More and more businesses are opting for a third-party logistics (3PL) provider because they can help improve efficiency, save money and also offer excellent customer service on your behalf. Most of the 3PLs out there have a great deal of expertise in all aspects of supply chain management and they can manage everything on your behalf, thereby allowing you to focus on running your business. However, this depends on the 3PL provider you choose, as there are a number of them out there and not all of them offer you the same level of services.
How do you choose the right third-party logistics provider for your business? Here are the steps you need to take for this purpose:
Research and ask the right questions
As mentioned above, there are numerous 3PL companies that can be found and all of them offer different services, specialties and expertise. Therefore, you need to do some research to find an appropriate one for your business. Some of the things you need to focus on are handling times, reliability, scope of services, inventory management, current clients, carrier relationships, specializations and industries, as well as rates. You also need to ensure that the provider you choose can handle any special needs your business may have, such as dedicated delivery in some areas.
Check for robust technology solutions
Your priority should be to look for a 3PL provider that can make your life easier by offering you robust technology solutions, whether it is for tracking your shipments, managing your warehouse, inventory management or anything in between. Good 3PL providers will be able to offer business intelligence solutions that go beyond the basics and give you more visibility and data about shipments and order fulfillments. This can come in handy for making timely and well-informed business decisions.
Give some thought to scalability
Some of the most important considerations when selecting a 3PL provider are scalability and growth. You wouldn’t want to switch providers that quickly, so it is best to choose one that can scale along with your business. It would not be efficient, or cost-effective to choose a 3PL for your existing business and then have to look for a different one down the road because your business expanded quickly and they cannot keep up.
Do not forget stability
The success and profitability of a business depends heavily on the supply chain, which makes it essential for you to consider stability when you are looking for a third-party logistics provider. You will invest a great deal of resources and time on choosing a 3PL. Therefore, it is best to select one that boasts a proven track record, such as www.networkshipusa.com, and has the financial stability to last through an economic downturn as well.
You should try and get a list of their current customers and get in touch with them to get the inside track. As long as the 3PL provider has a history of reliable practices, methods and relationships, you will be good to go.