Mistakes to avoid when outsourcing your fulfilment: No 3. Being dazzled by tech

MISTAKE 3 – DAZZLED BY TECHNOLOGY
In our modern AI powered world there is a huge buzz around automation and systems and integrations and the like. These are all incredibly useful tools and certainly have their place in the 3PL space. There are immense efficiencies to be gained from all of these things properly implemented BUT there is a danger of being dazzled by these tools and forgetting that you are buying service that ultimately rests on having a good business relationship with your provider.

THE POWER OF HUMAN RELATIONSHIPS
The vital thing to remember is that third party logistics is a service and one that relies on human beings doing a good job. Ultimately, much of the quality of the service you will or will not get will rely on the close working relationship you have with the people doing the picking and packing. Relationships rely on human beings. Now, maybe one day our AI overlords will be able to somehow automate human relationships but that, as far as we can tell, is far in the future.

This is not to say that technology and automation are irrelevant, they most certainly are not! You need a 3PL provider that embraces modern technology and all the efficiencies it gives. This will help keep them competitive but, we think, it is mistaken to base your decision to go with a provider solely on looking at what technology they have in place. In a service business, like 3PL, there is still no substitute for human relationships. Having humans that care about your business means lots of important things that technology can’t yet do happen.

Things like:
• Spotting mispacked products
• Spotting picking errors because something does not look quite right.
• Spotting a duplicate order and checking
• Spotting a scuffed or damage box
• Checking to see if an unusual looking order is “real” or an error
• Spotting errors on address labels
• Working a bit of overtime to ensure the order is completed that day
• And many more……

All these little bits of extra care are simply not possible from any technology. They rely on three things:

1. HUMANS EXERCISING JUDGEMENT
2. THOSE PEOPLE HAVING FAMILIARITY WITH YOUR PRODUCTS
3. PEOPLE CARING ENOUGH TO EXERCISE DISCRETIONARY EFFORT TO PROBLEM SOLVE

In short, you need a genuine relationship!

WHAT ENSURES A GENUINE RELATIONSHIP CAN THRIVE?

This will only occur if your 3PL provider does the following:

• Pays their people well
• Ensures their people are happy
• Develops their people
• Has low staff turnover
• Enables you (the customer) to actually speak to the people doing the picking and packing so you can form the necessary relationship
• Empowers their people to act and make decisions for the good of their customers
• Has a business culture that supports all of the above.

Sometimes this is hard to quantify and assess. Often it comes down to a gut feeling. This feeling is more important than them having the latest robotic warehouse or an AI powered management system. The fundamental question is: “Do I trust this person with my business?” If the answer is “no” then forget about the flashy technology, it’s an irrelevant distraction.