3PL Outsourcing Beyond the Initial Goals
RedStone understands that cost savings are just a part of each client relationship; a 3PL must provide more if the relationship is to withstand the demands of an ever-changing supply chain.
Outsourcing logistics operations to a 3PL isn’t new. Unfortunately, disillusionment after a year or two isn’t new either and can result in dissatisfaction. The experience of a RedStone Logistics client that manufactures and distributes outdoor recreational equipment across North America illustrates this challenge.
For Alan, the company’s director of distribution and domestic logistics, his frustration was at a point that he knew he had to make a change. “We hired a 3PL to help us save money and ultimately to turn our supply chain into a competitive advantage. Early on, the savings were there, and the 3PL team did everything we told them to. But,” he added, “why should we have to tell them what to do? They are supposed to be the experts.”
“Our business was growing, and we were not sure that our 3PL was looking beyond cost savings to improve our supply chain as business expanded. What we really needed was a partner who would drive innovation and challenge our ideas if they weren’t the best for our business.”
Clients are looking for additional assistance and efficiencies, not just reduced costs. Some 3PLs, having worked hard to deliver on early promises, fall into an operating rhythm with current clients and then must turn their attention to meeting expectations of new clients that are coming onboard. Culturally, the two organizations may be focused on different priorities.
RedStone understands that cost savings are just a part of each client relationship; a 3PL must provide more if the relationship is to withstand the demands of an ever-changing supply chain. The RedStone answer was a solution designed specifically for the demands of the organization’s industry and customer requirements.
“Many 3PL organizations rely on price alone to drive improvements, quickly running out of options to improve efficiencies after lower costs are no longer an option. RedStone solutions start with getting to know our clients—their challenges, systems, processes, people, and most importantly how they measure success—before we do anything else,” commented Jim Ritchie, president and CEO of RedStone Logistics.
RedStone focused its work for Alan on simplifying the entire supply chain from the beginning, not just on reducing the cost of shipping their products.
“We worked with Alan and his team to ensure we met their near-term requirements and anticipated changes in their supply chain,” added Ritchie. “We invested in dedicated resources to meet the strategic direction of the company, the needs of its customers, and the plan for how its supply chain should react to ever-changing logistics requirements.”
These specialized resources provided by RedStone reach into every corner of the business to drive continuous improvement, resulting in years of client satisfaction. Eliminating client disillusionment is a fundamental imperative for RedStone Logistics, creating client relationships that don’t merely survive but thrive beyond the first year of cost savings.