There are many different types of risk throughout the supply chain. Companies work hard to mitigate that risk, in order to keep their product, reputation and company safe. When working with a third-party, the safety of product, quality of work and overall performance are key metrics and points of emphasis for both parties. This week, we’ll discuss the different types of risk and how 3PLs can help to reduce them.
Product security is of the utmost importance in any third-party relationship. With security measures tailored to meet client’s needs – such as cameras, transportation monitoring, and on-site police you can ensure that products will be safe throughout the entire supply chain. Trained professionals take security very seriously in the logistics process and 3PLs provide the measures that your products need.
The quality of service performed by 3PLs obviously will vary depending on region, type of 3PL and company. In general, 3PLs provide top quality work throughout the supply chain. Service driven through core competencies, experienced employees and lots of practice provides
top-notch accuracy rates, product efficiency and reduced risk of product damage.
People, product and brand safety can be at risk with any business transaction, however working with a 3PL mitigates these risks through procedures developed over years of practice. Employees are protected through processes developed by internal systems, certifications such as ISO through OSHA, and training provided by experienced management teams. Products are protected by quality control systems, and HACCP and ASI certifications, as well as procedures built to ensure product safety.
Information Technology (IT)
There are always security risks when it comes to information protection and security. Many steps can be taken to mitigate those risks. Offsite backup servers protect data in case of emergency crashes or attacks on any computer system. Server protection keeps critical systems running all the time with re-boot times under fifteen minutes. Finally, primary and back-up wireless systems ensure that real-time data, time-keeping measures and information is available and transparent throughout the whole supply chain.
Getting everything done in the supply chain can be a risk as well. A 3PL must be flexible to take on new and value-added jobs such as re-labeling and re-packaging projects, light manufacturing, and pick and pack work as the scope of the account changes. Working with a 3PL provider who is not open to taking on value-added projects can put you at risk during the busiest seasons, when there may not be time to find a specialized provider or the resources to complete a project.
Culture and Processes
When company cultures don’t match up, almost all business relationships will fail. This is why doing homework before starting a 3PL relationship is important. Just going through an RFP may not be enough to learn all about the company you will partner with. Meeting the team, going through warehouse tours and reading up on the company’s expertise helps you to learn about the company and their operation. The processes and procedures that a company uses should be a should also play a larger role in determining how well the companies will work together – audits, warehouse tours, and sitting down with management teams are all great ways to learn more.
There are risks with any business, but with the right planning, processes and teams in place they can easily be eliminated for a safe and successful partnership. Your supply-chain can run at peak efficiency, while being safe and secure with a 3PL partnership. Subscribe to our blog to learn more every week. Next week we will explain some of the newest security issues and trends! If you would like more information, or have any questions about for our team, please contact us. Be sure to follow our blog for weekly updates on 3PL operations and benefits.
Have a wonderful day!