Executive approval is necessary for supply chain programs to move forward. Experienced in providing transportation solutions to customers in the same industry but with varying scenarios, 3PLs can readily provide informed answers to the questions posed by executives and give examples of the successes and pitfalls associated with certain actions. 3PLs, essentially, become a part of the logistics team when presenting ideas and updates to the board room.
Shippers must realize that with the promise of optimized supply chain operations, 3PLs bring with them new processes, techniques and efficiencies that must be deployed in varying departments. As a result, supply chain solutions affect the way in-house personnel have operated in the past. Companies must communicate and manage change activity so there is complete “buy in” at every level. Employees of every level should understand the reasons for change, their role and the corporate implementation schedule. Lack of visibility of new supply chain strategies throughout the company can result in key players not knowing what to do to affect change. At the same time, lack of flexibility to change by employees can cause implementation delays and impend the overall success of the new supply chain strategy. Changing the ways activities have been done in the past may be one of the hardest challenges faced by shippers. Inability to make changes may results in loss of savings as the hard changes make the most effect in driving out cost.
Keywords: 3PL, logistics services, logistics & supply chain, supply chain management, transportation management