It’s surprising to see organizations making certain mistakes more frequently now compared to the past.
As someone who’s been helping people for over three decades, it’s concerning to watch these errors happen more often.
What exactly are these mistakes, and how can you avoid them?
Watch the complete video to uncover all the details and strengthen your strategies!
3 Common Mistakes in Logistics Outsourcing
Over my 30 years with Logistics Bureau, I’ve seen a few mistakes organizations make when outsourcing logistics, and they’ve been happening even more frequently lately. Whether you’re new to logistics outsourcing or experienced, avoiding these common mistakes can help ensure a successful process.
Mistake 1: Tight Deadlines
The first mistake is not leaving enough time for the outsourcing process. This is particularly relevant in today’s market, where many 3PL providers are busy. I’ve seen businesses wait until their contracts are nearly up, leaving only a few months to find a new provider. This rushed approach rarely results in a good outcome. I recommend starting the outsourcing process at least six months to a year in advance. This gives you enough time to evaluate potential suppliers and make informed decisions.
Mistake 2: Insufficient Detail
The second mistake is not providing enough detailed information to potential suppliers. Companies often ask for quotes without giving suppliers the data they need, such as product weights, dimensions, transaction histories, and forecasts. Without this information, suppliers can’t give accurate quotes or assess whether they’re the right fit for your business. I find it surprising that, even in 2023, many businesses still lack detailed, accurate data on their operations. Make sure you have comprehensive information available to share with potential providers.
Mistake 3: Consulting the Wrong Partners
Finally, many organizations approach the wrong suppliers. In the past, businesses would reach out to as many as 20 providers, but that’s no longer effective. Today, with most suppliers busy, it’s better to focus on four or five well-matched companies. For instance, if you deal with industrial products, don’t approach companies that specialize in retail logistics. Do your research and approach suppliers who are experienced in your field. This will save time and reduce the risk of choosing the wrong provider.
Related articles on this topic have appeared throughout our website, check them out:
- The Suppliers’ View of Logistics Outsourcing
- Logistics Outsourcing Secrets: A Serial Guide to Success with 3PLs
- The Power of Outsourcing for Supply Chain Improvement
- Logistics Outsourcing Partnerships and Why It’s Time to Break a Rule or Two
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 21, 2023, under the title “3 Common Logistics Outsourcing Mistakes“.
