9 Crucial Factors to Consider When Finding the Right 3PL Partner for E-commerce Business
Capabilities to match client needs
Find out if the 3PL partner can satisfy short-term and future needs of E-commerce business, helping them make real-time and data-driven decisions with the click of a button.
83% of 3PLs agree that their supply chains have been able to identify changes in macroenvironments and to modify and enhance supply chain capabilities appropriately. -2021 Third Party Logistics Study, The State of Logistics Outsourcing
Experience and company reputation
Analyze the track record of 3PL business in its relationship with suppliers, customers, and employees. Find out if they have extensive industry experience and a good business reputation. Tip: Check their awards list
The majority of shippers—91%—said that their relationships with their 3PLs were generally successful. A higher number of 3PLs—99%—agree that relationships have generally been successful. -2021 Third Party Logistics Study, The State of Logistics Outsourcing
Reliability
Check if the 3PL partner is resilient enough to handle consistent disruptions. Find out if they hold a history of financial stability, reliable methods, business practices, and relationships during economic downturns
Customer service
Verify if the 3PL partner has the consistent ability to match a required level of communication, responsiveness, and professionalism.
Most shippers—93%—and 3PLs—98%— agree that over the last three years, it has become even more critical for 3PLs to develop the capabilities to respond to customers more quickly with accurate and timely information. - 2021 Third Party Logistics Study, The State of Logistics Outsourcing
Organization and safety of consignment
Examine the safety guidelines of a CPL company with respect to its client inventory and warehouse workers. Make a physical or 360-degree video tour of the 3PL company’s warehouse facility.
Scalability and flexibility
Enquire if the 3PL company can handle a large workload during peak season as the client needs to grow. Check if they have the proper infrastructure to sustain growth over time and be flexible in their operations.
Customization
Find out if the CPL company has customizations to maintain long-term operations and reduce costs without compromising on the quality of service, efficiency, revenues, and performance.
Location
Find out the proximity of 3PL company’s location to major highways, shipping hubs, and customer base. Partnering with the right 3PL organization helps to reduce all-mile delivery costs by maximizing delivery speed and efficiency.
68% of 3PL users and 96% of 3PL providers agree that the use of 3PLs has contributed to reducing overall logistics costs.- 2021 Third Party Logistics Study, The State of Logistics Outsourcing
Technology and Integrations
Shippersand third-party logistics providers (3PLs) rely on technology to achieve success in their logistics operations, both now and in the future. With each passing day, shippers place greater importance on the technological capabilities of their 3PL partners when making decisions about collaboration.
According to recent surveys, 75% of shippers consider technology solutions to be increasingly important when evaluating and selecting 3PL partnerships. Additionally, 87% of 3PLs share this belief.
Share this infographic by using this embed code:
