SCLM Question - Neyu
SCLM Question - Neyu
You may be asked situational questions—what software and systems you are
familiar with, for example—or given behavioral question prompts that begin
"Describe a situation where you…" Here are some common logistician interview
questions and behavioral prompts to help you prepare for your interview:
In-depth questions
Interviewers use prompts to open discussions about more in-depth logistics
issues, give you opportunities to narrate your past experiences and address how
you'll meet future challenges. It's fine to take a few moments to consider before
starting your answer to questions and prompts like these:
Successful logistics work includes familiarity with the regulations that govern the
industry. This question introduces your potential employer to your familiarity with
international standards set by the International Organization for Standardization.
The employer wants to know that you adhere to industry standards and use
recognized best practices.
This question helps the interviewer evaluate your understanding of the logistics
industry, separating two terms that industry outsiders often use interchangeably.
Make sure to keep your answer clear and concise.
3. How do you stay up to date with industry trends and best practices?
Your interviewer wants to know that you are aware of industry improvements and
are engaged in your career development. If you've recently completed a
professional development course or have one in mind that you'd like to complete,
you can include the exact name in your answer.
Example: "In addition to staying up to date by reading industry white papers and
attending professional conferences, I set news alerts to get phone notifications about
new articles in the mainstream media and from my professional groups.”
Being certified in your area of expertise shows that you're committed to being a
subject matter expert and can be relied on as a voice of authority in your work. If
you don't hold any active certifications or if your job doesn't require licensing or
endorsement, be sure to mention any continuing education and training you have
undertaken.
Example: "I'm a Certified Supply Chain Professional and plan to take the Certified in
Professional Inventory Management exam in six months through the Association for
Supply Chain Management (ASCM)."
This question is asking if you are familiar with the process of cross-docking and
understand its benefits. When giving an opinion, always state the reasons that led
you to that opinion.
Example: "It's a great idea when it's possible. Cross-docking saves handling, operating
and storage costs when you can unload from an incoming truck and directly onto an
outbound truck.”
This question asks you to identify the essential parts of a bill of lading to show that
you'd notice if one has been incorrectly filled out. It helps to visualize an actual bill
of lading when listing its individual elements.
Example: "Each bill of lading needs to have ship and receive names and addresses,
account numbers or PO numbers, the date, the units shipped, packaging details, freight
classification and product details including value, exact weight, common name,
material and hazard notice."
Your interviewer wants to know if you understand the four factors that contribute
to freight class. Since freight classification affects shipping costs, be sure to
demonstrate your understanding of the importance of freight classifications.
Since many employers believe that past performance is the best indicator of future
performance, they use behavioral prompts to see how you might act in a future
situation. Don't worry if you can't think of an example that exactly matches the
prompt. Focus on the main concepts in the prompt: in this case, "customer" and
"complaint."
Example: "Not too long ago a residential customer sent an angry email complaining
that an expected shipment was late. It was in reply to our email linking to the
shipment's tracking history. I politely replied to the email, suggesting that perhaps they
had missed the link, and directed them to try the link I included. I received a thank-you
email later in the day."
9. What is a challenging project you've worked on, and how did you help keep your
coworkers on the project stay motivated?
This behavioral prompt gives the interviewer insight into your work as a team
member. Talk about your abilities as a project team member and how you
collaborate with your coworkers.
Example: "When the company was updating its website last year, my manager asked
me to head a committee of my peers to review the website's write-ups related to our
department. Instead of dividing up the write-ups and asking the group to go off and
review them individually, I set up a series of short meetings with coffee, water and
snacks. We had a roundtable meeting where we discussed the write-ups. It allowed us
to work together and learn about what our teammates thought about the information
being reviewed."
But don’t worry, we’ve got you covered! To help you succeed in your
interview, we’ve compiled a list of real and must-read logistics interview
questions and answers for both freshers and experienced logistics professionals.
These are the questions that I have either been asked in an interview or that I
typically ask during an interview.
In addition to these specific logistics interview questions and answers, there are
also guaranteed possibilities of facing several generic job interview questions.
Fortunately, this blog provides resourceful tips on how to tackle them. Plus,
don’t forget to watch The Supply Chain Show’s awesome interview to
understand what it takes to become top talent in the supply chain industry. With
our guide, you’ll feel confident and prepared to tackle any logistics interview
questions that come your way!
What to Expect?
What are the key competencies required for logistics professionals to perform
their job function at the highest level? As a logistics professional, you need to
have the following competencies to succeed:
Logistics is a vast and critical function that impacts standard and logistical
systems, and there are several other essential logistics competencies to know.
Having the right logistics competencies can support the marketing function,
product development, price promotion, and new ideas to drive change across
the organization.
WMS, TMS, and ERP are tools (software) that play a crucial role in inventory
optimization of a business operation. These tools also help optimize input and
output processes alongside slotting, packing, and shipping duties. There are
several variants available today for these tools, thus picking the right one is not
always easy. WMS comes in three major types (integrated ERP, supply chain
execution modules, and standalone warehouse management).
When it comes to reducing distribution costs, there are several areas to focus
on, including inbound and outbound freight costs, storage costs, indirect costs
like energy and customs duties, and direct manning costs. Reducing these costs
is essential to saving potential revenue and contributing to the overall
profitability of the business. There are several strategies that can be employed
to reduce distribution costs, such as optimizing the transportation network,
negotiating with suppliers for better rates, implementing automation
technology, and improving inventory management.
To learn more about warehouse space optimization, you can refer to Warehouse
Space Optimization: 17 Tactics That Can Be Used to Improve Space.
So remember to do your thorough research on the company and the role before
you go in that interview and think about what pain points you might have
uncovered and how you go about planning to solve them!
When it comes to supply chain modeling, there are three main approaches:
network design, rough cut methods, and simulation-based methods. Each
approach requires careful consideration of critical factors like location,
production, inventory, and transportation to make informed decisions. A well-
designed supply chain model can lead to significant improvements in
performance. For more information, check out my article on Supply Chain
Modeling: Approaches and Characteristics to Consider, which can serve as a
useful reference.
A Business Continuity Plan (BCP) for the Warehouse in terms of crisis is only
as effective as the planning put in place beforehand. It is critically important to
set specific guidelines about who gets directly involved, and which stages
everyone gets involved. Engaging the right employees and partners goes a long
way in the planning stage, and these create a more transparent, consistent, and
more reliable plan.
For businesses with Warehouse (s), the effects of any crisis can be highly
damaging, especially to meet customer service expectations. The likely
anticipation and preparations through sensible Business Continuity Plan (BCP)
require specific vital considerations to help guarantee operational continuity
within the shortest possible period.
My article on 5 Basics Warehouse Activities You Should Focus to
Improve could be a good reference point.
As per January 2020, the new set of Incoterms® 2020 are set of trade
terms which describe:
Obligations: Who does what in organizing the carriage, insurance of goods, obtaining shipping
documents, arranging for export or import licenses;
Risk: Where and when the seller delivers the goods, in other words where does the risk transfers;
Costs: Which party is responsible for which costs
The use of DAT (Delivered at Terminal) implies the goods were delivered
unloaded. For DPU (Delivered at Place Unloaded), the seller is responsible for
export, but not for any import formality, including post-delivery transit through
third countries.
For goods transported by sea, buyers or sellers (or likely banks) may require a
Bill-of-Lading (B/L) with an on-board notation alongside FCA (Free Carrier).
