3PL Health Checks Generate Savings for Manufacturers: Here’s How to Begin
![f1b95b_bf22a6f21e89400bb575d5755c275899~mv2](https://archbow.com/wp-content/uploads/2024/01/f1b95b_bf22a6f21e89400bb575d5755c275899mv2.webp)
Co-Authored by Shannon Hybner and Paul Furgal
1. Assess the 3PL Relationship
Do you feel like a valued partner alongside your 3PL? One of the most critical relationships in your supply chain is your 3PL partner. As a manufacturer, you should ask the following:
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- Is your 3PL receptive to feedback?
- Is your program appropriately staffed?
- Are your quarterly business reviews effective?
- Is the account management relationship constructive?
2. Review the Fundamentals
When you initially launched your product with your chosen 3PL(s), it was under specific product, customer, and stakeholder assumptions. Post-launch, manufacturer teams often change, priorities evolve, team members add more responsibilities to overflowing plates, and busy calendars create barriers to streamlining processes.
By carving out valuable time to reassess 3PL offerings and customer service metrics post-launch, your program could see positive changes and increased bandwidth for your manufacturer teams. Here are some program areas to review post-launch:
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- Commercial Strategy: Does the initial model support current needs?
- Customer Service: Are operational metrics and customer engagement levels exceeding expectations?
- Transportation: Is your transportation approach appropriate for your distribution network?
- Financial Services: Are your transactions processed accurately and within deadlines? Do you have significant open Accounts Receivables and/or collection concerns?
3. Strategic Outlook
Over time, partnerships evolve, and manufacturer product portfolios expand and contract. Manufacturers should determine if original strategic decisions remain a priority for their commercial success or if priorities have shifted for various reasons. When considering the value and future success of your current 3PL partner, focus on these strategic factors as you look ahead:
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- Is the 3PL part of a more extensive network?
- Does your 3PL have the capacity for future growth?
- Does your 3PL have the financial stability to remain a strong partner?
- Does your 3PL have a stable management team?
When to Conduct a Health Check
Do any of these questions resonate with you or your 3PL program? If so, it’s likely time to conduct a health check on your third-party logistics partner and current services. Archbow Consulting can help. As your program evolves, we can assist with your strategic and tactical 3PL and distribution needs.
Stay tuned for Part II of the ‘3PL Health Check’ series, where we’ll highlight the nuances between a ‘good’ 3PL partner and an ‘excellent’ partner in four key areas.
Learn more about our distribution team and the differentiators that matter most to manufacturers, and contact us today for assistance with your strategic and tactical distribution needs.
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Archbow Consulting helps pharmaceutical and biotech companies in the USA and Europe design, build, and optimize product distribution and patient access strategies. Archbow was founded by industry veterans to meet a need in the marketplace for consulting options that offer diverse real-world experience, are able to leverage deep connections across the industry, and can also provide actionable strategic guidance. We invite you to learn more about our team, services, and clients’ success, and connect with us via email, LinkedIn or subscribing to this blog which you can do below.
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