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In the below is a real world example of a consultant coming to a third party logistics company with the goal of choosing a warehouse and 3pl provider. This two-part blog series will take you thru the RFP questions along with the answers you'd expect to see from the 3PL. 3PL Answer 1. The Client Details. KPIs Question 1.
We continue our series on understanding the 3PL KPIs (Key performance indicators) from 3PL consultant, Chuck Intrieri of The Lean Supply Chain as it relates to the engagement with a 3PL. 7 Strategic Performance Business Practices to Provide the Ability to Manage 3PL KPIs. There must be some of the 3PL KPIs for I.T.
Here are the 9 key topics to understand in the relationsihp between the shipper and the 3PL. To be unified is to collaborate and trust the shipper/customer Third Party Logistics Service Provider (3PL) relationship. 3PL/Shipper/Customer Rewards. 3PL/SLA Skills/Knowledge. 3PL/SLA Skills/Knowledge. Collaboration.
When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months.
The need for this next-gen technology has contributed to the significant growth of the 3PL market in recent years. But while 10-15 years ago shippers would engage with 3PLs simply as a means to access technology, that technology is much more ubiquitous and more readily accessible today.
Perfection (Lean principle: SixSigma) : Continuously refine your inventory management processes to improve quality , cycle time, efficiency and cost ( SixSigma: DMAIC. In the 1980s, the concepts of Total Quality Managements (TQM) and SixSigma that were advocated for by W.
The complexity of global supply chains and the pressure to scale quickly will lead more businesses to rely on 3PLs. By leveraging 3PL expertise, companies can adapt swiftly to fluctuating consumer demands. According to Armstrong & Associates, the global 3PL market is expected to surpass USD 1.75
Warehousing can have numerous outputs, but here are the core outputs to expect to measure: receiving turnaround, SixSigma quality checks, put-away time, input-output warehouse rack time, cycle counting, shipping time, re-slotting times, labor times, human resource performance. Consider SixSigma quality will be used and measured.
In today’s competitive market, the successful operation of a business hinges on the smooth integration of various processes and information management systems, especially when it comes to 3PL integration. Thankfully, outsourcing logistics services to a reliable third-party logistics provider (3PL) can make a significant difference.
The shipper has an immediate need, which leads to a Request for Proposal (RFP) or Request for Quote (RFQ) process then ultimately selects a third-party logistics (3PL) supplier to execute on that need. Central to achieving this is a joint commitment to nurture and evolve the shipper-3PL relationship. What are their pain points?
Distribution center utilization of 5S, Kaizen/Continuous Improvement, and Lean SixSigma and transportation cost reduction: example: use your or your Third Party Logistics (3PL) provider partner’s Transportation Management System (TMS) to optimize your freight so you add value and reduce costs by using the most effective lanes and routes.
One 3PL-managed distribution center for a major U.S. The backbone of Lean SixSigma methodology, DMAIC ensures sustained, defect-free performance and highly competitive costs. This is the heart of Lean SixSigma : reducing variation to make a process more stable and predictable.
Lean SixSigma (LSS) thrives on the notion that there is always room for improvement, and it looks to eliminate defects that can hinder the flow of a process from moving toward its performance end goal. The question to pose instead is “How can we improve?” He has also held management positions at UPS and Airborne Express/DHL.
These are based on my 40 years working in operations at Schwinn and other companies as well as consulting many companies on how to select the best 3PL for my client's needs. For instance, if the customer and employee feedback show that product quality issues are prevalent, Lean SixSigma has to be improved.
This is why it’s essential to rely on a holistic 3PL for expert advice and guidance. Your 3PL partner, for example, can recommend where your distribution centers should be placed to meet that goal, and adjust those recommendations later if your needs change. Eric Robinson is a Senior Project Engineers at Kenco Group.
Chuck Intrieri is a Supply Chain Optimization, Logistics, Manufacturing, and 3PL Selection Consultant and you can visit his website at [link] or give him a call at 714-788-0744 or shoot him an email at cmiconsulting93@gmail.com. What is Driving Sustainable Manufacturing Operations Excellence? But, never forget the basics: your people.
The focus is to eliminate all wastes in the organization, improve processes, solve root cause problems, create a pull environment, and ensure that Lean SixSigma (LSS) works for quality and daily problem solving using DMAIC (Define, Measure, Analyze, Improve, and Control) and PDCA (Plan, Do, Check, and Act). Why are we doing this?
by Matt Benson If your 3PL supply chain problem was to deliver 400,000 items daily from supplier to customer and your on-time in full metric was a six-sigma target standard of 1 failure per million, how would you do it? So, why don’t organisations with similar problems just invest time in improving their working procedures?
