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How can you manage relationships with external partners in internal logistics?

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Internal logistics is the process of planning, implementing, and controlling the flow of materials and information within an organization. It involves managing the activities and resources that support the production, storage, distribution, and delivery of goods and services. External partners are the suppliers, customers, and other entities that interact with the internal logistics system. Managing relationships with external partners is crucial for ensuring the efficiency, quality, and profitability of internal logistics. In this article, you will learn how to manage relationships with external partners in internal logistics by following these six tips:

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Sven Faessler

Strategize, Optimize, Lead and Execute: Personal Commitment in Global Logistics Mastery. #categorymanagement…
Antony Alcantara Zelada

| Top Facility Management (FM) Voice | Gestión de Servicios Generales | Administración de Infraestructura | Logística…

1 Communicate clearly and regularly

Communication is the key to building trust, understanding, and collaboration with external partners. You should communicate your expectations, requirements, and feedback clearly and regularly to avoid misunderstandings, errors, and delays. You should also listen to your external partners' needs, concerns, and suggestions and respond promptly and respectfully. Use appropriate communication channels and tools, such as email, phone, online platforms, or face-to-face meetings, depending on the situation and the preference of your external partners.

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Sven Faessler

Strategize, Optimize, Lead and Execute: Personal Commitment in Global Logistics Mastery. #categorymanagement #procurement #passion #data
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Klare Ziele und Anforderungen formulieren und diese strukturiert und abgestimmt kommunizieren und managen. Ich pers?nlich empfinde die pers?nliche Schiene für day to day Themen sehr effizient. Quarterly reviews und action tracker runden dies ab.

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Antony Alcantara Zelada

| Top Facility Management (FM) Voice | Gestión de Servicios Generales | Administración de Infraestructura | Logística de Campamentos | Operaciones de Mantenimiento |
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Establecer canales de comunicación claros y abiertos con tus socios externos. La comunicación efectiva es crucial para coordinar las operaciones y resolver problemas de manera eficiente.

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Farhan Faiyaz, MIB DCA CILT

National Manager-Operations/Resource Management/Commercial @Saudi Bulk Transport | Strategic Leadership | SCM & Logistics Mgmt | Operations Excellence | P&L & Risk Management | BD | Freight Forwarding | Team Building |
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Clear Communication: Establish transparent communication channels to convey expectations, updates, and changes promptly, fostering a strong and informed partnership. Collaborative Planning: Engage in collaborative planning sessions to align goals, anticipate challenges, and develop joint strategies for optimizing internal logistics processes. Service Level Agreements (SLAs): Define and regularly review SLAs to ensure both parties are accountable for meeting agreed-upon standards, creating a foundation for a successful partnership. Regular Meetings: Schedule regular meetings to discuss ongoing projects, address concerns, and share insights. This promotes a proactive approach to problem-solving and relationship-building.

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Jesús Aragón

Potenciando la rentabilidad y escalabilidad del Freight Forwarder con software intuitivo | Cofounder @ Apunto.io | Peak Batch-24 | Newsletter "Un Espresso Cargado" | Open Logistics Enthusiast
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La interacción constante con tus equipos de logística, hace que se cree un choque de culturas entre ambas partes. La comunicación es el aceite que hará que todo fluya sin problemas ni conflictos.

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2 Establish mutual goals and metrics

To align your internal logistics with your external partners' objectives and expectations, you should establish mutual goals and metrics that define the desired outcomes and performance indicators of your relationship. For example, you can agree on the delivery time, quality standards, inventory levels, cost reduction, or customer satisfaction that you want to achieve together. You should also monitor and measure your progress and results regularly and share them with your external partners to ensure transparency and accountability.

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Antony Alcantara Zelada

| Top Facility Management (FM) Voice | Gestión de Servicios Generales | Administración de Infraestructura | Logística de Campamentos | Operaciones de Mantenimiento |
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Desarrollar acuerdos contractuales claros que establezcan expectativas mutuas, responsabilidades y términos de colaboración. Incluir cláusulas relacionadas con los estándares de servicio, plazos de entrega, calidad de productos, y penalizaciones por incumplimiento.

