Customs Clearance – Meaning, Scope and Documentation
February 12, 2025
5G is the latest buzzword in the telecommunication sector. For a layman, it is difficult to understand what the buzz really is all about. Modern-day consumers have lived through the introduction of 3G and 4G. They believe that 5G will just be a minor enhancement over the way things are currently functioning now. However, that […]
As children, we have always had to prove to our teachers or our parents that we have been working. The homework book was proof that we have spent our time productively and would often calm down angry parents and teachers. It seems like the same principles also apply in corporate life! Harvard Business Review has […]
April 10th is considered to be “Equal Pay” day all over the world. This day has been commemorated since the year 1996 to remind the world that women are allegedly being paid less than men to do the same amount of work. As per the data from Facebook COO’s non-profit organization, women only receive 80% […]
India is the second largest consumer market in the world. There are over a billion consumers, and companies from all over the world are making inroads into this developing nation to get a piece of the action. The Indian growth story has been remarkable and resilient. It has been resilient because the growth has happened […]
Business Process Improvement programs are an effective way of overhauling the business operations, of improving the efficiency, of bringing in change in the operations and lastly in enhancing the benchmark of the Business offering of the product or service to the Customer. In the fast changing business environment marked by technological advances, shortening lifecycle of […]
Globally outsourcing 3PL Market is growing fast. In the US, the industry is expected to reach over $150 billion as compared to a global estimate standing at $450 billion as per industry experts estimates.
Companies aiming for aggressive growth in global scenario recognize the need to partner with 3PL logistics providers to be able to establish supply chain networks across countries. Outsourcing is the only vehicle with which they can operate and cannot afford to manage functions in-house.
Warehousing activities whether in Finished Goods logistics or Plant logistics, are very critical to the entire supply chain. Take the example of an automobile manufacturer who depends upon a 3PL to manage complete inbound activities including vehicle unloading, inventory management, and JIT supplies to the plant. The manufacturing facility completely is dependent upon the 3PL service provider. Both the buyer and 3PL co-exist together at the same location, over a period the systems and operations get enmeshed and integrated into the process of localization and finding practical solutions. In such cases, any non-performance on the part of 3PL due to any reason will affect the plant output. It is not possible to make a sudden switch to another 3PL overnight. Hence, the marriage has to be lived through and managed.
Therefore choosing a 3PL partner for your warehouse operations needs thoughtful considerations and evaluation. Of course, any project of this nature is dependent upon the relationship between the buyer and 3PL. Collaborative and partnership approaches have yielded very good results than a buyer and seller relationship. Where ever buyers have invested time and interest in engaging directly with 3PL operations, with helping in training and periodic assessments coupled with motivational exercises, have helped 3PL operations remain focused on the deliverables and maintain efficiencies.
Before you start looking for a 3PL partner, internal alignment with management, clarity of the project and criteria for selecting 3PL Partner is to be worked out in detail.
Following factors are to be considered internally to plan the exercise:
Without clarity, many times RFP & RFQs are floated and discarded resulting in wastage of time and effort of all parties concerned.
Plant Supply Warehouses, Regional Distribution Centers, VMI, etc. projects are often very huge in size of operations as compared to a flow through finished goods warehouse in a supply chain network.
Such big projects are characterized by huge capital outlay, multiple process designs, and infrastructure-intensive and involve complex IT system design and interfaces.
RFP/RFQ would need to define each element very clearly and describe the scope of activity and responsibility on the part of the buyer as well as the 3PL.
The document should define clearly the capabilities and competencies required for the project, the timelines, and deliverables.
Detailed understanding of the project scope will ensure that only the 3PL who has the required capability and strength will bid for the project.
This information can be shared with the 3PL in the RFQ, and one should expect similar structure from the 3PL in its response document.
A well thought out internal proposal and RFQ document will help you find the best fit and smooth project implementation.
Your email address will not be published. Required fields are marked *