Until the customer parts you
if your logistics provider doesn’t perform.
If your logistics provider regularly fails to keep its delivery promise and you don’t take action, it will ultimately be your customer who pulls the ripcord.
But when is the right time to reorient yourself?
Mistakes happen, even with logistics companies. The much-mentioned force majeure, e.g. direct or indirect disruptions due to strikes, are certainly not the trigger points for a separation.
It is important to objectify the assessment of your logistics provider’s performance and not be driven by individual cases. It is not uncommon for structural problems to be differentiated from home-made problems and, in the best case, eliminated. In some cases, identifying structural problems can mean the end of your collaboration, while home-made problems can often be traced back to management errors and can therefore be solved. The most important prerequisite is that everyone involved has the same understanding of cause and effect. Even with home-made problems, patience should not be infinite, because if there is no improvement in performance despite addressing the issue, the mismanagement has already become a structural problem and there is little prospect of improvement.
Good point, but how do you objectify your assessment?
Ideally, there should already be a clear task description as part of the contract. This in turn should include an SLA in which KPIs are defined. Of course, the whole thing must be chosen in such a way that it is also comprehensible, i.e. can be monitored. If you are one of the lucky few to have such an agreement, you can arrange regular reviews with your logistics provider in which the KPIs are compared with the actual performance.This process often leads to mutual understanding and leads to possible solutions. If there are significant deviations, agreements have been made but still nothing changes, then you have reached the point at which you close the deal and start logistics sourcing or commission someone else to do so.
Much more frequently, however, the agreements between retailers are more general and SLAs are not always available. In this case, you initially have no choice but to initiate the process through dialogue with your logistics provider and bring it to life together.Here, too, it is important to agree on objective parameters and evaluate them.If your logistics provider shuts down or, in your opinion, delays the process, this is also the time to start logistics sourcing.
Quite a few people do not feel comfortable in the role of auditor or controller and therefore prefer to forego the process.Others simply don’t have the time or prefer to focus on their core business.This is not a problem as long as you are far-sighted enough and have professional support on board. They can cover your back and represent your interests accordingly.Because doing nothing is not an option.
What do you do if you are dissatisfied with your logistics provider?
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