Key Factors To Consider When Choosing A 3PL

If you’re looking for some help packing and shipping your products, it may be time to partner with a third-party logistics provider (3PL). With a wide variety of services, packages, and payments plans, it can be difficult to decide which 3PL matches best with your specific business needs. Let's dive into some key factors to consider when choosing a 3PL. 

Feeling lost? Start here!

When choosing a 3PL partner, their services and reputation are going to be the most important factors. If a 3PL doesn’t provide the services you need, they obviously won’t be a match. Check if they specialize in a certain product or industry to ensure that they can handle your product legally and safely. Ask if there is a minimum or maximum order volume they can handle. This will alleviate any surprises and set up the partnership for transparency and success. 

A great step at the beginning of the process is to ask people in your trusted network what they know about the 3PL and if they have worked with them before. Does their mission match your company’s? Will they be a partner, not just a provider? Will they be able to help and grow with you as your business expands?

Shipping

Depending what stage your business is at, you might be using a variety of shipping carriers or just one. It will be important to know which carriers your potential 3PLs use so that you can ensure your customers will be satisfied with their shipping options. 

Working with multiple carriers can become elaborate and stressful. Some full-service 3PLs (rather than just a company who is shipping your products) will negotiate rates and options from carriers for you. It is great to know if a 3PL negotiates rates for you, because that is one less thing you have to worry about.

If your customers are located in California, it is going to be important to have a warehouse shipping from somewhere closet to California. You will want to ask your potential 3PLs if they have multiple warehouses and where they are shipping out of. 

Extras and Add-Ons

Beyond all of the standard services, 3PLs can offer specialized services that your business may need. 

From kitting and assembly to customer service, 3PLs with add-ons can significantly reduce stress and allow you to focus your energy elsewhere in the business. 

With picking, packing, and shipping products comes the inevitable: returns, refunds, and reverse logistics. Will your 3PL handle reverse logistics for you? It is important to start the conversation about reverse logistics before committing to a partnership with a 3PL. 

Price and Payment

Does your potential 3PL partner have a flat-rate or will there be other charges that pop up? Be sure that you are aware of set-up fees, volume limitations, and the costs of any add-on services. 

Make sure that you are comfortable that the terms of the contract will set both your business and the 3PL up for success. It is important to understand any restrictions or charges within the contract, as well as logistics such as how often and through what method you pay the 3PL. 

Choosing a 3PL can be overwhelming, whether you are switching 3PLs or partnering with one for the first time. Want to read more about if you’re choosing the right 3PL? Check out 7 Ways To Know If Your 3PL Is The Real Deal.