This training program will explore how using service level agreements along with key performance properly will enable a shipper to drive continuous improvement in their supply chain. SLAs and KPIs will also ensure that agreed to, objective measurements are being used to judge 3PL performance. An SLA along with the proper KPIs will allow shippers to create incentives, disincentives and exit clauses based on performance.
3PL Selection Criteria - To get the most out of a 3PL, shippers need to understand the roles and responsibilities of a 3PL. The selection criteria will vary depending on the shipper’s needs. This webinar will review selection criteria. Selection criteria include: financial stability, specialization, customers, asset based vs. non-asset based, operational capability, technology, people, culture, reputation, etc.
Service Level Agreements - A service-level agreement (SLA) is a part of a service contract where a service is formally defined. The SLA specifies, in measurable terms, what services the logistics provider will furnish. An SLA also defines the roles of responsibilities of both the 3PL and the customer.
Key Performance Indicators vs. Metrics - A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). A Key Performance Indicator (KPI) is a metric that you have chosen that will give an indication of your performance and can be used as a driver for improvement. In general it's preferred to just choose a few KPIs (say 3 or 4) to focus on. This means that while all KPIs are metrics, not all metrics are KPIs. Only the most important metrics can grow up to become KPIs.
Why Should You Attend:
The webinar will be delivered in 3 sections: 1) Review of 3PL selection criteria; 2) Service level agreement (SLA) definition and development; and 3) Key performance indicators (KPI) and scorecards.3PL Selection Criteria - To get the most out of a 3PL, shippers need to understand the roles and responsibilities of a 3PL. The selection criteria will vary depending on the shipper’s needs. This webinar will review selection criteria. Selection criteria include: financial stability, specialization, customers, asset based vs. non-asset based, operational capability, technology, people, culture, reputation, etc.
Service Level Agreements - A service-level agreement (SLA) is a part of a service contract where a service is formally defined. The SLA specifies, in measurable terms, what services the logistics provider will furnish. An SLA also defines the roles of responsibilities of both the 3PL and the customer.
Key Performance Indicators vs. Metrics - A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). A Key Performance Indicator (KPI) is a metric that you have chosen that will give an indication of your performance and can be used as a driver for improvement. In general it's preferred to just choose a few KPIs (say 3 or 4) to focus on. This means that while all KPIs are metrics, not all metrics are KPIs. Only the most important metrics can grow up to become KPIs.
Learning Objectives:
- The benefits of using service level agreements and key performance indicators for managing 3PLs
- Appropriate 3PL selection criteria for selecting a 3PL
- Definition and importance of service level agreements
- How to develop a service level agreement with a 3PL
- Why key performance indicators are a required component of an effective service level agreement
- Understand how objective measurement drive continuous improvements
- How to develop 3PL scorecards
Areas Covered in the Webinar:
- 3PL selection criteria
- 3PL roles and responsibilities
- How to measure and manage 3PL relationships
- Service level agreements defined
- Developing a service level agreement
- Selecting the right key performance indicators
- Driving continuous improvement in logistics and transportation function
Who Will Benefit:
- Purchasing agents
- Logistics managers
- Operations managers
- Finance and accounting managers
- Supply chain managers
- Supply chain consultants
- Supply chain technology developers
- Transportation sales people
- Traffic managers
- Shipping and receiving managers
- Warehouse manager
- 3PL managers
- Freight brokers
Course Provider
Joe Lynch,
