How to Find a 3PL Company That Fits Your Business Needs
So you’re in the market for a 3PL company, but you’re not sure how to find the right one for your business. Don’t worry; we’re here to help.
There are a few things you need to take into account when choosing a 3PL partner, such as the size of your business, your budget, and your shipping needs. But with so many companies to choose from, it can be challenging to know where to start.
This article will give you some tips for finding the perfect 3PL company for your business. We’ll also provide a list of questions you should ask potential partners to help you make the best decision for your company.
What Is a 3PL Company?
A 3PL is a logistics company that provides businesses with warehousing & storage, transportation, distribution, and supply chain management services. In other words, they take care of all the logistics for you so that you can focus on your business.
How Does a 3PL Work?
A 3PL company can handle all of the freight shipping, warehousing, and packing needs for your business, which can free up valuable time and resources. But how does a 3PL work?
Basically, you hire them to manage all of your shipping needs, from picking up and delivering your products to handling inventory and tracking orders. This can take a lot of the guesswork out of shipping and make it easier for you to scale your business.
When Should You Consider a 3PL Partner?
You should consider a 3PL partner when your business is:
- Experiencing rapid growth and need more warehouse space.
- Unable to keep up with order fulfillment due to a lack of staffing or resources.
- Unable to find a qualified employee to fill a specific position, such as a picker or packer.
- Looking to outsource specific tasks, such as freight transportation or order fulfillment.
How to Find the Right 3PL Company?
When it comes to finding a 3PL company, there are a few things you need to keep in mind. First of all, you need to ensure that the company can meet your needs in terms of size and scope. They should be able to scale up or down as necessary to accommodate your business.
You also need to ensure that the company has a good reputation and is reliable. And finally, you need to make sure that the company is cost-effective and that they offer good value for money.
Tips for Working with a 3PL Partner
You probably already know that a 3PL company can help take some of the burdens off your shoulders when it comes to shipping and logistics. But how do you go about finding the right 3PL partner for your business?
1.Verify Their Logistics Services：
The critical item to remember here is to verify all of the services the 3PL offers and ensure they fit your needs. Some of the most common service areas of a 3PL include:
- Transport or Freight Management
- Freight Invoice Auditing
- Contract or Public Warehousing
- Distribution Management
- Customs Brokerage
- Freight Consolidation
- Technology Solutions
- White Glove Service
First, make sure the 3PL company offers all the services you need. Do they audit freight bills? Do they offer transport or freight management? Do they provide contract or public warehousing? Do they offer distribution management?
Second, take the time to vet potential partners. Ask for references and contact them. Read reviews online. Get to know the team at the 3PL company and make sure they have the experience and expertise to meet your needs.
Third, you must choose a 3PL partner that is agile and has the flexibility to support you as you scale your business and cope with increased demand.
Finally, if you have high-value or high-risk shipments that require special care & handling, can they ensure that all of your shipments are handled with special care?
2.Location Flexibility
The key is to start by thinking strategically about where you want your business to grow. Do you want to expand into new markets? Are you looking for a partner to help manage inventory and streamline your supply chain? Maybe you need help with international shipping?
You’d better find a 3PL company that helps to pick a service with varied locations. With this kind of flexibility, you won’t have to settle for the available point, even when it puts you at a disadvantage. Besides, the provider can offer expert guidance on the best locations to go with.
3.Check their Certifications & References
When you’re looking for a 3PL company, it’s important to check their certifications and references. This will give you a sense of their level of experience and expertise. Ideally, you want a 3PL company that has been in business for a long time and has a proven track record of success.
It’s also critical to make sure that the 3PL company maintains the correct insurance, bonding, and safety standards to complete the services you require on your behalf and an ethical standard. This will protect you in the event of any accidents or damage to property and is vital to avoid losing customers.
4.Inquire About their Claims & Insurance Processes
When looking for a 3PL company, asking them about their claims and insurance processes is essential. After all, you want to be sure that your products are in good hands and that if something goes wrong, you’re covered.
Make sure to ask the 3PL company about their insurance policies and find out what kind of claims processes they have in place. That way, you’ll know what to do if something goes wrong—and you’ll be confident that you’re covered if the unexpected happens.
5.Test their Communication Standards
You’ll want to test their communication standards. After all, you will be relying on them to keep you updated on everything that’s happening with your shipments. So ask them how often they plan on communicating with you and make sure they’re using the method of communication that you’re most comfortable with.
You should also ask them about their emergency response time. In other words, what’s their plan if something goes wrong and they need to get in touch with you urgently? It’s important to know that they have a response plan in place and that they’re not going to leave you hanging in a time of crisis.
6.Pricing Transparency
When looking for a 3PL company, pricing transparency is one of the most important things to look for. You want to be able to see what you’re going to be paying for, and you want to be able to predict your costs accurately. The focus is more on transparency than the price point – Cheapest is not always the best.
This is something that not all 3PL companies are good at. Some companies will try to hide their prices or make them difficult to understand. This is a huge red flag and should definitely steer you away from that company. Before making a choice, you must look at all the service features attached to that price.
You want a 3PL company that’s upfront and honest about their pricing. This will help you make sound business decisions and avoid any surprises down the road.
7.Logistics Capabilities
This means they have the ability to provide extra services, e.g., kitting, labeling, assembly, customization, and continuity plans.
The right 3PL provider can help you leverage technology, process improvement, and industry experience to optimize your operations and improve your entire supply chain.
8.3PL Procurement Services
Depending on the complexity and frequency of your product sourcing needs, 3PL procurement companies charge either per-project fees or account retainer fees.
Some 3pl third-party logistics companies like ABL Logistics provide sourcing at the most appropriate agency fee. Our sourcing agent in China service includes Product Sourcing, Production Follow-Up, Quality Inspection, and Shipping with Air, sea, rail, and express shipping options available.
We can handle all your global shipping logistics considerations like customs, freight forwarding, and freight consolidation.
ABL Logistics – Your Trusted 3PL China Provider
Let us handle the heavy lifting. At ABL Logistics, we know handing over your logistics operations can be overwhelming. But rest assured, our team has years of expertise in multiple facets of the logistics industry and is fully capable of handling all types of logistics and supply chain needs.
We provide freight transport and logistics services such as sourcing agent in China, warehousing in China, air/sea/rail shipping from China to worldwide, and door-to-door delivery with customs clearance guaranteed.
We’re ready to form a long-term partnership with you whenever you’re ready. Click “Get A Quote” today to Get The Best Rate from us or “Contact Us” to find out how we can help your business.