What to consider when benchmarking your 3PL
Benchmarking is an effective management tool to match your 3PL standard to your industry’s best. There’s nothing wrong with comparing yourself to your competitors, if anything it’s a proactive tool that can grow your business and allow you to achieve your KPI targets.
Establishing a benchmarking system will make sure all members of staff are achieving a high level of performance and receiving a good level of knowledge. Benchmarking will provide you with a comprehensive perspective of your current practice, you will be able to accumulate performance data, financial results and other metrics – all of which will help you to improve your present situation.
By comparing your results, you will be able to assess how your 3PL provider is doing in a variety of classifications. These metrics will allow you to identify the areas of strength within your 3PL provider and take steps towards progression.
A 3PL provider needs to work together with your business so you can head towards your business goals.
Here are 4 things you should consider when benchmarking your 3PL…
- Benchmark your 3PL’s warehouse performance – Is your 3PL performing to your high-quality standard? Dothey have an integrated warehousing management system that offers you the ability to review stock levels and orders? By implementing a customer portal it gives you the ability to have complete control over your stock. Masters hold the ISO 9001 certification proving they fit the criteria for a high quality management system.
- Benchmark your 3PL’s reliability – Can you count on your 3PL provider to deliver your pallets on time and in full? A reliable 3PL provider will work within agreed and measurable KPI’s to demonstrate the quality of their performance.
- Benchmark your 3PL’s current fleet – Do they provide your business with a modern, well-maintained fleet? Your 3PL provider should conform with Euro Emission Standards to help you with your environmental policy and carbon foot print – Masters’ articulated and rigid trucks meet Euro 6 Standards.
- Benchmark your 3PL’s values – Do you and your 3PL share the same values and goals? Are they proactive in reviewing their process to improve efficiency? Ask your 3PL provider if they hold any accreditations to back up their quality and environmental claims – Masters pride themselves on holding the ISO 14001 accreditation.
Benchmarking your 3PL can lead to a number of improvements:
- Increasing customer service / customer retention – If you regard your customer service highly and your 3PL provider is reciprocating this, it will lead to an increase of customer loyalty. This is great for your business, you need a 3PL provider that you can trust to produce an exceptional customer experience.
- Speeding up your supply chain – You may work in a very fast paced industry that needs every part of the supply chain to work efficiently. If one cog (logistics) in the supply chain is greatly impacting the proficiency of your business, improving this will of course enhance overall performance.
- Giving you peace of mind – A third party logistics provider is there to make your life easier and your business run more efficiently. A 3PL that continuously supports your supply chain will give you peace of mind – leaving you to concentrate on running your business.
Benchmarking enables you to manage the efficiency of your 3PL, it can make a huge impact and greatly improve your supply chain. By comparing your results to those of your competitors it gives you a comprehensive view of your company’s current situation and how to move forward.
If you would like to discuss your logistical requirements with Masters, please don’t hesitate to contact us today on 01353 648222