The right 3rd party logistics company will make your life easier when transporting merchandise. Understanding how to choose the right company to meet your needs is important. Here is how to go about choosing the right fit.
Many companies in the transporting and warehousing business often outsource to other 3rd party logistics. Enter 3PL companies, or TPL (Third-Party Logistics Providers). These companies are specialized in the service area they provide. They bring with them a rich network of resources and know how to optimize transport, logistics, and warehousing to get you great deals.
A Few Things to Keep In Mind
- Know what you want and what your needs are before you start your search.
- Rely on references, data, and hard facts when making your decisions.
- Do your research on current market trends in logistics, supply chains, and other areas where cost is involved.
How to Choose the Right 3PL for You
1. Research, research, and research
This is probably the most important step in all of this. Once you have identified your needs, and you know what you are looking for, it makes the search for the right 3rd party logistics company easier. You will know what to look for in potential companies, and what features on offer are just time wasters.
You will also be able to reach a decision sooner. Narrow your search to at least five reputable and experienced companies. Once you are happy with your top five, narrow it down further by doing extensive and detailed evaluations of them. More often than not, the winner will be evident after you have done a cross evaluation of your top five choices.
2. Proven Track Record & Excellent References
A good business will market itself. A 3rd party logistics company’s track record will be helpful when evaluating whether they could be a good fit for you or not. Talking to others who have used the company will help you get a sense of how the business operates. Do they respect time and payment schedules, and do they do what they promised to do?
In a business like logistics, you want to know that the company you will be working with is efficient and reliable.
Ask for references that you can follow up with as well. A good service provider will have happy clients.
3. Choose a company with rock solid financial stability
The last thing you want is to be set back because of someone else’s mismanagement. An easy way to avoid this is to do due diligence when researching these companies. Don’t skip asking about a company’s payment history. You want to work with a company that shows they are responsible and takes their work seriously.
Here at H.O. Wolding, Inc., we pride ourselves in the stellar work that we do. You’ll be hard-pressed to find a better 3rd party logistics company out there to serve you. Feel free to contact us for more information.