Nevertheless, delivery under the FCA rule is completed before loading the
vessel. Under Incoterms®, the carrier is, under its contract of carriage, bound
and entitled to issue an on-board Bill-of-Lading only when the goods are on-
board.
Important Logistics interview questions
Here are some questions we suggest for getting started hiring a Logistics Manager:
Why do you think you are the best fit for this position?
Have you ever helped an employer cut costs? Please tell me more.
What will be your number one concern on a day-to-day basis in this role?
Tell me about a time you had a demanding customer? How did you manage this
relationship?
In your opinion, what is the most important thing to accomplish in this role on a daily
basis?
Can you tell me about a time a miscommunication happened between a supplier and
your team, or a customer? How did you handle this situation?
How will you ensure efficient communication within your team? With suppliers?
Customers?
What do you think are the main challenges supply chains companies experience?
How do you reduce the risk of error in your work and within the processes of your team?
DHL is an internationally acknowledged logistics and shipping company with branches in over
200 countries. This article will look at some of the questions you should expect when
interviewing for a position with DHL.
You are an international logistics, courier, package delivery, and shipping company with a
presence in over 200 countries worldwide. Fully known as DHL International GmbH, you are a
division of the German firm Deutsche Post. DHL delivers over 1.5 billion parcels per year,
making it one of the biggest shipping companies in the world. The company, founded in 1969,
managed to expand its services across the globe by the late 70s.
Sample Answer
Working at DHL will furnish me with the skills and expertise I am looking for since it is one of
the world’s most prominent logistics and shipping companies. I have also had the chance to
interact with some of your current and former employees, who are all proud of your workplace
policies and environment. I believe that my experience and skills will be better used here. I am
also looking for new challenges, which I know DHL will present. Lastly, I would love to work
with a company that has managed to top the charts over the years.
Sample Answer
You have a range of products and services, which may explain why you have managed to stay
ahead of many logistics and shipping companies. They include Back, DHL Global Forwarding,
Rail Freight, Customs, Road Freight, Oven Freight, Warehouse Solutions, Management services,
Integrated Solutions, and Transport Solutions.
Sample Answer
I am an excellent team member based on my experience over the years. The team will get a
passionate, hardworking, and self-motivated member. I take great pride in what I do, an attribute
that I usually use to inspire my team members. I can give my all and go out of my way to achieve
team goals and milestones. I also know how to motivate those around me to be at their best, and
lastly, the team will get a punctual and self-motivated member who will give them an easy time.
Sample Answer
Sample Answer
I have several hobbies and activities that I focus on outside work. I am a gamer, and therefore, I
spend some time playing video games when I have nothing to do. I also love traveling, especially
during the weekends. I may visit a new place or travel upcountry to see my parents. Other
hobbies include cooking, writing, cycling, and fishing. I may also catch up with my brothers or
friends when I have nothing to do. I believe that all these hobbies and interests have helped me
maintain a good balance over the years.
Sample Answer
I usually give my all in my work, a quality that I believe is one of my greatest strengths. I dont
therefore have a problem going above and beyond for the employer or customer. While working
for a restaurant, a customer complained about an order taking longer to be delivered. Instead of
just confirming with the rider and giving an estimate since the order had already been dispatched,
I apologized, called the rider, made sure that the customer understood why there was a delay, and
even called later to confirm that he had received the package. I take great pride in knowing that I
went out of my way to satisfy someone or benefit the workplace.
Sample Answer
Sample Answer
I don’t condone any theft in the workplace. As a repeat victim, I understand how draining it can
be. Therefore, if I catch an employee stealing, I will report to the supervisor or the guard. I will
also prevent the theft first if I can. This will apply regardless of whether the thief is a good friend
or not. I believe that every employee must protect the organization’s assets and secrets instead of
attempting to steal them. I am therefore willing to turn in anyone that wrongfully acquires the
company’s belonging
Sample Answer
I believe that I am highly flexible and can therefore work any shift. However, I am recently
married and need time to spend with my wife. I may, therefore, not be suitable for night shifts. I
prefer to work during the day, be it in the morning or afternoon. However, that doesn’t mean that
I won’t occasionally fill in for a colleague working at night. All I need is to be notified in
advance. I believe that we will find a way of working things out.
Sample Answer
Having been in the logistics and shipping industry for a while, I understand that these situations
are always likely to happen. In such a scenario, I will apologize to the customer and ask for some
time to locate the shipment. I will then ask around or check the supporting records while working
fast to locate them. After finding it, I will apologize again to the customer and assure them of
faster and better service next time
Sample Answer
I understand that I will be required to handle a huge workload, which I am prepared for. My
organizational and prioritization skills usually come into play during such times. I will plan
myself accordingly and prioritize work whenever I have a lot on my plate. I can also multitask
while delivering the right quality of work in all the activities I am mandated with. Lastly, I don’t
mind asking for help where necessary.
Sample Answer
I have several stress-handling techniques that come in handy whenever I work. When faced with a
stressful situation, I breathe in and take some time to recollect myself and plan accordingly before
tackling it. I have also learned not to overthink during stressful situations. Additionally, I practice some
yoga and meditation, which helps me handle stress better. I believe that I will do a good job when faced
with such situations.
Sample Answer
I believe that hard work is giving one’s all to a job or a given course. It involves going above and
beyond to achieve a given result or meet a specific objective. A hardworking person is always
ready to do everything possible to succeed in whatever they do. It may also mean putting in the
extra effort to a job or course.
Sample Answer
Given the popularity and importance of shipping and logistics, DHL has several competitors.
These include Landmark Global Inc., FedEx, Neovia Logistics, and TNT. All of these offer
international express, road and rail transportation, air and ocean freight, warehousing and
distribution, contract logistics, and international mail services. Other competitors include XPO
Logistics, UPS, USPS, and DASCHER.
16. How Will This Job Help You at This Point in Your
Career?
The interviewer wants to know how the role you have applied for will benefit your career. Think
through your answer and align it to the company.
Sample Answer
I want to make a change and be exposed to new challenges at this point in my career. DHL being
a big multinational company, will present me with the challenges I am looking for. It will also
allow me to work with new people and lots of creative minds, which I need in my career.
Working here will better me and put me in the direction I need.
Sample Answer
Sample Answer
DHL’s customer base is people who want to deliver parcels both domestically and
internationally. It serves both the domestic and international market thanks to its variety of
services made possible by its diversification. It also serves the rural market, which may explain
its success over the years. It is suitable for those who want to ship a larger group of packages as
it charges lesser than other courier and shipment services
Sample Answer
LTL, which refers to less than truckload freight shipping, is used to transport small freights. It
comes in handy when goods don’t require an entire trailer to be transported. It is mainly used to
transport goods weighing between 150 and 15000 pounds. The person shipping the item
normally pays for the portion of the trailer their goods occupy, whereas other shippers pay for
the unoccupied space. There are several advantages of using LTL.
Sample Answer
I have researched a lot about your company and therefore know your mission and vision
statements. You intend to make your customers, employees, and investors more successful,
contribute to making the world a better place, facilitate and simplify the lives of Custer’s
worldwide, and show respect to everyone while performing exceedingly well. This explains how
your operations have been structured.
Sample Answer
I can work alone and in team settings. I have done both in my career, and I have to mention that I
am pretty good at all of them. However, I prefer working in team settings because it brings out
the best in me. I also love collaborative work because it enhances the flow of ideas and ensures
that people get along well. It fosters a good relationship between employees needed for the
progress of the company.
This is a basic definitive question that employers may ask to ensure you can
describe supply chain management to customers or other employees. Interviewers
are typically looking for a simple answer that clearly defines the term in a way
that's easy to understand.
