The relationship between shippers and third-party logistics services providers (3PLs) is at the core of successful supply chain management—so getting that relationship right is vital. A panel of industry experts from both sides of the aisle weighed in on what it takes to create strong 3PL/shipper partnerships on day two of the CSCMP EDGE conference, being held this week in Nashville.
Trust, empathy, and transparency ranked high on the list of key elements required for success in all aspects of the partnership, but there are some specifics for each step of the journey. The panel recommended a handful of actions that should take place early on, including:
- Establish relationships.
- For 3PLs, understand and get to the heart of the shipper’s data.
- Also for 3PLs: Understand the shipper’s reason for outsourcing to a 3PL, along with the shipper’s ultimate goals.
- Understand company cultures and be sure they align.
- Nurture long-term relationships with good communication.
- For shippers, be transparent so that the 3PL fully understands your business.
And there are also some “non-negotiables” when it comes to managing the relationship:
- 3PLs must demonstrate their commitment to engaging with the shipper’s personnel.
- 3PLs must also demonstrate their commitment to process discipline, continuous improvement, and innovation.
- Shippers should ensure that they understand the 3PL’s demonstrated implementation capabilities—ask to visit established clients.
- Trust—which takes longer to establish than both sides may expect.
EDGE 2024 is sponsored by the Council of Supply Chain Management Professionals (CSCMP) and runs through Wednesday, October 2, at the Gaylord Opryland Resort & Convention Center in Nashville.
