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Major Things to Keep in Mind While Looking Out for a 3PL Partner

3PL refers to the outsourcing of logistics processes, including warehousing, fulfillment, and inventory management. 3PL logistics companies assist e-Commerce merchants to achieve more, with the help of tools & infrastructure to activate retail order fulfillment automation.

When it comes to choosing a 3PL logistics company then you should act wise and smart. You need to check all the boxes on the list to make sure you have partnered with the right company otherwise you will not just lose your money but also the trust of your customers. We have come up with a list of all the important factors to consider while hiring a 3PL eCommerce fulfillment center for local small businesses:

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Must Define your Precise & Measurable KPIs

It’s hard to analyze something if you don’t have anything for comparison. So when hiring a 3PL logistics partner, ensure you have a set of defined and measurable KPIs. These KPIs will guide your 3PL in the right manner and also help you to track the efficiency of the third-party logistics company.

How will you set up KPIs? This is a simple task to do; time stamps, logs, and barcode scanning can be used for this. Apart from having KPIs in place, you should be able to track timely delivery independently. Don’t just depend on the 3PL logistics company’s reports rather ask for access to the delivery information for efficient tracking of their performance.

No Long-term Contracts

You should be aware that your 3PL company has an influence on the customer experience. So, you should have the freedom and flexibility to walk away when the quality of their service takes a downshift. What if your company grows or faces unpredictable events and your 3PL partner can’t manage the requirements.

This is why we suggest you go for monthly contracts with your 3PL logistics companies.