Criteria for Selecting a Third Party Logistics Provider for Your Business

Shippers continue to follow the trend of outsourcing non-core competency activities to third party logistics partners as it can provide significant benefits such as cost reduction and higher customer service levels. Finding a 3PL partner that is able to meet all of your business needs is not a task to be taken lightly as they are truly an extension of your business.

The process of searching for and selecting a third party logistics partner is one that must be structured and detailed to ensure that the best decision is made for your business. Many shippers choose to utilize a request for proposal (RFP) to assist in keeping the decision making process structured. A major portion of the selection process, whether an RFP is used or not, is clearly defining the criteria that must be considered when making the final decision.

The top factors to consider include:

-service capabilities – match your required services with their capabilities and eliminate those providers that cannot meet all of your needs and be sure to communicate these needs clearly
-flexibility/scalability – a “one size fits all” solution will not be best for your business – find a 3PL that will meet your needs now and is able to grow with you in the future
-3PL reliability – ensure customers receive only the highest level of service – your 3PL must be able to meet and exceed customer expectations
-cost – this should not be the only factor considered, but do ensure your 3PL can effectively manage costs, passing savings on to you
-geographic location – strategic facility locations will allow you to better meet customer needs – a developed geographic profile will allow you to expand nationally, and in some cases, internationally
-information technology capabilities – technology has now become a necessity – ensure your 3PLs software is easy to use and provides real-time data so you can adapt and make quick decisions
-corporate culture – in order to build a strong and effective partnership both parties must understand one another’s corporate culture – this affects how you run your business and how you will need your 3PL to perform in turn
-corporate stability – consider the financial standing of your 3PL partner when making your choice – be sure to protect your assets

To learn more about selecting the best 3PL for your business contact Wavelength Logistics experts today at marketing@wavelengthlogistics.com or at 855-645-2766.