Why choose the third party logistics?

This is a good opportunity for you-you can carefully observe the company's current business operations, question the company's operating methods you like or dislike, and more importantly, you can ask yourself why you like or dislike these methods. Now, hiring other consulting companies to do the same things that must be done internally can get some rewards, such as expanding capacity and more flexible cost models. However, you may miss a golden opportunity to redefine your company strategically. In order to make full use of this opportunity, you must regard the third party logistics as part of your long-term strategic vision, not just a tactical strategy. Today's third-party logistics provides a series of services, which can reduce the management cost of the company. By outsourcing logistics activities, third-party logistics suppliers make the company only need a few employees to manage the handover with suppliers, and no longer need the company to personally manage warehousing and other practical activities. In addition, third-party logistics providers also provide professional management information technology or systems for the company. They benefit from economies of scale, which few companies can achieve on their own. For example, they are responsible for managing call flow, recycling logistics, information transmission and management, policy management, inventory utilization, service level analysis and many other services, which were previously considered as internal functions of the company. However, before signing a contract with a third-party logistics provider, you must be clear about your goals. This is a difficult time. Other questions are less systematic, but they are equally important for judging whether your company is really ready for this improvement. They are: Now that you have defined the strategic vision of the company and selected the content to be outsourced to the third-party logistics provider, you are ready for the selection process. Invite potential suppliers to discuss before sending information consultation and inquiry (RFI or RFQ) to suppliers. Discuss the company's goals, company vision and your timetable. This is the best opportunity to get to know the suppliers and their employees who are suitable for your cooperation. You will know who provides the best solution and who will be the accelerator of the company's process, not just a gift or a ready-made solution. After this work, you can evaluate which companies you think will continue to cooperate with you. Once you have determined your requirements (usually with the help of a third-party logistics provider), you can begin to study and analyze the composition of the quotation. At this time, we must consider our long-term goals. Improving customer service, optimizing inventory, connecting a series of inventory plans, global marketing and improving production efficiency all require costs. If you use activity-based costing analysis, you will deal with these costs separately and realize that the extra expenses you pay only need to happen. Like most things in life, you need to pay for what you get, so be sure to carefully check whether the suppliers' finances are safe and stable, whether the tools they provide are easy, and whether their employees can serve you when you need anything. When choosing a third-party logistics provider, is the big company always the best choice? Many people quote the adage that no one will be fired for choosing the most famous company. This may be true, but in fact, some people were fired because the project did not achieve the ideal goal. In addition, your business needs will continue to develop, just like the needs of customers, so your suppliers must guarantee to support this development. Remember: a contract is the beginning of a business partnership. This is an organic relationship that must adapt to growth, and the contract must serve the benchmark of expected service level. Third-party logistics providers can become a source of added value. If they can't bring new value to the cooperative relationship continuously, they have not fulfilled their responsibilities. Now you have established the key standards for you, formulated the supplies you can buy, let all employees and all departments participate in the whole process, and let everyone feel like a master. Now it's time to trust your courage in choosing suppliers. What is important is that a well-known third-party logistics provider will cooperate with you to complete the whole process from the early stage and will increase investment after signing a new contract with you. When providing follow-up and synchronous support/development capabilities, suppliers will spend important time designing accurate solutions, planning and evaluating blueprints, showing expected costs and managing the whole implementation process. The company's quarterly review and other regular meetings are part of the core services that third-party logistics providers should provide. The most important fact is that the third-party logistics provider can fulfill its promise for the first time and become a real extension of your company's service organization. Many third-party logistics providers will settle their fees after a period of time, which is also suitable for your company. Long-term cooperation will bring increasing returns, however, the modification cost and internal credit after the fait accompli will cost a lot. Both parties to the contract have great interest in making this relationship work normally, so let's start teamwork!