3PL: Why Building Trust is Essential for Growing Business
Any company that manages to build structural trust within their organizations usually finds it easier to do the same with their 3PL providers. In order to build this structure within the organization, it is vital that there is a commitment to a common set of goals. As soon as this trust-based infrastructure is established, the relationship between the client and the 3PL is able to begin producing magnified value. These will prove to be win-win relationships. In the long-term, adversarial relationships between the client and the 3PL will not work.
For a company to form a healthy relationship with a 3PL, it must choose the correct 3PL partner—one that is able to meet their particular requirements and with whom they can build solid and trustworthy relationships. Therefore, for smart logistics outsourcing, the key is to be well organized when selecting (and communicating) with potential providers.
This process could take as long as 6 months. The length of time it takes in order to be effective will depend on how much effort the team puts in and how the implementation of the Project Plan is managed.
Collaborative Supply Chain: The Benefits
When trust has been achieved, companies should expect the collaboration between a customer and a 3PL to be seamless. Some advantages of optimization through collaboration are:
Increased Wallet Share
Through time, a deeper relationship and trust is formed with the customer, enabling companies to gain more business.
Longer Collaboration = Lower Costs
Internal processes become second nature and a work flow develops which minimizes resources and time spent on time-intensive or administrative tasks. This is because an intimate understanding of processes has developed through trusted collaboration.
When collaboration and trust are part of a working relationship, referrals will increase. A 3PL, OEM or supplier can refer you, thus bringing you more business.
Long-term Collaboration Leads to Innovation
Much like in our 2nd point, increased understanding of processes creates a path to finding more innovative ways to further cost savings.
It is important to go above and beyond the customer’s expectations. Implementing a VOC (Voice of the Customer) program will ensure customers are happy with the 3PL. This could be done through a simple questionnaire as long as somebody in the company takes responsibility for its management. Findings can then be reported back to the 3PL.