How to Choose the Right 3PL Provider for your Business

Jump ahead

In our last article, The Ultimate Guide to 3PL logistics we broadened our understanding of Third-Party Logistics or 3PL and how it compares to other systems of supply-chain management. We understood, how 3PL providers benefit businesses to reduce the burden of delivering the goods to end customers so they can focus on their core production and product R&D.

Businesses focusing on improving their product and outsourcing the entire process from warehousing to packaging to fulfilment can deliver goods faster to the customers while simultaneously increasing the quality and offerings of their product. In the process, they considerably reduce their operating cost, thus, providing an overall win-win deal for the companies.

Choosing the right 3PL provider

In this short article, we look at a few key pointers and factors that can help companies choose the right 3PL provider for their business based on their Budget, Requirement and Compatibility.

The 3PL provider should have an excellent safety and reliability record.

A high Safety rating translates to higher trustworthiness towards customers and businesses

Due to changing regulatory scenarios, across regions, your 3PL provider must be a reliable one when it comes to the delivery of goods and services which results in higher public rating as well as safety ratings.

The 3PL provider must have responsive and reliable customer service.

Customer Disputes are common occurrences in e-commerce and it should be promptly handled for better service

For many businesses especially e-commerce, customer service is the No. 1 priority due to the nature of their business. One bad customer review can do a lot of damage. Hence, it is important to choose a provider with efficient customer service and conflict resolution 24x7.

The 3PL provider must be up-to-date with technology and offer a wide set of services

As a rule of thumb, if they are not incorporating fleet management and other technology in their business, they will likely lose out to the competition. Hence, it’s important to choose a provider that is up-to-date with technology and offers maximum services based on changing business needs.

The 3PL provider should offer customizable services and have room for scalability

As a growing business, you are bound to change your requirements and your 3PL provider should be able to offer you a custom set of services based on your requirement. They should have room for scalability as a result of expanding operations either in the same region or overseas.

The 3PL provider must bring a wide network and expertise to the table

Your 3PL logistics provider should have a large network of warehouses, fleet, fulfilment centers among other supply-chain essentials to offer the fastest logistics solutions.

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