Finding a reliable 3PL partner can significantly improve your supply chain and support the growth of your business. However, with so many 3PL service providers in the market, it can be a tricky decision to make.
Do you have a shortlist of 3PL service providers and are not sure how to choose one? Worry not. Here are some important factors that can guide you as you make your choice.
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10 Crucial Factors to Consider When Choosing Your 3PL Provider
Pricing
Naturally, pricing will vary from one 3PL provider to another. You may also notice that individual services like picking, packing, labeling, or handling returns may all attract different charges.
The key here is to aim for a provider that has fair prices but also delivers value for money. In some cases, you may even find providers that have negotiable rates especially if you will be a long-term client.
Look out for hidden charges too because sometimes the prices might seem low only because they are not inclusive of tax or some other incidental costs. For clarity, you can share the services you require from a potential provider and ask them to give you a precise quote so that you can be sure what you are signing up for.
Location
It is important to always ask potential 3PL partners where their warehouses are located, what regions they serve, and how long it takes to ship goods from those locations to your preferred destination.
Prioritize 3PL providers that are located within a reasonable distance from your suppliers and transport hubs like shipping ports and airports. This will keep transport costs low and reduce the time it takes to ship your products.
Financial Stability
The logistics industry faces a myriad of challenges from time to time. The recent Covid-19 pandemic, for instance, caused lots of shipping delays and reduced cash flows.
Subsequently, it is important to choose a 3PL provider that has enough financial stability to weather such challenges and keep serving you efficiently when they arise. Admittedly, these companies may not be willing to show you their financial records. However, you can still evaluate their finances based on:
- The state of their facilities and equipment.
- How long they have been in business and how steady their operations have been during those times.
- How they have navigated catastrophes or challenges in the sector
State of the art Technological Solutions
A good 3PL provider should have facilities equipped with modern technological solutions that:
- Ease and quicken the processing of consignments.
- Can handle a high turnover of commodities and keep up with the demands of your business as they evolve.
- Improve efficiencies by keeping costs low and reducing errors.
Scalability
As your business grows, you may require your 3PL provider to handle larger volumes of goods or provide more functions to support the growth of your business. Therefore, choose a provider that can accommodate such changes. It will save you the headache of having to find another 3PL partner down the line.
Make an effort to also ask different 3PL providers how they handle the surges that occur in the logistics industry during peak season. Avoid companies that do not have contingency plans for such seasons because they may delay your supply chain.
Omnichannel Expertise
Strive to partner with a 3PL provider that understands the nuances of your distribution networks and can tailor their services to align with them. This will ensure that your customers receive the top-notch delivery or fulfillment service you envision for them.
Omnichannel expertise is equally crucial because different markets may require different distribution systems. Your provider should, therefore, be able to help you comply with this as you expand your business into different markets.
Customization Capabilities
As you weigh different 3PL firms, look out for one that can offer custom solutions for the needs of your business now and in the future. Custom solutions here would entail provisions such as:
- Software that matches the scale of your business and the flow of your operations.
- Business experience or data that they can offer you to use as insight to improve your business or make better decisions. For example, they could compile their data on the flow of traffic In peak season to advise on how prices or delivery timelines change.
Customer Service
Any third-party logistics partner should have a reliable customer service team that communicates effectively. They should keep you updated on the progress of shipments, give you a heads up if a delay is expected or if any challenges arise. This enables you to prepare for such eventualities as appropriate.
Inquiries should also be responded to and resolved promptly. More importantly, the customer service agents should be helpful and offer you actionable solutions.
Continuous Improvement
No business is perfect and the methods of doing business are always evolving around us. So, it would be ideal to partner with a 3PL company that is committed to learning, improving on its service delivery, and embracing new solutions.
Customer Reviews
Customer reviews can tell you more about a potential 3PL provider than any brochure or website. You can find them either on the provider’s website, independent review sites like Trustpilot, or online business forums within your industry. Googling the company you are considering can also bring up reviews and feedback from customers on different platforms.
Rarely will any provider have 100% glowing reviews from all the customers it has served. However, a good provider should have more positive reviews than bad ones.
Be sure to read through the reviews too. Delays and a few small errors are to be expected but pay attention to see if the company resolved the issues. On the other hand, repeated negative reviews about issues like pilferage, overbilling, or damaged shipments are red flags and should cause you to tread with caution.
