How to ensure a successful partnership with a third-party logistics provider


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Brands spend big dollars creating positive connections with customers. They look for touchpoints to raise awareness, to create personalized experiences and create emotional connections that drive greater engagement, sales and loyalty. And they know well that every interaction counts.

However, amidst this flurry of activities, there is one vital relationship that brands can overlook that can make or break their entire relationship with customers: It is the partnership with their companies. third party logistics provider (3PL).

Like any successful relationship, this relationship thrives on clear communication, mutual trust, compatibility, and a deep understanding of each other's needs and goals. It's not just up to a 3PL to make the relationship work—it's a collaborative path that leads to its success.

Going beyond contractual agreements, here are three essential strategies brands can use to nurture a thriving 3PL partnership and improve their customer experience:

Connected: The 4 main principles of any successful partnership

1. Communicate openly and often

When a brand engages with a 3PL, creating transparent and consistent communication is key to its long-term success. It begins during the evaluation phase when brands submit their requirements and leads to the proposal phase when 3PLs share their core competencies. Before a partnership decision is made, 3PLs must design their implementation plan, accounting for a brand's system integrations, inventory management, packaging details and operator preferences, among other key factors.

Open communication does not have to end with a service agreement. For a truly successful partnership, brands cannot take a set-and-forget approach with their 3PL. They can make warehouse visits, establish communication channels and regularly share vital information. The same goes for 3PLs. They simply cannot take on warehousing, inventory management, picking and packing, shipping and delivery without understanding all the nuances of a brand's business, from a brand's identity and SOPs to its specific compliance requirements for fulfillment of the order. Each partner must be willing to communicate transparently, frequently sharing forecast and sales data, providing visibility into inventory levels, and discussing any issues, performance metrics, and customer feedback that are born.

By fostering a strong collaborative relationship with their 3PL, brands can achieve efficient operations, transparent pricing in line with expectations, and effective communication tailored to their unique needs. This alignment cultivates a positive customer experience characterized by predictability and reliability.

2. Treat your 3PL as an extension of your brand

A successful 3PL brand partnership goes beyond simple transactions. In the majority successful partnerships, brands see their 3PL as a true extension of their team. This is an intentional process that requires more than simple collaboration. It requires a willingness from both brands and their 3PLs to integrate into each other's business.

3PLs are not usually experts in retail, but they are experts in shipping products to buyers. By relegating a 3PL to purely operational tasks without integrating them into the broader strategic framework, brands can encounter inefficiencies and missed opportunities.

Take sales and promotions as an example. Say a brand invested significant time and resources in launching a new product with a loud advertising campaign, but didn't inform their 3PL partner about the expected increase in inventory and sales. This will result in understaffing, delays in fulfillment and disappointed buyers. By leaving their 3PL in the dark and not giving them the opportunity to prepare, the brand did not support a successful partnership.

Communicating variances, whether it's new SKUs or expected volume fluctuations, is an easy way to bring the 3PL along for the ride. Brands and 3PLs can take it further by creating a single point of contact that regularly shares updates, discusses KPIs such as point-to-stock metrics or inventory and pick accuracy, and aligns them customer support programs to quickly solve buyer problems.

Operating as an integral part of a brand's team gives 3PLs the flexibility needed to adapt their operation to address partner needs rather than imposing rigid, one-size-fits-all solutions.

Connected: These are the dos and don'ts of working with a third-party service provider

3. Embrace 3PL technology and the visibility it provides

As retailers look for ways to improve themselves customer experience3PLs that embrace technology are rising with the occasion to meet their needs.

However, it is not enough to just partner with the advanced technology 3PLs. Brands must use the technology on offer to stay competitive and meet the ever-evolving demands of their customers.

Various technology platforms, such as Order Management Systems (OMS), Warehouse Management Systems (WMS) and Transportation Management Systems (TMS), provide brands with real-time insights into their 3PLs, operations of fulfillment and delivery, drive efficiency and provide visibility throughout. operation. Furthermore, a 3PL's automation, robotics and AI tools it can increase productivity, reduce costs, and improve workforce experiences—leading to happier, better-performing warehouse and delivery associates for brand partners.

Embracing technology and 3PLs that adopt it increases operational efficiency and provides brands with the visibility they need to make informed decisions and proactively address customer needs, ultimately leading to a more seamless shopping experience and more satisfying.

Connected: How to get the most out of external partners

Maintaining open lines of communication, viewing 3PLs as a strategic partner rather than a service provider, and embracing their technology are all key to forming successful partnerships.

With a strong 3PL relationship, brands can elevate their customer experience to drive brand loyalty and stay ahead of the curve in the increasingly competitive retail environment.



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