Interviewers are interested in learning your process for situations where the
business may run significantly low on its available products. Explain how you'll
calmly and logically handle the decrease in stock.
Example: "If we ran out of stock on any of our products, I'd first identify the shortage
of products or materials and determine the amount we have left, if any. I'd then meet
with the original supplier to see if we can get a rush order of supplies."
Hiring managers often use this question to determine if the skills you mention
align with what they believe a candidate needs to be successful in the role. Think
about the skills you hold that make you a great candidate and how they'll benefit
the company.
Example: "I believe a great supply chain employee should have great customer service
and communication abilities. I used these skills in my previous role when I regularly
met and negotiated with suppliers. I remained professional and courteous, which
resulted in a strong, dependable relationship with them."
4. Are you updated on current supply chain management trends?
Many employers want to hire supply chain management team members who stay
updated on current technology trends in the industry to stay ahead of the
competition and adopt innovative solutions. Share any supply chain technologies
you've recently discovered and how they could benefit the company.
Example: "One trend I recently read about was a transport management software that
used computerized tracking systems to integrate every operation from a single panel.
You can operate this panel from a mobile device to organize inventory levels, oversee
distributions and manage shipping from anywhere, which could drastically improve
efficiency levels."
Suppliers may be located across the world, so employers may expect you to have a
process in place for staying in touch with them. Describe your strategy for staying
connected with suppliers.
The busiest time of year for many companies is usually the holidays, which is when
they'll receive a large influx of sales in a short time. Hiring managers usually look
for employees who plan for this mass increase in sales. Detail this plan in your
answer.
Example: "I'll review the sales numbers from past holiday seasons and will order
additional supplies and materials for items that were high in demand. I'll then contact
our transportation teams to give them a breakdown of what to expect in terms of
shipment and delivery during the upcoming months."
7. What supply chain management software have you used?
Hiring managers will expect you to make important decisions regarding how many
items to order and how often. Demonstrate your process for effectively increasing
profits by maintaining strong inventory levels.
Example: "My strategy for keeping balanced inventory and supply levels at all times is
to carefully review product orders and inventory numbers for the past few months. I'd
use these to determine how many supplies and products to order for the upcoming
months."
9. Has a shipment to your warehouse ever been unexpectedly delayed? How did
you handle the situation?
Shipments may unexpectedly run late. Employers will want to know your process
for ensuring this doesn't lead to a large setback in productivity and customer
satisfaction. Your answer should feature an actionable plan that keeps customers
and suppliers happy during this situation.
Example: "If a delay occurs, I'll reach out to the driver or supplier to learn the
reasoning and updated delivery date. Next, I'd check our buffer inventory to see if we
ordered any extra items that could replace the delayed ones."
10. How could your skills and experience add value to our business?
Employers often use this question to analyze your strengths and background to
demonstrate why you're the best fit for the role. Consider which strengths and
expertise made you a strong asset in your previous roles.
Example: "I'd be a great fit for this position because I have advanced communication
skills and negotiation abilities, which can be used to build lasting relationships with
your clients and suppliers. I can negotiate quality product prices that work well within
your company's budget."
11. What would you improve our company's supply chain management processes?
Since you may handle the making, purchasing and shipping of the company's
product, the employer will want to know how familiar you are with the company
and its items. Conduct research and demonstrate the knowledge you've gained
about the company to explain how you'd improve it.
Example: "After reading various customer reviews, I've learned that customers are
pleased with your quality products, but sometimes the shipments seem to arrive later
than expected. I'd adopt new supply chain management systems to speed up
production and deliveries."
12. Describe your process for finding suppliers for a 100-piece product
Employers may ask situational questions to understand your process for finding
suppliers for larger products. Explain a process you've used in the past when
gathering materials for a large product.
Example: "I would work with our product team to determine which supplies we need.
I'd search our supply chain management system to determine if we already conduct
business with existing suppliers who carry similar materials. I'd reach out to them to
ensure they can provide us with the necessary quantity and quality we're looking for at
a reasonable price."
13. What has been your most challenging moment in a supply chain role? How did
you resolve it?
Hiring managers typically ask this question to learn how you'll handle difficult
situations in the workplace. Answer this question honestly by describing a time
when you were assigned a challenging task and your process for resolving it.
Example: "I once had a supplier who was running behind on shipments. I reached out
to our suppliers to better understand the problem and to get the materials shipped to
us as soon as possible. Once they arrived, I instructed our team to assemble and
prepare the products for shipping right away."
14. Explain how you'd gather supplies and materials for this (item)
This question will give hiring managers an idea of your process for analyzing a
product and locating the materials needed to create it. For example, they may ask
about a pen. Remain clear and descriptive in your answer.
Example: "I'd first review each part of the pen to determine what makes it function
properly. I'd work directly with our product team to gather each part that makes up the
pen, like the ink and springs. Finally, I'd negotiate with suppliers to find items that meet
the products' quality needs at a reasonable price."
15. What planning process do you use to manage and track products and
materials?
Employers want to ensure their team members are well-organized and aware of
production schedules. Use this question to demonstrate the strategy you follow to
keep up with deliveries and shipment times.
16. Do you have experience with downstream and upstream production processes?
Example: "When handling the upstream process, I collaborate closely with our team to
determine the materials needed to obtain quality items for our products. During
downstream production, I work with our customer service teams to determine which
improvements to add to our product line."
17. What's your process for handling cost efficiency through strong relationships
with suppliers?
Supply chain employees typically work closely with suppliers to build lasting
relationships. Use this question to show employers how you use these
relationships to secure reasonable prices on products.
18. Describe your process for finding the best suppliers for your product
Example: "I conduct careful online research on the best suppliers within our budget
for certain materials. If I already have connections with suppliers who sell similar
materials, I'll ask their opinion on the best vendors available with the materials I need."
Example: "I've found the best results from demand forecasting. I'll take the demand
data of products to determine what we'll need in upcoming months according to
factors like items placed in a customer's cart, purchase orders and revenue gained
from that product."
20. Tell me about a recent supply chain management book or article you read and
what you took away from it
Hiring managers want to know you're informed and updated on changes taking
place in the supply chain industry to ensure you're adapting your strategies
accordingly. Mention a specific article or book you've read and what you gained
from it.
Example: "I recently read an article about how artificial intelligence and big data are
using predictive analytics to make demand and route planning more accurate. This
new system could improve the supply chain management efficiencies drastically by
ensuring products constantly remain on schedule."
2. How will you manage an ‘out of stock’ crisis in the middle of an important project?
Critical thinking, problem-solving, and inventory management are some of the imperative skills
that increase the efficiency and productivity of a supply chain analyst in any organisation. To test
the skills possessed by a candidate, the interviewer will ask them questions on complex
situations, inventory problems, and others. Hence, while preparing for a supply chain analyst’s
interview, remember to refresh on the above-mentioned topics.
As for this question, here’s how you can answer it:
In a crisis, my first reaction is to find the root cause of it. Different methods help me find the
answers to questions like- how, why, what, and when. For instance, in this case, I’ll identify the
reason for the shortage, and after that, I will work with the team to change the situation and
implement steps to ensure that it is solved strategically and tactfully to avoid reoccurrence.
3. What are the key elements of inventory and supply chain management?
One of the supply chain analyst’s responsibilities is to access the company’s inventory and use
that data to improve efficiency and reduce cost. As a supply chain analyst, your job description
will include inventory and supply chain management. So, the hiring manager often asks this
question to understand how you make important decisions regarding how many items to order
and when. You can demonstrate your process to the manager in this answer. Be comprehensive
and give a detailed view of your process by sharing instances of how you planned inventory for
your previous company and avoided out-of-stock situations.
