How to Select the Best 3PL Service Provider As A Partner?

For a majority of the companies, the idea of partnering with a third party logistics service provider might be overwhelming. This is simply because there are several options to choose from.

Specifics to follow to get a right 3PL service provider as a partner:

>Consider Getting Some outside Help
You understand the logistics operation of your organization better than anybody else. However, you might not have an idea about how the 3PL service provider will help your organization and its profitability. If you get some outside help while choosing the 3PL service provider, it will help in simplifying the process. This will enable you to reduce time constraints. You need to look for someone who has enough knowledge about 3PL as they will be able to demonstrate the experience with a wide scope of providers and operations.

>Define a Comprehensible Process of Interfacing with Prospective 3PLs
One of the primary reasons of frustrations for people who try to evaluate the 3PL shipping is that there is no defined process most of the time.  Nobody has a clear idea about what results are to be expected and what is in order. However, if you have an idea about your own requirements by having a checklist then collect the data and get to know what you have to look for in a certain contract.

>Consider At Least Three 3PL
Without or with external assistance, you can try advanced research of the prospective 3PL service providers that cater to your requirements. You need to do a detailed evaluation of the company that you have chosen. If you are not completely satisfied with the end results, modify the procedure and start investigating the others. However, if you try to evaluate more than three 3PL service providers, it might prove to be greatly demanding.

>Keep an Internal 3PL Evaluation Team
The internal 3PL team should consist of information technology, supply chain logistics, finance, marketing, and purchasing department. If you do this, you will have a corporate-wide buy for your decision. This also displays the impact that logistics have on the larger businesses and gives an insight which will increase the value of dollars in the final agreement.

>Make a Mutual Non-Disclosure Agreement
You need to have a mutual and enforceable non-disclosure agreement before the formal meeting starts with the 3PL service providers. For this, you can ask the legal department to help you out. It is important to execute the agreement prior to initiating the development of the value proposition.

>Financial Stability
If the 3PL service provider suddenly falls apart then it might be devastating for the company. Thus, you need to find a 3pl partner that has financial stability.
20Cube Logistics is a new age technology-enabled logistics service provider and have specialization for retail, automotive, chemical and home appliances sector.
3PL is not a one-size fit organization and like all other business, 3PLs also have certain specialization areas. You require to find out the right 3PL service provider for your current requirement.