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RE: RE: Third Party Logistics (3PL)
Since there are a number of international 3PL's in this thread it would be
interesting to get feedback about the new US Customs 24 hour rule for
electronic import manifests. National Public Radio ran a short report on
the lack of industry compliance. Related articles:
http://www.computerworld.com/softwaretopics/erp/story/0,10801,76056,00.html
http://www.computerweekly.com/Article125058.htm
Regards,
David Frenkel
612-237-1966
-----Original Message-----
From: John Nadvornik [mailto:
Sent: Tuesday, December 30, 2003 5:21 PM
To: 'EDI-L Mailing List'
Subject: Re: RE: [EDI-L] Third Party Logistics (3PL)
In an effort to respond to EDI and 3PL, I would make the following
suggestion to anyone looking to outsource logistic services.
Make sure you have a tight Service Level Agreement (SLA), that is bound to
your contract.
Depending upon your level of integration and services your 3PL provides for
you, data timeliness, accuracy, up time, fail over, VAN, translation
software support, and a ton of other issues should be addressed. I cannot
think of a bigger issue then a 3PL providing a JIT warehouse to a
manufacturing lines and the 3PL decides to upgrade their EDI software and
not completing so your pulls requests are not met and your line goes down.
The purpose of the SLA should be to protect you from having such a
situation, but it may occur no matter what. You just want to make sure you
recoup some money and that you have some out if the 3PL continues to fail.
You should almost treat the 3PL as an extension of your company and maintain
at least the same quality levels that you have in your own organization,
maybe even higher standards.
For the 3PL folks out there, this SLA should cover issues that your customer
may cause. Such as failed sends of the order data, upgrading maps or
guidelines at a moments notice and expecting you to put all your resource to
making it happen in a unrealistic timeframe.
John
----- Original Message -----
From: Peter Olivola
To: 'EDI-L Mailing List'
Sent: Tuesday, December 30, 2003 5:46 PM
Subject: RE: RE: [EDI-L] Third Party Logistics (3PL)
There is no single answer to this. There are company owned and operated
warehouses that are very efficient and the company has an excellent
transportation system in place to back it up. There are 3PL situations
where the responsiveness is haphazard. I think the decision is entirely
dependent on the individual circumstance which makes benchmarking rather
pointless.
On the EDI side, it's equally pointless. EDI involving a 3PL can be done
well or poorly. One thing that seems to fit into this scenario (3PL) is
the
use of outsourced EDI. It makes the EDI source/destination issues
completely transparent to all parties. Again, it really depends on the
quality of the implementation.
Peter Olivola
708 445 0023
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