You came to the conclusion that you need a third-party logistics (3PL) provider and selected the best one for your company’s needs. Now, you need executive approval in order to get things moving. But getting your boss to sign off on your proposal may not be that easy.
Try not to get discouraged. Instead, arm yourself with plenty of data and information that will make approving your proposal a no-brainer.
These guidelines will help you in presenting your case.
Link the Company’s Goals With Your Proposal
Company leadership has established a vision and runs the company based on that vision. Any new initiatives or changes in the way the company currently conducts business needs to demonstrate how it aligns with the vision and goals of the company.
The choice you made for a public warehouse needs to address your company’s strengths and weaknesses. Outline how the 3PL provider will meet the needs of the company and why you chose this vendor over others.
A good way to present your information is in a compare and contrast format. Show which 3PLs you compared, why you selected them, their strengths and weaknesses, the logistics services they provide, and their costs.
Address Concerns at the Start
Whether you’re proposing a 3PL to supplement your existing warehousing and distribution functions, or to replace your current logistics infrastructure, it will have a major impact on current daily operations.
The change could cause concerns for existing staff, resources, and protocols, so be ready to address them up-front and defend your stance. It’s helpful to show how the 3PL will free up more staff and resources to perform duties that are important to the company’s core activities, or how a 3PL will allow the company to operate more efficiently and cost-effectively.
Some other concerns you can expect to hear and need to answer are:
- Is the third-party provider equipped with the latest warehousing equipment, software, and other essential technology? How often does it upgrade?
- How easily can the 3PL scale to company growth?
- What type of warehouse management system does the public warehouse facility use?
- What evidence is there that the third-party logistics provider can handle high demand seasons?
- How much staff does the 3PL employ and what type of employee training programs are used?
- How responsive and flexible is the outsourced logistics supplier?
Show Bottom Line Results
No matter the size of the business, the executive level of any company has to keep an eye on the bottom line. In particular, the chief executive officer (CEO), chief financial officer (CFO), and chief operating officer (COO) are responsible for ensuring that their efforts are realizing a profitable bottom line for the company.
If you want to make a case for using a 3PL, you have to present a budget for the service and show the savings throughout the entire supply chain. You have to be specific in showing the return on investment in a dollar amount for the initial year and then project the savings over at least five years.
Remember, other departments are competing for dollars to implement their proposals, so you need to have a solid argument for why using a 3PL for warehousing, distribution, and logistics will save the company money and help in achieving its goals.
Document the total cost of using a 3PL versus not using one and remaining status quo. You’ll want to drill down these savings. As examples:
- Show how storage space would be better utilized by outsourcing to the public warehouse.
- Demonstrate how distribution costs would drop because the 3PL has negotiated lower rates with an established network of carriers in all modes of transportation.
Let Brendamour Help
Brendamour Warehousing, Distribution & Services is the 3PL choice of many companies, big and small, and of all industries.
If you need help convincing your boss that a 3PL like Brendamour is the way to go, simply get in touch with Brendamour Warehousing. Our leadership team can help you with your proposal by showing how our services can benefit your company.
We’ll be happy to show you and your executive team why so many businesses are benefiting with Brendamour as their 3PL!