There always comes a time when owning a business that you may need to seek the help of industry professionals. That can be for various reasons, including a lack of knowledge and equipment. In some instances, you may need to outsource aspects of the business for these reasons.
When you choose to outsource any part of your business, it’s critical to educate yourself about the process.
Not only should you know what to look for, but you also need to be aware of what to avoid.
That’s why Overflo is here to share with you common 3PL outsourcing mistakes you should avoid!
Lack of Communication
Outsourcing can be a great way to remove stress from essential tasks in your business. The 3PL you outsource to has the knowledge and equipment to complete those tasks. But that doesn’t mean you still don’t have a hand in the process.
One of the biggest mistakes you can make when outsourcing is not communicating with the company.
Third-party logistics companies still need your input to know if they are completing the job to your satisfaction.
Your communication with them doesn’t end when you initially hire them or when a problem arises. You will need to have continuous meetings and communication to discuss your company’s goals, if you are meeting previous goals, and how to resolve issues.
Outsourcing is there to help you, but you need to be there to help them meet your expectations. Communication is key in every aspect of running a business.
Not Considering Location
Performing a quick Google search to find a 3PL company is only the first step in finding the company for you. Many people often forget to add the location of the company into their search.
The location of your chosen 3PL can affect several parts of your business.
If the 3PL is too far from your headquarters, communication is more difficult, and it can kill a seamless supply chain instantly. You will also need to ensure that they have access to the modes of delivery and transport you utilize. Whether it’s the local rail system, port, or trucks, that can rule out many companies.
Before settling on a 3PL, check to see if its location will work for your company.
Not Performing Cost Analysis
Although outsourcing can be a great way to cut down potential costs, it can also be a detrimental investment if you don’t do any research. The last thing you would want is to spend more money on something your company can potentially do more affordably in-house.
That’s why you need to perform a cost analysis.
During your search for the perfect 3PL company, you need to interview each one and ask for detailed cost breakdowns or quotes. These breakdowns and quotes should then be compared to each other and against your in-house capabilities.
Performing an in-depth cost analysis can save you from making one of the worst financial decisions for your company!
Overflo Is Here To Help with any of your 3PL Outsourcing Mistakes!
Are you looking for a 3PL that services Maryland, New Jersey, Pennsylvania, Delaware, or Virginia? If so, then you need to contact Overflo!
We are a 3PL with decades of experience. It’s our goal to offer top-of-the-line services for logistics, warehousing, distribution, and fulfillment.
Overflo is the perfect 3PL for you – contact us today for a free rate quote!