Outsourcing transportation to third-party logistics providers can be a cost-saving, efficient means of providing excellent customer service to your customers, regardless of your industry. However, it cannot accomplish your goals unless you are diligent in its implementation. Simply put, there is no substitute for proper planning, communication and management. These three elements are the keys to successful private fleet outsourcing and will assure a long-term relationship that benefits everyone.

PLANNING

As with all sound business decisions, transferring the responsibility of your fleet to a 3PL must be planned well in advance. Long before you ever begin negotiations, you must first evaluate your current situation and determine your future goals. Whether your ultimate goal is to expand into new geographic areas, increase your product offerings, or any other goal, be specific about what you hope to accomplish by outsourcing. It’s important to include key employees and strategic business businesses in this crucial planning stage. Keeping them in the loop and addressing their concerns early on will help to mitigate resistance as the plan moves forward.

COMMUNICATION

Once you’ve determined that outsourcing your fleet is a good decision, and you’ve chosen a third-party logistics provider, remember that communication is essential. Without clearly defined and expressed expectations and goals for the partnership, the relationship is doomed. If you have been experiencing supply chain problems, be willing to give your 3PL all the details. Remember that they are experts at providing logistics solutions, which is why you are hiring them in the first place. Continued success, for your company and the 3PL, depends upon open and honest dialogue aimed at improving processes.

MANAGEMENT

Although the majority of the responsibilities for managing the fleet will be put on the logistics provider, that does not mean you’re not still critical to the supply chain process. It is up to you to make sure that your company’s goals are being met. Therefore, you must continually monitor the systems in place and make improvements along the way. You can’t simply sit back, relax and hope for the best. However, it is unnecessary, and counter-productive, to micro-manage your logistics provider. Developing and continually improving upon a set of standard operating procedures in conjunction with the 3PL is one of the best ways that this can be accomplished.

Relying on private fleet outsourcing can be a very beneficial move for your company. However, unless you observe these three basic tips for success, you’ll invariably encounter difficulties. Remember that you’re ultimately responsible for the success, or failure, of your partnerships. Plan ahead, communicate clearly and manage wisely and you will accomplish your goals and prosper.

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