{"id":11781,"date":"2021-02-18T12:46:09","date_gmt":"2021-02-18T20:46:09","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=11781"},"modified":"2021-02-18T12:46:09","modified_gmt":"2021-02-18T20:46:09","slug":"tips-for-choosing-a-3pl-provider","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/3pl\/tips-for-choosing-a-3pl-provider\/","title":{"rendered":"6 Tips for Choosing a 3PL Provider"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">6 Tips for Choosing a 3PL Provider<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you run an ecommerce business and find yourself <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/fulfillment\/time-to-outsource-fulfillment\/\"><span style=\"font-weight: 400;\">drowning in order fulfillment tasks or burdened by logistics demands<\/span><\/a><span style=\"font-weight: 400;\">, you might want to consider partnering with a <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/3pl\/guide-third-party-logistics-3pl-fulfillment-providers\/\"><span style=\"font-weight: 400;\">third-party logistics provider (3PL)<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A 3PL is a company that provides expert <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/supply-chain\/supply-chain-efficiency\/\"><span style=\"font-weight: 400;\">supply chain solutions<\/span><\/a><span style=\"font-weight: 400;\"> that fit the needs of your business. The biggest benefit of <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/fulfillment\/outsourcing-order-fulfillment-guide\/\"><span style=\"font-weight: 400;\">outsourcing logistics<\/span><\/a><span style=\"font-weight: 400;\"> is the ability to\u00a0 allocate company resources most efficiently\u2014that means your 3PL handles all-things logistics, and your time can be spent on sales, marketing, fundraising, manufacturing, or product development. That doesn\u2019t mean, though, that you should blindly partner with the first 3PL you come across, particularly since a logistics provider typically has direct contact with your customer base. Outsourcing logistics support provides many benefits, but there are some key things to consider about how to <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/3pl\/choosing-3pl\/\"><span style=\"font-weight: 400;\">choose the right 3PL<\/span><\/a><span style=\"font-weight: 400;\"> for your business. Here are our top six tips for finding the right third-party logistics provider.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Understand Your Current Needs But Also Plan For the Future<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you only focus on what you need today, you\u2019ll likely be back to the drawing board a few years down the line. Save time later by choosing a 3PL that can scale as your requirements grow. Similarly, there are some services that you may not need, for example, if you have no intention of ever outsourcing returns processing, you could choose a provider that doesn\u2019t offer this option. Here are some of the services you may need to consider when researching different 3PLs:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Storage: Storing your goods for a period of time. There are different kinds of storage depending on the commodity, so check potential suppliers can offer the right storage for your product.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cross-docking: Goods are stored while waiting for other shipments for the same order before they are consolidated and prepared for delivery.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Palletizing: Placing your goods onto pallets for easier handling and storage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sorting: Organizing goods by set groupings, e.g. Stock Keeping Unit (SKU)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Labelling: Ensuring packaging is labelled correctly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pick and pack: Receiving orders, retrieving the products and packing for outbound shipment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Onward Distribution: Shipping your order to you or your customer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Repacking: Sometimes, goods arrive in packaging that isn\u2019t suitable for delivery. Warehouses offering this service will receive your items along with replacement packaging and repackage accordingly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ticketing: Picking different items and applying a ticket (possibly that of a retailer) to the item based on a set of instructions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Order fulfillment: Receiving orders from a customer and fulfilling it accordingly.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Returns management: Receiving and properly handling returned goods on your behalf.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Understand Your Technology Requirements<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Establishing your technology requirements is critical when choosing a 3PL. How do you want to communicate with your provider? You could need regular inventory updates by SKU, or you may need them to receive orders directly from your website for processing in real time. Ask each potential 3PL about their warehouse management system (WMS), so you have a thorough understanding of its capabilities and future roadmap. What integrations already exist? Can it work with your shopping basket software? Does it work with specific marketplaces such as Amazon for example?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Be Clear On Your Budget<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However you decide to store goods, fulfill, and distribute orders or manage your returns; it will have an impact on your profit margins and bottom line. It\u2019s therefore vital you are clear on what services you need and what budget you have for these services before you speak with the 3PLs you are considering. This way, you\u2019ll be clear on which options offer a viable solution.