When choosing a third-party logistics provider (3PL), there are many factors to consider beyond just freight rates. Here are some tips to help you choose the right 3PL for your business:

1. Consider Your Future Needs

When choosing a 3PL, think about your future needs as your business grows. For example, if you currently ship only within the United States but plan to expand internationally in the future, you’ll want to choose a 3PL that offers global shipping services.

In addition, consider whether you’ll need additional services from your 3PL in the future, such as warehousing or order fulfillment. Choosing a 3PL that can scale up to meet your future needs will save you the hassle of switching providers down the road.

2. Evaluate Their Technology

Technology is a critical part of any 3PL’s operation, so you’ll want to ensure that their systems are up to date and compatible with your own. In particular, look for a 3PL that offers an online customer portal where you can track your shipments, view real-time updates, and generate reports.

In addition, ask about the 3PL’s security protocols to ensure that your data will be safe and secure. Finally, ensure that their systems integrate with your own, such as your order management or accounting software.

3. Consider Their Location

The location of your 3PL can significantly impact your shipping costs and transit times. For example, if you ship primarily to customers on the East Coast, you’ll want to choose a 3PL with a facility in that region.

On the other hand, if you ship internationally, you may want to choose a 3PL with multiple facilities in different countries. This will allow them to consolidate your shipments and pass the savings on to you.

4. Ask About Their Experience

When choosing a 3PL, be sure to ask about their experience shipping the types of products you sell. For example, if you sell perishable food items, you’ll want to ensure that your 3PL has experience shipping and storing these items.

In addition, ask about their experience shipping to your specific target markets. For example, if you ship to China, you’ll want to ensure that your 3PL has experience dealing with Chinese customs officials.

5. Make Sure They Have the Appropriate Permits

If you ship internationally, you’ll want to ensure that your 3PL has all the necessary permits. For example, your 3PL will need an import/export license if you ship to China.

You’ll also want to make sure that your 3PL has the appropriate permits for storing and shipping your specific products. For example, your 3PL will need a dangerous goods permit if you ship dangerous goods.

6. Check Their References

When choosing a 3PL, be sure to check their references. Ask their references about their experience working with the 3PL, and make sure that they were satisfied with the service.

In addition, ask the references if they would recommend the 3PL to others.

7. Get a Written Contract

Once you’ve chosen a 3PL, be sure to get a written contract. This contract should outline the terms of your agreement, and both parties should sign it. The contract should also outline the 3PL’s liability if something goes wrong with your shipment.

8. Make Sure They Have Insurance

When choosing a 3PL, make sure that they have insurance. This insurance should cover your shipment’s value in the event it is lost or damaged. In addition, the insurance should cover the cost of any delays that may occur.

9. Get a Trial Shipment

Before you commit to using a 3PL, be sure to get a trial shipment. This will allow you to test out the 3PL’s service and make sure that they can meet your needs.

If you’re satisfied with the trial shipment, you can start using the 3PL regularly.

The Bottomline

There are many factors to consider when choosing a 3PL provider beyond freight rates. These include the company’s reputation, experience, technology, and ability to meet your shipping needs.

When selecting a 3PL, you must consider your specific needs and find a provider that can offer a comprehensive solution. Don’t just choose the cheapest option – make sure you’re getting the best value for your money.

Your Logistics Corp is a reliable B2B logistics company that offers full-service warehousing and fulfillment. We ship from four strategically located State of the Art Fulfillment Centers in Las Vegas, Dallas, Lewisville and Hagerstown. Get in touch with us today to see how we can help your business.