Navigating Supply Chain Challenges
How to tell if your logistics company is doing it right.
When it comes to logistics and getting products out into the world, there are a lot of linked parts. Your 3PL is only one part of this chain, but they are an important one. And let’s be honest, all of us are fed up with hearing about supply chain issues. Despite being a real challenge, it is not insurmountable, especially if you’re working with the right logistics company. There are ways to mitigate bottlenecks and manage the many kinks. The question is, “Is your logistics company doing that for you?”
Here are three questions you can ask yourself to identify if your current supplier is managing the supply chain or letting it manage them.
1. Are they being completely transparent?
Transparency can mean different things to different people. But in regards to supply chain issues–is your logistics company leveling with you and dealing with the elephant in the room? Challenges like freight coming in late or getting to where it needs to be can be difficult to discuss. But without transparency, expectations can be off and leave everyone dissatisfied. Especially the customers.
A process of open and honest conversation should be initiated by your 3PL. If your logistics company isn’t starting these types of transparent conversations, consider finding yourself a new team to work with.
2. Are they reliably communicating?
Speaking of open and honest conversations, those talks should be a regular occurrence. Supply chain is an issue rife with shifting sands. Things change. Every day there are new delays and or new dimensions to the current delays. As a result, communication channels should remain open.
Having these types of conversations on a consistent basis gives you a leg up in the industry. By dealing with new problems quickly and head-on, you’ll avoid complications piling on top of each other. This is why you must look at your logistics company as a partner, not simply a vendor. Strong communication is a bridge to prompt solutions.
3. Are they bringing you ideas?
It is difficult to be proactive when you are putting out the kind of fires present with the current supply chain. Some aspects are in your control. Many are not. The key thing your logistics firm should handle is bringing you concepts that can decrease the problems you have to manage.
Here are a few ideas they should be bringing to you:
Pre-ordering items—planning ahead and being proactive can save you a lot of headache down the road. Good 3PL companies know this and should be bringing these types of solutions to you from the get-go.
Increasing inventory—this usually wouldn’t be necessary, but with back-orders and staffing issues, having increased inventory on the shelf is never a bad thing.
Control shipping expectations—Transparency is ideal for everyone involved in the supply chain. That includes your customers. Any knowledgeable 3PL should be ready to help you make accurate and realistic expectations for consumers.
Choosing the right logistics company is vital for a flourishing business. But pricing isn’t the only factor to consider. A 3PL that can navigate the current supply chain challenges requires outstanding communication and problem-solving skills. So when finding the perfect fit for your business, look for transparency, reliability, and proactive ideas that will keep you one step ahead.
That’s what we do at MKM. It’s how we’ve run our business since the beginning: one step ahead.