
  • Trade/logistics/transportation director/manager
  • Warehouse managers/ management
  • Finance manager/cost accountant
  • IT manager
  • Customer service manager
  • Eventual cross-functional team/project leader to create a request for quotation (rfq), review the 3PL’s request for information (rfi) and review quotes/internal cost of moving to a 3PL
  • Retailers, wholesalers, and manufacturers
  • Presidents of supply chain and trade
  • Vice presidents of supply chain, trade and finance
  • Business owners
  • All clinical professionals
  • Regulatory affairs
  • Quality assurance
  • Marketing, business development
  • Purchasing, procurement, supply management and logistics

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