Managing 3rd Party Logistics (3PL) Service Providers – Key Success Factor # 1 – Properly Defined Scope of Work

Far too often the importance of a properly defined scope of work (what it is you want the service provider to do) is overlooked.

One of the greatest frustrations of logistics service providers is the lack of quality information that is provided as part of the tender process. Each task within each process should be clearly documented. This is particularly important where you have specific requirements outside of what would be normally considered standard practice.

Providing detailed information should extend beyond a thorough definition of the processes to be performed. It should also include the provision of sufficient shipment and throughput data. This will enable the supplier to prepare the best possible and most cost effective response to your requirements.

The less data the higher the cost is likely to be – the supplier will always add a premium to cover the uncertainty.

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