How to Choose a Third Party Logistics Company to Help You Focus on Developing Your Core Business?

How to Choose a Third Party Logistics Company to Help You Focus on Developing Your Core Business?

2022-11-25 13:58:17

1. The definition of the third party logistics company

A third party logistics company (3PL) manages a company's logistics and supply chain services, including transportation, warehousing, inventory management, material procurement, freight tracking, customs declaration, order fulfillment, and freight check. Cooperating with a third-party logistics company can minimize total logistics costs, save warehouse space, and bring greater flexibility, allowing your company to focus on its core business.


2. How to choose a professional 3PL company?

(1) How long has the 3PL company been in business?

A mature company is invincible in the ups and downs of the market and has established a network of contacts in the industry. Their infrastructure and experience can provide you with better services.


(2) Can they provide customized solutions?

3PL has standard delivery, packaging and transportation methods, but you can always check whether 3PL can customize it according to your requirements or business development. Arrangements such as labeling, quality inspection, addition of leaflets, and custom packaging can give companies more flexibility, especially to build a better corporate image for smaller companies. For larger companies, best 3PL companies will coordinate all aspects of the supply chain.


(3) Are they reliable?

Ask the 3PL company whether they will provide any guaranteed delivery time and penalties for overdue handling, especially during peak sales periods.  The 3PL company's performance is measured by the return rate caused by transportation damage, the quality and accuracy of transportation services, and timely delivery to provide the highest efficiency, etc.


(4) Do they have strong IT systems?

It is very important to choose a supplier who can use the supply chain management system to simplify the process, which helps to use the system to process sales orders synchronously, improve accuracy, and ensure data security. A powerful partner can improve your company's business capabilities and upgrade your company's digital intelligence.

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