I’ve observed a recent increase in organizations making mistakes that were less common in the past.
After 30+ years of assisting people, it’s alarming to see these missteps becoming more frequent.
What are these recurring errors, and what can you do to avoid them?
Check out the full video to learn more and boost your knowledge!
Mistake 1: Rushed Process
One of the most frequent mistakes is not allowing enough time for the outsourcing process. In today’s busy market, many providers are already overloaded with work. Organizations often wait until their contracts are nearly expired, leaving only a few months to find a new provider. Rushing the process leads to poor decisions. Start at least six months to a year in advance to ensure you have enough time to find the right partner.
Mistake 2: Missing Details
Another common issue is failing to provide enough detailed information to potential suppliers. Companies need to supply partners with comprehensive data about products, including dimensions, transaction histories, and forecasts. Without this information, suppliers cannot offer accurate quotes or evaluate whether they are the right fit for your business. You need to ensure this data is accurate and readily available to avoid any issues down the line.
Mistake 3: Mismatched Providers
Finally, organizations often approach suppliers who aren’t the right match. In the past, businesses would ask as many as 20 companies to bid. Today, with so many providers busy, it’s better to focus on four or five well-suited suppliers. Make sure the companies you approach are experienced in handling the type of logistics services you require.
Related articles on this topic have appeared throughout our website, check them out:
- The Suppliers’ View of Logistics Outsourcing
- Logistics Outsourcing Secrets: A Serial Guide to Success with 3PLs
- The Power of Outsourcing for Supply Chain Improvement
- Logistics Outsourcing Partnerships and Why It’s Time to Break a Rule or Two
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 21, 2023, under the title “3 Common Logistics Outsourcing Mistakes“.
