Skip to main content

3PL Managers will not miss these savings opportunity | LoadProof

 


Your Role

3PL Warehouse Manager

3PL Warehouse Director

3PL Vice President Operations

3PL Network Manager

3PL Industrial Engineer

3PL Continuous Improvement Engineer

Customer Examples

  • Kenco Group
  • NFI
  • Suddath Logistics
  • Saddle creek Logistics
  • XPO Logistics
  • Ryder Logistics
  • DHL Supply Chain
  • CEVA Logistics
  • Kane is Able Logistics
  • Berner Foods 3PL
  • You could set up at the Site level or could set up at the Customer Account level

Your Business

  • 3PL business – your core competence is moving products – you can move products as pallets, as parcel boxes as shipments, as loads – it is all about moving products for other businesses, typically manufacturers or vendors that source product from the far east – because everyone wants to do what they are good at – so as a manufacturer I am good at manufacturing, so I want to find the best 3PL and outsource all my logistics, distribution, delivery, order fulfillment everything to the best in business, so I can do what I do best.
  • An OEM or a Name brand vendor manufacturer is coming to you because they could go ahead and buy 1000 boxes they need to buy, rent the equipment that is needed, get the warehouse space rented out and they can do all by themselves, but if they come to you, they can take advantage of the economies of scale and the logistics expertise you bring to the table, so essentially by coming to you 3PL, they can reduce the cost, so as a 3PL Warehouse Manager you are expected to deliver on that promise, if you cannot deliver on that lower cost, then you lose that business, typically that happens if you don’t know how to run that business, how to handle all the logistical requirements in smooth fashion at a lower cost.
  • 3PL business is an operations intensive business – in order to be successful in this business you have to be really good in operations, which means your operations systems have to be great, your processes have to be great, your people have to be great, the steps you are performing to complete a function, for example picking, assembly, packing, whatever it may be, you have to be very lean, very efficient, if you are not you will lose big dollars, when you lose dollars, it directly impacts your bottom line, your profitability drops, even if your top line is growing, if you lose money you are not driving towards your profits, your EBITDA is falling, which is a very bad spot to be in, then your stock price goes down, your investors are upset, wall street rates you negative, all kinds of crap you got to deal with now,
  • Often the 3PLs own both warehouses and transportation infrastructure and or they have a lot of partnerships in the Supply Chain Community.
  • 3PLs have warehouses that are dedicated to customers or multi-client sites, where there are multiple customers in one single facility.
  • Also, from a systems perspective, they follow two models
    1. Tightly coupled model – the 3PLs systems are integrated with the customers Systems – that means systems are talking to each other.
    2. The Loosely coupled model – there is no integration – usually the 3PL personnel log on to the customers systems are operate those systems.
  • As a 3PL warehouse manager, you are responsible for the following.
Click here to continue reading this article.

Comments

Popular posts from this blog

Picture Documentation for Freight Claims White Paper – Part I | LoadProof

  INTRODUCTION This document describes the benefits of an effective Picture Documentation System(PDS) that helps with getting Freight Claims Paid faster. An effective pictures documentation system helps with 1 – Get Freight Claims paid much faster by making pictures available quickly and easily, 2 – Provides visibility to the damages through pictures. The visibility gained provides insight into the handling mistakes made while the orders are fulfilled, so that the parties can determine and establish accountability boundaries and get the shipper paid. BACKGROUND What are Freight Claims? A freight claim is a legal demand by a shipper or a consignee to a carrier for financial reimbursement for a loss or a damage of a shipment. Freight Claims are claims submitted by manufacturers/suppliers/shippers to transportation vendors and or carriers, when the goods the Supplier shipped did not arrive at the destination in a pristine state. Instead it arrived as damaged, the packaging was damaged...

Optimize Your Warehouse Replenishments with these Best Practices | LoadProof

  This best practice is about making  replenishments  inside the warehouse. It is important to stay on the top off replenishments always in your warehouse. If you have just one shift that you are running it would help a lot. If you spend extra hours in the evening and then do the topping off all your active locations it will be helpful for the pickers in the next shift. In the next morning when the pickers come after all the locations will be full and they can start picking right away without wasting time in replenishments. If you have two shifts running either choose the second shift or have a third shift if possible and keep doing the top off replenishments. There are active replenishment locations and these active locations have Min and Max. Whenever your inventory falls below min, replenishments are going to get triggered or it will get triggered if there is an order that needs a lot of picks from a particular location. This will drive the location down which will tri...

11 Ways to Avoid Retail Chargebacks in Your Supply Chain | LoadProof

  What are chargebacks? Chargebacks are fines that retailers impose on suppliers because the Retailers are doing extra work to process the Supplier’s product through the Retailer’s Supply Chain. Why are suppliers getting chargebacks? Because Supplier’s shipments are not fully in compliance with the requirements set by the retailers on how the shipments should be arriving at the Retailer’s distribution center If a supplier is not fully following the compliance requirements, then that needs to be addressed first. So dedicate a person to this activity, there are people called Compliance specialists available that know how to get this right, they have a lot of experience working with specific retailers or you will have to review the routing guide. However a very good chargeback system will show your people the mistakes being made If you are doing everything correctly, then still getting chargebacks, then the chargeback management system will absolutely help you Are you including all th...