Why And How To Choose A 3PL Provider?

 A 3PL (Third-Party Logistic) is an outsourced body that manages a company's supply chain and logistics activities. Simply described, 3PLs are companies that outsource their customers' inventory and fulfillment to third-party warehouses and distribution centers.

3PLs can best suit your particular demands by scaling and personalizing services. Depending on your requirements and goals, you may select how involved you want to be. 3PL can offer a single service or a package of services that cover several parts of your supply chain. Also, the finest third-party logistics providers contribute value by increasing your operational, financial, and end-customer performance.

Why Choose A 3PL Provider?

Many businesses choose to hire a third-party logistics provider to help them save money while also providing a better customer experience. This allows 3PL users to spend less time and money on coordination and logistics and more time and money on their business to develop.

According to the 2018 22nd Annual Third-Party Logistics Study, 73% of 3PL users and 92% of 3PL providers agree that 3PLs are capable of improving logistics efficiency and effectiveness, and 81% of 3PL users and 98% of 3PL providers say that 3PLs have contributed to improving customer service. Customers benefit from 3PLs because they provide speed and accuracy, the latest trends and technologies, and professional experience that many organizations lack on their own.

Working with a third-party logistics provider has various advantages. Here are a few examples:

1.   Money and Time Saving

Using a 3PL service can let you focus on your main business by minimizing or even removing the need to spend on warehouse space, technology, transportation, and staff to carry out logistics activities.

Working with a 3PL can save time by providing the skills needed to properly manage supply chain logistics.

2.   Industry Knowledge and Experience

Fulfillment, warehousing, and shipping all provide critical challenges.  When it comes to supply chain logistics, 3PL providers are professionals with years of knowledge and industry contacts to help consumers and simplify procedures.

Furthermore, 3PLs are frequently able to look into challenges that arise while shipping abroad. Documentation, customs, taxes, and different shipping procedures are examples of such challenges. Working with a third-party logistics service provider can also help you avoid the burden of having to follow foreign shipping regulations.

3.   Expand Business and Improve Flexibility

A 3PL provider allows a company to scale facilities, manpower, and transportation based on current inventory. They can also help with transitions between seasons and fluctuations in the market.

Businesses can use a third-party logistics provider to help them expand into new areas. 3PLs are always searching for ways to enhance supply chains, and they have the tools and technology to make changes that would be difficult for businesses to achieve on their own. To decrease inefficiencies, management software can monitor and assess supply chain activities. Third-party logistics providers enhance your logistics process on a regular basis, resulting in cost savings and increased efficiency in your logistical projects.

How To Choose A 3PL Provider?

There are several third-party logistics providers to select from, and deciding which one is best for your company is important. Remember that when you partner with a 3PL, you are adding an extension to your business, so pick wisely.

Here are the things to consider before choosing a 3PL provider:

1.   Proven Expertise and Strong Reputation

If you are going to entrust your logistical needs to a third party, you must be convinced that they will give you a dependable and competent service. First, check their experience in the areas and markets where you do business, look at customer case studies or ask for recommendations from their clients, then jump to your decision.

2.   Scalability

Most businesses opt to engage with a 3PL provider to improve efficiency or grow; in any case, your demands will change as your company grows and develops. This is why it's critical that you find a 3PL partner who is adaptable and flexible enough to help you as your business grows and demand increases. Talk to the 3PLs on your shortlist about your future needs to see whether they can 'grow with you.'

3.   Cutting-Edge Technology

Technology is always evolving, and you'll need a 3PL provider that is willing to embrace new ideas that can improve the efficiency and cost-effectiveness of your operations. Take the time to grasp their approach to continuous development and how they adapt to accept new technology, in addition to the day-to-day communication between your company and the 3PL.

4.   Customized Solution

Find a 3PL provider who works with their clients to create personalized solutions that are suited to their individual requirements.  A 3PL that understands your needs will become an extension of your company and a dependable partner that will assist your growth objectives, rather than just being a provider.

5.   Customer Service

The ability to immediately detect concerns and fix issues is the characteristic of a successful 3PL. Customers complained to 41.5% of companies that faced supply interruptions, and 36.1% lost revenue—that's where 3PLs could be beneficial. The ideal 3PL provider will give you business tools that make it simple to analyze cost savings, track items, and determine delivery timeframes.

 

Outsourcing to a 3PL provider requires trust, and finding a trustworthy 3PL service can be difficult but Sampark India Logistics will make it easy for you. We are a well-known 3PL Service Provider in India with experience of more than 8 years. Sampark India Logistics has received the “Best Logistics Service Providers of 2018-2019” Award by Promoting Achievement Foundation and the "Best Logistics Service Provider" Award at India Cargo Awards 2017.

For more inquiries, e-mail us at digital@silpl.com.