Transportation has long been thought of as a commodity. From a cost standpoint, equipment, fuel, software, and labour are all comparable. The culture of a 3PL might be a competitive advantage.
Culture is important
When choosing a 3PL nowadays, the cost is just one of several variables to consider. A low-cost supplier may save money in the short term, but it will not achieve long-term efficiency or the kind of service that shippers need. Mutually beneficial strategic partnerships stand the test of time and eliminate waste from shippers’ supply chains.
When it comes to attracting people, forming partnerships, and maintaining exceptional performance, an organization’s culture is vital.
How does cultural alignment impact?
Shippers are seeking culturally compatible long-term strategic partners. It is tough to tell if a 3PL team member works for the shipper or the provider when the cultures of the two companies align. Trusting a third-party logistics provider to manage all or part of your supply chain is a massive choice and choosing the right culturally aligned partner is crucial. Team members of a 3PL who are empowered to take actions that improve a shipper’s supply chain stay involved in the process.
When value is produced by giving a proactive warning of a late load, saving money by consolidating LTL orders into a multi-stop truckload or minimizing empty miles with a backhaul, the strategic shipper-3PL relationship is reinforced.
Is cultural connection sufficient to keep a business partnership going?
A shipper-3PL relationship cannot be sustained only based on culture. However, success may be achieved by combining a culture of continuous improvement with the right people, processes, and technology. By knowing the peculiarities of each shipper partner’s unique freight, a flexible 3PL will develop transportation management system (TMS) software to match their demands.
As a shipper, implementing a TMS can be time-consuming and costly, and there is no assurance that the software will generate the desired outcomes. Shippers may rely on third-party integrators for future configuration modifications and upgrades if they lack in-house competence. A competent 3PL will have a team dedicated completely to implementation and integration while being tightly linked with operations.
All 3PLs must have a TMS, but does the 3PL provider deliver value by having the right people, procedures, and platform in place?
Get a 3PL with a similar culture and vision as yours. If you succeed in doing so, you will have a long and fruitful relationship.
AMG Logistics provides supply chain expertise across many industries, as well as the people, procedures, and technology to satisfy your logistics management requirements.