QC Software’s Tips for Developing Strong Third Party Relationships

CINCINNATI - Sept. 22, 2014 - PRLog -- Companies are outsourcing order fulfillment to become lean.  Contracting with third party providers allows them to avoid capital expenditures, focus on core competencies, and improve service.

“Many distributors are finding it challenging to meet the increasing market demands. Some are experiencing rapid growth and need a quick solution to fill the gap. Third party providers have the flexibility to deliver service at a lower cost, which accounts for their popularity. When goals are not reached, distributors need to determine how to gain more from the relationship,” states Rich Hite, President of QC Software, a leader in innovative warehouse control solutions for the material handling industry.

Following are guidelines for strengthening a third party relationship.

Employ strong third party managers. Third party managers should be trained in overseeing strategic relationships.

Determine if the third party provider is a good fit. The provider should have a clear understanding of the goals, be willing to actively participate in making decisions, and accept direction.

Plan carefully. The distributor and provider need to spend sufficient time in developing the plan. The provider should understand its role and must have the resources to meet the goals. The plan should include key performance indicators to measure results.

Incorporate incentives. Distributors shouldencourage innovation to improve performance and include monetary incentives that reward results.

Invest in training. The provider must thoroughly understand the distributor’s operation. They should learn what works, what to avoid and why, based on past experience.

Make communication a priority.  Distributors shouldcommunicate daily with the provider’s management team. They need to review the previous day’s operation and offer assistance. Distributors should review inventory and make sure the provider resolves issues including damaged, missing, and out of stock items. Distributors should find out if deliveries were received on time, which orders did not ship and why.

Visit the provider’s site frequently. Third party managers should visit regularly to maintain a presence and gain insight into their operation.

Measure the results. Both parties need toreview key performance indicators and discuss improvement opportunities.

For over eighteen years, QC Software has delivered software systems that help companies succeed. Their Tier-1 Warehouse Control System provides the flexibility, visibility and control across warehouse operations that customers need to optimize resources and profitability. Through industry collaboration, customized training, and 24/7 support, QC Software ensures that each customer is fully leveraging their technology. In addition, QC Software helps customers develop a strategic focus to better manage new opportunities and future demands. Customers gain better system reliability and performance.