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Define KPIs\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Develop a set of highly descriptive <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/Inventory\/key-performance-indicators\/\"><span style=\"font-weight: 400;\">key performance indicators (KPIs)<\/span><\/a><span style=\"font-weight: 400;\"> that include precise times, quantities, and other numerical measurements so that your team and your 3PL are both striving to accomplish the same goals. Being clear on your current and future business requirements is an important step in partnering with a 3PL.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Location Matters<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The preferred location for your outsourced fulfillment may dictate which suppliers you consider. While it may be possible to fulfill your orders from one warehouse, cost and time may dictate that two or more facilities would be suited to your needs. Considering your entire supply chain will help you determine where your warehouses would be ideally located. The <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/3pl\/3pl-location\/\"><span style=\"font-weight: 400;\">location of your 3PL partner<\/span><\/a><span style=\"font-weight: 400;\">, and their fulfillment centers, should suit your overall distribution plan\u2014it\u2019s important that they are close to your high consumption area. The closer you are to your partner,\u00a0 the easier it will be for you to manage them and work together. The closer your products are to your customers, the more efficiently you\u2019ll be able to ship to your customers.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"5\">\n<li><span style=\"font-weight: 400;\"> Visit the 3PLs Warehouse<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">When considering outsourcing fulfillment, nothing can beat visiting the warehouse yourself to assess the standard of facilities and see their working practices in action. A professional looking website can hide a multitude of sins, so don\u2019t skip the step of inspecting the warehouse just because you\u2019re impressed with the quote and sales material, visit in person before signing on the dotted line. Look out for how employees work and interact, ask questions about processes such as storage, fulfillment, security and health and safety, meet the staff and look out for evidence of excellent communication. If you\u2019re not sure what you should be asking your potential suppliers, here are a few sample questions:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What type of racking and storage is available for?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are your standard operating hours? How do holiday periods\/ bank holidays affect these hours?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What warehouse management systems can you integrate with?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you provide any value-added services?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is the average turnaround time for an order?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is your courier policy?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are there any commodities not able to be serviced at this location?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are your security procedures?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you work with specific marketplaces such as Amazon or Shopify?<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Choosing the right 3PL partner is vital and can have a significant impact on your company\u2019s success so consider the tips above when choosing your 3PL to make sure your relationship is a good one from day one. Making the best decision will mean weighing many pros and cons, but choosing the right 3PL for your brand will improve your business processes and help your company grow.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you are considering partnering with a third-party logistics provider we would love to hear from you. <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/company\/get-started\"><span style=\"font-weight: 400;\">Send us a note<\/span><\/a><span style=\"font-weight: 400;\"> to connect about how DCL Logistics can help your company. You can read <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/services\"><span style=\"font-weight: 400;\">DCL\u2019s list of services<\/span><\/a><span style=\"font-weight: 400;\"> to learn more, or check out <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/resources\/integrations\/\"><span style=\"font-weight: 400;\">the many companies we work with<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>6 Tips for Choosing a 3PL Provider If you run an ecommerce business and find yourself drowning in order fulfillment tasks or burdened by logistics demands, you might want to consider partnering with a third-party logistics provider (3PL).\u00a0 A 3PL is a company that provides expert supply chain solutions that fit the needs of your [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-11781","post","type-post","status-publish","format-standard","hentry","category-3pl"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>6 Tips for Choosing a 3PL Provider - DCL Logistics<\/title>\n<meta name=\"description\" content=\"There are some key things to consider about how to choose the right 3PL for your business. Here are our top six tips for finding the right 3PL.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"6 Tips for Choosing a 3PL Provider - DCL Logistics\" \/>\n<meta property=\"og:description\" content=\"There are some key things to consider about how to choose the right 3PL for your business. 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