A good 3rd party logistics provider can help companies save money and improved supply chain effectiveness. A bad 3PL can cost a company’s money, effectiveness and even customers. The key is selecting the right 3PL and then using a service level agreement and key performance indicators to manage the 3PL. A service level agreement used in conjunction with key performance indicators will both the customer and 3PL to objectively measure progress.

The webinar will be delivered in 3 sections:

      1) Review of 3PL selection criteria
      2) Service level agreement (SLA) definition & development and
      3) Key performance indicators (KPI) and scorecards

3PL Selection Criteria: To get the most out of a 3PL, shippers need to understand the roles and responsibilities of a 3PL. The selection criteria will vary depending on the shipper’s needs. In the webinar, there will be a review of the selection criteria. Selection criteria include: financial stability, specialization, customers, asset based vs. non-asset based, operational capability, technology, people, culture, reputation, etc.

Service Level Agreements: A service-level agreement (SLA) is a part of a service contract where a service is formally defined. The SLA specifies, in measurable terms, what services the logistics provider will furnish. An SLA also defines the roles of responsibilities of both the 3PL and the customer.

Key Performance Indicators vs. Metrics: A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). A Key Performance Indicator (KPI) is a metric that you have chosen that will give an indication of your performance and can be used as a driver for improvement. In general it's preferred to just choose a few KPIs (say 3 or 4) to focus on. This means that while all KPIs are metrics, not all metrics are KPIs. Only the most important metrics can grow up to become KPIs. Using service level agreements along with key performance properly will enable a shipper to drive continuous improvement in their supply chain. SLAs and KPIs will also ensure that agreed to, objective measurements are being used to judge 3PL performance. An SLA along with the proper KPIs will also allow shippers to create incentives, disincentives and exit clauses based on performance.

Course Objectives:

• The benefits of using service level agreements and key performance indicators for managing 3PLs.
• Appropriate 3PL selection criteria for selecting a 3PL. 
• Definition and importance of service level agreements
• How to develop a service level agreement with a 3PL.
• Why key performance indicators are a required component of an effective service level agreement.
• Understand how objective measurement drive continuous improvements

Course Outline:

• 3PL selection criteria
• 3PL roles and responsibilities
• How to measure and manage 3PL relationships
• Service level agreements defined
• Developing a service level agreement
• Selecting the right key performance indicators
• Driving continuous improvement in logistics and transportation function

What You Get:

• Training Materials
• Live Q&A Session with our Expert
• Participation Certificate
• Access to Signup Community (Optional)
• Reward Points

Who Will Benefit:

• Purchasing agents
• Logistics managers
• Operations managers
• Finance and accounting managers
• Supply chain managers
• Supply chain consultants
• Supply chain technology developers
• Transportation sales people
• Traffic managers
• Shipping and receiving managers
• Warehouse manager
• 3PL Managers
• Manufacturers, retailers, distributors and wholesalers who need a strategy for selecting, measuring and managing their 3rd party logistics providers (transportation, warehousing, logistics, etc..).
• The webinar will also be helpful to logistics and transportation companies.