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Published byJuniper Welch Modified over 9 years ago
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BEST PRACTICES IN THE SEARCH & SELECTION OF A 3PL PARTNER OPERATIONS SUMMIT 2013 Presenters: Rick Hall – VP, Client Success, FIFTH GEAR Matt Konkle – President, FIFTH GEAR
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Making the Decision
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Will outsourcing cost more than my in-house operations?
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Cost Per Order Cost Per Contact Inbound / Outbound Freight Seasonality Operational Performance Fixed vs. Variable Model Scalability
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Will I lose control of my business?
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Clear Scope of Services Key Performance Indicators Standard Operating Procedures Joint Business Planning Reporting & Analysis Issue Resolution
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Will my customers notice a difference?
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Brand Strategy Target Customer Product Offering Sales Channels Marketing Plan Promotions Personalization Packaging Customer Service Competition
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Focus your time on what will grow your business
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Selecting a 3PL Partner
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It’s about who you work with!
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Financially Stable Expertise Track Record Reference Clients Ability to Scale Talent and Labor Pool Right location(s) Technology and Support
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Make the right comparison
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Technology Enablement Freight Management Data & Reporting Business Analysis Business Services Product Personalization Kitting / Assembly Value-add Processing Leadership Team Trained Workforce Facilities (locations, infrastructure) Standard Operating Procedures Safety & Compliance Flexibility Client Service Customer Care
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Receiving Order Handling Pick & Pack Warehouse Storage Returns Account Management Clerical Support Technology Fees
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One size does not fit all.
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Making the Transition
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Communication is critical
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Executive Sponsor(s) Project Management Account Management Cross-Functional Dependencies Business Planning
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Set Expectations Customer Data Open Order Backlog Hours of Operation Returns & Exchanges Issue Resolution Appeasements
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Total SKUs Product Attributes Order Volumes Order Attributes Inventory Turnover Density / Velocity Service Level Agreements Seasonality
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Know the Facts and Benchmark
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Order Backlog Total SKUs Units Shipped Units Received Total Customers Total Vendors Open POs Order Demand Order Attributes
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Average order value Lines per order Units per order Shipments per order Backorder rate Returns rate Declines / Holds
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Minimize The Timeline
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Data Conversion Integrations System Setup & Testing Payment Processing Vendor Management Customer Management Contact Center Training Warehouse Training Inventory Transfer Inbound receipts Initial Receiving Order Backlog Returns
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Make ADJUSTMENTS
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Thank You! Matt Konkle – President mkonkle@infifthgear.commkonkle@infifthgear.com Rick Hall – VP, Client Success rhall@infifthgear.comrhall@infifthgear.com
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