10 TIPS
A long-term collaborative partnership with your 3PL is table stakes in modern retail. It lays the foundation for operational efficiency, business growth, and success. Developing Long-Term 3PL Partnerships
1 RESEARCH COMPATIBILITY
collaboration, the two companies discuss long-term capacity planning up front. 8 ALIGN ON CUSTOMER EXPERIENCE STANDARDS. Customer expectations are high for the post-purchase experience. Consumers want fast and free shipping, communication, and a memorable unboxing. A partnership should deliver a consistent customer experience that supports brand values with well- defined service-level expectations. 9 STAY ADAPTABLE TO CHANGE. It’s crucial to evolve the relationship to meet market conditions and business needs. Both parties should be open and willing to renegotiate terms or upgrade services as required. Staying adaptable keeps you agile and able to adjust quickly to navigate supply chain disruptions and shifting customer demand while maintaining operational efficiency.
BETWEEN THE TWO COMPANIES. Compatibility paves the way to a lasting relationship. Although aligning long-term logistics and growth objectives is crucial, forging a partnership starts by ensuring that capabilities and services are a match between a 3PL provider and brand. Look into reviews, references and case studies to evaluate expertise and capabilities.
2 DEFINE GOALS AND SUCCESS CRITERIA. Ask one thing: What are we looking to accomplish with this partnership? It’s critical to align on measurable goals and define success criteria. Both parties should have realistic expectations and be willing to communicate openly and adapt as the partnership evolves. 3 SET MEASURABLE KPIs. Measure what matters. Each operational goal should tie into key performance metrics, such as order accuracy, delivery speed, cost efficiency, and customer satisfaction. Review and adapt as needs change. These KPIs also set the stage for the future—giving you the ability to compare past and present, identify areas for improvement, and track the effectiveness of strategies. 4 COLLABORATE ON PLANNING. A brand and its fulfillment partner should work together on strategic planning and
visibility and real-time data. This facilitates informed decisions. A successful partnership requires seamless integrations, allowing you to leverage omnichannel data optimally. A retailer’s platforms and software must integrate with the 3PL provider’s systems effortlessly. It enables the 3PL and the brand to optimize operations and meet shared goals. 7 PLAN HOW TO SCALE. Fulfillment operations often need to contract and expand. In the retail industry, peak season drives sales surges, while outside factors influence peaks and valleys. With the right 3PL partnership, brands can grow with access to expertise, expanded facilities and technology. In an ideal
problem-solving. Think of the 3PL as an extension of the team. Working together to streamline operations results in mutual growth, efficiency and optimized customer experiences. 5 IDENTIFY OPTIMAL WAYS TO COMMUNICATE. Choosing key stakeholders, points of contact, and tools for effective communication efforts is essential. Establish regular check-ins where you can address concerns, evaluate performance, refine strategy, and discuss any upcoming events or promotions that might affect your operations. 6 OPTIMIZE TECHNOLOGY INTEGRATIONS. Today’s successful logistics and fulfillment operations depend on operational
10 RECOGNIZE SUCCESS
AND ADDRESS CHALLENGES. A partnership strengthens as you work through problems and experience success together. When you approach the partnership constructively and foster goodwill, you’re better equipped to maintain trust, resolve conflicts, and achieve great things.
SOURCE: ILIAS SIMPSON, PRESIDENT, CART.COM
8 Inbound Logistics • December 2024
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