How to Choose Third Party Logistics Provider

Third party logistics providers (3PLs) can help you save money, improve efficiency, and offer great customer service. Many 3PLs have expertise in supply chain management. They can manage everything so that you can concentrate on your business. There are many factors to consider when outsourcing logistics to a 3PL partner. It can be difficult to decide which 3PL partner will best suit your needs, even if you are certain that you want to work together. Here are nine things you should look out for when choosing the right 3PL partner.

3pl Services Provider Melbourne Australia

3pl Services Provider Melbourne Australia can help you save money, improve efficiency, and offer great customer service.

  1. Do Your Research, and Ask The Right Questions

There are many 3PL companies available, each offering different services, expertise, and specialties. You should pay attention to reliability, handling time, inventory management, scope and services, carrier relationships and small parcel rates. Also, be aware of specializations and industries. You should ensure that they are able to handle special requirements such as Fulfillment by Amazon (FBA), or dedicated delivery services in specific areas.

  1. Make Sure That Your 3PL is Equipped With Robust Technology Solutions

It doesn’t matter if you have an off the shelf shopping cart system or an ERP inventory management system built specifically for your company, your 3PL should be able to integrate with your existing processes and systems. You should look for a 3PL partner who can offer technology solutions that will make your life easier, regardless of what industry you are in. You should also look beyond the basics for business intelligence solutions that provide visibility and data about orders fulfillment and shipments to help you make informed business decisions.

  1. Scalability is Important

When choosing a 3PL, growth and scalability should be considered. You want to be with a 3PL partner for at least a few years. Therefore, it is important to choose a logistics provider that can grow with your business. It would be a mistake to choose a 3PL partner for your current business size only to have them move to another one within a year. They don’t have the capacity or space to manage your growing business.

  1. Stability is Essential

Stability is the key to the success and profitability of your supply chain business. Because businesses spend so much time and money on selecting a 3PL partner, it is important to make sure that they have a track record of success and can withstand economic downturns. If you are able, obtain a list of current customers and contacts so that you can interview them during the selection process. You should ensure that your third-party logistics partner has a track record of reliability, practices, and relationships.


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