How to Pick a 3PL

How to Pick a 3PL

A high-performing third-party logistics provider can help you increase efficiency, control costs, and improve customer service.

Pick 3PL

How to Find a 3PL

5 Tips for finding a 3PL that suits your needs

  • Find them online, but take time to complete due diligence.

When you are looking for a good 3PL, the first thing you should do is review the suppliers serving your particular industry. The best way to achieve this is to do a Google search for “3PL (insert your industry)”. If you are a retail business, find a 3PL that serves retailers; e-commerce businesses – same thing, and so on, manufacturers, distribution centers, and more.
In the event, you find a 3PL on Google or another search engine, make sure you take the time to complete due diligence by checking out their experience, history, and references.

  • To verify their services.

The majority of 3PLs are quite diverse in terms of the services they offer. However, there are several 3PL providers who are specialists in individual industries or supply chain functions. Some of the most common service areas for 3PLs include:
Freight bill auditing
Transportation or freight management
Contract or public warehousing
Distribution management
Technology solutions
Cargo consolidation
We have a range of eCommerce fulfillment services that we offer to our customers. This includes product sourcing, packing and shipping, inventory storage, branding, and international distribution and shipping services. All of our services are provided with our excellent customer service and include integrations with your eCommerce platform which is updated in real-time.

At Honest FulPhilment, we have been providing our services to customers all over the world, for years. We have built strong relationships with many production companies in China along with a long list of international logistics partners. 

  • Check their certificates and references.

Once you have found a good third-party logistics company and verified that they provide the right service for you, the next step is to verify that they are licensed by the FMCSA to provide freight forwarding services. The organization that oversees freight logistics is the Federal Motor Carrier Safety Administration (FMCSA). There is a federal law that anyone who arranges paid transportation must have a federal property broker’s license; this is issued by the FMCSA.
With this certification, you should also verify that they maintain the correct insurance, bonding, and safety standards to complete the services you need on your behalf – and on ethical standards. The thing to remember about 3PLs is that they will be representing your company and your brand. So make sure you find a company that will represent you and has the correct certifications, licenses, and requirements.

  • Enquire about their claims and insurance procedures.

As a shipper and business owner, you understand the value of completing a personal interview – with anyone you plan to hire. 3PLs are not supposed to be different. As you narrow down your list of qualified candidates, you should ask each 3PL about their process for protecting your assets – such as filing insurance and freight claims. A professional 3PL always has a robust and easy-to-understand process for setting up insurance for your particular type of shipment and filing a claim in the event of damage. They should also spell out how they will avoid the need to file these inconvenient claims through the carrier.

  • Test their communication standards.

Several 3PL companies look very attractive online. As a matter of fact, many of them look very good outwardly. However, by going just a little deeper they can be problematic in the long run. The best and most qualified 3PL companies will be ethical, honest, open, and transparent. As such, make sure you ask them the questions you need to. They are there to allay your concerns and make you feel comfortable and confident in their abilities.

We don’t use translation tools! All support is in clear and concise English, from customer service agents and account managers who are qualified and knowledgeable in sourcing and logistics

What Makes a Good Logistics Company

Logistics companies act as intermediaries for your business, transferring products from one market to another. As such, they play a key role in your business. If they do their job correctly, you won’t notice them. If the job is done wrong, however, they have the power to bring your business to a standstill

So it is no wonder that finding the right logistics company can feel like an important and challenging task. Fortunately, you can make things easier by evaluating each potential supplier based on the five characteristics we’ve listed below.

A comprehensive professional network

The logistics and freight forwarding industry is based on relationships. People you know can really be the difference between success and failure.
There are several ways in which a network of suppliers helps. It enabled them to negotiate better prices, get through customs checks more efficiently, and solve problems at the source rather than thousands of miles away. With a weak network, on the other hand, delays and other shipping problems can result.

