3PL outsourcing goes beyond initial goals – News Couple
LOGISTICS

3PL outsourcing goes beyond initial goals


Tags: 3PL, Partnership, Third Party Logistics

Growth industries such as recreational equipment require a 3PL partnership that looks beyond initial cost savings to improve supply chain efficiency and customer satisfaction.

RedStone understands that cost savings is only part of every customer’s relationship; 3PL must offer more if the relationship is to withstand the demands of the ever-changing supply chain.

the challenge

Outsourcing logistics to 3PL is nothing new. Unfortunately, disappointment after a year or two is also not new and can lead to dissatisfaction. The experience of a RedStone Logistics customer that manufactures and distributes outdoor recreation equipment across North America illustrates this challenge.

For Alan, the company’s director of local distribution and logistics, his frustration was at a point where he knew he had to make a change. “We hired 3PL to help us save money and ultimately turn our supply chain into a competitive advantage. Early on, the savings were there, and the 3PL team did everything we told them. But,” he added, “why should we tell them what to do? They are supposed to be the experts.”

“Our business was growing, and we weren’t sure that our 3PL was looking beyond cost savings to improve our supply chain as business expanded. What we really needed was a partner who would drive innovation and challenge our ideas if they weren’t the best for our business” .

Customers are looking for additional help and efficiencies, not just reduced costs. Some 3PLs, having worked hard to deliver on their early promises, fall into an operational rhythm with existing customers and then must turn their attention to meeting the expectations of new incoming customers. Culturally, the two organizations may focus on different priorities.

The solution

RedStone understands that cost savings is only part of every customer’s relationship; 3PL must offer more if the relationship is to withstand the demands of the ever-changing supply chain. RedStone’s answer was a solution tailored to the requirements of the enterprise industry and customer requirements.

“Many 3PL organizations rely on price alone to drive improvements, and quickly running out of options to improve efficiencies after costs drop is no longer an option. RedStone solutions start with learning about our customers—their challenges, systems, processes, people, and more,” said Jim Ritchie, President and CEO of RedStone Logistics. Success – before we do anything else.

RedStone has focused its work for Alan on simplifying the entire supply chain from the start, not just on reducing the cost of shipping its products.

“We have worked with Alan and his team to ensure that their near-term requirements and anticipated changes to their supply chain are being met,” Ritchie added. “We have invested dedicated resources to meet the company’s strategic direction, the needs of its customers, and the plan for how the supply chain will respond to ever-changing logistical requirements.”

These dedicated RedStone resources reach every corner of the business to drive continuous improvement, resulting in years of customer satisfaction. Eliminating customer disappointment is essential to RedStone Logistics, creating relationships with customers that not only last, but thrive after the first year of cost savings.


To learn more:
E-mail: Solutions@redstonelogistics.com
phone:
888-733-5030
Web: redstonelogistics.com



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