According to the American Society for Quality, the price tag of poor quality across the supply chain is 15% of revenue every year. That equates to billions of dollars in losses for U.S. companies.
For shippers, controlling quality within their own walls is challenging enough. The stakes get even higher as companies increasingly outsource supply chain management to third-party logistics providers. There is no shortage of potential failure points in storing, packaging, and transporting products between points A and B.
That is why shippers are increasingly focusing on quality assurance practices when evaluating 3PL partners. How a logistics provider manages quality—from mitigating threats to resolving errors—is critical. After all, the cost of quality issues does not just impact revenue. Companies also risk damage to their reputation, regulatory compliance, and operational efficiency.
The famous quote goes, “Quality is never an accident; it is always the result of intelligent efforts.” Following are five of the smartest ways logistics providers demonstrate that quality assurance is a keystone of their operations.
Root Cause Analysis: Identifying Issues at the Source
Problems are inevitable. Root cause analysis helps 3PLs stop issues at their core so they do not recur. The goal is identifying and eliminating the true cause of a problem rather than simply using quick, temporary fixes. Analyzing root cause helps to reduce waste, errors, defects, and costs while improving customer satisfaction, safety, and compliance.
Common ways to perform a root cause analysis include 5 Whys and/or 6M. With 5 Whys, a team defines a problem and asks “why” five times, with each narrowing the answer to identify the issue’s true cause. 5 Whys works well for simple, linear issues, but can fall short for more complex problems. The 6M method addresses more complicated challenges by creating a cause-and-effect fishbone diagram from six focus areas: measurement, material, machine, mother nature (environment), manpower, and method.
Logistics providers must have an established process for investigating and resolving issues promptly. The practice should be proactive, not just waiting for failures, but consistently seeking out areas for continuous improvement.
Technology Integration: Leveraging Innovation for Quality Assurance
Technology plays an essential role in quality assurance by ensuring data integrity and promoting automation, visibility, and compliance. When 3PLs leverage technology effectively, they can better optimize QA processes to control costs, minimize risks, and meet customer needs.
Logistics providers prioritizing QA will ensure they have implemented a robust quality management system (QMS). A QMS does more than just document the procedures and responsibilities necessary for meeting customer and regulatory requirements. A world-class QMS promotes process standardization by applying the same information, methods, skills, and controls across the operation. Capturing processes within a centralized hub also enables staff training to ensure consistency.
Other technologies growing in popularity for quality assurance are artificial intelligence and robotics. 3PLs are leveraging AI to improve route and inventory management, automate quality control, and develop more accurate demand forecasting. Robotics plays a significant role in eliminating human errors that create quality issues. Robots can automate material handling, picking and packing, and quality inspections to drive efficiencies and accuracy inside logistics operations.
Training and Staffing: Investing in Talent and Expertise
Quality assurance is as much about people as it is about processes. Third-party logistics providers driven by quality invest heavily in rigorous staff vetting practices and comprehensive training. Staff education is not a one-and-done process but rather an ongoing effort to increase skills and ensure compliance. Training includes safety protocols, operational procedures, regulatory requirements, and customer conditions. By engaging in continuous training, 3PLs empower their teams to effectively spot issues and resolve them.
Ongoing training also develops a culture of quality. Investing in the development of staff around quality assurance practices ensures the company can meet the highest standards. When issues arise, staff embrace the opportunity for continuous improvement.
Certifications: Demonstrating Commitment to Quality Standards
Certifications serve as tangible proof of a 3PL’s commitment to quality management practices. The requirements define how companies establish, implement, maintain, and improve their QMS. The prevailing certification for business quality assurance is ISO 9001: 2015. Logistics providers earning the ISO 9001 certification have effective quality assurance processes in place, including highly trained staff to execute QA best practices.
For 3PLs working with the pharmaceutical industry, adhering to and complying with Good Manufacturing and Distribution Practices is critical to ensure patient safety for life-saving treatments throughout the supply chain. The FDA defines Current Good Manufacturing Practices (cGMP) as systems to ensure proper design, monitoring, and control over processes and facilities in pharma and other FDA-regulated industries. The standards protect the quality of drugs throughout the supply chain. Compliance with cGMP and cGDP (Current Good Distribution Practices) requires specific process and facility design, regular external audits, rigorous record-keeping, and strict regulatory compliance.
Risk Management Processes: Mitigating Potential Challenges
In logistics, problems can arise at any moment. Cyberattacks, weather events, infrastructure failures, terrorism, pandemics—there is no shortage of catastrophic disruptions to the supply chain. Quality assurance requires thinking about and planning for the “unthinkable.”
Contingency plans must exist for scenarios that carry a realistic threat. The process identifies risks and vulnerabilities proactively. By anticipating catalysts for quality issues, such as equipment failures or supplier disruptions, 3PLs can minimize the impact they have on the operation.
Business continuity plans ensure continuity of operations despite disruptions. Logistics providers develop business continuity and disaster recovery procedures, define alternate routes and warehouses, and prepare emergency communication protocols designed to protect quality without interruption.
Langham Logistics: Quality Assured
At Langham Logistics, quality assurance is not just a practice, it is part of our DNA. From the frontline to the C-suite, everyone in our company prioritizes quality. We are ISO 9001-certified, implement leading-edge QA technology, and employ a premier QA team. Langham’s culture includes actively pursuing continuous improvement to help control costs and build customer satisfaction.
Learn more about Langham’s commitment to quality by reading “Quality Is Part of Our Culture: Langham’s Operational Approach to QA” for an interview with Sean Merrill, our Director of Quality.
