3PL Mind Map

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3PL by Mind Map: 3PL

1. Why use a 3PL

1.1. reduce future cost

1.2. reduce current cost

1.3. Improve customer satisfaction

1.4. Enable startup

1.5. Provide global expertise

1.6. Reduce risk

2. Best practices for managing

2.1. Contracting

2.1.1. Contract negotiation

2.1.2. Contract determination

2.1.3. Contract length

2.1.4. Contracts in the Global Environment

2.2. Performance measurement and management

2.2.1. Set performance management program

2.2.2. Determine service level agreements (SLAs) and key performance indicators (KPIs),

2.2.3. Defined metrics and then develop a scorecard

2.2.4. Define how you will manage 3PL performance

2.2.5. Make sure all of the shipper’s functional areas are aligned.

2.2.6. Communication is crucial

2.3. Governance

2.3.1. Relationship management Operational alignment Free flowing and regular information sharing Cross-company governance structure

2.3.2. Relationship continuous improvement Common innovation efforts

2.3.3. Special requirement and regulatory protocols Understanding and compliance Collaborative approaches and mechanisms

2.3.4. Jointly established policies, processes and decision rights

2.3.5. Balance between accountability and indepenence

2.3.6. Agreement on management style

3. What is 3PL

3.1. Transportation

3.2. Warehousing

3.3. Global Services

3.4. Information technology

3.5. Special services

4. Future trends

4.1. More incentive based contracts

4.2. More niche actors

4.3. More risks transferred to 3PL

4.4. Corporate procurement more involved in outsourcing process

4.5. Increase in innovation

4.6. New creative collaborative business

4.7. The Vested Model

4.7.1. 1. Focus on outcomes, not transactions

4.7.2. 2. Focus on the what, not the how

4.7.3. 3. Have clearly defined and measurables outcomes

4.7.4. 4. Implement a pricing model with incentives to optimize the business

4.7.5. 5. Establish an insight rather than an oversight governance structure

5. What companies expect from a 3PL

5.1. respond rapidely

5.2. generate ideas for improvement

5.3. become strategic partner in efficiently growing

6. Best practices for selecting

6.1. Define the plan

6.1.1. A clear firm schedule Take the the 3PL activities list Analyse our need and our situation Evaluate the market Hire a consultant Communicate accurate information with transparency

6.1.2. A checklist of 3PL evaluation criteria, leading to a final decision Financially stable partner (experiment and grate reputation) Efficient, high quality DC operation Special DC operation Efficient domestic transportation operations Efficient global operations Secure, safe, environmentally sound operations Ancillary services Leading information technology Leading edge technologySupport for growth Strategic expertise Innovation Cultural fit

6.1.3. A RFI process

6.1.4. The proposal process a. Request for quote (RFQ) b. Request for Proposal (RFP) c. Request for proposed solution (RFPS) d. Request for partner (RFP)