GLOBAL LOGISTICS
Customers Demand Stronger 3PL
Service Support
Any 3PL that wishes to increase its market share in 2010 must provide higher levels of cus-
tomer-focused service offerings in this competitive marketplace. Client companies want to
have their 3PL contract partners provide better support to their current service offerings.
—Jeff Taylor, research director at AMR Research
ost companies are asking for better service
levels because their customers in turn are
demanding better, faster and cheaper delivery options. By providing the additional support requested, 3PLs
M
taking tasks but to be their customer’s first point of contact on
any follow-up issues. These can then be funneled to the
proper company contacts.
• Better inventory control in managing a company’s product
are becoming more competitive and are thus seen as valuable availability and shelf-life concerns—A good 3PL can use its WMS
service partners.
programs to provide companies with current data on proper
There are a few value-added service offerings 3PLs are being inventory levels, and, more importantly, show the trending
asked to provide as part of their service-level agreements.
analysis to support purchasing decisions.
• Extend cut-off times to later in the day—Some order cut-off
• Maintaining U.S. government reports and regulations—
times are as early as 1 p.m., which means at best only orders Regulations like Sarbanes-Oxley and the “Denied Persons List”
received in the morning will ship the same day. Customers are are becoming a required service from 3PLs. They must provide
now demanding that their 3PLs work with freight forwarders to the knowledge base needed to support their clients’ mandated
move cut-off times farther out to the close of the business day regulatory concerns.
and even into later evening hours.
• Fewer delivery errors—Companies today want fewer deliv-
The Outlook
ery errors and are even requesting that 3PLs pay a penalty fee on There is no shortage of value-added service tasks 3PLs will be
shipping errors. Monthly KPI tracking reports can now have a asked to provide in 2010. Companies will request further support
real cost associated with unacceptable service performance.
if they feel the job can be outsourced and it fits the 3PL’s core
• More direct involvement in establishing and running call service competencies. The more proactive 3PLs will lead the
center support teams —Especially in the international arena, pack by offering new support ideas to their clients before it
companies want 3PLs to assist not just in handling the order- becomes a formal business requirement.
