One of the easiest ways to meet your customers’ demands and improve their experience, while meeting your business goals, is to outsource your logistics services. To do this, it is common for businesses to hire third-party logistics service providers to handle their goods delivery operations.
Every business is faced with the challenge of finding a reliable and efficient third-party logistics (3PL) service provider. But you don’t have to share that gory experience. The key to finding the right 3PL provider is to know what to look out for before making a choice. This way, you can sieve through the multitude of options and select the best choice for your business.
There are numerous 3PL providers with a wide range of offerings from warehousing to transportation, and distribution. While some offer only one service, some offer all. And this is where your search starts. Why do you need to hire a 3PL provider? Which logistics services do you need? Once these questions are answered, you’ll have a clearer idea of the kind of third-party provider you need and your options will become narrow.
In this article, you will find 5 things to consider when hiring a third-party logistics service provider.
Experience: Doing business in this age requires you to seek experienced partners. 3PL providers are no different. Your business will be in safer hands when you employ the services of a provider with experience and a track record of reliability and efficiency. Experience is relative. A 3PL provider that has been in business for 5 years may not operate in your industry or the locations your market or customers reside in.
This automatically disqualifies them, because if they are unable to meet your specific requirements, their experience would be inconsequential. It is important to seek 3PL partners that have robust experience and operate in your industry. You can also measure a 3PL provider’s experience by checking the Google reviews of their website, or speaking with (past) customers if you can. Accreditation and certification from industry bodies in the region can also be a sign of credibility.
Innovation: Almost everything is digital and with digitalisation comes innovation. A 3PL provider in the digital age should have innovative solutions such as data analysis using centralized networks, that offer you greater value. This can only be achieved through technology. You should assess the technologies the provider has adopted and how they can help your business scale.
This is also an indication that the 3PL provider is expandable and can handle a surge in demand as your business grows. Being innovative also requires that they are willing to adopt new technologies and keep up with the rapid rate of disruption. Subsequently, this ability will impact the success of your logistics operations and your business at large.
Efficient Communication Channels: A competent 3PL provider should have efficient communication channels, particularly for unforeseen situations that may stall operations. This way, you can get information promptly and make alternative plans or draw out solutions. It ties back to the innovative capabilities of a third-party logistics service provider. If they are tech-enabled, they would have tools for tracking operations in real-time. The 3PL provider should have communications systems for real-time information on your products and movement across the supply chain.
Customised Logistics Solutions: While many 3PL providers offer generic services, you should focus on finding a provider that can develop solutions tailored to your business and its needs. A provider that understands your business needs will deliver greater value to your business and can become an extension of your business.
Geographical Reach: The best 3PL provider you can hire is one with an extensive network with a worldwide reach. Why? You can streamline your supply chains across the world if you are building a global business. It’s also a win-win situation if you run a local business as the provider’s reach still covers the area. And should you decide to expand your operations, you know that your provider has the resources to aid the expansion.
Hiring a reliable third-party logistics service provider will be easier when you consider these criteria before making your choice. GIGL is your reliable 3PL provider that ticks all the boxes and more. They have the experience, are tech-enabled, and their services can be tailored to your business needs. Partner with GIGL today.
Durojaiye Bensonp: GIGL- Things to consider when hiring third-party logistics service provider
