8 Key Consideration When Choosing A 3PL Partner

No matter what, but optimizing the efficiency, reducing the operating cost, and improving the safety of men & materials in warehouses is a key priority for every warehouse manager.

Do you know a 3PL, third-party logistics provides help your business by providing expertise and best practices, integrating into your existing supply chain for better results? But choosing the right 3PL logistics company can be tough, so keep in the mind these 8 factors:

Seek expert’s advice

Only you can understand your logistics operations better than anyone else, but you may not know completely what a 3PL association can serve your operation, and to its profitability. Seeking experts help when choosing a 3rd Party Logistics might simplify the process, and decrease staff and time commitment.

Define a clear process for interfacing with potential 3PLs

One of the biggest disappointments listed by individuals who strive to evaluate third-party logistics providers is that frequently, no defined process exists. Nobody is apparent as to what results are demanded and in what order. However, if you understand your own needs using that handy checklist, collect your data, and know what to see for in a contract, you can have a good start.

Consider not more than 3PLs

With or without external support, conduct high-level research on potential 3PLs that meet your requirements and do a thorough evaluation of only those entities. If you are unhappy with the end result, you can transform the process and review others, but trying to assess more than three 3PLs thoroughly will prove much demanding.

Don’t use an RFP

An RFP restricts you to functional costs. A good 3PL relationship should result in a quantifiable value significantly more exciting than any RFP can identify.

Set up an internal 3PL evaluation team

This team must involve a description from the supply chain/logistics, sales/marketing, purchasing, information technology, and finance departments. Doing this guarantees corporate-wide buy-in for your final decision.

Create an enforceable, mutual non-disclosure agreement

Do this before beginning formal meetings with your third-party logistics provider applicants; ask your legal staff to help. Execute this agreement before you begin the development of a value proposition.

Payment history & financial stability

Having your 3PL quickly fall apart could be one of the several devastating difficulties your company faces. Looking for a partner that has demonstrated their financial stability will at least keep your operations from being delivered to a screeching end as you attempt to rescue from someone else's mismanagement.

Proven track record

Going beyond the investments of a potential logistics provider, what is their overall track record like? Are they recognized for being a state of the art company? Do they have various long-term clients?

As a service-oriented business, the reliability of a logistics provider will speak masses as to the performance and loyalty that you can expect.


If you’re looking for one such company, then Total Freight International (TFI) is an ideal choice- a renowned 3PL partner that can assist you with all the logistics challenges at www.tfiworld.com/3pllogistics