Logistics providers play an integral role in the supply chain for many companies, helping them optimize the flow of shipments, coordinate warehousing or inventory management needs, and manage costs in the process. Traditionally viewed as vendors who provide a service to facilitate the movement of shipments, many logistics providers operate using their own data and information, serving a critical purpose in the supply chain, but often with minimal client interaction.
In a recent post, we highlighted the importance of the human touch in logistics and why strong relationships with logistics partners are so important in today’s digital age. When logistics providers are viewed as true business partners rather than cogs in the supply chain, companies can achieve greater efficiency and growth due to the information sharing, understanding, and empathy that come with creating a true partnership.
In a Dynamic Industry, Businesses Need More than Traditional Vendor Relationships
The transactional nature of traditional vendor relationships can serve a purpose but also leave companies falling short of potential business growth and opportunity. For example:
Limited communication and sharing only what is necessary without greater business context can be detrimental to understanding and meeting the organization's true needs and goals.
Focusing only on basic service offerings provided by logistics companies rather than considering how service levels and customer satisfaction fit into the bigger picture can damage key relationships.
Making decisions based solely on price disregards the importance of service and ensuring a positive experience for all parties involved.
These hallmarks of traditional vendor relationships fail to create smooth operations and improve efficiency, and as a result, companies may miss out on business gains and opportunities that can arise from more collaborative partnerships.
The Partner Approach: Fostering Trust Through Transparency
For companies looking to achieve greater efficiency and profitability in their supply chains, building partnerships with logistics providers who value trust and communication is critical. Working with a partner who is willing to collaborate and understand the business's needs, goals, and values can open the door to greater opportunities for building a stronger and more flexible supply chain.
Rather than working together on a limited basis, true logistics partnerships are underpinned by strategic alignment and built on understanding a business’s long-term goals. An effective partner knows what the organization is working toward, brings innovative ideas to the table, works to continuously improve and streamline processes, and can help make decisions that will move them along the path to long-term success.
By having trusted partnerships with logistics providers, companies benefit from:
Enhanced collaboration: Working together more closely helps both parties remain aligned on the business's needs. This can lead to better problem-solving and faster decision-making. When things don’t go as planned, working with a trusted partner can also help facilitate quick resolutions.
Flexibility and customization: By understanding business goals and needs, logistics partners can identify opportunities to craft tailored solutions that meet the unique and evolving needs of the business.
Better visibility and real-time data: Effective collaboration also leads to information and data sharing, allowing companies to gain a real-time view of shipments and make informed decisions more quickly based on the latest available data.
Improved cost efficiency: A strategic business partner who understands a company’s business needs and has access to the latest information can help achieve greater cost savings by creating custom solutions.
Four Steps to Transition from a Vendor to a Partner
For companies looking to make the shift from having traditional vendors to building strategic business partnerships, the journey doesn’t happen overnight. Once a logistics provider is identified who is willing to build a true partnership, four key steps should be taken to ensure both parties gain the most from it:
Build Open Lines of Communication
Meet with the partner upfront to discuss business needs, goals, expectations, and how to best gauge success. Establish a cadence for regular meetings throughout the partnership to discuss any challenges, shifting goals, and overall performance so that adjustments can be made as needed.
Set Shared Goals
By establishing goals upfront, both parties can work together to determine what success should look like for each partner and identify the key performance indicators (KPIs) that will serve as the foundation for measuring success.
Foster Collaborative Problem-Solving
Challenges will always arise in the supply chain world, but having a collaborative partner can go a long way in helping to ensure that they are addressed quickly and effectively. By understanding expectations upfront and communicating clearly when things don’t go as expected, partners can work together to overcome challenges and improve efficiency.
Leverage Technology for Transparency
Technology can play a key role in creating an effective partnership by providing common tools for companies and logistics partners to leverage for collaboration. By sharing platforms and data, all partners can benefit from enhanced visibility and transparency so that no one is left in the dark.
TEN Logistics: Effective Supply Chain Partnerships for the Long Haul
When it comes to creating efficient supply chains, TEN Logistics understands the importance of building trusted relationships with its partners. That’s why they take a customer-centric approach to every logistics partnership and make time to understand their partners’ needs to create solutions that align with their goals.
Through collaborative planning and proactive communication, TEN Logistics builds trusted relationships with its partners. These partnerships are backed by technology for real-time tracking and intelligence, in addition to 24/7 support. By creating custom-tailored solutions designed to fit the needs of the individual partner, TEN Logistics has become an ideal example of what a true logistics partner should be.
Promises Made. Promises Delivered
In today’s competitive supply chain environment, companies should forge strong partnerships with their logistics providers to achieve optimal efficiency and performance. Working with a partner like TEN Logistics—who offers a wealth of services while balancing technology innovation with the importance of the human touch — can move an organization ahead of the competition, position them to effectively navigate disruptions when they occur, and pave the way for smoother supply chain performance.
Contact us and learn how a trusted logistics partnership can elevate your supply chain.
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