Lately, I’ve noticed that organizations are repeating certain mistakes more often than before.
With over 30 years of experience helping others, I find it troubling to see these issues cropping up again.
So, what are these mistakes, and how can you steer clear of them?
Watch the full video to get all the insights and sharpen your strategies!
Logistics outsourcing is a complex process, and I’ve seen organizations make a few mistakes repeatedly. I can say these errors are becoming more frequent. Here are three common mistakes to avoid.
Short Timeframes
One of the biggest mistakes is not giving enough time for the outsourcing process. Organizations tend to wait until contracts are close to ending before looking for new providers. In today’s market, that leaves very little room to make thoughtful decisions, as many providers are extremely busy. Starting the process early, ideally six months to a year in advance, is crucial for finding the right fit.
Lack of Detail
Another significant issue is failing to give suppliers enough detailed information. Potential partners need comprehensive data about your products, such as weights, dimensions, transaction history, and forecasts. Without this, providers can’t give accurate quotes or assess whether they’re a good fit for your business.
Wrong Suppliers
Lastly, approaching the wrong suppliers is still a common issue. In the past, it was typical to cast a wide net and ask many providers for quotes. Today, you need to focus on four or five suppliers that specialize in your type of logistics. If you’re outsourcing industrial products, don’t approach a supplier specializing in consumer goods.
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“.