5. What steps will you undertake to improve our company’s supply chain and inventory
management?
As a supply chain analyst, increasing the effectiveness of inventory management and the supply
chain processes is one of the primary duties you will perform in any organisation across varying
fields. Therefore, this question is often asked to understand your familiarity with the company’s
product.
Since you will be handling the company’s products’ supply, distribution, and shipping, this
answer will be instrumental in getting the job. Demonstrate your knowledge gained through
years of experience as a supply chain analyst in this answer.
These were some of the general supply chain analyst questions. Questions can vary based on if
you are a fresher or a professional. Let’s take a look at some of the niche questions.
Here are general supply chain interview questions you can use:
1. In your own words, what is the supply chain, and why is it important?
2. How will you add value to our supply chain team with your experience and
competencies?
3. How would you deal with the situation if you ran out of stock?
4. What specific skills do you have that qualify you to be a successful supply
chain team member?
7. What do you know about this company and our specific supply chain? Please
describe both, to the best of your abilities.
2. What do you consider to be the most important aspects of the supply chain
process? The most inefficient?
3. There are a number of different ways to understand MRP. What technical skills
are required to work in procurement and supply? Can you describe one
approach for setting safety stock levels?
4. Please describe your experience with both downstream and upstream supply
chain roles.
5. In your own words, explain why forecasting is important. Please describe the
forecasting methods with which you are most familiar.
6. Given the option, would you prefer to use a manufacturer in the U.S., or China?
Please explain your answer in as much detail as you can.
The following questions can help you dig deeper when interviewing for these
roles:
1. Please describe a time when you noticed an inefficiency in a supply chain or
other process. What did you do to address the problem? What impact did it
leave?
2. What is your preferred method for analyzing your team’s performance? The
supply chain system as a whole?
4. Please list the ERP software with which you are the most familiar. What is your
preferred platform? Why?
5. Tell me about a time when your ability to analyze needs and product
requirements helped you create an effective design to the ultimate benefit your
company.
6. Please describe a time when a solution offered by you was implemented and
ultimately failed. What mistake was made? What did you learn from the
experience? How have you since improved your process?
7. As a supply chain analyst, what has been the most challenging project you have
worked on in the past?
2. Who are the key customers of this company, and what do they value? If you
don’t know, how would you go about gathering this information?
3. In your own words, explain what is the most important aspect of inventory and
planning management.
4. In your own words, please describe the difference between logistics and supply
chain management.
6. How would you go about building relationships with vendors, both here and
abroad?
7. How are you staying up to date with trends and developments in supply chain
management and operations?
Supply chain team members keep businesses on their feet through hard work,
expertise, and innovative thinking. Hiring managers can leverage the above
interview questions to find best-fit supply chain employees who will help
your company achieve peak productivity.
Example: “I have worked in logistics and supply chain management for over 10
years. I have experience in managing inventory, transportation, and customer
service. I have a strong understanding of the supply chain process and how to
optimize it for efficiency. I am also familiar with various software programs used
to manage logistics operations.”
Example: “I have worked in the transportation and shipping industry for over
10 years. I have experience with all aspects of shipping, including preparing
shipments, scheduling transportation, and tracking shipments. I am also
familiar with customs regulations and have experience dealing with
international shipments.”
Example: “I had to manage a complex shipment last year when I was working
as a logistics assistant. The shipment was coming from China and it was a large
order. There were many different items in the shipment and they were all very
delicate. I had to make sure that everything was packed correctly and that the
shipment arrived on time. I also had to track the shipment and keep in touch
with the customer to make sure that they were happy with the service.”
Can you tell me about a time when you had to troubleshoot a
logistics issue?
There are a few reasons why an interviewer might ask this question to a
logistics assistant. First, it allows the interviewer to gauge the candidate's
problem-solving skills. Second, it allows the interviewer to see how the
candidate deals with difficult situations. Finally, it allows the interviewer to get
a better understanding of the candidate's work experience.
Example: “I was working as a logistics assistant for a large company. One day,
we received a shipment of products that were damaged. I had to troubleshoot
the issue and figure out how to get the products replaced quickly. I contacted
the supplier and arranged for a new shipment to be sent out. I also contacted
the customer and explained the situation. They were very understanding and
agreed to wait for the new shipment. In the end, I was able to resolve the issue
and everyone was happy.”
Example: “I have worked in customer service and order fulfillment for over 5
years. In my previous role, I was responsible for processing customer orders,
ensuring that all items were in stock and available for shipping. I also liaised
with customers to resolve any issues with their orders. In addition, I provided
excellent customer service by responding to inquiries in a timely and
professional manner.”
How familiar are you with using logistics software and systems?
The interviewer is asking this question to gauge the candidate's level of
experience with logistics software and systems. This is important because the
candidate's level of experience will directly impact their ability to perform the
duties of the position. If the candidate does not have much experience with
logistics software and systems, the interviewer may consider them to be less
qualified for the position.
Example: “I am very familiar with using logistics software and systems. I have
been using them for many years and I am confident in my ability to use them
effectively.”
Can you tell me about a time when you had to deal with a difficult
customer or client?
There are a few reasons why an interviewer might ask this question to a
logistics assistant. First, they may be trying to gauge the candidate's customer
service skills. Second, they may be interested in how the candidate handles
difficult situations. Finally, they may be trying to see if the candidate is able to
stay calm and collected under pressure.
Example: “I had a situation where a customer was extremely unhappy with the
product they had received. They were demanding a refund and were quite
aggressive in their approach. I managed to stay calm and listened to their
concerns. I then explained the situation and offered them a replacement
product. They eventually agreed to this and were happy with the outcome.”
What do you feel is the most important skill for a successful
logistics professional?
There are many important skills for a successful logistics professional, but
some of the most important skills include:
-The ability to coordinate and manage the various elements of the logistics
process, including transportation, warehousing, and customer service.
-The ability to effectively use technology to track and manage inventory levels
and shipments.
These are just a few of the many important skills that a successful logistics
professional must possess.
-The ability to effectively communicate with other members of the supply chain,
including suppliers, customers, and transportation providers.
-The ability to coordinate and manage the flow of information and resources
between different parties.
-The ability to effectively plan and execute the transportation and storage of
goods.
-The ability to troubleshoot and solve problems that may arise during the
course of logistics operations.”
Tell me about a time when you had to go above and beyond to
get the job done.
There are a few reasons why an interviewer would ask this question to a
logistics assistant. First, they want to see if the candidate is willing to go the
extra mile to get the job done. Second, they want to see if the candidate is
able to think on their feet and come up with creative solutions to problems.
Third, they want to see if the candidate is able to handle stress and pressure
well. All of these qualities are important in a logistics assistant, as they will
often be required to deal with difficult situations and tight deadlines.
Can you tell me about a time when you had to manage multiple
priorities at once?
The interviewer is asking this question to see if the Logistics Assistant is able
to handle multiple tasks simultaneously. This is important because the
Logistics Assistant will need to be able to handle multiple tasks simultaneously
in order to be successful in the role.
What do you feel sets your experience apart from other logistics
candidates?
There are many reasons why an interviewer might ask this question. They may
be looking to see if the candidate has a strong understanding of the logistics
field, or if they have a unique perspective that could benefit the company. It is
important for the interviewer to get a sense of the candidate's qualifications
and how they would be able to contribute to the company.
