DESCRIPTION
The Third-Party Logistics (3PL) checklist and RFP detail what you need to know to make an effective decision on a collaborative and effective 3PL.
The request for quotation (RFQ) is detailed so you receive a realistic quotation from the 3PL you choose.
My recommendation is to send this RFQ to three 3PLs and study their RFQ responses. Next, make sure you VISIT the chosen 3PL with the checklist in hand. Your best bet is to negotiate the RFQ while on-site at the 3PL. This gives you leverage, as you have traveled to their location to view their operation, talk to management and negotiate prices submitted to you in the RFQ.
• Ask to see all departments at the 3PL: Warehouse, does the warehouse follow Lean 5S? Does the warehouse practice Kanban or pull techniques? Picking area, do they practice slotting, returned goods area, receiving, shipping, quality assurance: does quality assurance follow Lean Six Sigma principles?
• Do they practice Kaizen/Continuous Improvement?
• Does Management treat their people well? Do their people respect management? Does Management visit the shop floor to solve problems and improve processes?
• Is SAFETY a top priority at the 3PL? Is there a Safety Manager?
• What is the top priority for you?
The chemistry you feel with management, your future contact person, and their people, after your visit.
This comprehensive checklist also emphasizes the importance of embedding a 3PL representative within your operation to swiftly address any issues and ensure seamless collaboration. It outlines the necessity of forming a cross-functional team to evaluate logistics costs and create a detailed RFQ, ensuring all IT requirements are met, including WMS, TMS, and YMS integrations. The Word document delves into the specifics of last-mile and white-glove delivery services, international trade management, and continuous improvement practices. By following this structured approach, you can mitigate risks and make an informed decision that aligns with your operational goals.
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Source: Best Practices in Logistics, 3PL Word: Third Party Logistics (3PL) Service Provider Checklist Word (DOCX) Document, Charles M. Intrieri Consulting
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