What to consider when choosing a 3PL
3PL Selection Process
If you’re an executive starting the search for a new third-party logistics provider (3PL) or logistics solutions provider (LSP), you might find yourself without an explicit list of what qualities you need a new partner to possess. Not all 3PLs and LSPs serve the same purpose, deliver the same results and operate on the same level of involvement with internal transportation teams. So what exactly should you consider when surveying potential companies?
3PL Evaluation
It’s best to begin by identifying the biggest problems with your logistics operation, but not all management professionals are aware of issues and in fact, seek 3PLs to help identify those areas of improvement. Regardless of your level of insight or grasp on your supply chain, there are several key requirements of modern logistics providers that you can look for throughout your search. The more boxes you can check off below, the more likely it is that the provider delivers higher quality service and will be a better fit for your business.
Technology Capabilities
A full-service LSP is the ideal partner. This means they offer a transportation management system (TMS) that provides a wide variety of customizable functions like tracking, scheduling and reporting.
Dedicated Customer Service Team
Are there real humans on the line? Do they have the capabilities to proactively spot and solve issues throughout your supply chain? Ask questions to find out whether their customer service is reactive or proactive.
Integrated Services & Solutions
If they provide software solutions, do the other hands-on services they provide integrate well with their technology? A 3PL team is only as good as the service it provides, and a TMS without a smart support team will lead to technical issues.
Industry Expertise & Results
Without the industry know-how, 3PLs and LSPs are useless. How else will they intuitively understand your challenges and have the experience to offer final solutions? Find out how they’ve helped businesses like yours save on more than just carrier costs.
3PL Expertise
This is just a distilled list of basic third-party provider requirements, but it will help give you some context during your path to finding the perfect partner. Hold your prospective logistics solutions provider to higher standards to get great ongoing results. Here is a list of services that a Managed Logistics Solutions provider offers.
TLI Insights
For the latest insights, tips and commentary surrounding the logistics industry, look no further. Shippers will find thoughts from the award-winning team at Translogistics covering everything related to your transportation processes and plans. If you have a question we are readily available at marketing@tli.email
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