Guide to Hiring Logistics Consultants

Logistics consultants are valuable in today's global economy, because getting your product from the producer to the customer in a timely and cost-efficient manner is no meager task. Consider that you have to package your unit, store it, ship it, sell it and track its whereabouts at every point along the way.

If you're a small to medium-sized company, it's not likely that you have the time, resources or expertise to take care of that on your own. If you have your own distribution system, chances are it could be improved. That's where logistics consultants come in.

When you hear the term "logistics consultant," it might refer to two different things: analysts who make recommendations to improve your current supply chain, or third-party logistics (3pl), consultants who implement a supply chain for you. Frequently, logistics consulting firms do some combination of the two.

Logistics consultants run the gamut from experts that provide analysis or subcontract shipping companies for you, to shipping companies that provide comprehensive consulting services. Here are some things you could expect a logistic consultant to do:

1. Help your company take advantage of economy of scale by consolidating resources wherever possible.

2. Analyze your supply chain to find weaknesses, redundancies and inefficient labor practices.

3. Implement a streamlined system to get your product out of the warehouse and onto store shelves with the quickest possible turnaround time.

Action Steps
The best contacts and resources to help you get it done

Search for a logistics consultant based on your needs

Of course, you wouldn't knowingly hire any consultant who didn't meet your needs. Still, logistics consultancies grow in number by the day. Each specializes in working with a different kind of business, and provides a specific set of services.

I recommend: Inbound Logistics is an online trade magazine that offers a nifty search engine of its top-rated logistics consultancies. Choose your business model and the services you need, and it will match you firm that can meet your needs. The Freight Transportation Consultants Association offers a more extensive directory of logistics consultants, browsable by specialty. Logistics Consultants, Inc., Tompkins Associates and TZA Consulting are just a few of the many supply chain management consulting firms ready to do business with you.

Send out a detailed RFP to logistics consulting firms

To get the service you need, you must ask for it clearly. When writing a request for proposal (or RFP), be specific about the challenges that face your operation and the kind of improvements you'd like to see. Take the time to prepare this document correctly and you're off to a good start.

I recommend: Inbound Logistics offers this online form that allows you to send out an informal RFP by clicking on the services you need along with the companies you'd like to solicit. But you might also want to check out this RFP toolkit, available for free if you sign up with Professional RFP Letters. This template walks you through a comprehensive RFP.

Choose a 3pl that can deliver the logistics applications you need.

In addition to moving your inventory, a distribution consultant firm also implements ways to keep track of it. In recent years, many consultancies have jumped on the technology bandwagon and developed their own warehouse management systems. Some offer applications for sales staff as well.

I recommend: Hire a logistics consultancy firm with an attractive set of applications. But if your primary distribution consultant firm doesn't offer the right technologies, you can always hire another 3pl to install the programs and train your staff. Check out Redwood Systems Logistics Management and their suite of tracking applications. Transplance is another award-winning 3pl technology consultancy.

Tips & Tactics
Helpful advice for making the most of this Guide

• Treat your logistics consultancy firm like a partner in your business because their success is crucial to yours. Train consultants, encourage them and communicate with them as if they were your own employees.
• Give your logistics consulting firm space to get the job done. If you're too specific about what you want done and how, you might not get the most creative solution a consultancy can offer. Set guidelines, but let their knowledge of distribution fill in the gaps.
• Work with a 3pl consultant to iron out the kinks. Your relationship with your 3pl firm is truly a partnership; and like all partnerships, there will be some rocky times. If you are confident that your firm can deliver, give them the chance to correct mistakes and improve efficiency.

The official source of Hiring Logistics Consultants is
the Logistics Consultants page at Business.com