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Trust but Verify: Wisdom on 3PL Relations

During arms-control summit meetings with Soviet Leader Mikhail Gorbachev in the late 1980s, President Reagan often used a favorite Russian "doveryai, no proveryai," that is "trust, but verify." Reagan had come to realize that the evil empire might be a negotiating partner. The path was rocky, but the two managed to reduce the nuclear arsenals that were both the threat and the stabilizing factor of the Cold War.

"Doveryai, no proveryai," became Reagan's watchwords for the relationship with the Soviet leader. Trust, but verify. Possibly the only Russian words Reagan had rehearsed. "You say that at every meeting," Gorbachev noted laughingly at the White House arms treaty signing in 1987.

"I like it," Reagan replied. As an industry, it's important that we take a similar stance with our partners, especially third-party logistics partners.

Reagan and Gorbachev Source: The Reagan Vision

One visible phenomenon that no one can deny is that technological evolution has accelerated, creating many innovators and entrepreneurs who create new products and services with relatively meager resources. No longer is innovation only the bailiwick of only billion dollar companies with budgets of $20 million or higher. Now, with a solid understanding of the industry, even small entrepreneurs can come up with innovative products that we all use in our daily lives. This has resulted in numerous companies with unique products. Often, these companies sometimes don't have distribution infrastructure or logistics capability to distribute their products to retailers or end users. That's when third party logistics service providers become important.

Often these 3PL service providers run into issues where their customers are asking for unique services, as well as better system of records. For example, if a shipment or product is damaged, then the 3PL would benefit if they could provide picture based documentation for every single shipment or load that is received or shipped from their facilities. Today's legacy system, though, preclude quick integration of these capabilities, without outside help.

I still remember a client, a food manufacturing and distribution business, that implemented a warehouse management system (WMS) back in 2008. They had stringent quality requirements, because they distributed a lot of potato salad that they manufactured in their plants to retailers like Costco. We spent hours discussing the quality control requirements needed in their receiving and shipping processes. They wanted the ability to write detailed comments to ensure that the personnel thoroughly cleaned the trucks. (Even a slight lapse in the cleaning process could spoil the date sensitive, temperature controlled, and highly perishable food.) The picture capture capability in this instance would have been a perfect tool to ensure that the trucks/trailers are cleaned thoroughly by not only documenting before and after cleaning pictures. It would also allow for users to document the seal that was put on the truck/trailer at the end of the loading process.

3PLs dealing with a product companies that want to make sure their products are delivered in a pristine manner could benefit by providing this capability to show pictures for any important scenarios. For example, think of the benefit of being able to send a picture of loads sent to important customers like major retailers, or images of any exceptions that happened or damaged shipments during transportation or anything along those lines. Suddenly, both 3PL and customer has a trust but verify scenario to ensure good results.

Share your thoughts on how a tool like this might make life better within your supply chain in the comments section below.


ABOUT THE AUTHOR 

Puga Sankara is the CEO and Founder of Smart Gladiator. Smart Gladiator is an ATDC Georgia Tech company, Smart Gladiator's award-winning product LoadProof (https://feature.loadproof.com/loadproof) is an Enterprise Photo Documentation System that is enjoying tremendous traction in the Supply Chain Community. LoadProof (https://feature.loadproof.com/loadproof) is a patent pending Centralized Cloud based Enterprise Photo Documentation System for Supply Chain. It is built on the premise that photos and videos are vital documentation serving as compelling proof of important operations performed in the supply chain within and across organizations. These operations may be related to fulfilling customer orders, meeting contractual obligations, or transferring merchandise across different parties taking part in the Supply Chain operations. LoadProof is as important for your organization as an ERP (Enterprise Resource Planning) which is an enterprise system of record for critical documents such as Purchase Orders, Sales Orders, Contracts between parties etc. that have tremendous legal ramifications, or a WMS (Warehouse Management System), that holds indispensable information related to orders shipment/fulfilment data. Just like Instagram, Facebook or Snapchat have evolved into platforms that enable individuals to showcase how pretty they or their clothes are, LoadProof is a similar Enterprise system of record that holds photos, not so much for show off, but to serve as compelling, unequivocal, thoroughly documented proof, even in the court of law when there is a dispute between organizations while they perform many facets of their functions/operations, as well as for increased visibility and transparency within the Supply Chain. The capabilities of LoadProof are discussed in detail in the next sections of the document below. LoadProof is live in 460+ Sites, 250+ corporates, 13 Countries.There are more testimonials in this link here also https://www.g2.com/products/loadproof/reviews. Learn more here on our YouTube channel,  https://youtube.com/@smartgladiatorloadproof  & also here in LinkedIn - https://www.linkedin.com/company/smartgladiator/

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