Finding the ideal 3PL provider shouldn’t be a challenging task. However, it needs some thoughtful consideration. After all, the third-party logistics provider you settle for will significantly impact the organization’s customer service and supply chain for years. Let’s discuss factors to consider when choosing the right third-party logistics provider.
Reliability
When choosing a 3PL provider, reliability is crucial. To guarantee on–time delivery of your shipment, you need to have access to excellent customer service so you can stay updated about the progress of each consignment and get help if needed. In case something is amiss or there is a shipment that is time sensitive, your preferred third-party logistics provider must be in a position to assist you with a quick solution around the clock.
In addition, your preferred third-party logistics provider must be quality-managed. A third party that is ISO-certified will be able to consistently meet and exceed the expectations of its customers and stakeholders.
Technology
To ensure real-time data sharing, smooth supply chain logistics, and timely responsiveness, the third-party logistic provider must have the necessary technology that can provide you with real-time information. Proper technology will provide you with visibility that can assist you in tracking orders and forecasting.
Furthermore, the ideal technology will allow you to understand transport better, predict arrival times, and see near-real-time location data.
Safety and Security
The approach of a third party-logistic provider to safety speaks volumes about their overall performance. With safety regulations undergoing constant change within the industry, it is essential to partner with a provider that stays up-to-date with the latest initiatives to remain compliant.
Apart from asset protection and personnel safety, having a third-party logistics provider that takes security seriously would be best. The protection of financial information is not only important but also vital. Choose a provider with proper certification.
Reputation
When it comes to logistics and fulfillment, reputation is everything. A third-party reputation is not only built on happy customers, even though this is the most crucial metric, but it’s also built on happy employees, vendors, and carriers.
Partnering with a 3PL provider that’s respected is paramount. This is because a reputable third-party logistics provider can find a way out of problems using their team, network, and industry connections. For example, a third-party logistics provider can save you a significant chunk of money as they can negotiate bulk shipping rates with carriers that an individual business can’t do.
Scalability
The ideal third-party logistic provider can help you scale easier if you operate at scale. Ensure the third-party logistics provider you’re considering partnering with can handle the volumes of product recalls and customizations necessary to reduce costs and retain operations.
When considering a potential logistic provider, ask how much inventory they can handle and how fast they ship, pick, and pack products.
Impact on Sales
If you are genuinely assessing the quantitative value proposition of working with a 3PL, it is essential to consider the impact on sales. Time and again, pursuing the lowest costs established by standard logistics partners might lead to poor customer service, negatively affecting sales.
For a logistics provider to be worth your business, the clients should speak highly of the increased sales they receive. The primary purpose of getting the services of a third-party logistics provider is to increase the efficiency of the entire process, which can lead to increased sales and profits.
Work with M&W Logistics
Partnering with the right third-party logistics provider has its share of benefits, including access to the freight carrier network, lower distribution costs, access to tailored support, and more.
If you are from Nashville and considering hiring a 3PL provider, M&W is your solution. We provide customized supply chain solutions that include warehousing, food grade, asset-based truckload, public warehousing, logistic management, and more.
Contact us today and learn more about our services.