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10 Deadly Sins in Warehouse Outsourcing
Source:DSV E-zine
The decision to start outsourcing warehousing and fulfilment activities is never taken lightly. It often involves processes that have developed over many years with direct impact on customer service.
This document describes the top 10 pitfalls in attitudes, expectations and activities during the implementation phase of outsourcing your warehousing and fulfilment. The list has been compiled based on years of experience from both a client’s as well as the Logistics Service Providers perspective and has been reviewed by renowned Supply Chain experts.
In short, the 10 deadly sins are:
- Presuming Outsourcing is the instant cure for all Supply Chain processes
- Not involving all stakeholders (or too late)
- Insufficient IT Testing
- Inconsistent Data Quality
- Overlooking non-documented processes
- Letting the exception become the rule
- Overestimating the project management skills of the line management organization
- Managing a 3PL like an own warehouse
- Unproductive performance measurement
- Introducing ‘nice to have’ IT improvements during implementation
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