3PLR assesses the client’s 3PL’s value-added services and key facilities based on observation, management interviews, data analysis. The work starts with a baseline of client requirements and 3PL services, cost and performance, including the service agreement.
The 3PL Value Evaluation is designed to provide insight into 3PL value delivery and validation, as well as recommendations to improve 3PL operational and cost performance when gaps are revealed, or consideration of 3PL replacement.
- Kick-Off Meeting & Site Visit: Visit the 3PL operating site for observation, management interviews and data collection.
- Understand Client Service Requirements: Review the client’s business, distribution service requirements, customer expectations, and 3PL relationship challenges.
- Data Collection: Submit a data request for information, such as volumetric data, KPIs and QBRs, existing 3PL contracts and SLAs, pricing terms and itemized invoice summaries, gain-sharing arrangements and penalties, occupancy costs and obligations, equipment list, IT systems, hours of operation, and staffing plans by function.
- Analysis & Research: Conduct analysis and research to address the needs, questions and deliverables specified in the Statement of Work. Use market research and 3PL industry benchmarks regarding pricing, methods and services.
- Deliverables Development: Document deliverables from data analysis of service delivery performance and comparison to service level agreements (SLAs), cost analysis and comparison to 3PL contractual pricing, current 3PL industry trends and best practices, and recommendations for improving logistics operations and reducing costs.
- Report Generation & Report Out: Document findings, conclusions and recommendations in written form, usually in MS PowerPoint or MS Word with attachments, and present the Final Report to key stakeholders orally and with discussion.
