3PL AUDIT AND IMPROVEMENT

Scope

Our 3PL audit and improvement service covers the following:

  • 3PL Contract review

  • 3PL Invoicing structure review

  • 3PL Invoice rates compared with 3PL contract rates

  • 3PL Contract rates compared with industry averages

  • 3PL Invoice quantities compared with actual quantities

  • Actual quantities compared with internal forecasts

  • 3PL performance compared with contracted SLAs

  • Process improvement opportunities for 3PL improvement

  • Opportunities to improve 3PL rate structure

  • Site visits to determine operational improvement opportunities

Objectives

Our 3PL audit and improvement service typically has the following objectives:

  • Improve 3PL invoice visibility and structure

  • Improve 3PL invoice accuracy

  • Improve 3PL quality and 3PL service

  • Optimize 3PL operational efficiencies

  • Build a collaborative relationship with the 3PL

Deliverables

  1. Updated 3PL Invoice Structure

  2. Detailed 3PL Audits

    1. Compare 3PL invoice cost vs expected cost

    2. Locate 3PL invoice discrepancies to be disputed

    3. Track 3PL cost and 3PL performance compared to Service Level Agreement (SLA) and previous months

  3. Quarterly Business Reviews (QBRs)

    1. Prepare and resolve all disputes

    2. Review 3PL performance and 3PL costs

    3. Review 3PL improvement opportunities

Methodology

3PL Audit Onboarding

  1. Business Information Gathering: Capture operational processes, contracts, and relevant data to ensure a deep understanding of your business.

  2. Data Gathering: Collect data pertaining to costs, handling volumes, operational volumes, etc. and identify any gaps.

  3. Data Preparation & Audit Report Building: Cleanse and validate the data and develop a reporting structure to summarize the 3PL audit deliverables.

  4. Process Standardization: Develop a streamlined process for data gathering and data preparation that can be repeated efficiently.

Ongoing 3PL Audits

  1. Streamlined Data Gathering & Preparation: Execute the data gathering and preparation steps using the developed standardized process at the cadence of invoice receipts.

  2. 3PL Audit Reporting: Review streamlined 3PL audits directly with the 3PL to discuss discrepancies and create action plans for 3PL improvement.

  3. Quarterly Business Reviews: Support in the development of a formal review of continuous 3PL improvement opportunities and past discrepancies with 3PL and your management team.

3PL Improvement - Operations

  1. Site Visit: Conduct site visits to your partners to understand the current state and processes firsthand.

  2. Best Practices Assessment: Evaluate the operational processes against industry Best Practices and identify the gaps within the operation.

  3. Develop Conceptual Recommendations: Develop warehouse layout/design recommendations that can increase capacity, improve productivity, enhance safety, and/or increase throughput.

  4. Recommendation Workshop: Hold a collaborative workshop to review process and design recommendations that can improve service to the customer.

  5. Determine Action Plan: Develop a project plan, strategically prioritizing tasks to facilitate smooth transitions and an effective operational impact.

Why establish?

  1. Full-Service Partner – Establish has the capabilities to support you throughout every step of the process, all the way from discovery through implementation and beyond.

  2. Market Knowledge & Experience – Our extensive background in working with 3PLs means we have strong working relationships with 3PLs of all sizes and expertise in the US and abroad. We are familiar with their operations and service offerings and have well-established connections with them.

  3. Warehousing & Supply Chain Expertise – Our experience from completing over 1,000 warehouse design and improvement projects provides us a unique advantage and authority when outsourcing. We speak their language and know their business.

  4. Detailed & Efficient Analysis – Our data-driven tools, resources and methodologies developed from our deep history with 3PL search and selection enables a comprehensive and efficient audit process.

TOOLS & METHODS

Assign™

Tableau & PowerBI

Establish QBR Templates

WHITE PAPERS & CASE STUDIES

Case Study: 3PL Audits Lead to Cost Savings and Improve Operational Efficiency

Establish’s 3PL audit and improvement service created a standardized and invoicing structure and identified cost savings and 3PL operational improvement opportunities.

How to Ensure a Successful 3PL Implementation

While choosing the right partner is important, the integration and go live process is critical to ensure success. Read about Establish’s approach to a successful 3PL implementation with your chosen 3PL partner.                 

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