3PL Performance Reporting: Data That Delivers

Robust 3PL performance reporting is essential. Not only can data help you maintain overall resilience for your brand, it puts you in a better position to make essential decisions, whether that means quickly pivoting in response to new changes in regulations or shifting due to changes in ordering patterns, available warehousing options, or weather challenges. Ultimately, data availability is key to reducing costs and enhancing operational efficiency, leading to greater business effectiveness and customer satisfaction. 

Are you getting the data you need from your 3PL? Make sure you are receiving these key types of reports. 

Logistics on Lock: 3 Must-Have Performance Metrics to Evaluate 3PL Effectiveness

If your 3PL is offering the support and solutions you need, they should be providing you with these key performance metrics. 

Close-up logistic network distribution, smart transportation, and networking intelligent logistics of container cargo ships, logistic import-export,and industrial for Warehouse Inventory Management On Office Computer. Supplier And Distribution Software with 3PL performance reporting

Delivery Performance Metrics

Delivery performance metrics are a critical part of 3PL performance reporting, providing greater insight into how your 3PL is performing. That includes:

  • Delivery times
  • Accuracy rates
  • Delays and potential delays

With this information in hand, you are better positioned not only to reduce costs for your brand, but also to increase customer satisfaction.

Actionable Tip

Use delivery performance metrics to identify bottlenecks and improve delivery processes. For example, automated data flows can significantly speed up 3PL warehouse operations, leading to faster shipments. 

Inventory Intel

A well-rounded 3PL performance reporting system includes inventory metrics that provide key details that make managing your continuing inventory needs easier. Your 3PL should be letting you know about:

  • Stock levels
  • Turnover rates
  • Aging inventory

Those key insights are vital to knowing what is currently in your warehouses and how goods are moving through the system.

Actionable Tip

Use turnover data to optimize stock levels and avoid overstocking or shortages. Keep track not only of current data, but also of historic movement so that you can get a better idea of when your peak seasons are, what peak inventory needs look like, and other insights that can make it easier for you to keep up with consumer demand. Real-time supply chain analytics can help you recognize operational strengths and identify areas for improvement. 

Order Accuracy Breakdown

It’s important to keep careful track of order accuracy rates across your deliveries and shipments. Order accuracy is key to reducing returns and building customer trust–and if your 3PL isn’t delivering, you may need to take a close look at why. 

Actionable Tip

Compare accuracy rates with industry benchmarks to set improvement goals. You may also be able to use accuracy rates to get a better idea of what changes may need to be made in ordering processes or other areas to make it easier to ensure customer accuracy. Accurate data plays a pivotal role in 3PL performance reporting, ensuring timely and correct shipments.

Financial Focus: 3PL Performance Reporting for Cost Management and Operational Efficiency

Keeping up with finances is also essential to your interaction with your 3PL partner. Make sure they’re providing you with these vital reports so that you can keep track of costs. 

Warehouse manager with digital tablet doing 3PL performance reporting on inventory

Cost Analytics

Your 3PL should be providing you with a breakdown of the essential expenses associated with warehousing and shipping, including:

  • Labor
  • Transportation
  • Storage

You need to see the specific costs of these areas and how they have the potential to impact you, both now and in the future. 

Actionable Tip

Identify areas for cost reduction, including options like renegotiating shipping rates. Often, even small changes can add up over time! Advanced reporting tools can help make data-driven decisions for process improvements and efficiency.

Cost Per Order Insights

Analyze expenses per fulfilled order to evaluate cost efficiency. Keep up with what each order costs and any factors that may increase those costs–including both factors related to your processes and those that may occur due to the specific goods ordered. 

Actionable Tip

Focus on high-cost areas and explore ways to optimize processes. Flexible WMS software allows for a number of potential billing methods, which may increase appeal to multiple business types–and allow you to cut down on your costs. 

Reverse Logistics Rundown

Your 3PL should help you gain a thorough understanding of return rates and the efficiency of the reverse logistics process. You need to know what returns cost your business and where you can make improvements to decrease those costs. 

Actionable Tip

Use data to improve return policies and reduce reverse logistics costs. User-friendly interfaces and simplified operations can enhance warehouse team efficiency and, in many cases, decrease returns.

Future-Proof Your Fulfillment Forward-looking Data to Stay Ahead of the Curve

Data and analytics from your 3PL shouldn’t just focus on your current needs. It should also provide you with vital insights into what the future will likely look like and what alterations you can make in order to keep up with future trends.

Forecasting and Predictive Analytics

Use data to plan for seasonal trends and demand fluctuations. Current and historic data can go a long way toward streamlining warehouse operations and allowing you to keep up with demand. 

Actionable Tip

Incorporate forecasting into inventory management to reduce excess stock while still ensuring that you have the necessary stock on hand to meet demand. 

Group of people in an office meeting tracking environmental impact, with 3PL performance reporting

Green Goals: Sustainability Metrics

Increasingly, many businesses and customers are looking for green solutions that can help decrease environmental impact. Track your environmental impact, including energy usage and eco-friendly packaging efforts. 

Actionable Tip

Use sustainability metrics to align with corporate social responsibility goals. You want your shipping and logistics operations to reflect those goals just like the other areas of your business. Modern WMS platforms support sustainability initiatives through efficient resource management. 

Unlock the Power of 3PL Performance Reporting

Comprehensive 3PL performance reporting is a key part of improving overall operational success. With effective data from your 3PL, you are ideally positioned to make essential decisions for your company. Those data-driven decisions lead to better efficiency, cost savings, and, ultimately, better customer satisfaction. Are you ready to learn more about 3PL logistics or how they can benefit your brand? Explore Symbia’s resources or contact us to learn how robust reporting can transform your supply chain.