Operational Challenges of a 3PL

Abstract

Business world is very challenging and competitive. Determination the current operational challenges of 3PL organisation is vital for organise and functional processes in 3PL activities, thus serve a company's asset or weapon towards its success. The study determined the operational challenges of Freight Options Incorporated as a 3PL in terms of manpower, methods and machines. A total of 23 respondents consist of 5 managers, 3 supervisors, and 15 drivers including helpers. Study showed that in terms of manpower, methods and machines, the frequency of the occurrence of the operational challenges were often. It also revealed that there is no significant difference between the responses of the two groups of respondents. Absenteeism and tardiness pegged as the highest while employees show poor job performance was the lowest. In terms of methods, inefficient cargo stacking techniques was the highest, while delivery delays due to driver faultranked the lowest. In terms of machines, under-or over-evaluation of goods load was the highest-ranked, and high maintenance cost was the lowest. Recommendations for manpower, to solve the operational challenges of absenteeism and tardiness, are that managers should have a written warning stating that absenteeism and tardiness arenot tolerated in the organisation. A meeting should be scheduled to discuss the new policy on absenteeism and answer any questions raised by the employees in terms of attendance records. For the method, the recommendation is to solve the operational challenges of inefficient cargo stacking techniques by having a training and development of stacking techniques for drivers and helpers, thus giving hem the knowledge to arrange the shipments inside the warehouse and trucks. Drivers and helpers should have an orientation on the shipments they are delivering. For the machine, under or over evaluation of goods load and low truck volume capacity can be solved by having the right information about the shipments, as well as having a security in the docks.