Example: “I have worked in the logistics field for over 10 years and have a
wealth of experience in managing supply chains, developing transportation
strategies, and coordinating shipments. I have a proven track record of reducing
costs and increasing efficiency within logistics operations. In addition, I have a
strong understanding of the latest technology and software used in the logistics
industry, which allows me to streamline processes and optimize resources.”
How do you go about creating a logistics KPI program for your business?
1. Identify your goals for the KPI program. What questions are you trying to answer?
Some examples you could draw inspiration from are listed below:
Now is also a good time to define the different processes that your logistics team
is involved in and make sure that the questions you’re asking include all aspects
of your business.
2. Set achievable and reasonable targets for each KPIs. These benchmarks could come
from industry standards or simply from your historical data if available.
3. Create a team to take ownership of the KPIs. Analyzing KPIs is not a stand-alone job,
and it is a time-consuming task. The people in charge should be well-versed in the
sector that the KPI covers.
4. Regularly review the KPIs with the responsible team and take action. If your metrics
aren’t actionable, they don’t need to be included in your program. In your reviews, be
sure to discuss the drivers behind every metric in detail. There are many internal and
external factors contributing to a trend and understanding them will help you make
informed decisions.
If you follow the steps above, you will be well on your way in creating a program that
tracks meaningful logistics metrics. However, as we all know, theory and practice differ
considerably from one another. If you find yourself confused or overwhelmed, you’re not
alone. We have put together a list of helpful tips to guide you on this journey:
1. Choose SMART KPIs. A SMART KPI is: Specific, Measurable, Attainable, Relevant
and Time Based. You can use some simple questions to ensure the metric you’re
choosing meets the SMART criteria:
Specific: Is your KPI too broad? The danger of having an all-encompassing KPI
is that it could be too vague which leads to misinterpretations.
Measurable: Is your metric quantifiable? Remember that you need to set a
benchmark for each and every KPI.
Attainable: Is your KPI target feasible? Setting a goal that is out of reach will
discourage your team.
Relevant: Is this metric answering an important question about your operation?
Be sure to choose KPIs that provide valuable information about your business.
There are hundreds of KPIs that could be included in your program but
remember that your resources are finite. Prioritize your metrics and only choose
the top KPIs.
Time Based: How often should each metric be measured? Is there a deadline to
achieve a set target? Include the answers to these questions in the definition of
all your KPIs. Remember step 4 above. You must regularly review your KPIs. If
you define a timeline for each metric, this step becomes much easier.
2. Do not choose too many KPIs! How many is too many? It’s difficult to say as it
depends on your team’s experience and available resources. However, a good rule of
thumb is to start with a handful and gradually grow from there. Managing metrics is a
resource intensive and time consuming task. If you start too big, you run the risk of
overwhelming your team and losing faith in the program.
3. Identify at least two tiers of hierarchy for your KPIs. Some KPIs are too detailed to be
reported to top management, and some KPIs are too general for middle managers and
supervisors. Top tier or primary metrics are monitored at an executive level and provide
a general highlight, whereas second tier metrics have a higher granularity and provide
more details.
5. Clean up your data! Your logistics information probably comes from multiple sources
and is often delayed. Working with incomplete or outdated data could seriously
jeopardize your KPI program. You can’t make good decisions without good data. Using
a BI software will help unify the information and ensure that your team always has
access to the latest reports.
We have gathered the top logistics key performance indicators in this article for you to
consider. We have taken it upon ourselves to group these logistics KPI examples into a
few cross-functional divisions: financial, supply and inventory, transportation, delivery,
and labor.
2. Operating Ratio: This logistics metric shows the relationship between the amount of
revenue and the operating cost of running the business.
A low operating ratio is preferred as it indicates higher profits. A savvy financial leader
will always aim to find creative and sustainable ways to lower the costs of business (for
example, buying in bulk vs individual items) to increase the operating ratio.
3. Net Profit Ratio: This logistics KPI could be interpreted in two ways. It could either
compare the after taxes profits with the amount of sales or with the total asset value.
In the first scenario, net profit ratio is a very good indicator of the amount of sales
required to make a certain level of profit.
5. Financial Leverage: This logistics metric is the ratio of total debts to total assets of
the company.
A high financial leverage ratio means more money is owned outside of the firm. It
means that a large portion of assets are financed by debt, which implies a higher rate of
return for the owners but creates uncertainty around returns to shareholders. For this
reason, logistics managers should be wary of taking on any debt that is deemed too
risky.
This metric also sheds light on the capability of the company in handling a rise in
demand.
9. Use of Packing Material: This logistics KPI tracks the amount of packaging material
used during the pick and pack process. In order to lower operating costs and reduce the
environmental impacts of the business, logistics managers should aim to not only use
less material, but also use more ecofriendly products to package items.
10. Pick and Pack Cycle Time: This logistics metric measures the amount of time it
takes a warehouse employee to pick a product off the shelf and pack it.
Pick and pack cycle time = time packing is done–time order was picked in warehouse
Trending this KPI will lead to a deeper investigation into the inefficiencies of the product
line. It might be tempting to set high targets for pick and pack cycle time, but logistics
managers must keep in mind that setting unachievable goals leads to employee
dissatisfaction and ultimately, poor operating performance.
12. Truck Turnaround Rate (Truck Turning) or Average Wait Time (Average Dwell
Time): Truck turnaround rate as a logistics key performance indicator measures the
time from when a delivery truck enters the warehouse to collect or deliver products to
when it exits the facility. This metric is a measure of company’s loading and unloading
efficiency and should be kept low.
Another KPI that also measures how well a facility functions is average wait time or
average dwell time. Similar to truck turnaround rate, average wait time measures the
duration of time wasted by the carrier while waiting for loading or unloading. In other
words, this metric measures how seamless the shipping and receiving workflow is.
14. Fuel Efficiency: This logistics metric measures the performance of vehicles on the
road. This metric is often overlooked in logistics as most trucks aren’t considered high-
mileage vehicles. But in a competitive business, any cost saving measure could add up
and give the organization an edge. The relationship between operating costs and fuel
efficiency is simple, the higher the fuel efficiency, the lower the operating costs.
Delivery Logistics KPI Examples
Delivery is the last step of the logistics process. It bridges the gap between your
organization and your customers. Delivery services are essential in creating a positive
experience for your customers. Even if you do an impeccable job managing inventory,
warehouse, and transportation, you will lose customers due to dissatisfaction if your
delivery process is subpar. Below are the top delivery KPIs for logistics managers:
15. Lead Time (Order Cycle Time): This logistics KPI measures the amount of time in
between order placement by customer and receipt of order.
Lead time = time order was received – time order was placed
Many factors can affect lead time including shortage of raw materials, transportation
issues, lack of manpower, natural disasters, and even human error. This metric helps
logistics managers identify possible bottlenecks and address them before they become
a widespread problem.
16. Delivery Time: This logistics metric is yet another measure of process efficiency
within the logistics group. Delivery time is the duration between the moment of shipment
from warehouse to the moment of receipt by customer.
Delivery time = time order was received – time order was shipped
The main goal for any logistics manager should be to reduce delivery time as much as
possible, which will in turn lead to higher customer satisfaction rates. Customers are
happier when the inaccuracies in delivery predictions are reduced.
17. Order Accuracy Rate: This logistics key performance indicator measures the
number of orders that are processed, shipped, and delivered perfectly and without
mishaps. Order accuracy plays a direct role in operating costs. A low order accuracy
rate leads to returned products and a loss in revenue.
