3PL Contract Negotiation - Logistics Avenue Consulting

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3PL Contracts Negotiation logaveconsulting.com contact@logaveconsulting.com

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How to Negotiate a 3PL Logistics?

Negotiating a logistics services contract requires patience and concentration on every detail. As the carrier, you could be working with your logistics service provider for the long term, especially for warehouse operations with long contract duration and demanding exit clauses.

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Important to Watch in 3PL Contacts Negotiation Scope of the agreement Liability for direct and indirect damages KPIs and bonus-malus Terms and conditions Contract term and termination clause Price indexation Lien and retention rights logaveconsulting.com contact@logaveconsulting.com

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Scope of the Agreement What to consider while negotiating: To avoid confusion & uncertainties, clearly describe which services will be rendered under the agreement. For example, it's includes loading, stowing, and unloading under a contract of carriage. Start the agreement with a preamble stating the overall purpose. A preamble states facts and factors that are relevant to one or both of the parties and helps in interpreting the clauses of the agreement in case of a conflict. logaveconsulting.com contact@logaveconsulting.com

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Liability for Direct and Indirect Damages What to consider while negotiating: From a logistics provider’s perspective, liability for damage to products is a way for the shipper to ensure that the service provider will do its utmost to handle products with care.

From a shipper’s perspective, liability for damage to products is sometimes considered full coverage for all possible damages in the supply chain. logaveconsulting.com contact@logaveconsulting.com

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KPIs and bonus-malus What to consider while negotiating: Key performance indicators (KPIs) are metrics used to measure service quality. In a distribution contract, a typical KPI would be the percentage of ontime deliveries. KPIs are useful tools to measure the carrier’s performance and to clearly outline the shipper’s expectations. logaveconsulting.com contact@logaveconsulting.com

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To Read Further Visit our Website: If you lack experience with 3PL Contract Negotiation and seek professional advice in the negotiation process then Logistics Avenue Consulting is the best place for you. For more information contact us at +48 691 224 741 or visit our website.

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