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How can you optimize third-party service providers for import/export operations?

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Importing and exporting goods can be a complex and costly process that involves multiple parties, such as freight forwarders, customs brokers, carriers, and warehousing providers. These third-party service providers (3PLs) can help you manage the logistics, documentation, and compliance aspects of your import/export operations, but they also pose some challenges and risks. How can you optimize your relationship with 3PLs to ensure efficient, reliable, and cost-effective import/export operations? Here are some tips to consider.

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1 Choose the right 3PLs

Not all 3PLs are created equal. Some may specialize in certain modes of transportation, regions, or industries, while others may offer a broader range of services and capabilities. Depending on your needs and goals, you may want to work with one or more 3PLs that can provide the best fit for your import/export operations. To choose the right 3PLs, you should evaluate their reputation, experience, network, technology, flexibility, and pricing, and compare them with your expectations and requirements. You should also check their references, certifications, and licenses, and verify their compliance with relevant regulations and standards.

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Dakota Butch, LCB, CCS

Licensed Customs Broker at Trans-World Shipping Service, Inc.
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Everyone likes a one-stop shop, but rarely do we run all customers through the same services. Different companies have different strengths with different commodities and ports. DO- experiment and find a few good options. File aways those who have successfully completed their service with minimal fuss. DON’T- waste your time bidding or trying to find the cheapest. Being economical is one thing, but you become a priority when you have a good business relationship and consistent volume. Sometimes a carrier choosing your container over someone else’s can make all the difference in the world.

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2 Communicate clearly and regularly

Communication is key to any successful partnership, especially when it comes to import/export operations. You should communicate clearly and regularly with your 3PLs to ensure that they understand your needs, expectations, and preferences, and that you are aware of their processes, policies, and performance. You should establish clear roles and responsibilities, define service level agreements (SLAs), and set up communication channels and protocols for different scenarios and situations. You should also provide feedback, updates, and instructions as needed, and resolve any issues or disputes promptly and professionally.

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3 Monitor and measure performance

To optimize your 3PLs, you need to monitor and measure their performance and evaluate their impact on your import/export operations. You should use key performance indicators (KPIs) that reflect your objectives and priorities, such as delivery time, accuracy, quality, cost, customer satisfaction, and compliance. You should collect and analyze data from various sources, such as invoices, reports, tracking systems, surveys, and audits, and use them to identify strengths, weaknesses, opportunities, and threats. You should also review and revise your KPIs and SLAs periodically to ensure that they are relevant, realistic, and aligned with your goals and expectations.

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4 Leverage technology and innovation

Technology and innovation can help you optimize your 3PLs by enhancing visibility, efficiency, security, and quality of your import/export operations. You should leverage technology and innovation that can facilitate data exchange, integration, automation, and collaboration between you and your 3PLs, such as cloud-based platforms, software-as-a-service (SaaS) solutions, blockchain, artificial intelligence (AI), and internet of things (IoT). You should also explore new and emerging technologies and innovations that can offer competitive advantages, such as drones, 3D printing, smart containers, and digital twins.

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Raphael Dau

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As much and as often, several scenarios' simulations of 3PLs supply chain logistics have to be done with assessments for positive progress, all for your customers' satisfaction. Customers getting their shipments in procured and received or delivered on time are the fundamentals that hold all together logistically. Everybody in 3PLs is as the World-soccer club team, everyone flow as one unit in vision, goals and objectives in order to score successfully.

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Dakota Butch, LCB, CCS

Licensed Customs Broker at Trans-World Shipping Service, Inc.
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Very true, but I think it’s important not to lose sight of simple, tracking tools, and frequent and available communication for the services you require. Not everything has to be state of the art to be what you need it to be.

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5 Build trust and loyalty

Optimizing your 3PLs is not only about finding the best deals and services, but also about building trust and loyalty that can foster long-term and mutually beneficial relationships. You should treat your 3PLs as strategic partners, not just vendors, and respect their expertise, capabilities, and values. You should also recognize and reward their achievements, share best practices and insights, and seek their feedback and suggestions. By building trust and loyalty, you can increase your 3PLs' commitment, engagement, and performance, and create a win-win situation for your import/export operations.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you optimize third-party service providers for import/export operations?

1

2

3

4

5

6

1 Choose the right 3PLs

2 Communicate clearly and regularly

3 Monitor and measure performance

4 Leverage technology and innovation

5 Build trust and loyalty

6 Here’s what else to consider

Import/Export Operations

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How can you optimize third-party service providers for import/export operations?

1

2

3

4

5

6

1 Choose the right 3PLs

2 Communicate clearly and regularly

3 Monitor and measure performance

4 Leverage technology and innovation

5 Build trust and loyalty

6 Here’s what else to consider

Import/Export Operations

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