An efficient, uninterrupted supply chain is crucial to successful operations. If it’s time for your business to look at outsourcing these services, it’s important to properly research your options.
Here are the top 3 things you need to consider before choosing the right 3PL for your business:
1. Scalability and Agility
Can the 3PL efficiently scale their operations to fit your changing needs?
You’re no doubt working to grow your company, but the fact remains that there will be ups and downs to business. You need a 3PL that can quickly adjust to sudden changes and scale the processes in your supply chain accordingly. Partner with a 3PL that already has clients both larger and smaller than your organization. A 3PL that can scale will constantly be making small adjustments to meet your changing needs.
Your 3PL should also provide a wide range of shipping and warehousing options available to your operations. The more options that a logistics provider can deliver, the greater the chance that they will be able to select the best solution for your supply chain challenges.
2. Technology Platform Innovation
An effective technology platform is essential to managing a large number of options, teasing out the most efficient, and implementing it quickly. Shipping and procurement might seem like low-tech pieces of your operations, but logistics providers live and die by the efficiency that they deliver. Having a state of the art technology platform backing up their business gives them the best chance for optimization. At Radius Logistics, we continue to invest in systems that allow clients visibility and access to their entire supply chain.
A solid 3PL will have cutting edge system that allows them to give you real-time feedback on your freight and supply chain operations.
3. Proven Track Record
What is their overall track record of your 3PL provider? The references you have for a logistics provider should speak volumes on their security, reliability, and flexibility.
Make sure to ask if your 3PL is bonded and how they are insured. How the 3PL manages this piece of their business is crucial to your security. This includes how they monitor their contracts and insurance with their providers. While evaluating your top logistics candidates, ask for a list of partners and enquire about their history with the provider. Finding a partner that has proven their financial stability will at least keep your operations from being brought to a screeching halt as you attempt to recover from someone else’s mismanagement. How a logistics provider handles their partners financially will be a good indication of how they will handle your business.
Efficient companies might get the job done, but not go above and beyond to care for your business.
The due diligence you go through in evaluating a logistics company should be some of the most stringent you apply to any service provider. They will control a crucial piece of your operations: make sure they use it to contribute to your success rather than hamper your progress.
Contact us today to see how we can go the extra mile and be the right third party logistics provider for your business.