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Jesús Aragón

Potenciando la rentabilidad y escalabilidad del Freight Forwarder con software intuitivo | Cofounder @ Apunto.io | Peak Batch-24 | Newsletter "Un Espresso Cargado" | Open Logistics Enthusiast
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Comunicar los indicadores y métricas que se estarán evaluando. Para que de esta forma ellos cuenten con sus propios objetivos y acciones periódicas para cumplirlos.

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3 Negotiate fair and flexible contracts

Contracts are the legal documents that formalize your relationship with your external partners and specify the terms and conditions of your cooperation. You should negotiate fair and flexible contracts that balance your rights and obligations, risks and benefits, and incentives and penalties. You should also review and update your contracts periodically to reflect any changes in your internal logistics or your external partners' situation. You should also have contingency plans and dispute resolution mechanisms in case of unforeseen events or conflicts.

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4 Provide value-added services

To enhance your relationship with your external partners and differentiate yourself from your competitors, you should provide value-added services that go beyond your core internal logistics functions. For example, you can offer customized solutions, technical support, quality assurance, or after-sales service to your external partners. You can also seek opportunities to collaborate with your external partners on innovation, product development, or market expansion. By providing value-added services, you can increase your external partners' satisfaction, loyalty, and retention.

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Sarah Palmer FCCA

Head of Finance Governance @ Bally's Interactive | Global Business
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In my experience of logistics, get to understand what makes the customer tick, where are their pain points and help them solve them. We had a customer who could not produce product on time for us to deliver. We contributed to a 12 month project examining the production cycle with the customer and they loved us for our contributions. These are very simple principles but they helped us build a fantastic relationship with the customer and secured our 3PL contract for years to come

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5 Seek feedback and improvement

To maintain and improve your relationship with your external partners, you should seek feedback and improvement on your internal logistics performance and processes. You should solicit and accept constructive criticism, compliments, and suggestions from your external partners and use them to identify your strengths and weaknesses, opportunities and threats, and best practices and areas for improvement. You should also implement corrective and preventive actions, continuous improvement initiatives, or process reengineering projects to enhance your internal logistics efficiency, quality, and profitability.

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Jesús Aragón

Potenciando la rentabilidad y escalabilidad del Freight Forwarder con software intuitivo | Cofounder @ Apunto.io | Peak Batch-24 | Newsletter "Un Espresso Cargado" | Open Logistics Enthusiast
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Siempre escucha toda la información de cualquier rango, operativa, gerencial o estratégica. Una opinión diferente siempre ayuda a construir y mejor entorno para tu logística interna.

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6 Recognize and reward your external partners

To foster a positive and long-term relationship with your external partners, you should recognize and reward their contributions, achievements, and loyalty. You should express your appreciation, gratitude, and respect to your external partners verbally or in writing, publicly or privately, formally or informally. You should also offer tangible rewards, such as discounts, bonuses, gifts, or referrals, to your external partners based on their performance, value, or duration of your relationship. By recognizing and rewarding your external partners, you can strengthen your mutual trust, commitment, and cooperation.

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Antony Alcantara Zelada

| Top Facility Management (FM) Voice | Gestión de Servicios Generales | Administración de Infraestructura | Logística de Campamentos | Operaciones de Mantenimiento |
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Implementar programas de recompensas e incentivos para motivar a los socios externos a superar las expectativas y alcanzar metas específicas.

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7 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 manage relationships with external partners in internal logistics?

1

2

3

4

5

6

7

1 Communicate clearly and regularly

2 Establish mutual goals and metrics

3 Negotiate fair and flexible contracts

4 Provide value-added services

5 Seek feedback and improvement

6 Recognize and reward your external partners

7 Here’s what else to consider

Logistics Management

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How can you manage relationships with external partners in internal logistics?

1

2

3

4

5

6

7

1 Communicate clearly and regularly

2 Establish mutual goals and metrics

3 Negotiate fair and flexible contracts

4 Provide value-added services

5 Seek feedback and improvement

6 Recognize and reward your external partners

7 Here’s what else to consider

Logistics Management

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