Excerpt from:  China Supply Chain and Logistics Strategy
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February 05, 2006

Are Chinese Logistics Providers a Competitive Threat to Foreign 3PLs?

Chinese 3pls Lack Customer Service
When identifying and evaluating third-party logistics service providers to support your distribution network in China it is important to prepare an evaluatin matrix which can be used to rate the 3pls. This document may also be incorporated into the performance section of the services contract.

The evaluation criteria should include assessment of the 3pl's customer service capabilities. Most of the Chinese 3pls provide poor customer service. As a case in point, my current work which involves soliciting RFPs from potential 3pls in China has proven that some of most "famous" Chinese 3pls have the worst customer service performance when it comes to having someone answer their telephones. With one company it took me about 20 attempts just to reach the receptionist. Then the receptionist failed several times to connect me to the correct department. Once I reached the sales office the person who answered the phone seemed to care less about our needs or the opportunity being presented. Thus, I would argue that Chinese 3pls competing for business from foreign manufacturers in China have a significant disadvantage when competing with foreign 3pls that have good customer service performance.

Foreign companies seeking qualified 3pls in China are advised to pay close attention to the customer service aspects of their potential logistics service providers. By developing an evaluation matrix for the RFP responses and using a points scoring criteria and scorecards, the optimum 3pls can be evaluated and selected.

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