The term 3PL means third party logistics and are entities that are a part of the logistics and a supply chain system. You will see that there was an arrangement between the two parties; the buyers and the sellers. The third-party logistics are there to make sure that the products that they buyer buys are transported, stored and delivering of the products from the seller. Below are tips for selecting the right logistics partner.
Consider the technology that the third party partner uses. You need to consider the technical capabilities of the firm that you want to hire. If you manage an online store then make sure that the 3PL integrate in the with that and the automation of the process will reduce the labor cost and the risks of errors. Also, you need to know if they don’t integrate directly in your system, make sure that can make it easy for you to upload the shipment orders. Consider asking the 3PL the kind of communication that they can provide. The 3PL must let you know about the pickup notices, shipment updates, and the delivery notices. Also, if there is a delivery problem you should know about that too.
Make sure that you look at them. There must be a confidentiality agreement between both parties that is to make sure that there is a trust in the business and the information that you are providing to them. It is good to know if your information will be safeguarded and cannot be shared with the competitors. Check on the history of the company and know their financial status too. However, the hour of operation that the 3PL can go is also essential since you might find that some of the pickups and the deliveries can be done in late hours.
The third point is that you should consider the cost of the services. You will find that you need to determine the type of quotes that the firm is involved in because there are some of the costs that are involved in your 3PL quote. Consider the minimums that are there in 3PL have since there might be some minimum monthly spend with them.
The last point is you will have to consider the reliability and the services provided. You will find that your load might be delivered late or with the wrong kind of truck that might add a lot of work and delays. Also, the 3PL with excellent services, there will be proper freight management and this will help them to think ahead and prepare to respond just in case some of the scenarios do go as expected. With the right services, there will be excellent freight management that will enable the 3PL to plan is some of the expectations are not met.