Outsourcing logistics to a 3rd party logistics company has many benefits. It helps to save costs and provides businesses access to the latest technology in logistics. However, the choice of 3PL provider has an effect on the reputation and success of your company. Selecting the right 3PL provider for your transportation requirements can be a tough task. Here are some guidelines to choose the right 3Pl company.
The first step is to identify the needs of your business. Once you know what you want, choose a logistics company that has the capabilities to suit your requirements. Different 3PL providers have efficiency in handling different parts of logistics. Hence, it is essential to choose a company that has expertise in offering the services you require. For example, if you want to outsource the transportation function, look for a reputed and reliable trucking company that provides different transportation services such as FTL dedicated truckload freight, LTL Less than truckload freight, freight for oversized goods or fragile goods, temperature controlled trucking services etc.
- Customer Service
Every company advertises about excellent customer service. But it is essential to dig deeper and understand the processes of the company. Good customer service requires well-documented processes that are mastered over time. Ask the company for references of old and existing clients. Evaluate the customer service of the company on factors such as responsiveness to customer needs, lines of communication and problem solving capabilities.
- Safety Record
The safety regulation keep changing from time-to-time. It is essential to choose a 3PL company that has a good safety record to ensure the safety and security of your goods and maintain your reputation.
It is advisable to choose a company with good reputation. Logistics is a stressful operation and it is essential to choose a partner with integrity and honesty. Speak to their existing clients and read reviews of online forums to know about the reputation of the company. Gauge the way they treat their employees and partners and their contribution to the community.
Use these 4 factors as guidelines to choose the right 3PL provider for your business. Always choose a reputed and reliable company that offers services at competitive prices. Shortlist a few companies and ask for quotation. Compare the quotations and make a decision. For example, if you require FTL dedicate truckload freight services, ask for quotation for that service and compare the prices of different trucking companies. However, do not base your decision on pricing alone. Consider the reputation, capability and experience of the company before making the final decision.