How to Choose the Right 3PL Partner
Choosing the right 3PL (Third-Party Logistics) partner is a critical decision that can significantly impact the efficiency and success of your supply chain. As businesses increasingly recognize the advantages of outsourcing logistics operations, finding a reliable and compatible warehousing and transportation partner is increasingly important.
But what are the essential factors to consider when choosing a 3PL partner? How can businesses enjoy seamless service integration, optimal cost-effectiveness, quality, and on-time deliveries? From industry expertise and facilities built for high-volume operations to geographic reach and service flexibility, we’ll spotlight the main features to consider when selecting a 3PL partner.
Top Factors to Consider When Choosing a 3PL Partner
Managing a supply chain is a complex and dynamic process. Ensuring each component and provider is matched for their part(s) of the process is vital for an efficient, reliable system. As with any business, 3PL providers differ in their service offerings, experience, and competence, so including the following factors in your decision-making process will help guarantee a positive outcome.
Facilities and Carriers
Choose 3PL providers whose facilities and equipment (both MHE and over-the-road equipment) are a match for your application. Do not engage a low-ceiling distribution center for a high-touch / high-turn application. You will be behind by the first week. Likewise, engaging a distribution operation with a 36’ clear ceiling for products that need to be bulk stacked is a waste of warehouse storage capacity. Find a provider that is already competently and professionally handling businesses just like yours.
Certain services can streamline your shipping process but not all providers are equipped to offer them whether systematically or operationally. Cross-docking is one such service that rapidly transfers goods from one mode of transport to another. Freight consolidation has the benefit of transporting other shippers’ similar products to the same destination, avoiding the longer delivery windows of LTL carriers or the expense of small orders on truckload service.
Regarding warehousing and carriers, different shippers have different environments for different products. If, for example, you’re shipping perishables such as confectionery or other temperature-sensitive products like snacks or pharmaceuticals, then finding a 3PL partner with temperature-controlled warehouses and trailers is mandatory.
Geographic Reach
Check that your potential 3PL partner, their carrier, or carrier network has the geographic reach so your products make your customers RAD. Know transit times in advance so you can proactively manage retail deliveries to avoid compliance fees.
Make sure your carrier(s) have the capacity to match your and their other customers’ order volumes and understand up front their process for handling over-capacity situations.
Experience and Expertise
Find a 3PL partner with experience shipping products like yours. Expertise in the warehousing and transportation industries is no different than in yours. Research your short list of providers and go visit their facilities where the material handling will be done. Within 15 minutes of walking around, you will know if they have the capacity and operating philosophy that matches your needs. From there, consider the cultural fit, technological flexibility, and willingness to proactively address situations before they become problems. “Soft” skills are hard to judge so get references not only from existing customers but from customers who have left. Do not let economics drive your decision. More often than not, you will make the finance team happy initially but the operating team miserable.
Long-running transportation and distribution companies will work alongside you to smooth out hurdles in your supply chain. Decades of experience in the industry means you’ll have a partner who can rapidly predict, troubleshoot, and prevent any possible issues.
Choose ABW as Your New 3PL Partner
Atlanta Bonded Warehouse has been in business since 1948, serving customers in the confectionery, consumer packaged goods (CPG), pharmaceutical, and food and beverage industries. Our temperature-controlled warehousing provides the perfect environment for these products, and our sister carrier, Colonial Cartage operates temperature-controlled equipment delivering goods to 26 states safely and reliably.
If you’re wondering why you should choose ABW as your premium 3PL provider, we’ve got the answers you need. If you’d like to learn more about how we can help you streamline your supply chain, reduce costs, and improve service, speak to one of our team members today.