Today on the International Trade Resources Podcast, Kim Kirkendall is joined by Phillip Michel. Operations Manager at Amazon On-Demand Production in Germany, formerly managing supply chain logistics in China for Mercedes, to discuss how to Manage 3PL Providers.
First, Kim and Phillip discuss what 3PL means. Phillip explains that 3PL encompasses a range of services, including warehousing, transportation, inventory management, and packaging. He suggests when looking for a 3PL, first define your needs, then interview the companies. It’s important to know what their cost structure, current customers, expertise, and company structure are. You are interviewing them just like you would in an audit. Kim mentions companies often claim capabilities they don't have or that they outsource, so be sure to go onsite to visit.
Next, Phillip and Kim dive into ways to successfully negotiate to have transparent pricing and transaction information - not just an overall low price. When quoting it’s important to know your target pricing and ask for a quote, then ask for a breakdown of the price. To stay on top of the 3PL you should have clear metrics and keep up to date on their performance. Kim mentions the importance of auditing freight bills, which we featured in an earlier episode. When managing them long term, it’s key to review invoices and identify some of the hidden fees.
Lastly, Kim and Phillip break down some red flags businesses should look out for when dealing with 3PLs. Find all this and more in today’s information-packed episode!
Things you’ll learn:
Episode Sponsors:
Acclime China:
https://china.acclime.com/
Corporate Services and full Accounting/CPA/Tax for China.
Website: www.intltraderesources.com
Email: intltradepodcast@gmail.com
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