Selecting the best third-party logistics provider (3PL) doesn’t have to be hard, but it does take careful thought. After all, the 3PL you select will have a significant long-term influence on the expenses, supply chain, and customer service of your company. Ten of the most crucial elements to take into account when selecting the best 3PL service for you will be covered in this article.

Choosing 3PL now entails more than just moving and storing merchandise. The majority of 3PLs have created a wide range of services to satisfy the exacting requirements of contemporary manufacturers and customer demand.

The majority of fulfilment partners will highlight their sophisticated operations, strong carrier partnerships, and industry experience, regardless of whether they are logistics generalists or specialise in a particular vertical. These characteristics are shared by the majority of fulfilment providers; therefore, you should view them as fundamental rather than differentiators. 

After that, it’s critical to collaborate with a logistics service provider that can assist you in reaching your objectives and growing your company, not simply in using them as a highly efficient storage facility. When selecting the best 3PL for your company, there are 10 things to take into account, regardless of your market, industry, or region.

Capability:

Be it pallet displays, subscription box services, reverse logistics, kitting, or fulfilment, you want to be sure the third-party vendor you select can adapt to your changing requirements. A 3PL could be excellent in one service area but not have the adaptability or knowledge to fulfil your other needs.

Make sure your supplier has straightforward connections with the eCommerce platform of your choosing in order to meet the growing demand from consumers for contemporary storage and shipping solutions. Additionally, make sure they offer a business intelligence interface that enables you to quickly and easily make data-driven choices in real time.

Stability: 

Long-standing 3PL companies have a wealth of expertise in offering top-notch supply chain management and logistics services. A 3PL with years of expertise adjusting to market advances can help you remain ahead of the curve in the ever-evolving logistics business.

Choose a fulfilment company that has established itself as a leader in the supply chain industry, has many sites to expedite shipment and broaden its reach across the country, and has a solid track record of delivering exceptional customer support.

Reputation:

In logistics and fulfilment, reputation is crucial. Although satisfied clients are the most crucial statistic, a 3PL’s reputation is also based on satisfied vendors, carriers, and staff.

Working with a reliable logistics business is crucial since these companies have the ability to use their network, staff, and industry contacts to discover solutions to problems. For example, you may typically save money on shipping expenses by using a 3PL since they can negotiate carrier prices for bulk delivery, something that an individual firm cannot accomplish.

Safety and Security:

The way a 3PL handles safety says a lot about how well it performs overall. In order to stay in compliance with the industry’s almost continual changes to safety laws, it’s critical to work with a 3PL that keeps abreast of the most recent developments. In addition to worker safety and asset protection, you want a fulfilment partner who takes security seriously. 

Customer Service: 

The foundation of every relationship is service and attention, which should be considered while selecting a 3PL supplier. Providers of third-party logistics that make investments in customer service are aware that quality control and superior customer service benefit both your brand and the manufacturer.

Successful 3PLs can easily and swiftly recognize problems and fix them. A seasoned 3PL can offer business tools that make it simple for you to track items, estimate savings, and determine delivery windows. To put it briefly, they assist in simplifying and relieving the burden of managing your company’s logistics, allowing you to concentrate on what is really important – expanding your enterprise.

Scalability:

If you currently operate at scale, the correct 3PL can make scaling simpler. Is the 3PL you wish to work with able to manage the volume of goods, recalls, and adjustments required to keep your business running smoothly and cut expenses?

Make careful to find out how much inventory a prospective logistics provider can manage, what their maximum daily throughput is, and how fast and effectively they choose, pack, and transport goods while conducting an interview.

Customization: 

Third-party logistics might signify many things depending on the modification. You want a fulfilment partner who can provide you tailored solutions that flow naturally into your supply chain if you’re in the retail, business-to-business, or eCommerce distribution space.

You’ll want a fulfilling business that can customise the consumer experience all the way down to the packing slip for packaging and delivery. With the same level of individualised attention to detail and customer care that your clients have grown to expect, the ideal 3PL may operate as an imperceptible extension of your brand.

Accuracy:

Accuracy is one of the most crucial aspects to take into account when selecting a 3PL service. The internal procedures your 3PL has developed over time determine inventory, shipping, and order accuracy. Customers will be dissatisfied, and you will incur return expenses if your 3PL lacks correct inventories, shipments, or orders. 

Ask a 3PL partner about their accuracy rates and warehouse management system before choosing one. You might wish to consider alternative solutions if they are not utilising the newest technology or if their accuracy ratings are lower than 99.9%.

Responsiveness:

Reactivity is evaluated not just on how well things go during regular operations but also on how well things go during problems. When investigating and evaluating 3PLs, remember to ask these crucial questions:

How do you manage interruptions in the supply chain?

How do you react when the number of orders, the destinations, or the stock levels vary?In the case of a product recall, how are items tracked?

You may learn a lot about the type of business you’re working with and if they can manage your logistics by finding out the answers to these questions.

Technology:

The sophistication of logistics is based on technology. It is essential to ensure that the 3PL you select offers enterprise-level technology that expedites the order-to-delivery process. 

To suit your demands, make sure your 3PL has the greatest support team and uses the newest technology. This may be as simple as connecting with your order management system, using business information to assist in making prompt, well-informed choices, or having an excellent IT support staff.

The benefits of 3PL fulfilment solutions:

Using logistics service providers has several benefits over doing things internally. The main advantage is that they can handle your shipping and inventory, giving you up to work on other projects. Additional benefits include: 

-Enhanced capability

-Increased effectiveness

-Decreased mishaps during delivery

improved understanding of supply chain activities

-Lower overhead expenses

Your time is valuable regardless of the type of business you operate, be it a small, handcrafted eCommerce store or a massive online retailer. For those who want to handle everything internally, hiring your own shipping employees may seem like a good alternative, but using a logistics service provider can save you more money and give you with greater ease.

How a 3PL Can Reduce Your Ordering Costs

You may order in bulk and save money. If you place a large enough order with one supplier, they will probably give you a discount. You may even be able to work out special arrangements with your favourite vendor in some circumstances. Make sure you inquire about volume discounts from your 3PL to find out whether you can save money on orders.

Are You Prepared to Switch to a 3PL?

Once more, the first step in selecting a 3PL supplier is to determine your initial motivation for exploring a shift. The explanation might be as straightforward as this: perhaps you’ve outgrown your present fulfilment capacity or are finding the entire logistical procedure to be too much to handle. Working with a 3PL might, in any event, free up more time and resources for tasks like product development and marketing. 

The next step is to actually meet with the fulfilment professionals at a 3PL warehouse to discover more about their strategy and service skills if you’ve decided why it’s in your company’s best interest