Outsourcing specialized tasks frees your resources for growth-driving activities. You can spend more time improving your product, marketing your business, and supporting your customers.

One time-consuming area is your logistics processes. There are many moving parts involved, and striving to maintain visibility over every touchpoint is stretching your team thin.

A third-party logistics service (3PL) can alleviate this burden. Here's how to find the best 3PL for businesses. 

 

What Is a 3PL Partner, and Why Do You Need One?

A 3PL partner is a company that manages logistics on your behalf. Their service is all-encompassing. It includes everything from warehousing and order fulfillment to transportation and last-mile delivery.

Why Use a 3PL Partner?

A 3PL partner enables you to hand off complex and time-intensive logistics processes to an experienced provider.

Expect these outcomes:

  • Save time and focus more energy on your core mission.

  • Cut your costs as you won't need to invest in vehicles, staff, technology, warehouse spaces, and other resources required to handle logistics in-hours. Plus, your costs become more predictable, which protects your cash flow against drastic fluctuations that could delay or setback your operations.

  • Gain the flexibility to grow your business without being held back by logistical limitations. Keep up with demand through high-volume periods.

  • Deliver a consistent and superior customer experience with fewer delays or errors. This inspires customer loyalty.

  • Access to industry-leading technology without high overhead costs.

  • Mitigate supply chain management and disruption risks like customs issues or weather-related obstacles. Lean on your 3PL's established network and airtight contingency plans.

 

Key Factors to Consider When Choosing a 3PL Provider

Choosing a 3PL partner is a high-stakes decision. The wrong choice can have far-reaching consequences. The right choice, on the other hand, can support the next phase of your growth.

Critical elements to look for include:

  • Technological capabilities. We'll explore the specifics in more detail below.

  • Geographic coverage. This refers to the scope and scale of the provider's network. Ensure they have access to the areas you serve.

  • Experience in your industry. If you operate in an industry with specialized logistical needs like medicine or food, choose a 3PL who understands what's required and is equipped to deliver.

  • Scalability. Does the 3PL have the resources to scale alongside your business? Will they support or set back your business's expansion into new markets, regions, or product categories?

Let's break down some of these factors in more detail below.

Evaluating 3PL Technology and Infrastructure

Access to cutting-edge technology is one of the major benefits of working with a 3PL. Choose a partner that leverages innovative technology solutions like AI and data analytics to streamline logistics operations, cut costs, and lift the customer experience.

In addition, a robust infrastructure ensures your goods are transported from point A to B via an optimized, money-saving route. It also locks in a consistent delivery experience.

Assessing the Financial Health and Stability of a 3PL

A 3PL collaboration is not a short-term solution. It's a long-term partnership, and your provider becomes a part of the team, someone as invested in your success as you are.

Financial stability is, therefore, critical. You don't want to waste time and resources onboarding a 3PL only to see them out of business in a year.

The Role of Customer Service in 3PL Selection

The unexpected happens, and when it does, you need to have full confidence your 3PL can handle it. When evaluating 3PL options, consider the following:

  • Are they solutions-focused?

  • Are they clear, timely communicators?

  • Do they have systems in place to resolve issues if and when they occur?

Customization and Flexibility in 3PL Services

Your business has unique needs, and your 3PL partner should cater to these. The benefits are twofold:

  • You get access to the specific services you need to deliver your goods in a way that's compliant and enables a positive customer experience.

  • You only pay for the services you will actually use. You are not wasting resources on periphery offerings you don't have a need for.

Questions to Ask Potential 3PL Partners

When assessing a potential 3PL partner, ask them the following:

  • Which industries do you serve?

  • What are your geographical service areas?

  • Can I increase or decrease my consignment volume? What is the process?

  • What channels can I use to get support?

  • What technology do you use to ensure great service delivery, fast fulfillment services, cost savings, and strong inventory management?

  • Can I customize your services to better meet my needs? How will this affect costs?

  • Can you share client testimonials and success stories?

  • Do you have any sustainability commitments?

 

How SEKO Logistics Stands Out as a 3PL Partner

At SEKO Logistics, we put you first. As an industry-leading 3PL supplier, we use the latest innovations to power a truly seamless logistics operation that delights your customers.

We have invested in AI and ML-based tools that give you 360-degree visibility over your cargo. Both the sender and recipient remain supported around the clock. At the same time, costs are kept low with robust tracking and route-finding optimization.

Transparency is one of our values, and we deliver up-to-the-minute data. All the consignments we handle are easily traceable and locatable. In addition, data analytics enables smart solutions that anticipate and resolve issues before they cause delays.

Reach out to the team today. We'd be more than happy to discuss your goals and how we can meet your needs as a logistics partner.