10 Recommended 3PL Providers Worth Considering
1. Bestfulfill
Bestfulfill can best be described as a turn-key 3PL provider given the comprehensive services it offers. It has warehouses in China, the USA, and the UK. It works with businesses across the globe and can fulfill orders across different countries as well.
Highlight Features: Highly compatible API for easy integration, Clear & concise pricing, Worldwide fulfillment
Services: Product Sourcing, Warehousing, Pick & Pack, Private Line shipping, Customized Packaging
2. FedEx Fulfillment
FedEx Fulfillment provides 3PL to e-commerce businesses across the globe. Based on its pricing model, it could be ideal for small to midsize businesses that handle small to average product quantities.
Key Feature: an exemplary global network.
Services: Storage, Warehouse management, Packaging, Order Fulfillment, Reverse Logistics
3.Rakuten Super Logistics
Rakuten is based in the USA and provides 3PL services only within the US. It has 7 warehouses in different states which makes it easy for e-commerce businesses to fulfill orders across different states. It has a minimum requirement of 250 orders per month.
Highlight Features: quick delivery, helpful technological integrations
Services: Order Fulfillment, Returns Management, 3PL Kitting, Subscription Box Fulfillment, Freight Forwarding
4. Pro FS
Pro FS has 2 fulfillment centers in the UK and 1 in Zurich. It mainly serves e-commerce businesses in Europe by fulfilling orders to their customers to different parts of the world or helping them import inventory from foreign suppliers. It has a minimum order requirement of 2,000 orders per month.
Highlight Feature: integrates with most e-commerce platforms
Services: Warehousing and distribution, Order Fulfillment, Picking, Packing, Dispatch, Reverse Logistics
5. BoxMe
BoxMe can help you expand into or improve your supply chain operations in SouthEast Asia. It has facilities and a logistics network across Thailand, Malaysia, Vietnam, the Philippines, and Indonesia. It can also provide support if you would like to source from China.
Highlight Feature: The BoxMe system supports omnichannel management for e-commerce businesses and other tools to keep track of orders and inventory.
Services: E-commerce & B2B Fulfillment, Global Shipping, Global Dropshipping
6. SkyPostal
SkyPostal has operational hubs in Florida, Miami as well as South America. It helps retailers, wholesalers, and e-commerce businesses supply their products or fulfill orders to customers in Latin America. It can provide both first and last-mile delivery where necessary including customs clearances.
Highlight Feature: Multiple integration options for different business tech models
Services: Order Fulfillment, Returns Management, Amazon SPN Services
7. ELM Global Logistics
ELM Global Logistics has facilities based in Long Island, New York. It mainly serves businesses across the state but also collaborates with others across the USA. It is renowned for its over 40 years of experience in the business and the value-adding services it provides beyond just logistics.
Highlight Features: ELM provides support to streamline logistic operations via automation, Custom services for businesses
Services: Warehousing, Order Fulfillment, Logistics services ( receiving inventory, inventory management, packing, shipping), Cross-docking
8. Fulfilio
Fulfilio may be a good fit for you if you are based in Australia or would like to expand your network to that region. It has multiple warehouses across the country and a partnership with the Australian Postal Service which gives it an even wider reach and faster fulfillment capabilities. It has a minimum order requirement of 400 orders per month.
Highlight Feature: Fulfilio is a top eBay fulfillment partner
Services: Pick and pack, Order Fulfillment, 3PL Warehousing
9. UniGroup Logistics
Unigroup Logistics comprises multiple subsidiaries that all offer logistical services. The company has a heavy presence in North America but can provide 3PL services to businesses across the USA and internationally.
Highlight Features: Custom logistics services, Capabilities to serve a wide array of industries
Services: Customs Brokerage, Domestic and International Transportation, Warehousing and Distribution
10. White Box
White Box services are highly optimized to meet the 3PL service requirements of today’s e-commerce businesses. They provide integrated solutions that can help streamline the operations of your business and your supply chain.
Highlight Features: White Box technology integrates well with most e-commerce platforms, Clients can access insights and analytic data
Services: Marketplace Management, Warehousing, and Fulfillment, Returns Management
In Conclusion
It takes discernment and careful evaluation to find a 3PL provider whose policies and service delivery match the vision you have for your business. However, the factors we have discussed in this blog can help you narrow down your shortlist to one or two viable options that you can investigate further.
Alternatively, if you would like to cut to the chase and partner with a tried and tested 3PL provider, reach out to us. We are a one-stop shop when it comes to global 3PL fulfillment and will gladly answer any questions you may have. You could also let us know about the services you require and request a free quote.