18. Sick Leave: This metric highlights the health and safety of staff. By tracking sick
leave within the organization, managers can prevent the spread of diseases in the
workplace and minimize labor disruptions.
20. Time to Fill Open Positions: This metric gauges the quality and effectiveness of
business planning and recruitment processes. Time to fill open positions is the duration
of time from when the job requisition is approved to when the candidate accepts the
position.
Time to fill open positions = time job was accepted–time job requisition was approved
Inefficiencies and duplication of efforts within the recruitment team could lead to a long
hiring process. In turn, this can result in decreased interest from potential candidates.
By analyzing time to fill open positions, the organization’s hiring efforts could be
streamlined to serve the company better.
The above logistics KPI examples have been closely studied in various industries and
proven to play an important role in driving results. The main objective of this article is to
provide a guideline on how to manage a logistics operation. The implementation of the
KPI program and the subsequent success of your organization largely depends on you
and your team.
After having learned how to choose and monitor KPIs, now it’s time to concentrate on
creating an accessible platform to easily visualize your metrics. Developing an efficient
KPI dashboard that integrates well with your existing system is a costly and time-
consuming endeavor. As a logistics KPI manager, you must be smart with how you
allocate your resources. By investing in Insightsoftware’s business KPI dashboard you
stop reinventing the wheel and allow your team to focus their attention on refining the
KPIs and taking action where it matters.
What Is Last Mile Delivery
Logistics?
Last mile delivery services remain one of the most expensive parts of retail
logistics, but also have the most visible impact on the customer journey and
consumer satisfaction.
As consumers turn to ecommerce for more and more of their shopping needs,
last mile delivery causes more trouble in urban areas around the globe.
Increasing parcel volumes means an increase in delivery vans entering cities,
and adds to an already staggering array of logistical and environmental
nightmares.
Donning the uniform, she proved that in a very competitive world where men rule, a woman
need not be androgenous nor engage in a testosterone showdown to be on top of things.
Departing from the traditional impressions and expectations that women should be as bold and
manful as her male counterpart, she managed to remain who she is while improving on her core
competencies.
Coming from a string of fab jobs at Zalora and HOOQ, among others, the former fashion and
creatives executive says the logistics space is pretty much “not a sexy industry”.
“It’s really difficult to do logistics. It’s super operations-heavy, practically a service industry. I
came from fashion and video, then all of a sudden, delivery? So, how would that be something
that’s interesting for me? First few weeks on the job, I regretted accepting the offer. I
remembered I have to explain over and over why it is called Ninja Van. Why not something that
says express? But I guess that’s what the brand is all about,” she said.
“We wanted to bring something different to the table across all of the traditional logistics players
in the Philippines. We wanted something more fun. We wanted something people would really
remember. And something that would be a brand and not just three letters or two letters and
numbers. We want to be known as express logistics provider,” she said.
It took a good many and lengthy chats with long-time friend and former co-worker Martin Cu,
country head of Ninja Van in the Philippines, before she tested the waters and instantly regretted
her decision after three weeks on the job.
Determined to make her mark in a male-dominated world, without a clue on how a courier
company operates, Lopez-Vergara persisted to learn the job, beat the odds and learned to
acclimatize herself to fit into her new shoes as Ninja Van sales head.
Time, she noted, has a good way of coming to terms with reality versus expectations. Seven
years passed and she’s now one of the guys.
Learning by experience has humbled Ninja Van’s CCO—from hailing Grab and riding Angkas
—she tried all these public means of logistics to visit sellers door-to-door.
Going back during the initial few years of Ninja Van, there were only eight members of the
company including her one-woman sales team. Promotion came during the pandemic, as the
company recognized her as the new chief commercial officer.
Before Ninja Van, Lopez-Vergara had several offers which she rejected, after seriously
considering the courier firm’s offer and prepped-up herself to face logistics challenges. For her,
Ninja Van is an irresistible challenge.
“At that time I was turning 30, still young, but obviously at a time when I ask myself where can I
contribute more. Did I want to be a part of a big corporation where I just be like anybody else or
did I want to do something that I would be recognized? With Ninja Van, I know Martin and I
trusted him and I trusted the culture. They talk to me about how they would want to grow the
business, how they are really open about their plans. At one point, it’s not the offer anymore, I
felt I wanted to grow, to be the woman in logistics and I was the only woman then,” she said.
Having served various leadership roles, Lopez-Vergara is drawn to a man’s world where
decision making is now shared by the womankind.
By virtue of gender parity, she encourages women to take on a man’s role and not end up as
another cog in the wheel. The only woman at the helm of Ninja Van manages about seven teams,
depending on the number of initiatives the company is actually working on.
Before rising as a leading logistics service provider, Ninja Van was renting an apartment in
Acacia Estates in Pasig City and moved in to a co-working space in Makati after Lopez-Vergara
joined the company. Today, the company occupies 7,000 square feet of space for operations,
including the company offices in Paseo Center in Makati and about 300 offices and hubs
nationwide.
Lopez-Vergara admitted that the pandemic has been good to people in logistics and many
capitalized on this as micro logistics companies set-up their own fleet of two to five riders.
“Many have put up mom-and-pop logistics units. That really exploded during the pandemic. But
the difference with Ninja Van is that we’re a tech and data-enabled provider. Our technologies
are mostly in-house, built by our team. So we’re able to customize and build the specific needs
given to us by clients. We are careful during the pandemic for letting people try online ordering,
and that really helped us grow,” she said.
An online-first company, Ninja Van has a solid digital interface with real time monitoring and
updates, taking delivery as a serious business even doing same-day deliveries to select areas, at
the moment.
With 3,500 riders, Ninja Van has reached even the remotest of islands and even delivers on foot
if the paths are impassable to two-wheeled vehicles. The riders are mostly men as the job
description is not at all attractive to the female worker.
Keeping the momentum stable, Ninja Van has served 21 million people nationwide and
continues to be committed to bump the figures and innovate some more to reach more and more
shoppers.
However, the courier service said it also possible some of those served are repeat buyers from
the same stores or from other merchants. Despite this, the delivery volume, which may have
served the same clients over, is still a huge number that makes Ninja Van one of the leading
logistics service providers in the Philippines.
Ninja Van also works with agencies providing support for nationwide logistics especially for big
events and campaigns that are seasonal. The collaboration makes it easy for Ninja Van to source
out a special delivery team to add to its current rider population for a period of time.
“These are peak periods. We need to increase capacities exponentially for a short period, maybe
up to three weeks. We need to expand capacities quickly. But there is also the need to adjust
when volumes start normalizing again, say, when a sale is over. The volumes also come down.
So you need to be able to be flexible with that. That’s why we work with our contractors. We
work with agency providers to help us expand and be flexible with capacity,” Lopez- Vergara
said.
“We don’t cross dock with other partners. We don’t work with other logistics firm. Everything is
fully delivered through the Ninja Van system,” she said.
The biggest challenge the company faces, Lopez-Vergara said, is not the pandemic but the
Philippines’ geological structure being an archipelago with more than 7,000 islands. At Ninja
Van, she said, riders have become creative in their delivery strategies.
“It’s actually one of the harder countries to have a logistics company because you need to use
multiple lanes—air, sea, RoRo ships. We have become quite adept at using unconventional
means to deliver parcels. There was this one time that our rider used a kalabaw [water buffalo] to
deliver. Our riders are used to bringing their motorcycles to ride the banca [small boats] to go to
the islands to deliver. That is the level of commitment we have at Ninja Van,” she said.
