In today’s time, there are endless options to choose your 3PL provider from. A large number of options available in the market make the finding process daunting and tiring. But it is also very important to find the best 3PL provider for your business.
Here are some things you should consider and ask when choosing your 3PL provider company.
1. How much volume can they handle?
The 3PL provider you choose mainly depends on your order volume and whether they can handle it or not. You should also consider whether they will be able to handle some suddenly added volume in case your stock or sale increases.
You should select a 3PL provider that is experienced and will be able to handle your current business as well as when you are at your peak.
2. Past records and performance
You should go through the past performance records of the 3PL provider to see how good they are at what they do. You can check the references from other customers and seek information about the deliveries, delays, and how they handle unforeseen problems.
Reading customer reviews is a great way to know how good the 3PL provider is. It can also be a good indicator of how well they have maintained their relationship with their customers.
3. Advanced technology
You should choose a 3PL provider that has technology compatible with yours. If you use a cloud-based logistics system, then you should choose a 3PL provider that has similar compatible technology to work with your stock control software, such as the container tracking API system.
4. Make sure they provide security
It is very important that your 3PL provides security and that the warehouse has a backup power and internet source. This ensures that the company will provide you with uninterrupted services. Being disconnected for even five minutes can result in a loss of thousands of sales.
5. Order fulfillment costs
You should ask the company who will pay the cost of mistakes and shipping errors. Will the warehouse take the responsibility if the goods are damaged or lost or not. Make sure it is made very clear who will be held responsible in such situations before you sign the final contract.
6. Shipping costs
In the majority of the cases, a 3PL will have many contracts and carriers. You should ask them about the shipping costs for different types of orders. There are many ways you can save money on shipping so do your research before signing the contract.
Online reviews of other 3PL companies
If you want to choose the best 3PL company for yourself, you need to talk to the company as well as the clients. Online reviews about their services can provide much insight and help you decide whether the company is right for your business.
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In a nutshell
These are just a few of the aspects, factors, and questions you should consider to choose the right 3PL company for yourself and your business. Finding the right 3PL company can be a daunting task, but it is a crucial one. Because once you find a good 3PL company, you can free yourself of the worry and trouble related to the logistics department, and rest assured that all will be taken care of.
Hello, My name is Shari & I am a writer for the ‘Outlook AppIns’ blog. I’m a CSIT graduate & I’ve been working in the IT industry for 3 years.