Here are a few things to look out for when choosing a 3PL provider
1. Location
Proximity matters in logistics. The destination of your products should be close to your target customers. Transportation costs are distance-dependent, and shipping smaller parcels tends to be more expensive than bulk shipments. Having a warehouse close to your customers can significantly cut costs. Moreover, shorter distances result in reduced shipping times. Swift product delivery enhances your reputation, as faster service is often perceived as better.
2. Warehouse conditions
Warehouse management varies, and a firsthand visit is invaluable for assessment. If feasible, always visit the warehouse to evaluate conditions. Thoroughly inspect cleanliness and organization—better conditions often signal effective management. Additionally, assess any damages to existing products as it reflects on their care standards, providing insights into how they may handle your products.
3. Visibility
Efficient online solutions for inventory tracking and online shipment submissions can significantly benefit your logistics operations. Keeping a close eye on inventory levels is crucial. This knowledge enables timely replenishment of your 3PL warehouse, reducing delays for your customers. A streamlined online system enhances visibility and responsiveness in managing your supply chain.
4. Other capabilities of the warehouse
Warehouses with in-house freight forwarding and customs brokerage services offer a convenient all-in-one solution for your logistics needs. This integrated approach eliminates the hassle of managing customs clearance or deliveries separately. It not only streamlines the process but often results in cost efficiencies. When selecting a warehouse, inquire about additional in-house capabilities to ensure a comprehensive and cost-effective logistics solution.
5. Responsiveness
Accessibility is key when evaluating a service provider. The ability to reach them easily is crucial, especially in urgent situations. A warehouse with sufficient staff and prompt communication ensures that issues can be addressed swiftly. In time-sensitive scenarios, such as when a shipment is in a railyard, where storage begins after 2 business days, delays in reaching the warehouse for pickup arrangements can result in storage fees and additional trucker wait times, making accessibility a critical factor in logistics operations.
