By Fello Logistics
Five Key Factors to Consider When Selecting a Third-Party Logistics Partner
Selecting a third-party logistics company to manage your shipping needs is a large and important commitment. You’re trusting another company to make sure your freight gets safely from point-of-origin to destination, which means they make the arrangements, they select the carriers, they manage the process, they handle the finances and they jump in to solve problems if necessary.
That can be, all at once, a huge relief and a scary proposition. Before choosing a 3PL, you need to conduct your due diligence and make sure there is every reason to invest your confidence in their people, systems and processes.
Here at Fello, we hope you will choose us, and we are confident you will be glad if you do.
But we don’t expect you to just take our word for it. So here are five factors we encourage you to inspect closely before you choose a 3PL:
- Reputation. What does the rest of the industry say about this company? Most important, what are its existing customers saying? Will the 3PL provide you with testimonials – or even better – the opportunity to talk with some customers? What do carriers think about working with them? What kinds of reviews can you find? Nothing says more about a 3PL than the real-life testimony of those who have already worked with them.
- Commitment to Customer Service. Shippers need a 3PL that excels at certain things, including communication, visibility, problem-solving and responsiveness. These are things you should explore when looking into a 3PL’s reputation, but ask the leaders of the 3PL themselves: How do you do this? Will someone be assigned to my account and available at all times? How do you provide information? Who will be responsible for solving problems and what is their track record of doing so effectively? If evidence suggests the 3PL performs consistently well in all these areas, you can likely expect a high level of customer service.
- Technology. While technology is no substitute for good customer service, it is an essential tool in achieving it. Any worthwhile 3PL in today’s market uses a transportation management system (TMS) that allows for end-to-end visibility through real-time data sharing. This should make it easy for you to see – at any given time – the location of your freight and the likely arrival time. The 3PL will use its TMS to be more efficient and accurate handling tracking, ordering and forecasting. They will all have something like this, but ask them how robust their system is, and how they use it to add value to customer service.
- Carrier Relationships. One form of value you should expect from a 3PL will be a network of capable, reliable carriers who have already proven their professionalism through an established relationship with the 3PL. Ask the 3PL about its network of carriers, and pay attention to how serious and detailed the answer is.
- Breadth and Depth of Service. It’s been said, if the only tool you have is a hammer, then every problem looks like a nail. A 3PL should have knowledge and connections with a wide variety of carriers – everything from standard dry vans to temperature-controlled, flatbeds, heavy haul, LTL . . . even hotshots. That’s the breadth. As for depth: Your 3PL should know how to handle issues like warehousing, cross-docking and transloading. It should understand drayage. The deeper and wider the 3PL’s knowledge, the more confident you can be that it will be able to handle any needs you might have.
If you consider these five factors, and you’re satisfied with the information you receive, there’s a pretty good chance you’re going to be happy with your 3PL relationship.
But be sure to ask, and be thorough in the selection process. The choice of a 3PL is too important to do otherwise.
Fello Logistics is known for integrity, reliability, industry-leading customer service and genuine care for it’s clients. Learn more about our freight shipping services.
