Reverse Logistics has some disadvantages too, read them.
While outsourcing the logistics services, there is only a small percentage of companies that are found happy and satisfied by the services of their logistics provider. Most of the companies face few problems that can be easily sorted out if you use a reputed and seasoned provider for your logistics operations. Written below are just the few of the problems companies face:
1. Lack of trained personals:This is the biggest problem that you might face while outsourcing your logistics. With the lack of trained professionals no service provider is going to satisfy you with their services. Only trained professionals and seasoned managers will be able to provide you with the latest and cutting edge technology.
2. Lack of inventory information: Due to the lack of inventory information, business may face a lack of key performance indicators that can cost your business big time in the future. Because performance indicators and alerts are the most important part of any supply chain management system.
3. Lack of Clear Strategy: Mostof the 3PL provider who are new in the industry and are not having the services of well established professionals might not be able to provide you with a satisfactory strategic planning, which may actually increase the challenges of outsourcing.
4. Lack of Proper ProcessDocumentation: You might face lots of problems, if you find yourself working with a company that is not providing you with proper scientific process documentation that might make the whole process more complicated, and will make it harder for you as a company to keep track of processes.
5. Improper Costing: It might make the whole process of outsourcing fail, if the provider is unable to provide you with proper costing, since the ultimate goal of outsourcing is reducing the cost. Therefore, you would want to keep a close eye on the overall costing of the processes.
6. Lack of Legal Documentation: Thisisan area where you should put extra emphasizes. Most of the employers, as well as providers tend to overlook this particular factor, which may create problems for both parties in the future.
7. Lack of Customer Support: It has been seen that since a 3PL provider is working with lots of other companies as well. Therefore, they are unable to offer their 100% undivided attention to a particular customer, which can be really frustrating for the companies.
8. Improper Project Management: It has been cited in various outsourcing setups that the lack of proper project management, baseless timelines, and undeliverable promises result in a failure of a contract.
9. Unclear Objectives: It has been cited that most of the 3PL providers don’t have any clear goals and objectives, this usually results in inconsistent behavior of a service provider, and may be frustrating for the customers.
These were just few of the problems, that you might face in case you have decided to hire a third party logistics provider, but these problems can easily be overcome if you do a proper market research and select the company that has good reviews in the market, and is of high repute, some of the companies may look a little expensive to you, but the quality of their service will eventually turn into huge profit for your company.
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