How to Determine if a 3PL is the Best Option for Your Business

The process of selecting a third-party logistic partner (3PL) is often difficult to navigate. 3PL’s have a direct impact on your customer experience and therefore choosing the wrong partner can make or break your business. What’s more, it's not always clear which 3PL is best for your business or even what options business owners should be considering.

So, what’s the first step to understanding the key elements of a successful outsourcing partnership and how can you prepare to negotiate terms that will keep you in control of your fulfillment and delivery processes?

Let’s peek into the Adapt or Die: How to Choose a 3PL Workbook for some insight.

The first question to consider is:

Are you shipping to many locations, both nationally and internationally? If so, partnering with a 3PL with several warehouse locations and fulfillment centers makes the most sense. Research shows that with one strategically placed DC, companies can reach 73% of the US via ground shipping in two days. Selecting a partner that has diverse geographic coverage will help ensure that both of your businesses will grow.

Another question to consider:

Is smarter warehousing or storage possible for your business? It’s important not to conflate a 3PL with storage space for your business because paying for a 3PL for storage is often far more expensive than leasing empty space. Determine with your outsourcing partner what needs to be immediately and frequently available, for instance, if a large product on offer is seldom purchased, consider storing it at an owned location and providing it to the 3PL on the rare occasion it’s needed.

Curious to learn more? Download the Adapt or Die 3PL Workbook today to discover more key elements and critical questions to consider to make an informed decision about outsourcing your fulfillment.