• June 27, 2020
HOW TO CHOOSE THIRD-PARTY LOGISTICS (3PL) FOR YOUR BUSINESS
Kel Robinson

 

As a business owner, you must be familiar with teamwork.  According to the popular saying, ‘no man is an island.’ You might be able to manufacture goods to meet the needs of your target but might experience difficulty in delivery. In this case, you will need a third-party service that specializes in delivery to help you get it across to your customers. There are many reasons why a business would require third party logistics. These include helping out in inventory services, technological services, and much more.

Business owners now engage the use of third party logistics ( 3PL ) like Esson Solution to provide efficient Logistics or pickup and delivery services for their customers. However, some are not lucky in the selection process. Thus, there is a curiosity to know how to choose third party logistics for your business. This article would assist in highlighting factors, which you should consider when choosing a third-party logistics service. 

How to choose third party logistics (3PL) for your business

To choose the right third-party logistics service for your business, you must consider some relevant factors. Below are five factors to look out for as you choose third-party logistics for your business.

  • Value System

Everybody has a goal that they aim to achieve when starting a business. You too must have values that you follow. These values ensure that you will always adequately deliver the best services to your customers. Before you choose a third-party logistics, you must analyze their values to ensure that it aligns with yours. 

Deciding to partner with one that does not prioritize their customers would affect the relationship you have established with yours. And you might lose your customers as a result. Any third party logistics you desire to partner with must be accountable and have integrity as their watchword. With this, there would be no complaints from the customers and both parties would be happy.

Partnering with any third-party logistics is similar to choosing a friend. If you have a friend whose values are not in line with yours, there would always be clashes. And this would serve as a factor that sets you back. You must have worked hard to develop your business and would not want to encounter any difficulties or setbacks in your business. Therefore, ensure to partner with a third-party logistics service whose values align with yours.

  • Flexibility

Nothing is constant in life as change. And this is why you need to consider the flexibility of any third-party logistics before you decide to partner with them. Choosing a 3PL company should be a deliberate and conscious effort, not something that you rush to do. Ensure that you observe the logistics service and their response to change. Are they ready to make improvements from time to time? What has been their growth rate over the years? These are some of the questions that would assist you in knowing if they are flexible and would qualify as worthy partners.

As an entrepreneur, you cannot afford to be stagnant. This is because of the ever-changing choices and preferences of your customers. Thus, as you are susceptible to making changes, your third-party logistics partner should be as well. If they are people who are comfortable being in a stagnant position, then it would hinder you from growing. In turn, you would not be able to get desirable results. Your competitors will then have an advantage and this is something that you would not want to happen. Hence, choose a logistics service that is always open to making changes and improvements.

  • Reviews

There is always an iota of truth in every lie. Thus, you cannot afford to joke with the reviews that people make about any logistics service. No doubts, you have your circle of fellow business owners. Even though they might not be in the same line of products, their opinions count as much. Inasmuch as 3PL is a need for many businesses, your fellow entrepreneurs can offer insight into the work of the 3PL service.

Before you go ahead to make a choice, inquire, and carry out research. Ask your circle questions about any third-party logistics that you have in mind and hear their reviews. If the negatives surpass the positives, it means that there is something wrong. It also reveals a missing factor, which makes fall short of expectations. It would be risky to still choose a 3PL when you notice that the negatives are surplus. These steps to get the best 3PL applies to not only firms but works for individuals. Doing this would assist you in picking and making the right choice.

  • Financial Capacity

It might seem easy to overlook this factor when you are trying to choose a third-party logistics service. Yet, this is very significant in ensuring that you make the right choice. Knowing the financial capacity of any logistics you want to partner with will give insight into their stability. And then, you can tell if they are in for a long-term run. Clearly, it would be wrong to partner with any service that would shut down within months. This does not only leave you back at the initial process of having to find another partner. But it would also disrupt and destabilize your business.

Any third-party logistics service that does not have strong financial backing will not last. Ensure, to the best of your ability, that you check their records over the years. Then, you can see if they have been struggling or are doing well financially. It lies in your hands to carry out research to see and verify that they have been successful. Some people might say that this is selfish but it is essential in protecting your business. In reality, it is not wrong to ask for their financial records before you sign any partnership deal. And if they refuse to provide the records, then it probably means they are hiding something.

  • Customer Service

The reason for your business is your customers. And that is why you should always ensure that whatever you do would please and satisfy them. However, it could be that you are doing the right thing but your partners are rude and uncouth to the customers. In such situations, the customers would not care that you were not the direct person who acted inappropriately. Instead, they would use the behavior of the logistics company to judge your business. Any third-party logistics that you choose should always be customer-centric. They should always be well cultured when addressing the customers and place the priority of the customers on a high pedestal. If this does not happen, it would adversely affect your business.

You would do well to understand that once you partner with any third-party logistics, people would classify both parties as one. An individual would always prefer to patronize any business that treats its customers like royalty. While you are doing the right thing, ensure that your partners do the same. Observe them over a while to analyze their customer service so that you can make the right choice.

Bottom Line

The art of owning a business is as old as mankind but it has evolved as the years go by.  What is certain is the fact that business owners are always striving for the best. This attribute ensures the business remains afloat and maintain a competitive edge. In that line, choosing the right third-party logistics is essential to your business’ success. And you will not go out of line if you follow the factors highlighted above.

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