No doubt, taking things out of the house can be scary at first, but a third-party logistics company can greatly affect your customers’ perceptions as well as your company’s growth. A successful partnership will make a huge difference. Choosing the wrong provider, however, will have its consequences.
With decades of experience, we’ve run into all types of different customers—but many of them have the same concerns. So, to help ease everything along and put some of the more frequent worries to rest, here are 8 3PL secrets that companies want you to know.
Each offers a different focus, yet they work together harmoniously. 3PL companies are transactional. They manage shipping and receiving, distribution, warehousing, and transportation. In other words, they forward freight across the country and provide shipping responsibility. After building trust, 3PLs can evolve into 4PLs.
On the other hand, 4PL companies are directive. Their services encompass the entire supply chain process, and they act as a single point of contact. Essentially, a 4PL provider manages multiple 3PL providers on your behalf. This type of provider oversees your goods throughout the chain and helps ensure that everything is moving efficiently.
Always consider more than just the price. Decades of knowledge can cost a pretty penny, but it’s vital for your growth and overall reputation. A cohesive customer experience can make a world of difference, no matter if you own a small or large business. Truth be told, customers won’t leave room for errors, making it hard to recover if there are bottlenecks in the shipping process. In fact, errors from inexperienced companies may end up costing you more; they may not select the right carriers, or they may not have insurance. To avoid these setbacks, make sure you work with an experienced provider. Experienced companies will monitor performance and assist in choosing cost-effective services, which leads us to the next point.
When you outsource, you don’t have to waste time, resources, and money on warehouse management. Professional 3PL companies have the connections needed to provide outstanding service, and their proficiency—as well as their efficiency—will save you more money in the long run. You’ll also generate more money from good inventory forecasting.
In addition to saving you money, a 3PL provider will also save you time. Taking on the job yourself might result in delays.
Not all providers are the same. This sounds like common sense, but you have to know exactly what you are looking for before investing in 3PL services. This also means looking into the future of your company. Your company is certain to experience growth, so opt for a provider who can accommodate and manage your expected shipping volumes. You are also likely to utilize the latest technology to improve business, so hire a company that will do the same.
If a potential company can’t supply what your company needs, this can lead to issues down the road. Entering into an agreement is serious, so choose your 3PL provider carefully.
No matter the industry you work in, your needs are going to vary. While larger companies utilize 3PLs for efficiency, smaller companies are certain to become overwhelmed with demand for products as well. Packaging and shipping are time-consuming, and you might not have the space needed to store products. With continued growth comes more obstacles, so partner with a 3PL provider for help. A suitable company will easily adjust to the evolving framework of your organization. This way, you can devote more time to other areas of your business.
So, you want to expand your customer base. In today’s world, it’s essential to keep up with your competitors by “going global.” A 3PL provider manages documentation, customs, and other international duties that often pose challenges when companies try to go beyond their country’s borders. This may seem expensive at first, but the benefits of international fulfillment outweigh the costs over time. It also might seem overwhelming to take this leap and go overseas but have comfort in the fact that worldwide sales are increasing exponentially over the years.
Don’t limit yourself—just be sure to speak with a provider first to see if they’ll take care of global fulfillment for you.
Handling logistics on your own can be a time-consuming struggle, especially when business is booming. Thankfully, a 3PL provider will take care of logistics for you, so you can focus on the core of your business. As such, the company you choose should be a natural extension of your shipping department. At DTS, we offer a wide range of shipping services that make order fulfillment and tracking simple. We love performing data analysis to show clients cost efficiencies. We want to maximize the return of value as much as possible, which is why we keep you informed every step of the way. We also want to keep your customers happy, providing them with great service to help ensure trust and long-term satisfaction.
It may be easy to just let a provider do all the work for you, but don’t be afraid to ask if you need something. Understandably, you’ll want the most from your provider, so before you choose, do your research.
What is their growth history like?
How many warehouses do they operate?
Do they have customer references?
Failing to ask questions could cost you.
With a 28-year track record, DTS services the United States and Canada. When it comes to our practices, we are honest and ethical. It is our mission to help reduce your costs, offer multiple options, and provide exceptional service.
Contact us today for more information and to get started. With just one call, we educate you, so you can make the best investments toward your business.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.
