Innovate or Die: The 4 KPIs of 3PL You Need to Know

In the world of third-party logistics (3PL), innovation is king. Indeed, innovation is one of the top aspects companies look for when considering a move to horizontal collaboration. But in recent years, short contracts and price pressures have prevented inventive changes for many logistics companies. So how do you overcome these challenges to innovate, profitably and creatively?

Let's start with the core reasons companies look outside their organization for the shipping process in the first place. From a shipper's perspective, 3PL offers a level of expertise and a core competence that they don't have. A third party also offers attractive economies of scale, so they can negotiate low rates that a manufacturer might not be able to achieve on their own. Lastly, a 3PL is expected to offer an innovative solution to the status quo.


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About Dave Carleton

Dave is the U.S. Practice Director for Manufacturing and Distribution at TARGIT, Dave has spent his entire career, over three decades, providing business solutions to the Manufacturing and Distributions industries. His practical experience includes program development, marketing, and sales with an education in accounting.

Dave's passion is twofold, providing and assisting individuals to reach their potential and helping businesses reach their potential through technology implementation.

Dave has spent the last five years consulting with Microsoft Dynamics ISV's to expand their businesses through channel development, branding, marketing, and direct sales. Prior to that, he was the founder and President of Maximum Business Solutions. Max Biz, as it was known as, was one of the fastest growing and recognizable ISV's in the Microsoft Dynamics eco system with solutions in WMS and Route Accounting. He proudly wears the title "Godfather of WMS."

Dave is married with three adult children.    

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The 4 KPIs of 3PL You Need to Know

Hi Dave, I am in complete agreement with the importance of the 4 KPI's you outlined in your paper. This is one other that I would like to mention and that is the difference between Customer Requested Arrival Data and Time and that of Carrier Required Arrival Data and Time. There are usually major differences between the two and any company that is interested in understanding their service levels should be aware of them.

Aristides (Ari) P. Smith, President & CEO
Next Generation Logistics, Inc.
1611 Colonial Parkway, Inverness IL 60067 USA
Office: 847-963-0007 Ext. 112 Fax: 847-963-0079
Hours: Mon - Fri, 8:00AM – 5:00PM CST

The 4 KPIs of 3PL You Need to Know

Hello Dave

I would just like to add that these KPIs are also essential for EMS.

Aziz Khan | LinkedIn
Director – Quality and Customer Excellence

Iron Systems, Inc. | 980 Mission Ct., Fremont, CA 94539, USA
Direct: +1 (408) 895-5010 | F: 408-943-8101 |