Organizations seem to be making certain errors more frequently now than they did before.
Having spent over 30 years helping people, I’m concerned to see these mistakes resurfacing.
So, what are they, and how can you prevent them?
Be sure to watch the entire video for the full picture and to elevate your strategies!
Here are the 3 logistics outsourcing mistakes:
Not Leaving Enough Time
One of the most common mistakes is not allowing enough time. Organizations often wait until contracts are close to expiring, leaving only a few months to find new providers. In the current market, many 3PL providers are incredibly busy, making it harder to find the right fit. Rushing the process can lead to poor choices and long-term issues. I always recommend starting the process six months to a year before your current contract ends to allow for a thorough evaluation of potential providers.
Not Providing Enough Detail
Another significant issue is the lack of detail companies provide to potential suppliers. I’ve seen this time and again—businesses ask for quotes without offering enough detailed information. Providers need comprehensive data, including weights, dimensions, transaction histories, and customer locations, to give accurate quotes. Without this information, suppliers may underestimate or overestimate your needs, which can result in a poor match. It’s crucial to provide detailed, accurate data throughout the outsourcing process to avoid these problems.
Incompatible Suppliers
The third common mistake is approaching the wrong suppliers. In the past, businesses would send requests to as many as 20 providers, hoping to get a good deal. Today, this approach doesn’t work. Most suppliers are too busy, and casting such a wide net can be inefficient. It’s far better to focus on four or five suppliers who specialize in your type of logistics. Whether you deal with industrial products or retail goods, ensure you’re targeting companies that have experience with your specific needs. By doing this, you increase the chances of finding the right fit.
Related articles on this topic have appeared throughout our website, check them out:
- The Suppliers’ View of Logistics Outsourcing
- Logistics Outsourcing Secrets: A Serial Guide to Success with 3PLs
- The Power of Outsourcing for Supply Chain Improvement
- Logistics Outsourcing Partnerships and Why It’s Time to Break a Rule or Two
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 21, 2023, under the title “3 Common Logistics Outsourcing Mistakes“.
