In the world of e-commerce, many pieces of the supply chain must work together to ensure that each piece is successful, and that the end customer is satisfied with their purchase. Communication is key along the entire process, but a positive relationship between the 3PL provider and the last mile delivery providers is vital.
3PL services generally refer to services provided by a company that manages multiple facets of the logistics process including warehousing and delivery. Legislation passed in 2008 says that a 3PL is a person who “solely receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.” OTL often operates as a 3PL but also as a 2PL, which happens in our last mile delivery services.
Big retailers like Amazon and Walmart hire 3PL companies to schedule and manage deliveries throughout the country. They oversee the entire delivery and transportation process including transportation from the first warehouse to scheduling of each part of the package’s journey. The 3PL companies usually contract with regional last mile delivery companies like On Time Logistics to complete the final portion of the supply chain.
When communication breaks down between the 3PL and their regional last mile delivery providers, problems such as lost, delayed, and even damaged packages can occur. Communication takes on many forms in this type of business relationship, which is both helpful and allows for more possibilities to miscommunicate. We usually use a combination of email, phone calls, and information portals to communicate with the various entities we contract with for last mile deliveries.
Let’s take a look at the key causes of communication breakdown:
Staff lacks information– The staff members handling the package, completing the paperwork on the delivery, etc. must have all relevant information pertaining to the package and delivery. When there is a lack of communication, they may be missing vital information they need to complete their job.
Lack of staff training-Oftentimes having new staff or poorly trained staff can lead to communication not happening in most efficient manner. This includes not knowing what information to provide and not knowing how to manage the various communication tools.
Vague notifications– A package may be delivered to its next location, but that does not necessarily mean the staff there has seen it or made it ready for the location it is heading to. It is important to update in real time to allow everyone in the system to know exactly what is happening with each package.
This is also why the consumer might see that their item was delivered to the next step in the supply chain but did not move to the next location in a timely manner. In reality, the staff at that location may not have handled the package yet.
Split shipments– When a customer orders multiple packages, they can sometimes arrive to the warehouses at different times, in different shipments. This causes a delay when one package is there ready to be delivered, but the other one is not. Usually our 3PL partners want the entire shipment delivered at the same time, but this is not always communicated to the end user by the retailer.
The supply chain system as a whole must learn to work together better including improving procedures and overall communication. This includes making sure the process for returned items is not only established but communicated. There must be accurate scheduling of when packages are due to arrive, and updated notifications that allow everyone to see the package’s accurate status in real time.
On Time Logistics works tirelessly to ensure that we meet the needs of our customers, and that our deliveries are made efficiently and accurately as much as possible. If you are looking for a reliable delivery service in the Northwest Arkansas, Little Rock or Tulsa area, contact OTL today!