The next step may be SixSigma quality ( In order for a company to achieve SixSigma, it cannot produce more than 3.4 If there are any Return to Vendor (RTV) rejected components, you can talk about the reject and how it can be avoided with the next shipment. How have you improved supplier quality?
First, understand the difference between 3PL and 4PL in logistics. 3PL and 4PL have been commonly used terms in the industry for a long time, but it is always a good idea to revise the difference between the two. 3PLs focus on various logistical areas and topographical locations. A 4PL often handles the 3PL. What is 4PL?
After selling the business in 2009, I went on to work for a leading US Chemical company and then a global 3PL. Quality and SixSigma. In the last few years I have been working in the policy advocacy space globally. His experience covers the full Logistics spectrum, from raw material procurement to.
Contract logistics is a specialized service offered by third-party logistics (3PL) providers to manage supply chain operations on behalf of a company. By doing so, businesses can concentrate on their core competencies while benefiting from the expertise and infrastructure of the 3PL provider.
The wine Supply Chain and 3PL/4PL: By Chuck Intrieri & Jesús Galindo de la Torre April, 2015. A Third Party Logistics (3PL) provider and the Supply Chain: 3PL warehouses, fulfills, and distributes wine to the ultimate customer, sometimes called “white glove, last mile.”.
This is SixSigma. If you add Lean to SixSigma (Lean SixSigma or LSS) you obtain quality at a faster throughput to the customer. If Third Patty Logistics (3PL) providers are involved, they must become part ofthe extended Lean team. Quality has to improve to 3.4 defects per million chances.
The key ingredients to a successful 3PL partnership are collaboration and trust between the customer and 3PL. The 3PL wants to help the customer, but has much more to offer than just Cost Reduction. The 3PL wants to help the customer, but has much more to offer than just Cost Reduction.
The New Role of the 3PL. Negotiate the fuel surcharge (FSC) and optimize your freight via their TMS system. • Use gain-sharing with your 3PL for a win-win in all gains and cost savings. • Watch the freight bills you receive. Capgemini Consulting: 2015 3PL Study). At times, 8-10% of freight bills you receive are incorrect.
To reduce inventory carrying cost, the following 9 contributors’ impact (Insurance, Taxes, Plant Warehouse, Inventory Handling Cost, Rented or 3PL Warehouse, cost of obsolescence, Damage cost, shrink cost, capital cost) will require practical reduction. Also, your holding cost, as highlighted below, should be considered as well.
> Watch Now: Tips on Distribution Network Design > Watch Now: Why do 3PL Relationships Fail? Muddassir is a SixSigma black belt and founded the leading supply chain platform SCMDOJO to enable supply chain professionals and teams to thrive by providing best-in-class knowledge content, tools and access to experts.
While at LeanCor, a 3PL provider and educational organization, I was mentored by CEO Robert Martichenko. Susie has earned her Lean SixSigma Green Belt, Lean Leader Certificate, ScPro Level One Certification from CSCMP, and is a Lean Supply Chain Professional and Prosci Change Practitioner. Mentoring makes a difference.
The SmartWay and C-TPAT certification percentages are not surprising; however, the percentages for ISO, SixSigma, and Lean certification are unexpected. Shippers are becoming more attuned to requiring 3PLs to use ISO, SixSigma, and Lean to drive the continuous improvement of operations.
Ability to negotiate with 3PL? • Price list validity? What is the 3PL legal limit of liability? . • Assessorial activities: taping, banding, labeling, assembly work, etc. Compliance: • Who is responsible for routing, packaging, and shipping guidelines? • Who is responsible for charge-backs? Under what circumstances?
He is a SixSigma Black Belt, a Computerworld Premier 100 Honoree, and an avid theater-goer, especially when his daughter is performing. Before Take-Two, Hinkle served as Chief Information Officer of Trans World Entertainment (Nasdaq: TWMC) and spent several years in leadership roles at GE.
This upskilling movement came to life during a conversation with an associate at one of our 3PL accounts. A Personal Reflection: Inspiration, Innovation, and the Path Ahead Reflecting on 2024, one of my most inspiring moments came when a 3PL client deployed a Locus solution in mere weeks, just before peak season.
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