When business slows down Logistics Service Providers (LSPs) must adjust staffing to match reduced volume and this presents challenges to their clients. Trusted LSPs and 3PLs are valuable resources for any business. They are the arteries through which supply chains function. Hopefully staffing cuts are temporary but, for now, they do add risk for clients.

Exporters, not LSPs, bear primary responsibility for compliance with regulations. In reality, though, many exporters rely on their freight forwarders to manage compliance for them. This has always been a mistake but even more so when the LSP reduces staffing. Documentation errors, misclassification, and failure to check licensing requirements are examples of the risk for exporters. Best practices in this area would be to review all documentation produced by LSPs, check shipments for “red flags”, and consider establishing a formal Export Compliance Program for the future. Here are some previous blog posts for reference:

Manage the Risk, 1/15/2020

How to Determine ECCN, 12/6/2019

Compliance Nuts and Bolts, 11/30/2019

Reviewed Your CI Lately? 11/3/2019

Red Flags, 9/29/2019 and 10/6/2019

Basic service levels are also impacted by LSP staffing cuts. Pick up and delivery routes will be combined so drivers are covering wider zones. This can mean late deliveries, missed pick ups, or late pick ups requiring overtime for the client. Remaining clerical staff may struggle to field customer service requests on a timely basis. Best practices here include gaining a comfort level with your providers’ on-line resources and developing problem solving protocols to save time. Blog posts for reference are:

Manage Your Carrier Relationships, 8/8/2019

Got Protocols? 4/6/2019

Need Help? contact mitch@52.91.45.227