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It Takes Two to Tango Response - Essay Example

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Its focus is to deliver within the supply chain ensuring maximum operation on efficiency, minimize cost and guarantee reliable performance. Its desire for…
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It Takes Two to Tango Response
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Negotiation Strategy for Doing Business with 3PL Provider WSI has been in existence for 50 years and has assisted s prosper with steadfast, cohesive third party logistics. Its focus is to deliver within the supply chain ensuring maximum operation on efficiency, minimize cost and guarantee reliable performance. Its desire for excellence has made it among the largest privately owned third party logistics providers (3PL) benefitting from a high customer retention rate. Managers in charge of inventory should focus on the bigger picture rather than the minute details of the 3PL services.
Negotiation is a very important aspect of a business. It is put into action in various situations ranging from petty, such as making a vacation rotation schedule to the life threatening ones such as renewing a contract with your suppliers or customers. Negotiations require the parties no matter the situation to reach an agreement point. Thus, when you decide to go into business with WSI, one should bear one thing in mind. The most fruitful outcome is one achieved during the negotiation process giving each party a correspondingly favorable deal.
The main objectives for these negotiations will include certainty (Wankhede, 2013). Here is to record what it is that is being supplied, the standards of the commodity, the quantity of the product, magnitudes of delay and failure to exceed or meet expected requirements. It should also try to achieve the best deal by holding discussions of every element to ensure that both parties’ objectives are acknowledged. There should be the creation of a long-term relationship between parties and ensuring one achieves the organization objectives.
Information research is necessary before engaging with a 3PL, and one must conduct a broad research on a number of issues (Wankhede, 2013). One is whether the firm is asset based as they make use of their warehouse, personnel and trucks to run their businesses. Management based make use of managerial and technological functions to run the function of logistics to their clients. The third type is integrated providers who mainly enhance their services according to customer needs. When the decision has been arrived at, the quotation (RFQ) and the request for information (RFI) ought to be detail as possible. The firm selected should accomplish the requirements of logistics that competing firm could also achieve.
When engaging with a company like WSI there is the risk of emergence of potential issues that could result in very costly mistakes impacting negatively on your business. One should factor in the state of staff experience considering the expertise and knowledge in transportation and warehousing with the potential provider’s management staff and the team as a whole (Wankhede, 2013). The problems that could arise are higher expenses, missed deadlines, lower levels of efficiency, increased mistakes, and errors. Information technology is a vital role in 3PL logistics. One that is not up to date could result in a number of problems such as inability to perform RF scans and limited EDI capabilities. Ongoing training is important since it helps the 3PL’s meet customers’ expectations and specifications. If no training, organizations could risk their quality of service. Safety and compliance are also fundamental to comply with all safety regulations and general health. It ensures issues on compatibility do not arise during transport and warehousing.
The best negotiation strategy to use is an outsourcing strategy that should be measured and well-thought against in-house capabilities and solutions. Analyzing the SWOT analysis and create a project implementation strategy to be clear with what WSI does. It should consist of stakeholders from both organizations.
References
Wankhede, S., (2013). Evaluation of Third Party Logistics in Supply Chain. International Journal of Engineering Research & Technology. Read More
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