3PL Performance Review

3PL Performance Review

3PL operation needed to improve performance levels and resource utilisation to support multi client requirements. Project involved an assessment of the current state and capability of the 3PL operation and implementing improved workflows.

3PL Performance Review Project

Core Problem

1. Multi-client 3PL could not allocate resources efficiently to overcome ongoing delivery window conflicts.
2. Current systems, methods and workflow management employed by the 3PL operation were extremely inefficient.
3. Client concerns about increased labour charges being allocated though service levels remained poor.
4. Client orders were being delayed due to poor stock management practices within the 3PL outbound operation.

Problem resolution

The initial phase involved understanding the flow of materials, information and resources to support varying customer needs. As this was a multi-client operation, the objective was to optimise the resource allocation levels without impacting on promised service levels to an existing client base. The entire operation was simulated in a 3D state which made the identification of roadblocks, delays and process issues more visible. The virtual 3D simulation provided multiple scenarios for improvements to be made on a daily, weekly and monthly interval. Stock movement was tracked and measured against service level targets as part of a supply chain analytics solution. Client charges were minimised and were closer in line to new service levels achievements.