Outsourcing logistics is a smart move for many businesses. For one, it might not always be feasible to manage logistics by yourself if you are not an expert in the field. The mistakes that could happen can cancel out the time and effort you put in. This brings the option of outsourcing to a professional third-party logistics company into focus.
However, choosing a third-party logistics or 3PL company can be a daunting task. There are so many 3PL companies to choose from. How do you find the right one? It’s also equally important to know what exactly your company requires from a 3PL company.
If you’re looking to outsource your logistics needs but are unsure where to begin, here are some factors to consider.
Does your 3PL uses State of the Art Technology
A company that integrates technology and leverages it into its processes would have a natural advantage over others that prefer conventional or Excel routes. Technology can help manage inventory, streamline processes, and make tracking accessible to customers and business owners.
Continous improvement To enable Scalability
As your business grows and expands, your outsourcing firms must have the ability to scale up with your growth. As a 3PL service provider, they should have ample warehousing capabilities, technical capability and manpower required to scale up as your business volume increases but most importantly a budget and programs to improve and leverage technology.
Customer Service and KPI
A 3PL company that maintains customer relations well is one you would want to engage your business with. Does you 3PL uses a set of KPI to measure how good they are performing and how they could improve their service.
How about System Security
We all heard about companies that have been hacked, lost data and went into a nightmare to reconstruct their data set and systems. A 3PL business that has a good security plan in place is one that you would want to associate with. Data protection is a crucial aspect of business as you handle a lot of sensitive information of both the company as well as your customers. A 3PL company should never be vulnerable to data breaches.
Summing it Up
Logistics is a huge responsibility for a business. Outsourcing your 3 PL responsibilities can take off a burden that you could easily let an expert manage more efficiently rather than doing it on your own. When you find the right 3 PL company, you can provide better services to your customers, reduce delays, errors in shipment, and maintain a strong reputation.
As North America’s leading 3 PL Software service provider, PL Solutions checks all the boxes for a professional logistics partner that you can help your 3PL raise to the challenges. Interested to know how we can help your business? Book a free consultation with us today!