3PL AUDIT AND IMPROVEMENT
Scope
Our 3PL auditing service covers the following:
Contract review
Invoicing structure review
Invoice rates compared with contract rates
Contract rates compared with industry averages
Invoice quantities compared with actual quantities
Actual quantities compared with internal forecasts
3PL performance compared with contracted SLAs
Process improvement opportunities for 3PL
Opportunities to improve rate structure
Site visits to determine operational improvement opportunities
Objectives
Improve invoice visibility and structure
Improve invoice accuracy
Improve quality and service
Optimize operational efficiencies
Build a collaborative relationship with the 3PL
Deliverables
Updated Invoice Structure
Detailed Audits
Compare 3PL invoice cost vs expected cost
Locate 3PL invoice discrepancies to be disputed
Track 3PL cost and 3PL performance compared to Service Level Agreement (SLA) and previous months
Quarterly Business Reviews (QBRs)
Prepare and resolve all disputes
Review 3PL performance and 3PL costs
Review 3PL operational continuous improvement opportunities
Methodology
3PL Audit Onboarding
Business Information Gathering: Capture operational processes, contracts, and relevant data to ensure a deep understanding of your business.
Data Gathering: Collect data pertaining to costs, handling volumes, operational volumes, etc. and identify any gaps.
Data Preparation & Audit Report Building: Cleanse and validate the data and develop a reporting structure to summarize the audit deliverables.
Process Standardization: Develop a streamlined process for data gathering and data preparation that can be repeated efficiently.
Ongoing 3PL Audits
Streamlined Data Gathering & Preparation: Execute the data gathering and preparation steps using the developed standardized process at the cadence of invoice receipts.
Audit Reporting: Review streamlined audits directly with the 3PL to discuss discrepancies and create action plans.
Quarterly Business Reviews: Support in the development of a formal review of continuous improvement opportunities and past discrepancies with 3PL and your management team.
3PL Operations Continuous Improvement
Site Visit: Conduct site visits to your partners to understand the current state and processes firsthand.
Best Practices Assessment: Evaluate the operational processes against industry Best Practices and identify the gaps within the operation.
Develop Conceptual Recommendations: Develop warehouse layout/design recommendations that can increase capacity, improve productivity, enhance safety, and/or increase throughput.
Recommendation Workshop: Hold a collaborative workshop to review process and design recommendations that can improve service to the customer.
Determine Action Plan: Develop a project plan, strategically prioritizing tasks to facilitate smooth transitions and an effective operational impact.
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.
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.
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.
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.
Contact us for more information on our services.
Why establish?
