There are many benefits to be had in outsourcing your warehousing to a third party logistics provider, from their flexibility to their efficiency, and just knowing that you’re working with logistics experts.
If you’re not already sold on the idea of 3PL (third party logistics) check out this article from Master’s Logistical on the benefits of outsourcing.
If you do decide that outsourcing for you, there’ a lot to think about when choosing a company to go with, and it’s a pretty big decision to make.
Find a 3PL That Will Fulfil Your Needs
This doesn’t necessarily mean that they have to have previous experience in your industry (although this would help), but rather that they have the equipment and staff to do what you need of them.
For example, if you’re going to be needing daily pick and pack operations, make sure that the 3PL have experience of this and will be able to do this for you.
Make sure to visit the warehouse yourself and check out what sort of equipment and technology is available and ask yourself if it’s up to scratch with what your business will be requiring.
Think Ahead
It can be difficult to estimate where your business will be in one, three, or five years’ time, but it’s important to do so.
One of the main benefits of a 3PL is that you can scale your warehouse operations up as your business grows.
For this reason, it’s important to establish with your 3PL that they will be able to accommodate any planned growth and maintain a good dialogue with them over any changes that you plan to make.
Thankfully, most 3PL companies are very flexible and will allow you to scale things up or down as your demands change.
Consider The Staff
One of the main reasons you’ll be going with a 3PL provider is that they are experts in their field, so it’s important to get a feel for the staff who will be handling your logistics and get an idea of their experience and commitment to the job.
If you aren’t fully convinced that the staff are taking enough care over your logistics, then don’t be afraid to look elsewhere.
Location
The location of your 3PL is also something which is worth taking into consideration. For example, do you need the warehouse to be close to your customer/client base?
Or do you perhaps import and/or export goods and need to be located near to a major port?
Getting these things right will save you lots of money on transportation further down the line.
Weigh Up The Costs
Make sure to budget properly and add up the monthly costs of outsourcing and figure out if it’s going to save you money in the long run.
In most cases it will do, but make sure to double check. Having said this, make sure not to use price as your only indicator.
Like with most things, if you go with the cheapest 3PL company you likely won’t get the best service, so weight this up alongside everything else.
