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How To Find A Suitable 3PL Company For Your Business?

A challenging experience for many companies (any e-commerce vendors or multinationals) is looking for the right 3PL logistics service provider.

Periodically cutting down your selection process with shortcuts, and no prior study can affect the success and reputation of your company. That is why you need a third-party logistics provider. A 3PL solution provides the speed of deliverance and reliability as it is of utmost importance for serving your business growth.

That is where a 3PL solution can handle all of your needs from picking, storing, packing and shipping your products, from managing your freight, accounting to overseeing their complete supply chain operations.

A 3PL company can significantly improve your shipping, receiving, and logistics program, as it has many benefits for a scaling business.

These service providers are experts on most of the operational tasks like hiring warehouses, sales force, equipment maintenance, facility maintenance and many more. In many cases, these 3PLs in your supply chain complete tasks cheaper, quicker, and more efficiently, in comparison to your warehouse.

It does not matter if you are a multinational business owner or if you’re running an e-commerce business who has their own warehouse, as 3PL can serve a valuable purpose for any business irrespective of the organization.

In this article, we will give a complete breakdown of questions and decisions to make when choosing a 3PL solution for your business.

What does a 3PL Company do for your business?

Third-party providers offer a strategic supply chain solution for storage, warehousing activity, inventory management, transport or last mile delivery and other handling needs to the client companies.

They use sophisticated software to develop warehousing management and distribution plans which will best suit the requirements of every company whose products they store and deliver.

On an average, employing a 3PL supply chain can reduce fixed and variable logistics costs also on inventory costs. A 3PL should be an adviser and solutions provider with the expertise you can trust to build your business. They should be thinking of creative ways to make sure that your products are delivered to the market faster and cheaper. To do so, they need an entire understanding of all of your present and future fulfilment needs.

What is the right type of 3PL Solution for your business?

Finding the right type for your business depends on the services and products you are looking to outsource. Some services are experts in niche areas and are smaller in size, while others are suited to handle the entire end-to-end logistic execution offering seamless integration with your business. The key features to look out for when considering and comparing companies are

  • Warehousing & Storage Solution
  • Shipping & Receiving
  • Shipping & Receiving
  • Transportation
  • Value Added Services

Some other considering factors –

What is the capability when it comes to delivering?

Look at their delivering ability through their work history, client portfolio and customer reputation, also ask for certifications and references and how they handle freight claims and insurance processes.

How scalable is the company?

Check if the 3PL service provider can cater to the different needs of multiple clients without additional investment and how they have been able to increase business and meet demands helping achieve maximum growth.

How Up-to-date is their supply chain with technology?

The growth of business and technology always go hand in hand and it’s constantly evolving. A good 3PL provider should be able to not only power the business with up-to-date technology, but also look to upgrade to new freighting and a tech-focused supply chain solution.

How big is the supply chain network?

An expert 3PL provider will help you determine an ideal distribution channel that spreads throughout its various delivery locations for your business needs. They need to have facilities positioned that offer convenience in supply for your business and effectively meet future needs.

We hope this article helps you ask the right questions and find the right 3PL solution provider. If your business is on the lookout for a third-party solutions provider, Parekh Integrated Services Pvt Ltd can help.

Also Read: How Effective Management Of The Supply Chain Reveals Opportunities