A real-time dashboard

The reality of tracking multiple shipments, however, can be time-consuming and confusing, especially for new companies just starting out in the international shipping process. If you’re not careful, it’s easy to end up with documents, reports, and invoices all over the place, never available when you need them. This is why it pays to work with a logistics or freight forwarding company that values technology.
With a good online tracking portal, you will have a wealth of information at your fingertips. Normally, this will include details of all shipments, records of key milestones, arrival dates, and customs documentation.

Honesst Fulphilment

Years of experience

If you’re a new company yourself, it’s even more important to work with an experienced team. They will help you overcome the terminological minefield surrounding the industry, distilling everything down to the salient information you need to act on – such as HS codes and customs documentation. They will also be able to advise on the best way to transport (air, rail, sea, or road) and how to structure your supply chain in the most efficient way.
So as attractive as one of the many new companies that have sprung up in the wake of the pandemic may seem, it is worth working with a logistics provider that has been in business for years.

Multiple modes of transport

There are many ways to ship your products internationally, each with its own advantages and disadvantages. While you may think you only need air or sea freight, it’s important to choose a carrier that offers multiple modes of transport. With a choice of transport options available, logistics companies have a contingency plan should things go wrong.

That will also ensure they have the ability to handle your needs in the future if you have a business of this scale.
Experience in providing multimodal transport solutions should also be sought.

Exceptional customer service

Honest FulPhilment solves all the traditional problems experienced with dropshipping and eCommerce for hundreds of store owners:

  • Long processing and shipping times
  • Irresponsible vendors, suppliers, and bad-quality products
  • Cheap packaging and misrepresented products

We exist for one reason – to solve your eCommerce woes in the most straightforward, hassle-free, and efficient way possible, whilst offering superb value.

Companies that Need Logistics Services

Top 10 industries that need a logistics company

  • Manufacturing and Distribution Industries
  • Retailers
  • Restaurants
  • Transportation Industry
  • Automotive Industry
  • Pharmaceutical Industry
  • Technology Industry
  • Retail Stores

Ways a 3PL Provider Can Transform Your Supply Chain

1. Finding the perfect transport method for every shipment

An experienced third-party logistics company will be able to pick the best solution for each shipment to assist you in saving money and getting your products to their destination in the most efficient manner.

2. Consolidating shipments & optimizing timelines

A good third-party logistics company will work with you to consolidate shipments within your organization or with another company that has complementary shipments. Consolidating shipments, adjusting schedules and occasionally re-routing shipments can reduce movements and considerably reduce costs and improve delivery times.

3. Optimizing delivery routes to drive efficiency

Third-party logistics companies routinely assess and optimize available routes and negotiate bulk rates with selected carriers. With visibility into the network and constant monitoring of every variable, they tailor the right solution for each unique shipment. In a word, you can save a great deal of time if you are flexible about transport modes, routes, and carriers.

4. Help you track and manage inventory in real-time

A good partner can assess your inventory requirements and storage methods and determine opportunities for efficiency and cost reduction. Do you manually store or report data? A 3PL partner provides the tools, processes, and procedures you need – instant, accurate inventory reporting, and measurable time savings.

5. Harnessing technology to automate processes

With the use of state-of-the-art software, it is possible for them to help you consolidate shipments and add transparency to your supply chain. For example, they can automate supply chain operations, especially if you ship across borders or use multiple modes of transport – all with end-to-end visibility.

3pl Partner Meaning

3PL Partner Meaning

If you’re expanding your e-commerce business, something you probably already know to be true, especially when it comes to logistics, shipping, and fulfillment. When you spend all your time negotiating shipping contracts or putting out fires, it’s hard to focus on marketing, product development, and relationship building. It is why companies turn to third-party logistics (3PL) providers to help. The 3PL market is also growing at a rapid pace as the e-commerce market grows at a rapid pace.

3PLs’ services are in high demand for a reason. These shipping and fulfillment specialists keep your inventory in their warehouses and pick, pack, and ship products to your customers.
Here’s what you need to know about finding and choosing the right supplier if you’re ready to work with a 3PL for the first time, or considering working with multiple 3PL partners to diversify and reduce risk.

If you require a 3PL partner for your business, as well as other eCommerce fulfillment services, get in touch with our team today.