The concept behind back office offshoring solutions – third-party logistics providers in particular – is to make sure that you and your in-house staff can dedicate your time, effort, and resources to the core manufacturing tasks. However, that doesn’t mean that you are already freed from the responsibility of keeping close watch on what your logistics provider is doing, especially when such third parties have access to your clientele.
Below are different guidelines that you may follow to ensure that you measure and monitor your partners effectively:
Have Clear Key Performance Indicators (KPI)
Create a very detailed and measurable set key of KPIs that include precise deadlines, target numbers, and other measurements. This way, the whole team is on the same page when it comes to goals and the process needed to be followed in order to achieve them.
Make a Standard Schedule to Send Reports
Sure, reports provide you with access to the metrics that are very important to your business. Meanwhile, the regularity with which your logistics partner adheres to your reporting schedule is another good way to gauge their performance capabilities.
Log the Deliverables
Have your logistics team keep a log of when the goods come in, hit the road, and reach the client – or they may use time stamps for the same purposes.
Take Advantage of Apps and Tools That Increase Visibility
Visibility tools are a must for you and your third-party logistics partner. These enable you to track your deliveries from the moment they get out of the warehouse.
Let Your Third-Party Logistics Be Your Shoulder to Lean on
A majority of third-party logistics partners are now joining improvement programs like “LEAN.” Ask your partner to include your company in these programs, because the tools these programs will help you understand detailed measurements, as well as provide means to improve your current process.
Don’t Hesitate to Comment on Minor Problems
While it’s a must to monitor and measure your provider’s strategy and performance, it’s also a good idea for you to check how your partner deals with other stuff. Like, say for example, your goods.
Never Forget to Conduct Regular Visits
Once you visit your third-party logistics provider, you’ll be able to better grasp how they work, how they deal with your products, and other details such as cleanliness.
Don’t Shy Away From Making Comparisons
Always collect the performance reports that show the metrics of your third-party logistics provider – and then give them your feedback. Understanding how your partners fare versus the competition may serve as a way for your third-party logistics provider to step up with their performance or to continue the cool things they’ve been doing.
Never Underestimate How Awards May Inspire Powerful Results
Majority of companies use their third-party logistics’ measurement data as a criteria to determine the winners of annual awards. And, these awards surely inspire third-party logistics in performing better.