Another challenge, which is kind of universal for all logistics provider in the Philippines, is data
connection as not all areas, even in Metro Manila, have stable data signal. The firm runs on data
signal and on the internet. For this, it needs to adjust and be flexible enough to combine
technology and the use of traditional processes.
Nevertheless, challenges drive the industry to continue to innovate and get goods and parcels
delivered point to point, door to door, no matter how and what problems may arise.
“So every day, you get to hear complaints from customers or from angry consignees. Like there
should be something that should be picked up or delayed deliveries for reasons that sometimes
we have no control of. That’s part of the play, and we’re used to that, without saying in so many
words that improvements are coming along. We try to address as much as we can by doing
better, by investing,” Lopez-Vergara said.
Ninja Van pretty much covers the entire Philippines at 98-percent reach. The remaining 2
percent are really far-flung areas, a bit more difficult to reach, but the logistics firm vows to
continue to reach every nook and cranny of the archipelago.
While the logistics industry’s growth slowed to a stable momentum compared to the phenomenal
output that haywired the industry during the pandemic, live-selling is fueling e-commerce and
along with it, the logistics sector. The trending online activity has trickled to the Philippines from
big shots like China which is a heavy user of the virtual platform for e-commerce.
Ninja Van is working with the Department of Trade and Industry to create a seller development
program. A lot of the live sellers need a tip and tricks, the right education how to do online
business.
Apart from being the lady boss at Ninja Van, she is a cool millennial mom to her teenage son.
“My son plays a lot in my decision making and that’s probably partly also why I decided to join
Ninja Van because I wanted him to see an example that his mom works. That this mom can do
things and he can strive too and see that working hard and having a family is not impossible. I
want him to see that as an example and also see the respect that women now can do this,” she
said.
Unabashedly and quite candidly, she shared she was single mom and had his son when she was
still in her undergrad at Ateneo de Manila University. She eventually married the father of her
child when she became ready.
Ninja Van is working with the Department of Trade and Industry to create a seller development
program. A lot of the live sellers need a tip and tricks, the right education how to do online
business.
Apart from being the lady boss at Ninja Van, she is a cool millennial mom to her teenage son.
“My son plays a lot in my decision making and that’s probably partly also why I decided to join
Ninja Van because I wanted him to see an example that his mom works. That this mom can do
things and he can strive too and see that working hard and having a family is not impossible. I
want him to see that as an example and also see the respect that women now can do this,” she
said.
Unabashedly and quite candidly, she shared she was single mom and had his son when she was
still in her undergrad at Ateneo de Manila University. She eventually married the father of her
child when she became ready.
Admittedly, she’s a video junkie. She watches a lot of videos during her downtime—including
make-up videos, girly stuffs, all things that are quite aesthetic in nature. She has a keen sense of
patriotism as she chooses to buy local, like most of her make-up are local brands—BLK, Vice
Ganda and other homegrown brands.
Getting more into the groove of logistics, she is also a self-declared true-blue online shopping
addict.
“Coz once you develop the habit, you can’t shake it off. And it will continue to be here. You’ll
see a lot more people getting to it. Mas marami pang budol na padating,” she said in a jest.
Logistics is an essential part of successful supply chain solutions. Effective and efficient logistics
can provide a competitive edge to businesses and increase profitability. Logistics is defined as
‘part of the supply chain process that plans, implements and controls the efficient, effective
forward and reverses flow and storage of goods, services and related information between the
point of origin and the point of consumption in order to meet customer’s requirements’.
Supply chain management and logistics are closely intertwined, but are not the same thing.
Modern logistics involves a ton of planning, creating and monitoring flows of goods and
information.
Seven vital aspects or the seven Rs define high performing logistics processes. They are ‘getting
the right product, in the right quantity, in the right condition, at the right place, at the right time,
to the right customer, at the right price’.
Businesses can leverage a host of advantages through an efficient and effective logistics. From
minimizing enterprise expenses, consolidation of traffic volumes, improving the quality of
service, cutting down actual losses and possible risks to significantly reducing the need for
intermediary services such as transportation, storage, etc. – the advantages that logistics offer to
a business are varied and significant.
Today, logistics has become a strategic function and key differentiator for businesses. Logistics
players are offering end-to-end solutions which have not only proved cost-wise beneficial but
also allows considerable savings in terms of time and manpower. The end-to-end solutions,
ranging from packaging, warehousing, transportation to order fulfilment, helps businesses
improve supply network efficiency and performance.
Advantages:
Rising customer expectations effectively means supply chains must innovate and optimize to
meet those needs. End-to-end logistics solutions can help streamline the supply chain and help
meet the customer expectations.
Competitive advantage
While earlier supply chain solutions focused on network design, warehouse placement and the
distribution fleet, today supply chain optimization is key to building competitive advantage and
protecting the brand. End-to-end logistics can play a critical role in supply chain optimization.
Agility
Modern supply chain solutions have highly degree of agility to remain competitive. The level of
agility can determine the efficiency and effectiveness of the supply chain solutions. Logistics
capabilities can play a vital role in achieving agility.
Cost savings
It offers enterprises the flexibility and scalability to utilise supply and distribution resources
based on current business needs.
Mitigate risks
End-to-end logistics solutions allows businesses to deal with delays and unforeseen
circumstances without any disruption to the business.
With e-commerce becoming popular, customers now expect next or same-day delivery as
standard. The end-to-end logistics solutions allows for faster delivery. This translates to satisfied
customers — the fundamental goal of all businesses.
Less hassles
End-to-end logistics means less hassles for businesses. As end-to-end logistics covers the
complete logistics cycle, starting with procurement and distribution, transport, delivery to the
customer and ending with return logistics, it means less worries for businesses.
Sustainability
Supply chains have enormous environmental and social impacts. End-to-end supply chain
solutions help businesses increase sustainability and bring down their carbon footprint.
Effective and efficient end-to-end logistics solutions can prove to be the critical differentiator for
businesses in a volatile economic environment.
But not all 3PLs offer the same services and capabilities. Read on to learn
everything you need to know about using third-party logistics providers and
the critical business functions they support.
What is 3PL?
Transportation
Warehousing
Materials procurement
Inventory management
Customs brokerage
Freight audit
Payment
Shipment tracking
When you opt for third-party logistics, you outsource your order fulfillment
operations, freeing yourself from the complexities of warehouse ownership,
staffing, and management. Instead, you gain access to secure storage
facilities within large warehouses that serve multiple companies. Experienced
warehouse employees receive and organize your products, picking items from
shelves, and packing them securely for shipping. Working with various
carriers, the 3PL ensures prompt delivery to your clients.
One of the key advantages of using a 3PL is its ability to maximize speed and
efficiency. As your business grows, a 3PL can handle increased order volume
without the need for additional staff. They also leverage their network to
negotiate lower shipping rates and expedite delivery times. By partnering with
a reputable 3PL, you benefit from the expertise and dedicated focus of supply
chain professionals.
2. Transportation
3. Warehousing
Warehousing 3PL providers are one of the most common types of third-
party logistics providers. A warehouse 3PL is integrated into a company’s
warehousing and transportation procedures and specializes in the storing
and distribution of goods and/or services. Many warehouse 3PL providers
offer customizable ways to handle storage, distribution, and product
transportation.
4. Distribution
For starters, 4PLs have a much more broadly defined role compared with a
3PL. According to the Council of Supply Chain Management Professionals
(CSCMP), a 4PL is defined as “often a separate entity established as a joint
venture or long-term contract between a primary client and one or more
partners.”
