What are the common objections to using a 3PL?
- We will lose control of our carriers
- Why pay a middle man when we can do it ourselves?
- Our transportation manager will no longer be needed
- We have been burned in the past
Objections can be viewed as complaints by both the customer and the 3PL. Let’s review a few real answers to these common objections.
We will lose control of our carriers.
When working with a true 3PL Partner a business would not actually lose control of the carriers, they would actually gain more control. Better reporting can provide clear and on-time percentage metrics, claims ratios, and general rate increase mitigation. Businesses try to do some of this reporting on their own but typically run into roadblocks. Why? Because businesses are experts in their selected fields and transportation is not usually one of them.
Why pay a middle man when we can do it ourselves?
A middle man can do a better job performing many business tasks, such as logistics. People use middle men every day, sometimes without even knowing it, because the middle man has more resources. We don’t go to Kraft to get our cheese, Dove to get our soap, or Coca-Cola to get our soda. Time is money, and less time spent on less profitable tasks only adds to your bottom line.
Our transportation manager will no longer be needed.
In actuality, the job description is the only part of your transportation manager’s position that changes. Some of our largest clients work with their transportation managers on a strategic level, not the day to day booking and tracking of shipments. Transportation managers need to be held to KPI’s like freight cost as a % of sell cost. They can better explain to upper management this information with the help of a 3PL partner. For example, some products were not profitable to ship and more liable to damage. The common role of a transportation manager is negotiating pricing with limited leverage and relationship, booking shipments, tracking them, filing claims, etc. A 3PL partner can help take over this time-consuming role.
We have been burned in the past.
This is very possible. Have you ever been to McDonald’s and were served cold fries? Or to Pizza Hut and got a cheese pizza when it was supposed to be pepperoni? I bet you went back to both of those places! It’s the job of businesses to fully vet their partners. BlueGrace is a privately owned, debt free 3PL. We are not small but we are incredibly agile. It’s always important to leverage companies like Cortera or Dun and Bradstreet to review the credit standing of new partners so you do not get burned. We work tirelessly to provide the highest level of service. It’s very possible to make the change and start using a new 3PL Partner with confidence!
Let’s leave the complaints in 2015 and give a 3PL partners like BlueGrace a shot in 2016!