Factors to Consider When Looking for Third-Party Shipping Companies

Navigating and monitoring the complex supply chain can be intimidating. Since businesses are building an online presence, no matter how large or small of a business they are, keeping the consumers satisfied with the timely delivery of products has become crucial. Managing the warehouse on your own and sorting the products can be a difficult task. This may prevent you from capitalizing on the momentum of your business growth.

This is the reason why many online retailers have started hiring third-party logistics warehouse companies. A Third Party Logistics Warehouse Company can prove beneficial for your online business. For starters, you don’t have to focus on warehousing, inventory storage, and delivery of products. This will all be done by the third-party company.

However, for new business owners Looking For 3Rd Party Shipping Companies, it can be a bit overwhelming as there are numerous companies to choose from. Finding the right third-party logistics company is important for your online business.

With that said, here are some factors to consider when choosing a Third Party Logistics Warehouse Company.

Let’s get started.

#1 Determine your business requirements

First things first, third-party logistics companies come in all shapes and sizes, serving the business needs at different levels. So, you need to determine your business requirements first and evaluate whether the shipping company falls under your reach. That is, identify your forecasted monthly order volume, any new product category(s) you plan to develop, and which channels you want to expand to. This will help you in filtering your search for the best third-party logistics provider. Moreover, try to outline the problems you want to solve when you hire a 3PL and determine whether the service provider you are choosing could meet those challenges.

#2 Assess the diversity of their shipping channels

Whether you sell on a single platform or multiple platforms, you will find your audience everywhere. On the other hand, the main challenge is that different platforms have different shipping complexities. That is, retail, wholesale, B2B, marketplaces, and e-commerce platforms, among others, have their own shipping challenges. Therefore, it is important that you determine which channel is important for your business. Based on this knowledge, you can determine your 3PL provider. You may sell on multiple channels. So, you need to prioritize the diversity in shipping services. If you can find a 3PL partner that checks every box, then consider yourself lucky. Else, you may have to contact several different providers for your needs.

#3 Consider pricing

Pricing is one of the most important factors to consider when looking for a 3PL provider. So, dig deep into pricing. When shipping through a third-party logistics provider, there is a price for everything. From inserts to packaging, pallet storage, the number of items picked, and the number of orders shipped, each comes with its own price tag. So, outline the options based on your service needs. This will help you in calculating the anticipated costs and evaluate your savings with the prospective third-party shipping and logistics provider. The price can be a major deciding factor in your third-party logistics provider selection.

#4 Test their communication standards

Communication is the key in the supply chain industry. You and your customer would want every update of the product or shipping until it is delivered. So, the 3PL partner you choose should be able to communicate properly through different mediums so that everybody remains informed. Most importantly, check their customer service. If it is poor, the 3PL partner will only make things worse. The customer service needs to be prompt and should add value. 

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Created on Sep 4th 2020 00:09. Viewed 144 times.

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