Advantages of 3PL
As outlined above, there are many reasons that companies turn to a 3PL for
their logistic services. From saving time and money to providing a better and
more affordable experience for customers, outsourcing to a third-party
logistics provider can make a lot of sense. Here are some of the more
common reasons businesses choose to work with a 3PL.
1. Scalability
3. Expansion
Disadvantages of 3PL
While there are several reasons for companies to embrace a 3PL, there is also
another side to that coin.
Despite the potential rewards, using third-party logistics companies can come
with its own set of risks.
1. Loss of Control
When choosing a 3PL provider, an organization is giving up a certain
amount of control of the delivery. When a business decides to join forces
with a third-party logistics provider, they are entrusting the 3PL to meet
the agreed-upon SLAs, and that requires a major leap of faith for functions
that can directly impact customer satisfaction. The smooth exchange of
critical EDI and non-EDI information can be at risk if one party is using
subpar B2B integration software. If your B2B integration software cannot
reliably receive and ingest an EDI load tender, that can have a poor effect
on trading partner relationships. Additionally, sharing certain proprietary
information with a third party (sourcing, order information, etc.) could
leave companies feeling vulnerable should there be a data breach.
2. Cost
While a 3PL can save a business lot of time and money, external factors
(tariffs, over-regulation, weather, etc.) can lead to escalating costs. A 3PL
company might make financial sense upfront, but you’re at the mercy of
this external trading partner and its own business strategy. Once-standard
transaction costs eventually can skyrocket as your business consumes
more services and may be more expensive than an in-house logistics
operation. Additionally, it’s often difficult to establish a cost-effective
partnership between a shipper and a 3PL, and it’s something you’ll have
little influence over.
3. Business Understanding
If you’re in a highly regulated industry or have very specific needs (cold
storage, temperature-controlled delivery, etc.) a run-of-the-mill 3PL may
not suit your business. Additionally, 3PLs often have hundreds or even
thousands of customers and may not give you the attention you’re
seeking. How easy are they to contact for support? How fast can they
respond to your requests? It’s critical to choose a 3PL that fully
understands your business, its goals, and how efficient logistics and
distribution can enable those goals.
While there isn’t some magic potion to reveal whether it’s time to employ a
3PL, there are some recurring themes that help make an outsourcing decision.
3PLs also can take advantage of the latest and most modern technology. By
hiring a 3PL, a company can gain those technological benefits without making
the financial investment themselves.
Those 3PLs with in-house IT teams that develop and provide their own B2B
integration, WMS, TMS, and inventory management software can be a big
selling point for a third-party logistics provider.
The good news is, there are many different 3PL providers to choose from,
each with its own specialties and service strengths. Depending on the size of
your company, it could make sense to select a 3PL provider that is smaller
with a more centralized location in a particular region. Or, if a company is
growing faster than you can handle, perhaps one of the global 3PL providers
(and its loads of resources) might make sense.
Regardless of your individual business needs, a 3PL provider must have the
reliability, flexibility, and agility to live up to the agreed-upon SLA metrics. Here
are some of the world’s top 3PL providers in 2020:
Burris Logistics
H. Robinson
DB Schenker
DHL Supply Chain North America
Expeditors
FedEx Supply Chain
Hub Group
B. Hunt
Kuehne + Nagel (The Americas)
Penske Logistics
Ryder Supply Chain Solutions
Schneider
ShipBob
UPS Supply Chain Solutions
Whitebox
XPO Logistics
Perfecting your logistics setup can mean the difference between creating a delivery
experience that drives customer retention or one that chases your customers away.
Understanding your supply chain begins with comprehensive logistics reports and
uncovering valuable performance insights from your logistics carriers. Our Logistics
Intelligence feature is designed to fulfill all your reporting or analytics needs. With
fully customizable charts and dashboards, you can drill down and get specific insights
or analyze delivery trends across time, location, or carriers.
There are multiple ways to organize the data for insights. But this process doesn’t
need to be daunting. Trying to make sense of complex data can be time-consuming,
but we’ve got you covered with our standard Parcel Perform logistics reports. These
reports give you and your teams a broad overview of logistics metrics and help you
meet logistics KPIs. In this article, we help you understand what each report can be
used for and how to best use it for your logistics reporting needs.
1. Overview of Shipments - Evaluate shipments by status,
delays and trade lanes
The Overview of Shipments report gives you a comprehensive overview of all your
shipments. It comprises a few charts that give you a better understanding of shipment
trends to optimize resource allocation and routes. For instance, there is a Shipment
Count by Country chart that lets you see which countries are ordering the most. There
is also a Shipment Over Time chart that lets you figure out your peak seasons at a
glance. Shipment Status by country lets you see which countries have the smoothest
delivery journeys. More data and visibility on your parcel volumes can help your
organization plan more accurately and, in turn, give your customers a better delivery
experience. With these reports, you can even support your marketing team to plan
their digital marketing and advertising campaigns. A view on your Shipment Count by
country gives you real-time data on the actual locations of your customers and where
your target audience is from.
2. Overview of Issues - Deep dive into shipments that have
issues to identify and resolve bottlenecks
Parcel issues need quick resolution. Whether it’s a hold-up at customs during cross-
border shipments or external delays, these need immediate attention. With a bird’s
eye view of your supply chain, you’ll be able to investigate these problems and turn
them around. You’ll also be able to delve into the reasons behind these issues. Are
they due to recipients not being at home to collect the parcel or external factors like
delays at customs? Our Overview of Issues report tracks an astounding 67 delivery
issues, which lets you dig much deeper into the problems and bottlenecks your
shipments are facing. The Shipment with Issues Per Status chart lets you see the
common issues your business is facing. The Issues Over Time Per Issue Type and
Shipments with Issues Against Total Shipments chart lets you see when issues
typically occur so you can better prepare for them.
3. Carrier Performance - Compare the delivery status of all
your parcels across a given timeframe
This report provides a singular view of the overall distribution of your shipment load
across different carriers. The report also breaks down the performance of each
individual carrier according to transit times, shipping phases, and issues. For instance,
you get charts like Shipment Count by Carrier, which lets you quickly compare which
carrier has the most shipments, so negotiate your rates accordingly or distribute the
load among your other carriers. Next, you have Carrier Shipment Volume by country,
which lets you identify which carrier excels in all trade lanes. The chart also has
Shipment Status, which lets you view which carrier has the highest success rates.
Finally, you get Transit Time charts that provide a quick overview of how your
carriers are performing at each shipping phase, or which carriers are struggling with a
specific issue.
4. Transit Time (First attempt) report - Compare and
analyze transit times of your shipments
Today’s consumers desire fast shipping and are willing to pay more for priority
shipping. It even influences whether customers make repeat purchases or not. With
the Transit Time report, you’ll get valuable insights into how fast your shipments take
to be delivered. This report has more charts with granular information that provide
you with a comprehensive overview of how efficient your carriers are. Alternatively,
compare Average Transit Time by carrier or destination to assess your carriers’
overall performance. With this report, you can easily understand which carriers are
performing according to their SLAs. This is particularly helpful information when you
engage in negotiations with your existing carriers, or defining SLAs with new ones.
Gain the transparency you need on your supply chain and
make informed decisions.
Getting data on your logistics setup doesn’t need to be a complicated process. With
our standard reports, you’ll be able to get started with understanding logistics in no
time. Book a demo with our e-commerce logistics experts to find out how you can
seamlessly integrate, standardize, and analyze all your logistics data in one single
platform.
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