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Key Performance Expectations for 3PL Service Providers

A third-party logistics provider offer various outsourcing services such as warehousing, transportation, procurement, value-added services and to certain execution scope. Technology integration is also a ‘must have’ to enhance the entire service level. Outsourcing business model meeting customer’s expectation through cost –efficiency, increase productivity, flexibility, scalability, and economies of scale, meeting delivery dateline and technologies. The pictograph below shows using technologies with combination of machine learning across supply chain operations. Efficiently in optimizing the inventory turn and increase operations efficiency and achieve responsiveness to customers.

Supply Chain Managment
Image taken from https://www.forbes.com/sites/louiscolumbus/2018/06/11/10-ways-machine-learning-is-revolutionizing-supply-chain-management/

Expectation on Outsourcing Benefits

A 3PL with integrated services increase their flexibility to adjust to customer’s expectation and to be cost effective. Key benefits are as follows:

End-to-End Visibility increase connectivity throughout the entire flow with IT centralising operational data. It can helps in achieving significant increase in cross-operational visibility such as inventory health, delivery status, order status and etc.


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Yap Bee Pheng, DLSM
Yap Bee Pheng has substantive years of experience in the field of logistics and warehouse management, and specifically in the 3rd& 4th Party Logistics sector. She is a member of Singapore Institute of Purchasing and Materials Management (SIPMM). Bee Pheng completed the Diploma in Logistics and Supply Management (DLSM) on December 2019 at SIPMM Institute.
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