3 Factors To Consider While Choosing A 3PL Company

Logistics management is an important aspect for business organizations. Most companies outsource this function to 3rd party logistics providers to save costs and enjoy the benefits of their expertise. Outsourcing logistics provides a lot of benefits to companies and also saves time and costs. However, the choice of a 3PL company plays a critical role in the effectiveness of the function.

3PL companies specialize in a variety of functions, such as freight, warehousing, customs broker etc. Choosing the right logistics provider that specializes in the area of an organization’s requirement is very important. For example, if a company requires a 3PL for shipping, it should look for freight companies that offer different forms of shipping such as parcel, LTL, PTL and FTL Dedicated Truckload Freight.

In my vast experience in the freight and logistics industry I have noticed that there are some key factors that every business organization needs to consider while choosing a 3PL. Here are some of them.

  • Track Record of the Logistics Company

The logistics company should have a good track record of providing the most effective logistics services. You can speak to their clients to know about the quality of services provided by the company. Choose a company that has a loyal customer base, which indicates that the logistics company has the best policies and procedures in place to ensure their clients get timely service.

  • Consider Scalability and Flexibility

It is always advisable to choose a 3PL, who can support your growing business needs. The company should be able to cater to your growing requirements. For example, a Start-up may require LTL or PTL freight services, but in future if the company expands, it might require a FTL Dedicated Truckload Freight service. The logistics company should be able to offer scalability whenever it is required to their clients.

  • Use of Advance Infrastructure

The technology is advancing at a lightning pace and 3PL companies should be at the forefront to integrate modern technologies into their services. They should invest in the latest hardware and software solutions to provide real-time data about the whereabouts of the shipments to the clients and ensure cost-effective and timely service to their clients.

There are many other factors like the cost, communication channels, strategic location, added value etc. that need to be considered while choosing a 3PL company. Always choose an experienced and reputed logistics company that has a loyal customer base and offers bespoke solutions to your needs. The company should offer different freight solutions such as LTL, FTL Dedicated Truckload Freight, PTL and parcel shipments. It should advice the client on creating an optimum mix of different shipments that is cost-effective.

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