Third Party Logistics (3PL), Warehouse, Transportation and Supply Chain Management

INTRODUCTION

What is third-party logistics? Third-party logistics, often abbreviated as 3PL or TPL, refers to an organization’s use of third-party businesses or vendors to outsource some supply chain operations. Third-party logistics providers are specialists in warehousing, third-Partyansportation and other relevant services that can be scaled and customized according to customers’ requirements, considering market conditions, to meet demands for their products and/or services. Services offered by third-party logistics providers go beyond logistics to include value-added services related to production and procurement of goods and services. These days, third-party logistics software helps providers manage various supply chain processes of another organisation, making the process more efficient. This training course will empower you with detailed knowledge of third-party logistics management. By undertaking this course, you will be able to spearhead various activities related to third-party logistics management, including critical decision making, thereby establishing your potential and credibility to undertake positions of higher responsibility and authority within your organisation, inadvertently fostering career growth and progression.

OBJECTIVES

By the end of the course the participants will be able to:

• Detailed information and knowledge about third-party logistics management
• The understanding and skillset to frame, negotiate and execute third-party logistics agreements successfully for the organisation
• The necessary confidence, experience and capability to manage third party logistics end to end for the organisation, spearheading all activities and demonstrating credibility and capability to undertake higher roles and responsibilities
• The perspective and exposure to various agreement-related challenges and risks and the ability to handle these effectively
• The ability to save time and costs for the organisation through effective long-term relationship building with third-party logistics providers
• The required skillset and capabilities to track, measure and correct third-party logistics provider performance through well-established, well-defined metrics
• The ability and potential to contribute to organisational growth and development as well as client satisfaction through trustworthy and strong relationships with third-party logistics providers
• The confidence and knowledge to train other professionals on effective third party logistics management

COURSE OUTLINE

DAY 1

Types of Third Party Logistics Providers:

– Standard third party logistics provider.

– Service developer.

– The customer adapter.

– The customer developer.

Advantages of Third Party Logistics:

– Cost and time savings.

– Low capital commitment.

– Focus.

– Flexibility.

– Better market outreach.

– Better utilisation of economies of scale.

DAY 2

Disadvantages of Third Party Logistics:

– Loss of control.

– Loss of skills and infrastructure.

– Reverse logistics.

 Successful Management of a Third Party Logistics Relationship:

– Establish clear expectation.

– Appoint single points of contact.

– Set out an escalation procedure.

– Schedule formal review intervals.

– Keep the provider in the information loop.

DAY 3

Performance Indicators for Managing Third-Party Logistics Performance:

– Inbound receiving timelines.

– Dispatch timelines.

– Inventory accuracy.

– Returns processing timelines.

– Cost per unit shipped.

DAY 4

Challenges of Third Party Logistics Service Providers:

– Maintaining profits under price pressures.

– Customer relationship management.

– The globalisation of the third-party logistics market.

– Consistent delivery of cutting-edge technology.

– Competition with giant, global third party logistics.

– The emergence of fourth-party logistics.

Components of a Third Party Logistics Contract:

– Liability and consequential damages.

– Contract term and termination obligations.

– Warehouse lien.

– Compensation.

DAY 5

Pitfalls in Third Party Contract Logistics Management:

– Unrealistic expectations.

– Assumptions.

– Too much outsourcing.

– Absence of an exit plan.

– Absence of internal buy-in.

– Rushed tender process.

– Underplaying communication.