4 Factors to Consider when Hiring a 3PL Provider |
Posted: August 11, 2020 |
Warehousing your inventory is a tricky proposition. If you are a large company, then managing and running your own warehouse can be a lot challenging. And not just large companies, even small-to-medium sized companies find it difficult to take care of their warehousing needs if they aren’t properly managed. This is where 3PL Warehouse Services come into the picture. A reputable third-party logistics company can help you provide the expertise and best practices, which can be effectively integrated into your existing supply chain. They specialize in numerous geographic regions and logistical areas. Hence, they know how to optimize performance on given routes.
So, it is absolutely crucial that you work with a trustworthy third-party logistics company who understands how your business works. If you are in search of a 3PL warehouse company, there are several considerations to take into the account before choosing one.
In this post, we will discuss the key factors to consider when choosing a 3PL provider.
#1 Proven Track Record First and foremost, you have to determine whether your chosen 3PL provider goes above and beyond your expectations. The most experienced and largest 3rd Party logistics companies get the job done in a way that they execute it in the most effective way possible, be that through time-to-market improvements or cost savings. Look for their current clients - who are they and what is their business structure. Then determine whether your chosen provider has gone an extra mile to effectively implement the necessary changes based on the business models. If the provider has clients that are loyal to them for years, then it speaks volumes. All in all, a provider that takes time to ensure the best-quality approach and practices will be acknowledged and recognized for the same.
#2 IT Capability and Integration Third-party logistics providers are measured on the capabilities that they can cater to the needs of their clients. Therefore, a logistics provider that places technology and innovation at the forefront is a sign that they are a strong contender. A good and experienced provider will invest both time and money in the latest technologies. And the best part is that they can provide feedback and real-time data on all facets of their customers’ operations. It is important to choose a 3PL provider that boasts the latest IT infrastructure so that it can be easily integrated with your system. And not only this, but they should also incorporate a technical support team that can assemble you a system for easy operations.
#3 Scalability and Flexibility Before you choose a third-party warehouse service provider, you need to determine whether you are availing their services just to become more efficient or you want to expand. Both ways, the most critical aspect of choosing a logistics provider, should be its capability to promote and support your growth plans. As the business grows, the requirements will change. So, you will want a provider that can meet your requirements in a cost-effective and efficient manner. You will need a logistics and warehouse provider that can easily cope with inevitable changes, as well as increased demand that comes with the growth.
#4 Communication Channels The most important factor to consider is the communication channel. Communication is a huge responsibility and thus, have to be addressed with utmost priority. Since you will be handing a key operation part of your business to the 3PL provider, you have to get it right from the start. Your team should be able to make proper communication with their team to know about the status of your shipments, among other things. It can be through phone, email, chat, or a dedicated communication platform.
These are the four primary factors to consider when choosing a warehouse and logistics services provider.
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