Outsourcing the logistics function offers numerous potential benefits for many businesses today. However, evaluating and selecting the right partner continues to be a challenging and risky proposition for even the most experienced managers.

THIRD PARTY LOGISTICS (3PL) SUPPLIER SELECTION

New World Business Solutions’ 3PL market knowledge & objective, fact-based approach generates a detailed understanding of the costs, benefits & risks involved in outsourcing your business to a third party supplier.

developing a supply chain strategy
benefits of warehouse management system
developing a supply chain strategy
benefits of warehouse management system

CONTRACT NEGOTIATION

New World Business Solutions has assisted numerous clients with logistics outsourcing projects. Our support will help ensure a successful negotiation with your 3PL supplier.

3PL SUPPLIER
AUDIT

A periodic audit of the 3PL vendor relationship is a highly effective means of ensuring that the initial intent and promise of the outsourcing arrangement remains on track.
developing a supply chain strategy
benefits of warehouse management system

● Outsourcing strategy and objectives
● Business functions and processes to be outsourced
● Current costs, processes and performance gaps
● Metrics/Key Performance Indicators (KPI) to measure performance and establish accountability
● Evaluation of outsourcing risks
● Managing transition from in house to a 3rd party managed operation

● Select qualified and sustainable 3PL partners
● Minimise the risk of selecting the wrong 3PL partner(s)
● Improved and actionable performance measurement and monitoring

● Structure an agreement to ensure accountability & performance
● Service levels and targets to be measured
● Process used to measure achieved performance
● Minimum & target service levels
● Actions when agreed service targets are missed
● Amendments to contract as business initiatives, products, or service changes
● Ongoing governance process to protect service, quality, & cost

● Establish well defined process and coordinated plan to ensure successful negotiations
● Increase accountability and focus on performance
● Structure fair and balanced contracts to hold all parties accountable for their actions
● Resolve issues prior to start-up and monitor results that follow

● Effectiveness of pricing structure to meet the ongoing needs of the business
● Evaluation of current costs, performance and quality and comparison with industry benchmarks
● Opportunities for improvement in existing operations
● Adequacy of services provided by the 3PL to meet customer service requirements
● Amendment of existing commercial and contractual issues with the 3PL

● Ability to measure 3PL suppliers and industry leading industry practices and pricing benchmarks
● Alignment of pricing structures with business requirements and volumes
● Increased operational performance
● Define and prioritise issues that are limiting the partnership’s effectiveness
● Established method for measuring continuous improvement
● Independent and non-biased evaluation of the third party logistics partnership