3PL SELECTION IS A PROCESS THAT IS BALANCED IF DONE CORRECTLY
Deciding to outsource your logistics services can be a major undertaking. But once that is decided, determining your outsourced partner can quickly validate your decision internally. However, the selection process can be drilling. Yet finding the right partner that fits with your needs and your organizational culture is key to successfully implementing your decision.
There are many 3PL organizations within the industry and each have specialties and core capabilities that make them competent. But not every 3PL will provide you exactly what you need and it is up to you to ensure you are selecting the right organization. So, there are so many options. How do you pick?
There is a process that you need to go through. Determining a timeline and a listing of needs will help you start that process. With an internal cross functional team, you can then begin to review 3PL candidates and evaluate company alignment.
There are 10 major areas that will help you to determine exactly which 3PL will work for you.
1 – BUSINESS ALIGNMENT AND QUALIFICATIONS
2 – SERVICE CAPABILITIES
3 – TECHNOLOGY
4 – RESOURCES
5 – WAREHOUSE OPERATIONS
6 – TRANSPORTATION OPERATIONS
7 – COMMUNICATION
8 – COMPLIANCE
9 – PERFORMANCE
10 – PRICING
Specific questions under each of these will give you a checklist that will qualify each 3PL and will they align with the needs of your organization now and in the future. While this process can take a while it’s so important to take the time evaluating your options. It’s not easy changing 3PL partners, moving inventory and starting the process over again. So, spending the time through a defined process can eliminate issues in the future. Use our 3PL CHECKLIST to help you along your way.