especially if it will be interacting with your customers, Haushalter says. That is, order from one of the 3PL’s clients— ideally, from the warehouse in which your products will be located—and see how long the process takes and how nice the presentation is. A Smart Selection Process The team at VEKA invested time and effort to structure a thorough, smart selection process, Meetre says, adding that McCall was “a very informed buyer.” Both sides need to understand the shipper’s current operations and shipping patterns, McCall says. For instance, VEKA has several unique ways in which orders can come in, as well as some that need to be handled within short time frames. “You have to know that going in and be able to communicate that well to the 3PL,” she says. Without this information, logistics providers are less able to provide the services that best t the shipper’s needs. Early on, McCall brought VEKA’s IT and operations teams into the RFP process, to both gain buy-in and to connect with their counterparts on the Sunset side, Meetre says. This helped Sunset understand the current pain points and roadblocks and to begin considering ways to address them. When McCall’s team visited Sunset’s operations center, the members met the directors of Sunset’s international division and its oversized project group, Meetre says. Even if capabilities like these aren’t needed immediately, they might be down the road. By spending time assessing all a 3PL’s capabilities, a shipper can align itself with a provider that’s likely to be able to handle its needs and growth further into the future. An in-depth selection process requires an investment of time and effort by the shipper. Given limited resources, it can be tempting to instead rely heavily on the RFP. That can lead to less-than- optimal results. “Face-to-face, in-person communication is so important,” Meetre says. Open communication at all levels of the two organizations boosts the likelihood of a productive, sustainable relationship. n
insuf cient insurance limits on the part of a 3PL are another red ag, Brewer says. Typically, when negotiating the contract, the shipper sets the limit it expects. Each year, the 3PL should provide proof of this insurance coverage. Shippers Responsibilities As in any partnership, all entities involved in a logistics relationship contribute to its success. At the outset, shippers should invest the time needed to understand their organizations’ needs and articulate them in an organized, detailed request for proposal (RFP). As part of the RFP process, shippers should obtain pricing information that ts the structure they envision, and make sure it’s comparable across different providers. If an organization has any processes that are complex or require additional work, this should be highlighted and discussed early on. “Otherwise, you can have some disappointments on implementation,” Gilbert says.
A rst step when evaluating potential logistics providers is desktop research, Borchert says. This includes reviewing rankings and other public resources to gain an understanding of the solutions available. Look for evidence, such as case studies, showing a provider has clients in your industry and understands the typical pain points, Brown says. For example, do they have experience going into secure facilities or handling high-value shipments? Talk to as many providers as feasible, Gilbert says. Include their operations employees in the conversations and assess how knowledgeable they are. Ask about their services, as well as other companies that are using the services you’re considering. Conducting site visits to the 3PLs who rise the top of the list of candidates helps provide an understanding of their operations, as well as their labor and safety environment, Borchert says. Consider secretly shopping a 3PL,
VEKA’s 3PL Partnership Waves the Green Flag VEKA, which provides PVC pro le systems for windows and doors, partnered with Sunset Transportation to address operational inef ciencies and enhance customer satisfaction across its North American locations. With 49 sites worldwide and more than 6,700 employees, VEKA sought a logistics partner that could balance advanced technology with personalized service. The Challenge A previous 3PL’s focus on automation led to diminished responsiveness and increased frustrations for VEKA’s operations and customer service teams. Issues such as delayed truck tracking and unresolved claims disrupted workows and strained customer relationships. VEKA needed a reliable 3PL to improve delivery performance, enhance communication, and manage claims efciently. The Solution VEKA selected Sunset Transportation for its culture of engagement, robust IT integration, and proactive operational support. Sunset’s Application Programming Interface integration with VEKA’s SAP system streamlined order processing, reduced manual intervention, and enabled real-time logistics reporting. The improved automation allowed VEKA to reduce its customer care center workload by 21%. The Results Sunset’s carrier screening and relationship-building reduced delivery issues, improving on-time delivery to 98.7%. Efcient claims management brought VEKA’s 2024 claims ratio to near-zero, eliminating delays and fostering trust. Additionally, Sunset’s 24/7 operational support ensured smooth handling of VEKA’s high shipment volumes. Looking Ahead The partnership continues to focus on innovation and efciency, with plans to enhance vendor-managed inventory and improve supplier shipping processes. Through this partnership, VEKA and Sunset exemplify how strategic alignment in logistics can drive superior customer service and operational success.
136 Inbound Logistics • January 2025
Powered by FlippingBook